Core Viewpoint - ATS Corporation will participate in the Goldman Sachs Industrials and Materials Conference on December 04, 2025, with key management attending [1] Company Participation - Ryan McLeod, Interim Chief Executive Officer, and Anne Cybulski, Interim Chief Financial Officer, will represent the company at the conference [1] - Management will host institutional investor meetings during the conference, which can be arranged through Goldman Sachs representatives or via email [1]

ATS Corporation Conference Call Summary Company Overview - **Company**: ATS Corporation (NYSE: ATS) - **Date**: November 18, 2025 - **Speaker**: Ryan McLeod, Interim CEO Key Points Industry and Market Dynamics - **Life Sciences Sector**: ATS has six independent life science businesses, with a focus on automation and drug delivery mechanisms, particularly auto injectors, which account for approximately 10% of total revenues and 20% of life science revenues [7][15][16] - **Growth in GLP-1 Market**: The GLP-1 segment is expected to remain a significant revenue contributor over the next five years, with high growth potential due to increasing consumer demand for drug delivery devices [15][23] - **Radiopharma Growth**: Investment in radiopharmaceuticals for cancer treatment is driving growth, with a shift towards personalized medicine leading to more specific therapies [17][18] - **Wearable Devices**: ATS is involved in the development of wearable devices, expanding their market from diabetes treatment to general consumer applications [19][20] Financial Performance - **Q2 Fiscal Results**: Revenues increased by approximately 12% year-over-year, with a backlog growth of 13.5% [11][12] - **Margin Expansion**: ATS is on track for high single-digit organic growth and has seen sequential margin expansion, particularly in Q2 [12][13] - **Transportation Segment**: The transportation business has stabilized at around $50 million per quarter, with no expected growth in the next three to five years due to market saturation and technology changes [30][31] Strategic Initiatives - **Restructuring and Optimization**: ATS has undergone significant restructuring to optimize performance, particularly in the transportation segment, while exploring adjacent opportunities in industrial manufacturing and reshoring [31][33] - **Nuclear Business Growth**: The nuclear segment is expected to grow, with a focus on refurbishment, decommissioning, and new builds, particularly in the context of increasing energy demands [25][27][28] Leadership Transition - **CEO Search**: The board is actively engaged in the search for a new CEO, prioritizing candidates with strong backgrounds in continuous improvement and M&A [56][59] Other Considerations - **Working Capital Management**: ATS aims to reduce working capital investment from approximately 18% to a target of 15% of sales, with larger life science programs expected to contribute to this goal [46][48] - **Market Positioning**: ATS is focused on high-consequence markets such as life sciences and food, which are less cyclical and emphasize quality and time to market [44][45] This summary encapsulates the key insights from the ATS Corporation conference call, highlighting the company's strategic focus, market dynamics, and financial performance.

Financial Data and Key Metrics Changes - Order bookings were $734 million, up 6% sequentially, reflecting solid performance across diversified end markets [4] - Q2 revenues were $729 million, up 19% from Q2 last year, driven primarily by organic growth [4][12] - Adjusted earnings from operations in Q2 were $79 million, a 40% increase from the prior year [12] - Gross margin for Q2 was 29.9%, a 36 basis point increase from Q2 last year [12] Business Line Data and Key Metrics Changes - Life sciences order backlog at quarter end remains strong at $1.1 billion, supported by demand across sub-markets [4] - Food and beverage backlog was $218 million, with customer wins in multiple regions during Q2 [6] - Energy order backlog was a record $277 million, up 154% over Q2 last year, driven primarily by nuclear refurbishment projects [7] - The services business performed strongly, contributing to overall growth [24] Market Data and Key Metrics Changes - The nuclear funnel continues to broaden, covering service and new nuclear reactor builds, including small modular reactors [8] - The consumer products funnel remains stable, with ongoing programs in personal care and household goods packaging [8] - Transportation opportunities are smaller compared to previous years, but still present [8] Company Strategy and Development Direction - The company is focused on continuous improvement through the ATS Business Model, emphasizing value creation across its diversified global portfolio [3] - The company is actively cultivating and reviewing M&A opportunities that align with long-term strategic priorities [10] - Investment in innovation remains a core strategy, with the development of the Illuminate Manufacturing Intelligence platform [10][11] Management's Comments on Operating Environment and Future Outlook - The macro environment remains dynamic, with geopolitical tensions and trade considerations impacting operations [15] - The company expects to maintain leadership in key sub-markets and drive progress on growth priorities [16] - The outlook for sustained growth is supported by a strong order backlog and expectations for revenue and margin expansion in fiscal 2026 [17] Other Important Information - The company plans to incur approximately $15 million in restructuring costs in the latter half of the fiscal year, with an expected payback of less than one year [15] - The net debt-to-adjusted EBITDA ratio was 3.4 times, with expectations to reduce leverage to within the target range of 2-3 times [17] Q&A Session Summary Question: Concerns about slowing bookings momentum - Management noted that there is normal variability in bookings and a healthy book-to-bill ratio of 1.12, with strong activity in life sciences and food sectors [20][21] Question: Performance of the services business - The services business performed strongly, contributing positively to overall growth, and management confirmed plans to replace the head of that segment [24][25] Question: Margin trajectory and restructuring impact - Management expects margin expansion driven by both cost reduction initiatives and sales growth, with restructuring expected to yield cost savings [28][52] Question: Nuclear backlog and revenue conversion - The nuclear backlog is expected to grow, with refurbishment work continuing over the next 1.5 to 2 years, supplemented by new build projects [39][43] Question: Life sciences revenue performance - Revenue timing is largely driven by project execution in the backlog, with some exposure to publicly funded institutions being a small part of the business [50]

