ATS(US:ATS)2026-02-04 12:10Financial 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].