ATS (NYSE:ATS) Q3 2026 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsAnne Cybulski - Interim CFODavid Ocampo - Head of Investor RelationsDoug Wright - CEOJustin Keywood - Managing DirectorMaxim Sytchev - Managing DirectorMichael Glen - Managing DirectorPatrick Baumann - Managing DirectorConference Call ParticipantsJonathan Goldman - Equity Research AnalystPatrick Sullivan - Equity Research AnalystSabahat Khan - Equity Research AnalystOperatorWelcome to the ATS Corporation third quarter con ...

ATS (NYSE:ATS) Q3 2026 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsAnne Cybulski - Interim CFODavid Ocampo - Head of Investor RelationsDoug Wright - CEOJustin Keywood - Managing DirectorMaxim Sytchev - Managing DirectorMichael Glen - Managing DirectorPatrick Baumann - Managing DirectorConference Call ParticipantsJonathan Goldman - Equity Research AnalystPatrick Sullivan - Equity Research AnalystSabahat Khan - Equity Research AnalystOperatorWelcome to the ATS Corporation Third Quarter Con ...

ATS (NYSE:ATS) Q3 2026 Earnings call February 04, 2026 08:30 AM ET Speaker1Welcome to the ATS Corporation third quarter conference call and webcast. This call is being recorded on February fourth, 2026, at 8:30 A.M. Eastern Time. Following the presentation, we will conduct a question-and-answer session. I'd now like to turn the call over to David Ocampo, Head of Investor Relations at ATS.Thank you, operator, and good morning, everyone. On the call today are Doug Wright, Chief Executive Officer; Ryan McLeod, ...

Q3 2026 Earnings Call February 4, 2026 8:30am ET Today's Hosts Doug Wright Chief Executive Officer Ryan McLeod Chief Financial Officer Anne Cybulski VP, Corporate Controller 2 Forward Looking Statements Note to Reader: This presentation and the oral statements made during this call contain certain statements that may constitute forward-looking information and forward-looking statements within the meaning of applicable Canadian and United States securities laws ("forward-looking statements"). All such statem ...

Financial Performance - Revenues for the three months ended December 28, 2025, increased to CAD 760,653 thousand, up 16.7% from CAD 651,993 thousand in the same period last year[3] - Net income for the three months ended December 28, 2025, was CAD 30,033 thousand, compared to CAD 6,505 thousand for the same period in 2024, representing a significant increase of 361.5%[3] - Earnings per share attributable to shareholders for the three months ended December 28, 2025, were CAD 0.31, compared to CAD 0.07 in the prior year, reflecting a growth of 342.9%[3] - For the nine months ended December 28, 2025, the net income was CAD 87,937,000, compared to CAD 40,913,000 for the same period in 2024, representing a 114% increase[8] - Income before income taxes for the three months ended December 28, 2025, was $33,643 thousand, compared to $10,642 thousand for the same period in 2024, representing a 216% increase[61] Assets and Liabilities - Total assets decreased to CAD 4,482,793 thousand as of December 28, 2025, down from CAD 4,621,872 thousand as of March 31, 2025[2] - Total liabilities decreased to CAD 2,701,257 thousand as of December 28, 2025, compared to CAD 2,912,515 thousand as of March 31, 2025, indicating a reduction of 7.2%[2] - The company reported a total equity of CAD 1,781,536,000 as of December 28, 2025, up from CAD 1,756,040,000 as of December 29, 2024, reflecting an increase of 1.5%[6] - The total long-term debt as of December 28, 2025, was $1,365,711, a decrease from $1,543,678 on March 31, 2025[57] - The balance of warranty provisions at December 28, 2025, was $10,651, an increase from $10,362 at March 31, 2025[45] Cash Flow and Operating Costs - Cash and cash equivalents increased to CAD 263,088 thousand as of December 28, 2025, up from CAD 225,947 thousand as of March 31, 2025, showing a growth of 16.5%[2] - Operating costs for the three months ended December 28, 2025, were CAD 535,780 thousand, an increase from CAD 454,061 thousand in the same period last year, representing an increase of 17.9%[3] - Cash flows provided by operating activities for the nine months ended December 28, 2025, were CAD 298,881,000, a significant recovery from a cash outflow of CAD 13,555,000 in the same period of 2024[8] Comprehensive Income - Comprehensive income for the three months ended December 28, 2025, was CAD 7,820 thousand, down from CAD 65,008 thousand in the prior year, reflecting a decrease of 88.0%[4] - Total comprehensive income for the nine months ended December 28, 2025, was CAD 82,027,000, compared to CAD 122,620,000 for the same period in 2024, indicating a decrease of 33%[8] Acquisitions and Investments - The company engaged in business acquisitions, net of cash acquired, amounting to CAD 2,280,000 during the three months ended December 28, 2025[8] - The Company acquired 100% of Paxiom Group for a total purchase price of $146,438, with cash consideration of $136,515 after accounting for cash acquired[20][21]. - The Company also acquired Heidolph Instruments for $45,064, with cash consideration of $42,874 after accounting for cash acquired[25][27]. Inventory and Write-downs - As of December 28, 2025, inventories totaled $308,136, a decrease from $320,172 as of March 31, 2025[30]. - The amount charged to net income for inventory write-downs was $5,908 for the nine months ended December 28, 2025, compared to $3,073 for the same period in 2024[31]. Shareholder Information - The Company announced a normal course issuer bid allowing the repurchase of up to 8,225,621 common shares by December 21, 2026[58] - The Company’s common shares outstanding increased to 96,948,447 as of December 28, 2025, from 96,885,705 at March 31, 2025[60] Taxation - The effective income tax rate for the nine months ended December 28, 2025, was 25%, down from 29% in the same period in 2024, resulting in an income tax expense of $28,678 thousand compared to $16,438 thousand[61] - The company recognized income tax expense related to the Global Minimum Tax Act of $605 thousand and $1,777 thousand for the three and nine months ended December 28, 2025, respectively[63] Risk Management - For the three and nine months ended December 28, 2025, the Company recorded risk management losses of $2,586 and $1,108, respectively, compared to losses of $13,310 and $17,501 for the same periods in 2024[44] - The Company is monitoring the global tariff environment but has not seen a material impact on its financial position or operations[19]. IFRS Standards - The Company expects the adoption of new IFRS standards, including IFRS 18, to improve financial statement transparency starting January 1, 2027[13].