Financial Performance - Q2 2026 revenues increased by approximately 19% year-over-year to $728.5 million[17], including approximately 13% organic revenue growth[17] - Adjusted Earnings from Operations for Q2 2026 were $79.1 million, resulting in a 10.9% adjusted earnings from operations margin[17] - The company estimates Q3 F26 revenue to be in the range of $700 million to $740 million[20, 23] - Order Bookings for Q2 2026 reached $734 million, showing diversification across market verticals[17] Order Backlog and Book-to-Bill Ratio - Order Backlog increased by approximately 14% year-over-year to $2,070 million, providing good revenue visibility[17] - The trailing twelve-month book-to-bill ratio is healthy at 1.12 : 1[17] Market Outlook - Life Sciences Order Backlog is $1,144 million with a strong funnel including radiopharma and medical devices opportunities[18] - Food and Beverage Order Backlog is $218 million, driven by demand for primary and secondary processing solutions, plus packaging[18] - Energy Order Backlog is $277 million, supported by nuclear refurbishment projects in the near-term and new nuclear reactor builds in the mid- to longer-term[18] - Consumer Products Order Backlog is $245 million, supported by capabilities in warehouse automation and packaging[18]

Core Insights - ATS reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and showing an increase from $0.18 per share a year ago, resulting in an earnings surprise of +6.45% [1] - The company achieved revenues of $528.99 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.80% and up from $449.21 million year-over-year [2] Financial Performance - Over the last four quarters, ATS has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $525.15 million, and for the current fiscal year, it is $1.30 on revenues of $2.12 billion [7] Market Position - ATS shares have underperformed the market, losing about 12.3% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The Zacks Industry Rank for Manufacturing - General Industrial is currently in the bottom 42% of over 250 Zacks industries, indicating potential challenges for ATS [8] Future Outlook - The sustainability of ATS's stock price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for ATS was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Financial Performance - Revenues for the three months ended September 28, 2025, increased to $728,456,000, up 19% from $612,781,000 in the same period last year[3]. - Net income for the three months ended September 28, 2025, was $33,638,000, compared to a loss of $919,000 in the same period last year[3]. - Earnings per share attributable to shareholders for the three months ended September 28, 2025, was $0.34, compared to a loss of $0.01 in the same period last year[3]. - The company reported comprehensive income of $64,587,000 for the three months ended September 28, 2025, compared to $11,584,000 in the same period last year[4]. - For the six months ended September 28, 2025, ATS Corporation reported a net income of CAD 57,904, compared to CAD 34,408 for the same period in 2024, representing a 68.5% increase[8]. - The total comprehensive income for the six months ended September 28, 2025, was CAD 74,207, compared to CAD 57,612 for the same period in 2024, indicating a 28.7% increase[5]. Assets and Liabilities - Total assets decreased to $4,499,548,000 as of September 28, 2025, from $4,621,872,000 as of March 31, 2025[2]. - Total liabilities decreased to $2,728,520,000 as of September 28, 2025, from $2,912,515,000 as of March 31, 2025[2]. - The company’s retained earnings increased to $708,254,000 as of September 28, 2025, from $660,368,000 as of March 31, 2025[2]. - The company’s equity attributable to shareholders increased to $1,769,286,000 as of September 28, 2025, from $1,705,777,000 as of March 31, 2025[2]. - The balance of provisions at September 28, 2025, was $23,146, down from $30,960 at March 31, 2025, reflecting a reduction in warranty and restructuring provisions[45]. Cash Flow and Investments - Cash flows provided by operating activities for the six months ended September 28, 2025, were CAD 184,273, a significant recovery from a cash outflow of CAD 80,239 in the same period of 2024[8]. - The company reported a cash flow used in investing activities of CAD 34,584 for the six months ended September 28, 2025, compared to CAD 213,620 in the previous year, indicating a