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]

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].

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]

Financial Data and Key Metrics Changes - Q1 revenues were $737 million, up 6% from Q1 last year [6] - Order bookings were $693 million, down 15% compared to Q1 last year [16] - Adjusted earnings from operations in Q1 were CAD 78.6 million, representing 10.7% of revenues [18] - Gross margin for Q1 was 29.8%, consistent with Q1 last year [18] - Cash flows from operating activities were CAD 156 million [22] - Net debt to adjusted EBITDA ratio was 3.6 times on a pro forma basis at Q1 [22] Business Line Data and Key Metrics Changes - Life Sciences order backlog at quarter end was $1.2 billion, with strong contributions from auto injectors and radiopharma [7][8] - Food and Beverage backlog was $229 million, an increase of 6% compared to Q1 last year [10] - Energy business saw growth primarily in nuclear refurbishment activities, particularly around CANDU reactors [39] - Consumer Products and Transportation segments remained stable, with transportation experiencing lower EV end market demand [11][33] Market Data and Key Metrics Changes - The order backlog ended the quarter at approximately $2.1 billion, reflecting a healthy funnel across diversified offerings [6][19] - Orders in the energy sector, particularly nuclear, showed strong demand despite project delays reported by other companies [39] - Orders excluding transportation were up over 10% year-over-year in the first half of the calendar year [36] Company Strategy and Development Direction - The company is focused on driving growth through repeatable revenue from services, consumables, and digital offerings [7] - M&A activities are ongoing, with a focus on strategic opportunities that align with long-term growth ambitions [12][60] - The company aims to return leverage to its target range of 2 to 3 times while realizing synergies from recent acquisitions [23][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook for the year, supported by a strong backlog and healthy order intake [35] - The company is closely monitoring the business environment, particularly regarding cross-border tariffs, but has not seen a material impact to date [20] - Management highlighted ongoing efficiency improvements and a commitment to creating long-term value for shareholders [25][60] Other Important Information - ATS was included in Time Magazine's inaugural list of Canada's Best Companies 2025, ranking number one in the engineering, manufacturing, and medical technology category [15] - The company continues to invest in innovation and capability development, including the launch of a new virtual reality training platform [13] Q&A Session Summary Question: Can you discuss the demand environment further? - Management noted that the trailing twelve-month book-to-bill ratio is 1.17, indicating alignment with growth targets and a healthy funnel across key markets [32] Question: What is driving the uptick in the energy business? - The growth in the energy sector is primarily driven by nuclear refurbishment activities, particularly around CANDU reactors [39] Question: Can you provide an update on the integration process and cross-selling opportunities? - Integration across recent acquisitions is progressing well, with strong uptake of ABM deployments and cost synergies being realized [52] Question: How is the company addressing the impact of U.S. government funding changes on lab research? - The impact is minimal, representing a low single-digit percentage of the overall business, and does not materially affect the life sciences segment [53] Question: What is the outlook for margin progression? - Management expects margin expansion throughout the year, although variability is anticipated due to project portfolio dynamics [85] Question: Can you elaborate on the Multiflex system? - The Multiflex system is designed for decommissioning nuclear reactors, enhancing efficiency and space management in the process [97]