Beverage124.8113.3388.0304.0Energy72.227.6158.790.3Transportation38.849.8143.1263.4Total revenues$760.7$652.0$2,225.8$1,959.0ExpandConsolidated Operating Results (In millions of dollars)Three Months Ended December 28, 2025Three Months Ended December 29, 2024Nine Months Ended December 28, 2025Nine Months Ended December 29, 2024Earnings from operations$57.7$33.1$190.7$122.8Amortization of acquisition-related intangible assets15.016.144.251.2Acquisition-related transaction costs0.31.00.73.2Acquisition-related ...

Industry Overview - The U.S. manufacturing sector is showing signs of recovery after over three years of struggle, with the ISM Manufacturing PMI rising to 52.6 in January from 47.9 in December, marking the highest reading since 2022 and the first expansion in 12 months [1][3][9] - The New Orders Index increased by 9.7% to 57.1%, the highest level since February 2022, while the Production Index rose to 55.9%, a 5.2% increase from December [4][9] Economic Context - Inflation has eased over the past two quarters, and the Federal Reserve cut interest rates by 75 basis points last year, which has reduced borrowing costs and price pressures, thereby driving demand [5] - The Federal Reserve maintained interest rates in the range of 3.5% to 3.75% at the January meeting, indicating openness to further rate cuts depending on inflation trends [6] Investment Opportunities - Four stocks from the manufacturing sector are highlighted for investment: ATS Corporation, Nordson Corporation, Donaldson Company, Inc., and RBC Bearings Incorporated, all carrying a Zacks Rank 2 (Buy) [2] - ATS Corporation is expected to have an earnings growth of 18.9% for the current year, with a 0.8% improvement in the Zacks Consensus Estimate over the past 60 days [7] - Nordson Corporation anticipates a 9.3% earnings growth for the current year, with a 2.3% increase in the Zacks Consensus Estimate [10][11] - Donaldson Company, Inc. expects a 10.1% earnings growth for the current year, with a 0.7% improvement in the Zacks Consensus Estimate [12] - RBC Bearings Incorporated projects an earnings growth of 18.6% for the current year, with a 0.3% increase in the Zacks Consensus Estimate [13]

Core Viewpoint - ATS Corporation will report its financial results for the third quarter ended December 28, 2025, before markets open on February 04, 2026 [1] Financial Reporting - The financial results will be announced before the market opens on February 04, 2026 [1] - A conference call and webcast will be hosted at 8:30 a.m. Eastern on the same day for management's quarterly remarks and a follow-up Q&A session with analysts [1] - The listen-only webcast can be accessed through a provided link [1]

Company Leadership Changes - Ryan McLeod has resigned from his role as Chief Financial Officer (CFO) effective February 15, 2026, to pursue an opportunity in an unrelated industry [1] - Anne Cybulski, VP and Corporate Controller, will take on the role of interim CFO while a search for a permanent replacement is conducted [2] - Michael Martino, Chairman of the ATS Board of Directors, expressed gratitude for McLeod's nearly 20 years of leadership and contributions to strengthening the company's financial foundation [3] Company Background - ATS Corporation is a leading automation solutions provider serving various industries, including life sciences, transportation, food & beverage, consumer products, and energy [4] - The company was founded in 1978 and employs approximately 7,500 people across more than 65 manufacturing facilities and over 85 offices globally [4] - ATS's common shares are traded on the Toronto Stock Exchange and the NYSE under the symbol ATS [4]

Core Insights - ATS Corporation will participate in the UBS Global Industrials and Transportation Conference on December 03, 2025, with Interim CEO Ryan McLeod and Interim CFO Anne Cybulski attending [1] - The company will also host institutional investor meetings during the conference, which can be arranged through UBS representatives [2] Company Overview - ATS Corporation is a leading automation solutions provider, serving various industries including life sciences, transportation, food & beverage, consumer products, and energy [3] - Founded in 1978, ATS employs approximately 7,500 people across more than 65 manufacturing facilities and over 85 offices globally [3] - The company's shares are traded on both the Toronto Stock Exchange and NYSE under the symbol ATS [3]