ATS Corporation (ATS) AI Stock Analysis

• Market Cap: C$4.31B
• Dividend Yield: N/A
• Average Volume (3M): 190.89K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.66
• Revenue Growth: -5.59%
• EPS Growth: -104.09%
• Country: CA
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.48
• Shares Outstanding: 98,059,830
• 10 Day Avg. Volume: 163,690
• 30 Day Avg. Volume: 190,888
• PEG Ratio: 0.54
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 1.47
• P/FCF Ratio: -66.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$49.15
• Price Target Upside: 11.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.77
• Revenue Forecast (FY): C$2.96B

• Rating: 60 Neutral
• Price Target: C$47.00 ▲(6.94% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 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

Recurring aftermarket & validation services

ATS’s installed-base services and regulated‑industry validation offerings create recurring, higher‑margin revenue streams that smooth project cyclicality. Over 2–6 months this improves revenue predictability, supports customer stickiness, and boosts lifetime client value versus pure project sales.

Strong operating cash flow and positive FCF

Consistent operating cash flow and material FCF growth provide durable funding for capex, working‑capital normalization, debt reduction, or targeted M&A. Strong cash conversion over trailing periods increases financial flexibility and reduces reliance on external financing for strategic investments.

Robust backlog and book‑to‑bill with life sciences strength

A ~$2.1bn backlog and book‑to‑bill above 1 driven by a $1.1bn life‑sciences backlog provide multi‑quarter revenue visibility. High‑quality, regulated life‑sciences demand supports sustained project pipelines, recurring services, and reduced near‑term revenue volatility versus pure cyclical markets.

Negative Factors

Very thin reported profitability and returns

Sub‑3% operating margins and near‑zero net margins limit reinvestment capacity and resilience to cost shocks. Low ROE indicates weak capital efficiency, constraining long‑term shareholder returns and making margin expansion or investment programs dependent on sustained structural improvements.

Elevated leverage and debt trending higher

Debt near 0.9x equity and net leverage around 3.0x reduces strategic flexibility. Sustained higher leverage increases interest exposure and limits ability to pursue large M&A or absorb cyclical downturns without further balance‑sheet action, making capital allocation choices more constrained.

Margin pressure, bookings volatility and elevated costs

Mix‑driven margin compression, YoY bookings declines and higher SG&A plus a larger restructuring program point to execution and cost‑structure risks. These factors undermine sustainable margin recovery, increase earnings volatility, and may delay durable improvements in operating leverage and cash conversion.

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 automation products and test solutions. It offers enterprise solutions in the areas of project management; partners/suppliers/vendors team selection and coordination; facility layouts and operational design; business case development and project justification; post project service, spare parts, and support; and system design, built, integration, commissioning, validation, training and start up. In addition, the company offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modelling; post automation services, including training, process optimization, preventative maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services. Further, it provides engineering design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation products/platforms, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and documentation services. The company serves life sciences, transportation, consumer products, food and beverage, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.

How the Company Makes Money

ATS generates revenue through multiple streams, primarily from the sale of automated manufacturing systems and equipment. The company's revenue model includes direct sales of custom automation solutions, which are tailored to meet the specific needs of various industries. Additionally, ATS earns income from ongoing maintenance and support services, which provide recurring revenue opportunities. Strategic partnerships with key technology providers and industry leaders enhance its market presence and facilitate access to new customer segments. The company also benefits from long-term contracts with clients, ensuring a stable revenue flow over time.

ATS Corporation Financial Statement Overview

Summary

Mixed fundamentals: steady TTM revenue growth (~4%) and solid gross margin (~26%) with strong TTM operating cash flow and positive free cash flow (FCF up ~26%). Offsetting this, profitability is weak (TTM net margin ~0.7%, EBIT margin ~2.9%, ROE ~1.1%) and annual results show volatility, while leverage has trended higher (debt ~0.90x equity).

Income Statement

TTM (Trailing-Twelve-Months) revenue is up about 4%, showing continued top-line growth, and gross margin remains solid at ~26%. However, profitability is the key weakness: net margin is very thin (~0.7%) and EBIT margin is modest (~2.9%), indicating recent cost pressure and weaker operating leverage versus prior years. Annual results also show volatility (including a loss in the latest annual period provided), which lowers confidence in earnings consistency.

Balance Sheet

Leverage looks manageable with debt at ~0.90x equity in TTM (Trailing-Twelve-Months), and equity is sizable relative to the asset base. That said, debt has trended higher versus earlier years, and returns to shareholders have compressed sharply in TTM (Trailing-Twelve-Months) (ROE ~1.1%), suggesting the balance sheet is supporting a business currently generating weaker profitability.

Cash Flow

Cash generation is a relative bright spot in TTM (Trailing-Twelve-Months): operating cash flow is strong and free cash flow is meaningfully positive, with free cash flow growth up ~26%. Still, cash conversion versus accounting earnings is not especially strong in TTM (Trailing-Twelve-Months) (free cash flow is below net income), and the annual data shows recent volatility (including negative free cash flow in the latest annual period provided), which is a risk if it persists.

