ATS(US:ATS)2025-11-05 12:05Financial 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].