reduction in investment outflows[8]. - The company acquired 100% of Paxiom Group for a total purchase price of $146,438, with cash used in investing activities amounting to $136,515 after accounting for cash acquired[20][22]. - The company also acquired Heidolph Instruments for $45,064, with cash used in investing activities totaling $42,874 after cash acquired[26][27]. Debt and Financing - The Company utilized $316,313 of its $750,000 Credit Facility as of September 28, 2025, with long-term debt classified at this amount, down from $452,248 at March 31, 2025[50]. - The Company’s total long-term debt as of September 28, 2025, was $1,392,855, a decrease from $1,543,459 at March 31, 2025[57]. - The Company’s U.S. Senior Notes, totaling $350,000, bear interest at 4.125% per annum and mature on December 15, 2028[54]. - The Company completed a private placement of $600,000 aggregate principal amount of CAD Senior Notes, which bear interest at 6.50% per annum and mature on August 21, 2032[55]. Shareholder Information - The Company purchased 308,758 common shares under the normal course issuer bid for $10,000 during the six months ended September 28, 2025[59]. - The Company’s common shares outstanding increased to 96,946,649 as of September 28, 2025, from 96,885,705 at March 31, 2025[60]. - A total of 354,106 time-vesting stock options were granted during the six months ended September 28, 2025, compared to 241,327 in the same period of 2024[65]. - The stock options outstanding at the end of the period decreased to 539,339 with an average exercise price of $40.62, down from 1,048,581 at $36.16 in the previous year[66]. Market Performance - Revenues from construction contracts for the six months ended September 28, 2025, were $823,104,000, up 15.6% from $712,455,000 in the prior year[81]. - Life Sciences market revenues for the three months ended September 28, 2025, were $374,458,000, representing an increase of 6.3% compared to $350,363,000 in 2024[82]. - The company did not have revenues from a single customer that amounted to 10% or more of total consolidated revenues for the six months ended September 28, 2025[80]. Taxation - The effective income tax rate increased to 30% for the three months ended September 28, 2025, from 26% in the same period of 2024[61]. - The company recognized income tax expense related to the Global Minimum Tax Act of $599 for the three months ended September 28, 2025[63]. Inventory and Receivables - As of September 28, 2025, total inventories amounted to $320,568, showing a slight increase from $320,172 as of March 31, 2025[30]. - The company recognized inventory write-downs of $1,963 and $4,262 for the three and six months ended September 28, 2025, respectively[31]. - The company reported trade receivables of $565,712,000 as of September 28, 2025, down from $696,079,000 as of March 31, 2025[83]. - Net contract balances as of September 28, 2025, totaled $716,779,000, a decrease from $771,720,000 as of March 31, 2025[83].

Core Points - ATS Corporation will participate in the Baird 2025 Global Industrial Conference on November 11, 2025, with Ryan McLeod and Anne Cybulski representing the company [1][2] - The company will host a presentation at 12:35 p.m. (CT) and provide a webcast link for live viewing and replay for 180 days [2] - ATS Corporation is a leading automation solutions provider, serving various industries including life sciences, transportation, food & beverage, consumer products, and energy [3] Company Overview - Founded in 1978, ATS Corporation employs approximately 7,500 people across more than 65 manufacturing facilities and over 85 offices globally [3] - The company's shares are traded on the Toronto Stock Exchange and NYSE under the symbol ATS [3] - ATS specializes in custom automation, repeat automation, automation products, and value-added solutions, addressing complex manufacturing automation needs [3]

Core Viewpoint - ATS Corporation will report its financial results for the second quarter ended September 28, 2025, before markets open on November 05, 2025 [1] Financial Reporting - The financial results will be announced before the market opens on November 05, 2025 [1] - A conference call and webcast will be hosted at 8:30 a.m. Eastern on the same day, featuring management's quarterly remarks and a Q&A session with analysts [1] - The listen-only webcast can be accessed through a provided link [1]