Financial Data and Key Metrics Changes - Q1 revenues were $737 million, up 6% from Q1 last year [5] - Order bookings were $693 million, down 15% compared to Q1 last year [16] - Adjusted earnings from operations in Q1 were CAD 78.6 million, representing 10.7% of revenues [18] - Gross margin for Q1 was 29.8%, consistent with Q1 last year [18] - Cash flows from operating activities were CAD 156 million [22] - Net debt to adjusted EBITDA ratio was 3.6 times on a pro forma basis at Q1 [22] Business Line Data and Key Metrics Changes - In Life Sciences, order backlog at quarter end was $1.2 billion, with strong contributions from auto injectors and blood glucose monitoring wearables [6] - Food and Beverage backlog was $229 million, an increase of 6% compared to Q1 last year [8] - Energy sector saw growth primarily in nuclear refurbishment activities, particularly around CANDU reactors [42] - Consumer Products and Transportation sectors remained stable, with transportation experiencing lower EV end market demand [10] Market Data and Key Metrics Changes - The order backlog ended the quarter at approximately $2.1 billion, reflecting a healthy funnel across diversified offerings [5] - Orders in the first half of the calendar year were up over 10% year over year, excluding transportation [39] Company Strategy and Development Direction - The company is focused on returning leverage to its target range of 2 to 3 times and realizing further synergies from recent acquisitions [12][23] - The strategy includes growing repeatable revenue through services, consumables, and digital offerings [6] - The company remains committed to creating long-term value for shareholders and customers through strong execution and continued growth in targeted markets [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook for the year, supported by a strong backlog and a trailing twelve-month book-to-bill ratio of 1.17 [33] - The company is closely monitoring the business environment due to cross-border tariffs but has not seen a material impact to date [20] - Management noted that while some customers in the lab research space are taking a more measured approach to capital spending, the overall outlook for Life Sciences remains positive [7] Other Important Information - ATS was included in Time Magazine's inaugural list of Canada's Best Companies 2025, ranking number one in the engineering, manufacturing, and medical technology category [14] - The company is actively engaged in M&A opportunities that align with long-term growth ambitions [11] Q&A Session Summary Question: Can you discuss the demand environment further? - Management noted that the trailing twelve-month book-to-bill ratio is 1.17, indicating alignment with growth targets and a healthy funnel of customer conversations [33][34] Question: What is driving the uptick in the energy business? - The growth in the energy sector is primarily driven by nuclear refurbishment activities, particularly around CANDU reactors, with a strong demand environment [42] Question: Can you provide an update on the integration process and cross-selling opportunities? - Integration across recent acquisitions is progressing well, with strong uptake in ABM deployments and cost synergies being realized [54] Question: How is the company addressing the impact of U.S. government funding changes on Life Sciences? - The impact is low, representing less than a single-digit percentage of the business, and has not materially affected overall Life Sciences performance [55] Question: What is the outlook for margin progression? - Management expects margin expansion for the year, driven by gross margin improvements and operational efficiencies, though variability is anticipated [88] Question: What is the status of the M&A pipeline during the leadership transition? - The company continues to pursue both organic and acquisition-related growth, with M&A activity ongoing despite the leadership transition [62]

Financial Performance - Q1 2026 revenues increased by approximately 6% year-over-year to $736.7 million CAD[14] - Q1 2026 adjusted earnings from operations were $78.6 million CAD, representing a 10.7% adjusted earnings from operations margin[14] - Q1 2026 free cash flow was $139.5 million CAD, a significant increase compared to $(51.3) million CAD in Q1 2025[17] - Net income decreased by 31.2% from $35.3 million CAD to $24.3 million CAD[17] - Basic earnings per share decreased by 30.6% from $0.36 CAD to $0.25 CAD[17] Order Bookings and Backlog - Q1 2026 order bookings totaled $693 million CAD, demonstrating diversification across market verticals[14] - The trailing twelve-month book-to-bill ratio was 1.17[14] - Order backlog remains strong at $2,068 million CAD[14] Revenue Outlook - Q2 F2026 revenue is estimated to be between $700 million CAD and $740 million CAD[19] Market Segment Performance - Life Sciences order backlog is $1,160 million CAD, supported by proven capabilities in regulated markets[15] - Food and Beverage order backlog is $229 million CAD, with opportunities in primary and secondary processing and packaging[15] - Consumer Products order backlog is $262 million CAD, supported by capabilities in warehouse automation and packaging[15]

