ATS Corporation (TSE:ATS)
TSX:ATS
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ATS Corporation
(TSX:ATS)
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Rating:60Neutral
Price Target:
C$47.00
▲(4.89% Upside)
Action:ReiteratedDate:02/06/26
The score is driven by steady growth and solid cash generation, plus a largely constructive earnings update with strong backlog and improved adjusted profitability. These positives are tempered by very weak reported profitability/returns and an expensive valuation (very high P/E), while technical indicators are broadly neutral.
Positive Factors
Backlog & Demand Coverage
A $2.1B backlog and >1.0 book-to-bill provide durable revenue visibility across multiple quarters, smoothing revenue recognition for a project-centric business. That backlog supports capacity planning and helps sustain revenue even if near-term bookings fluctuate, reducing short-term cyclical exposure.
Negative Factors
Very Thin Reported Profitability
Sub-1% net margin and low EBIT margin indicate limited buffer for cost shocks and weak returns on capital. For an engineering/project business, thin profitability constrains reinvestment, reduces headroom for bidding activity, and amplifies the impact of execution issues or project overruns on shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog & Demand Coverage
A $2.1B backlog and >1.0 book-to-bill provide durable revenue visibility across multiple quarters, smoothing revenue recognition for a project-centric business. That backlog supports capacity planning and helps sustain revenue even if near-term bookings fluctuate, reducing short-term cyclical exposure.
Read all positive factors
ATS Corporation (ATS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.43B
Dividend YieldN/A
Average Volume (3M)190.89K
Price to Earnings (P/E)31.0
Beta (1Y)1.39
Revenue Growth1.80%
EPS Growth-79.55%
CountryCA
Employees7,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.48
Shares Outstanding98,059,830
10 Day Avg. Volume163,690
30 Day Avg. Volume190,888
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)2.66
Price to Sales (P/S)1.47
P/FCF Ratio-66.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$47.81Price Target Upside6.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.12
Revenue Forecast (FY)C$3.09B
ATS Corporation Business Overview & Revenue Model
Company Description
ATS Corporation, together with its subsidiaries, provides automation solutions worldwide. The company is also involved in the planning, designing, building, commissioning, and servicing automated manufacturing and assembly systems, including autom...
How the Company Makes Money
ATS makes money primarily by selling engineered-to-order automation solutions and by providing recurring services that support those solutions over their operating life.
1) Custom automation systems (project-based revenue): The largest driver of ...
ATS Corporation Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call highlights solid top-line growth, strong adjusted operating earnings expansion (+21.6% YoY), a healthy $2.1 billion backlog (Life Sciences and Energy strength), positive operating cash flow, and disciplined capital allocation plans under new leadership. Offsetting items include gross margin compression (111 bps), year-over-year bookings decline (–7%), ongoing Transportation weakness, elevated SG&A and restructuring costs (program increased to ~$20M), and working capital still above target. Management emphasized margin expansion via ABM, aftermarket growth and disciplined M&A, and embedded services to improve recurring margins. Overall, the positive operational momentum, robust backlog and profitability gains materially outweigh the mix-related margin pressure and short-term execution/timing headwinds.Positive Updates
Revenue Growth
Q3 revenues of $761 million, up 16.7% year-over-year (organic growth ~12.6% and ~4.1% benefit from FX). Year-to-date revenue growth of 13.6% (approx. 8% organic).
Negative Updates
Gross Margin Compression
Gross margin of 29.6% in Q3, a decline of 111 basis points year-over-year, primarily attributable to program mix and timing (lower-margin programs like certain nuclear work weighed on margins).
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Q3 revenues of $761 million, up 16.7% year-over-year (organic growth ~12.6% and ~4.1% benefit from FX). Year-to-date revenue growth of 13.6% (approx. 8% organic).