ATS Corporation Conference Call Summary Company Overview - ATS Corporation is an automation company specializing in automation integration, products, and services, with a focus on providing turnkey solutions for customers launching new products [3][4][5] - The company operates across various industries, including life sciences (50% of business), food, energy (primarily nuclear), consumer applications, and transportation [5][6][7] Key Business Segments - **Life Sciences**: Major growth driver, particularly in auto injector assembly for GLP-1 drugs and other medical devices [18][19][21][22] - **Nuclear**: Involvement in life extension work for reactors, decommissioning, and new builds, including small modular reactors (SMRs) [25][27][30] - **Automation Services**: Comprises about 30% of the business, focusing on after-sales services, break-fix, spare parts, and digital consumables [6][58] Market Trends and Growth Drivers - **Supply Chain Resilience**: Customers are shifting towards onshoring and diversifying production locations to mitigate risks associated with geopolitical issues and supply chain disruptions [13][14][16] - **Automation Demand**: Increasing complexity and software-driven automation solutions are becoming essential across industries, particularly in life sciences and nuclear sectors [15][16] - **Recurring Revenue**: The company aims to increase its recurring revenue, currently around 30%, primarily from after-sales services [58][61] Financial Performance and Outlook - ATS has experienced a compound annual growth rate (CAGR) of approximately 17.5% in revenue outside of transportation over the past five years [12] - The company expects high single-digit growth for the current year, supported by a strong backlog and ongoing customer investments [36][37] - Targeting a 15% operating margin over the next four to five years, with ongoing initiatives to improve operational efficiency and expand higher-margin offerings [54][55] Mergers and Acquisitions Strategy - ATS focuses on acquiring companies in less cyclical markets like life sciences and food, emphasizing capabilities that enhance their technology and service offerings [46][49] - Financial criteria for acquisitions include a double-digit return on invested capital and EPS accretion [50] Competitive Landscape - ATS primarily competes with smaller, regional players in the automation space, rather than larger companies like Rockwell, which serves as a supplier [62][63] Additional Insights - The company is undergoing a CEO transition, with a focus on maintaining its continuous improvement culture and strategic direction during the search for a new leader [40][42][43] - The nuclear sector is viewed as a niche opportunity with significant potential for growth over the next five to ten years, particularly in automation for new reactor builds [30][56] Conclusion - ATS Corporation is well-positioned in the automation industry, with a diverse portfolio and strong growth prospects driven by market trends towards automation, supply chain resilience, and a focus on high-consequence industries. The company is committed to enhancing its operational efficiency and expanding its recurring revenue streams while navigating the competitive landscape and leadership transition.

Financial Data and Key Metrics Changes - Fiscal year 2025 was challenging, but financial results were supported by a diversified presence in dynamic end markets and disciplined application of the ATS business model [6][10] - ATS has outperformed the S&P 500 index on a total shareholder return basis over the past five years, despite global economic challenges [10] Business Line Data and Key Metrics Changes - In life sciences, ATS continues to support customers with automation solutions that enhance scalability and precision, with strategic investments driving innovation [7] - In food and beverage, ATS introduced advanced inspection and sorting solutions to improve quality control and operational efficiency [7] - The company strengthened its digital portfolio and service offerings, exploring AI-based tools integration across various markets [8] Market Data and Key Metrics Changes - ATS's specialized capabilities have shown steady progress across market verticals, including energy, where it assists nuclear customers in scaling operations to meet energy demands [7] - The transportation business has been better aligned with current end market demand following recent adjustments [9] Company Strategy and Development Direction - ATS is committed to continuous improvement and innovation, with a focus on leveraging the ATS business model as a competitive differentiator [8][39] - The company has made targeted acquisitions, such as Paxium and Heidolph, to expand capabilities in packaging and enhance its product suite [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its long-term strategy and drive sustained value creation through fiscal 2026 and beyond [10] - The leadership transition is expected to be smooth, with full confidence in the existing team to maintain progress [12][39] Other Important Information - The meeting included a leadership update, with Ryan McLeod appointed as interim CEO following Andrew Hyder's departure [12] - The board remains engaged with management to ensure risk management and value creation [8] Q&A Session Summary Question: Are there any questions from shareholders? - There were no questions submitted during the Q&A session, indicating a lack of immediate concerns from shareholders [41][42]