Core Insights - ATS reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, but down from $0.37 per share a year ago, resulting in an earnings surprise of +11.11% [1] - The company achieved revenues of $532.45 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.96% and up from $507.43 million year-over-year [2] Financial Performance - Over the last four quarters, ATS has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $518.37 million, while for the current fiscal year, it is $1.34 on revenues of $2.14 billion [7] Market Position - ATS shares have increased by approximately 1.7% since the beginning of the year, compared to the S&P 500's gain of 7.9% [3] - The Zacks Industry Rank for Manufacturing - General Industrial is in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the sector [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 prior to 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]

[Fiscal 2025 Fourth Quarter and Full Year Financial Results](index=1&type=section&id=Fiscal%202025%20Fourth%20Quarter%20and%20Full%20Year%20Financial%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) ATS Corporation's fiscal 2025 was marked by strong Order Bookings and Backlog growth, but a significant net loss due to a one-time EV customer settlement Q4 Fiscal 2025 Key Metrics | Metric | Q4 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues ($ million) | $574.2 | $791.5 | -27.5% | | Adjusted Revenues¹ ($ million) | $721.1 | $791.5 | -8.9% | | Net Income (Loss) ($ million) | $(68.9) | $48.5 | -242.1% | | Adjusted Basic EPS¹ ($) | $0.41 | $0.65 | -36.9% | | Order Bookings ($ million) | $863 | $791 | +9.1% | Full Year Fiscal 2025 Key Metrics | Metric | Fiscal 2025 | Fiscal 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues ($ million) | $2,533.3 | $3,032.9 | -16.5% | | Adjusted Revenues¹ ($ million) | $2,680.2 | $3,032.9 | -11.6% | | Net Income (Loss) ($ million) | $(28.0) | $194.2 | -114.4% | | Adjusted Basic EPS¹ ($) | $1.47 | $2.61 | -43.7% | | Order Bookings ($ million) | $3,305 | $2,891 | +14.3% | - A one-time settlement with an EV customer significantly impacted results, accounted for as a **$146.9 million** decrease in revenue and a **$24.2 million** increase in SG&A for Q4[5](index=5&type=chunk) - Order Backlog grew **19.3%** year-over-year to **$2,139 million** as of March 31, 2025, enhancing revenue visibility for the upcoming fiscal year[5](index=5&type=chunk)[6](index=6&type=chunk) [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) Q4 FY2025 IFRS revenues declined significantly to **$574.2 million** due to an EV customer settlement, leading to a net loss of **$68.9 million** [Revenue Analysis](index=3&type=section&id=Revenue%20Analysis) Q4 adjusted revenues decreased **8.9%** to **$721.1 million**, driven by declines in construction and services, while transportation revenues plummeted **69.2%** - Q4 IFRS revenues were **$574.2 million**, down **27.5%** YoY. The decline was driven by a **$146.9 million** EV customer settlement, a **$120.2 million (15.2%)** decrease in organic revenue, partially offset by **$28.5 million** from acquisitions[9](index=9&type=chunk) Q4 Adjusted Revenue Growth by Market (YoY) | Market | Growth (%) | Key Drivers | | :--- | :--- | :--- | | Life Sciences | +11.1% | Acquisitions ($19.4 million), organic growth from higher backlog | | Food & Beverage | +13.2% | Acquisitions ($9.1 million), positive FX impact | | Consumer Products | +27.2% | Higher Order Backlog entering the quarter | | Transportation | -69.2% | Lower Order Backlog as prior year had large EV projects | | Energy | +38.7% | Higher Order Backlog entering the quarter | [Profitability Analysis](index=3&type=section&id=Profitability%20Analysis) The company reported a Q4 net loss of **$68.9 million**, with Adjusted EBITDA falling to **$97.1 million** and margin contracting to **13.5%** due to lower revenues - Q4 FY2025 net loss was **$68.9 million**, or **($0.70)** per share, a significant decrease from the **$48.5 million** net income, or **$0.49** per share, in Q4 FY2024[11](index=11&type=chunk) Q4 Profitability Metrics (YoY) | Metric | Q4 2025 | Q4 2024 | | :--- | :--- | :--- | | Adjusted EBITDA ($ million) | $97.1 | $115.8 | | Adjusted EBITDA