Read all positive updates
Company Guidance
Management guided Q4 revenue of $710–$750 million and reiterated fiscal‑2026 CapEx & intangible spend of $70–$90 million (Q3 spend $16.6m), while increasing the announced restructuring to ~ $20 million (Q3 charge $5.5m) with some savings to be reinvested into growth in FY‑27; net debt/adjusted EBITDA was ~3.0x (target 2–3x), trailing‑12‑month book‑to‑bill 1.06:1, and non‑cash working capital improved to 16.4% of revenues (goal <15%). Key Q3 metrics cited: order bookings $821m (down 7% YoY, up ~12% sequentially), revenues $761m (up 16.7% YoY; 12.6% organic, +4.1% FX), order backlog ≈ $2.1bn (Life Sciences $1.1bn; Food & Beverage $203m; Energy $296m, +87% YoY; Consumer $321m), adjusted earnings from operations ~$80m (adjusted EPS $0.48), gross margin 29.6% (down 111 bps YoY), and operating cash flow $115m YTD with revenue growth YTD 13.6% (≈8% organic) and adjusted earnings from operations up 14% YTD.ATS Corporation Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.80B | 2.53B | 2.58B | 2.18B | 1.43B | 1.43B |
| Gross Profit | 724.51M | 646.65M | 725.81M | 612.43M | 384.26M | 362.13M |
| EBITDA | 227.56M | 167.97M | 349.94M | 302.54M | 192.15M | 169.08M |
| Net Income | 18.88M | -28.05M | 127.43M | 122.10M | 64.09M | 52.90M |
Balance Sheet | ||||||
| Total Assets | 4.48B | 4.62B | 3.54B | 3.07B | 2.20B | 2.10B |
| Cash, Cash Equivalents and Short-Term Investments | 263.09M | 225.95M | 159.87M | 135.28M | 187.47M | 358.64M |
| Total Debt | 1.59B | 1.70B | 1.26B | 1.10B | 504.78M | 665.58M |
| Total Liabilities | 2.70B | 2.91B | 2.41B | 2.08B | 1.28B | 1.23B |
| Stockholders Equity | 1.78B | 1.71B | 1.13B | 981.60M | 895.26M | 868.23M |
Cash Flow | ||||||
| Free Cash Flow | 278.78M | -52.26M | 47.50M | 162.90M | 153.59M | -36.22M |
| Operating Cash Flow | 338.21M | 25.77M | 127.80M | 216.16M | 185.16M | 20.35M |
| Investing Cash Flow | -75.74M | -268.44M | -109.02M | -797.47M | -88.13M | -109.80M |
| Financing Cash Flow | -264.95M | 290.28M | 4.88M | 531.53M | -259.12M | 222.31M |
ATS Corporation Technical Analysis
Positive
44.81
Price Trends
41.92
Positive
40.26
Positive
39.50
Positive
Market Momentum
0.59
Negative
62.15
Neutral
79.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATS, the sentiment is Positive. The current price of 44.81 is above the 20-day moving average (MA) of 41.30, above the 50-day MA of 41.92, and above the 200-day MA of 39.50, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 62.15 is Neutral, neither overbought nor oversold. The STOCH value of 79.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ATS.
ATS Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$2.16B | 23.68 | 10.22% | 2.35% | 5.27% | 41.01% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$1.35B | -10.77 | -14.67% | ― | 44.52% | 71.45% | |
60 Neutral | C$4.43B | 30.95 | 1.09% | ― | 1.80% | -79.55% | |
47 Neutral | C$83.68M | -2.79 | 161.82% | ― | -19.68% | -106.23% | |
47 Neutral | C$329.40M | 23.33 | 41.08% | 3.06% | -17.37% | 51.83% | |
46 Neutral | C$81.33M | -4.20 | -2067.79% | ― | -59.80% | 10.13% |
* Industrials Sector Average
TSE:ATS
ATS Corporation
45.17
9.84
27.85%
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ATS Corporation Corporate Events
Business Operations and Strategy
ATS to Engage Investors at TD Cowen Industrials and Infrastructure Conference
Positive
Mar 10, 2026
ATS Corporation, a leading provider of advanced manufacturing automation systems and services, will be represented by Chief Executive Officer Doug Wright and Interim Chief Financial Officer Anne Cybulski at the TD Cowen Distinctive Industrials and...
Business Operations and Strategy
ATS to Showcase Automation Business at Raymond James Investor Conference
Positive
Feb 18, 2026
ATS Corporation said Chief Executive Officer Doug Wright and Interim Chief Financial Officer Anne Cybulski will take part in the Raymond James Institutional Investors Conference in Orlando, Florida, on March 3, 2026. The company will host a firesi...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
ATS Delivers Strong Q3 Earnings Growth Amid Mixed Orders and Leadership Changes
Positive
Feb 4, 2026
ATS Corporation reported strong third-quarter fiscal 2026 results, with revenue up 16.7% year over year to $760.7 million and net income jumping to $30.0 million from $6.5 million, driven largely by 12.6% organic revenue growth and increased servi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.