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

• Technical Analysis Sentiment: Positive
• Last Price: 43.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 43.95 is above the 20-day moving average (MA) of 42.77, above the 50-day MA of 40.92, and above the 200-day MA of 39.47, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 58.17 is Neutral, neither overbought nor oversold. The STOCH value of 65.85 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIS	72 Outperform	C$1.74B	18.50	10.22%	2.35%	3.93%	33.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ATS	60 Neutral	C$4.31B	30.95	-0.27%	―	-5.59%	-104.09%
BLDP	47 Neutral	C$854.10M	-7.24	-18.07%	―	1.18%	62.71%
VLN	47 Neutral	C$345.37M	23.33	-27.70%	3.06%	-18.71%	-845.27%
PYR	46 Neutral	C$101.40M	-5.08	―	―	-6.83%	46.97%
DYA	43 Neutral	C$50.83M	-8.74	-2067.79%	―	-48.39%	9.17%

ATS Corporation Corporate Events

ATS to Showcase Automation Business at Raymond James Investor Conference

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 fireside chat at 2:15 p.m. Eastern Time, which will be webcast live and available for replay for 360 days via its investor relations website.

Management will also hold one-on-one meetings with institutional investors during the event, which can be arranged through Raymond James. The appearance underscores ATS’s ongoing efforts to engage capital markets, maintain visibility with institutional investors and highlight its position in the global automation solutions sector.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$48.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Delivers Strong Q3 Earnings Growth Amid Mixed Orders and Leadership Changes

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 services activity. Adjusted EBITDA rose to $105.2 million and adjusted earnings per share improved to $0.48, though order bookings declined 7% to $821 million and backlog was essentially flat at $2.05 billion, signaling robust but moderating demand. For the first nine months of the fiscal year, revenue advanced 13.6% to $2.23 billion and net income more than doubled to $87.9 million, while margins edged higher and leverage ended the quarter at the top of the company’s target range, underscoring improved operational efficiency. The company also announced leadership changes, with Doug Wright appointed as CEO and a planned transition in the CFO role to interim appointee Anne Cybulski, moves that place renewed emphasis on execution discipline, margin enhancement and capital allocation as ATS navigates a mixed order environment and seeks to reinforce its competitive positioning.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$40.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Sets February 4 Date for Third-Quarter Earnings Release and Investor Call

ATS Corporation will release its financial results for the third quarter ended December 28, 2025, before markets open on February 4, 2026, and will hold a conference call and webcast at 8:30 a.m. Eastern that same day for management’s remarks and a question-and-answer session with analysts. The company is providing multiple avenues for investors and stakeholders to access the live event and subsequent replay, underscoring its ongoing efforts to maintain transparency and engagement with the market ahead of a potentially significant quarterly update for the automation specialist.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation CFO Ryan McLeod to Step Down; Interim Successor Named

ATS Corporation announced that Chief Financial Officer Ryan McLeod will resign effective February 15, 2026, to pursue an opportunity in an unrelated industry after nearly two decades with the company, during which he was credited with strengthening its financial foundation and supporting long-term growth. Vice President and Corporate Controller Anne Cybulski, a long-serving finance executive who has previously acted as interim CFO, will again step into the role on an interim basis while the board conducts a search for a permanent successor, with leadership emphasizing continuity in the finance function and a smooth transition to sustain ATS’s growth trajectory.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS CFO Ryan McLeod to Step Down; Veteran Finance Executive Named Interim Successor

ATS Corporation announced that Chief Financial Officer Ryan McLeod will resign effective February 15, 2026, to pursue an opportunity outside the industry, ending nearly two decades with the automation company. Vice President and Corporate Controller Anne Cybulski, a long-serving finance executive who has previously acted as interim CFO, will again step into the role on an interim basis while the company searches for a permanent successor, with the board and CEO emphasizing the strength of the existing finance team and their confidence in a smooth leadership transition as ATS continues to focus on its growth strategy.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation Appoints Doug Wright as New CEO

ATS Corporation has appointed Doug Wright as its new Chief Executive Officer, effective on or before January 14, 2026. Wright, who has extensive leadership experience in the industrial solutions sector, is expected to drive growth and operational excellence at ATS. His previous roles include CEO positions at Indicor and Source Photonics, as well as leadership roles at Honeywell International and United Technologies Corporation. The appointment follows a comprehensive search by ATS’ Board of Directors, and Wright’s customer-centric approach and commitment to continuous improvement align with ATS’s long-term goals. Ryan McLeod will continue as interim CEO until Wright’s arrival, after which he will resume his role as Chief Financial Officer.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$41.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation Appoints Doug Wright as New CEO

ATS Corporation has appointed Doug Wright as its new Chief Executive Officer, effective on or before January 14, 2026. Wright brings extensive global experience and a proven track record in driving growth and operational excellence, aligning with ATS’s customer-centric approach and long-term value drivers. His previous roles include CEO positions at Indicor and Source Photonics, as well as leadership roles at Honeywell International and United Technologies Corporation. This leadership change is expected to bolster ATS’s strategic focus and enhance its market positioning.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$41.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.