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]