Margin (%) | 13.5% | 14.6% | | Adjusted Basic EPS ($) | $0.41 | $0.65 | [Business Operations and Orders](index=2&type=section&id=Business%20Operations%20and%20Orders) ATS saw strong commercial momentum with Q4 Order Bookings up **9.1%** to **$863 million**, contributing to a **19.3%** rise in Order Backlog to **$2,139 million** [Order Bookings and Backlog](index=4&type=section&id=Order%20Bookings%20and%20Backlog) Q4 Order Bookings increased **9.1%** to **$863 million**, driven by organic growth and acquisitions, resulting in a **19.3%** rise in Order Backlog to **$2,139 million** - Q4 Order Bookings increased **9.1%** YoY to **$863 million**, reflecting organic growth (**2.6%**), contributions from acquisitions (**$31.5 million** or **4.0%**), and positive currency effects (**2.5%**)[16](index=16&type=chunk) - Order Backlog stood at **$2,139 million** at March 31, 2025, a **19.3%** increase from the previous year, driven by strength in life sciences, consumer products, food & beverage, and energy markets[17](index=17&type=chunk) - The trailing twelve-month book-to-bill ratio was **1.23:1** as of March 31, 2025, indicating that new orders outpaced revenues[17](index=17&type=chunk) [Recent Acquisitions](index=2&type=section&id=Recent%20Acquisitions) ATS expanded its portfolio by acquiring Paxiom Group for **$146.4 million** to enhance packaging capabilities and Heidolph for **$45.1 million** to strengthen its life sciences presence - Acquired Paxiom Group, a provider of packaging machines for food & beverage, cannabis, and pharmaceutical industries, for a total purchase price of **$146.4 million** on July 24, 2024[7](index=7&type=chunk) - Acquired Heidolph, a manufacturer of premium lab equipment for life sciences and pharmaceutical industries, for **$45.1 million** on August 30, 2024[8](index=8&type=chunk) [Market Outlook and Forward-Looking Guidance](index=5&type=section&id=Market%20Outlook%20and%20Forward-Looking%20Guidance) ATS maintains a positive outlook with a strong sales funnel in life sciences and energy, anticipating Q1 FY2026 revenues between **$680 million** and **$730 million** supported by a substantial Order Backlog - For the first quarter of fiscal 2026, the company expects to generate revenues in the range of **$680 million** to **$730 million**[20](index=20&type=chunk) - The sales funnel remains strong in life sciences (pharmaceuticals, medical devices), food & beverage, and energy (nuclear, grid battery storage)[18](index=18&type=chunk) - The transportation funnel consists of smaller opportunities as North American customers moderate investment in new EV capacity[18](index=18&type=chunk) - The company's long-term goal is to maintain its investment in non-cash working capital as a percentage of annualized revenues below **15%**[23](index=23&type=chunk) [Key Corporate Developments](index=6&type=section&id=Key%20Corporate%20Developments) ATS finalized a **$134.75 million** EV customer settlement, incurred **$24.0 million** in reorganization costs, and identified ineffective internal controls over financial reporting as of March 31, 2025 [EV Customer Settlement](index=6&type=section&id=EV%20Customer%20Settlement) ATS settled with an EV customer for a **U.S. $134.75 million** payment in Q1 FY2026, resulting in a **$171 million** pre-tax charge and a **$129 million** net income reduction in Q4 FY2025 - The company reached a settlement with an EV customer and expects to receive a payment of **U.S. $134.75 million** in Q1 fiscal 2026[25](index=25&type=chunk) - The settlement resulted in a reduction to net income of **$129 million** (**$171 million** before taxes) for the year ended March 31, 2025[27](index=27&type=chunk) [Other Corporate Matters](index=6&type=section&id=Other%20Corporate%20Matters) The company incurred **$24.0 million** in fiscal 2025 restructuring costs and identified ineffective internal controls over financial reporting as of March 31, 2025, without restating financials - In fiscal 2025, the company recorded total restructuring costs of **$24.0 million**[24](index=24&type=chunk) - Management concluded that internal controls over financial reporting were not effective as of March 31, 2025, but this did not result in any restatement of financial statements[29](index=29&type=chunk) [Detailed Financial Statements and Reconciliations](index=9&type=section&id=Detailed%20Financial%20Statements%20and%20Reconciliations) [Consolidated Financial Statements](index=17&type=section&id=Consolidated%20Financial%20Statements) The audited Consolidated Financial Statements show total assets of **$4.62 billion** and a net loss of **$28.0 million** on **$2.53 billion** revenues for fiscal 2025 Consolidated Statement of Financial Position (Year-End) | Metric | March 31, 2025 ($ million) | March 31, 2024 ($ million) | | :--- | :--- | :--- | | Total Assets | $4,621.9 | $4,088.8 | | Total Liabilities | $2,912.5 | $2,404.9 | | Total Equity | $1,709.4 | $1,683.9 | Consolidated Statement of Income (Full Year) | Metric | Fiscal 2025 ($ million) | Fiscal 2024 ($ million) | | :--- | :--- | :--- | | Revenues | $2,533.3 | $3,032.9 | | Earnings from Operations | $9.3 | $315.4 | | Net Income (Loss) | $(28.0) | $194.2 | | Basic EPS (Loss) ($) | $(0.29) | $1.98 | - Cash flows from operating activities for fiscal 2025 were **$25.8 million**, while cash used in investing activities was **$268.4 million**, and cash provided by financing activities was **$290.3 million**[49](index=49&type=chunk) [Reconciliation of Non-IFRS to IFRS Measures](index=11&type=section&id=Reconciliation%20of%20Non-IFRS%20to%20IFRS%20Measures) This section reconciles non-IFRS measures like Adjusted EBITDA, Adjusted Net Income, and Adjusted Revenues to IFRS, removing impacts from the EV settlement, acquisitions, and restructuring for clearer operational insights - Adjusted EBITDA is reconciled to Net Income by adding back net finance costs, taxes, depreciation & amortization, and removing items like restructuring charges and the EV customer settlement[38](index=38&type=chunk) - Adjusted Net Income and Adjusted Basic EPS are reconciled from IFRS figures by excluding items such as amortization of acquisition-related intangibles, restructuring charges, the EV customer settlement, and related tax effects[39](index=39&type=chunk)[40](index=40&type=chunk) - Free cash flow for fiscal 2025 was a negative **$52.3 million**, calculated from **$25.8 million** in cash from operations less **$78.1 million** in capital expenditures for property, plant, equipment, and intangible assets[41](index=41&type=chunk) [Investments, Liquidity, and Cash Flow](index=16&type=section&id=Investments%2C%20Liquidity%2C%20and%20Cash%20Flow) As of March 31, 2025, ATS held **$225.9 million** in cash, with its debt-to-equity ratio increasing to **1.10:1**, while operating activities provided **$25.8 million** in cash for the fiscal year Liquidity Position (Year-End) | Metric | March 31, 2025 ($ million) | March 31, 2024 ($ million) | | :--- | :--- | :--- | | Cash and cash equivalents | $225.9 | $170.2 | | Debt-to-equity ratio | 1.10:1 | 0.79:1 | Fiscal 2025 Cash Flow Summary | Activity | Cash Flow ($ million) | | :--- | :--- | | Operating activities | $25.8 | | Investing activities | $(268.5) | | Financing activities | $290.3 | [Disclosures](index=20&type=section&id=Disclosures) [Non-IFRS and Other Financial Measures](index=20&type=section&id=Non-IFRS%20and%20Other%20Financial%20Measures) This section defines non-IFRS and supplementary financial measures used to evaluate performance and liquidity, clarifying they are not standardized under IFRS and may not be comparable - The company uses non-IFRS measures like Adjusted EBITDA, adjusted earnings from operations, and adjusted basic EPS to evaluate performance[51](index=51&type=chunk) - Management believes these adjusted measures increase comparability between periods by removing items such as acquisition-related costs, restructuring charges, and the EV customer settlement[54](index=54&type=chunk) - Supplementary measures like Order Bookings and Order Backlog are used as indicators of future revenues[55](index=55&type=chunk) [Forward-Looking Statements](index=22&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding future performance and strategy, cautioning readers about numerous risks and uncertainties that could cause actual results to differ materially - The document contains forward-looking statements concerning the company's strategy, market opportunities, Order Backlog conversion, and financial outlook (e.g., quarterly revenue guidance)[57](index=57&type=chunk)[58](index=58&type=chunk) - Key risks identified include general market performance, international trade disputes, supply chain challenges, inflation, interest rate changes, and customer concentration[59](index=59&type=chunk) - The statements are based on current estimates and assumptions, and the company undertakes no obligation to update them other than as required by law[61](index=61&type=chunk)[63](index=63&type=chunk)