Financial Data and Key Metrics Changes - In 2025, the company achieved a net income of $35.5 million, a significant turnaround from a loss the previous year, marking a historic milestone for profitability [5][33] - Total revenue reached $400 million, reflecting a 28% year-over-year growth, with approximately 24% being organic growth [34] - Recurring revenue grew by 29% to approximately $287 million, representing 72% of total revenue [34][33] - Average revenue per unit (ARPU) increased to approximately $239, an 11% year-over-year rise [35] - Gross margin improved to 48.2% from 45.1%, while adjusted EBITDA margin reached 15.3% [37][38] Business Line Data and Key Metrics Changes - The installed base expanded to approximately 1.46 million managed and connected devices, serving around 115,000 customers globally [33] - Processing revenue increased by 30% to approximately $174 million, driven by a higher number of transactions across the connected device base [34] - Average transaction value (ATV) rose to $2.25 from $2.05, indicating growth in higher value verticals such as EV charging and amusement [34] Market Data and Key Metrics Changes - The company operates in over 120 countries and serves more than 40 automated self-service verticals globally [13] - Cashless penetration in automated self-service environments remains low, presenting significant growth opportunities [8][16] - The company is focusing on expanding in Latin America, particularly Brazil and Mexico, where cashless demand is increasing [15][16] Company Strategy and Development Direction - The company aims to achieve $1 billion in revenue, driven by a recurring revenue model and strategic acquisitions [7][8] - Recent acquisitions, including Lynkwell and UPPay, are intended to enhance geographic reach and technological capabilities [19][24] - The strategy emphasizes vertical payment solutions, integrating hardware, software, and payment infrastructure to strengthen customer relationships and retention [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth, citing a strong balance sheet with over $300 million in cash [31][39] - The outlook for 2026 includes revenue guidance of $510 million to $520 million, with expected organic growth of 22% to 25% [45] - The company anticipates further improvement in profitability, with adjusted EBITDA margins projected around 17% [45] Other Important Information - The company is focused on increasing revenue per employee to $1 million over the next several years through resource optimization and AI [16] - Free cash flow for 2025 was approximately $12 million, with expectations for significant improvement in 2026 [41][46] Q&A Session Summary Question: Details on hardware deployments and future recurring revenue growth - Management noted strong hardware sales in Q4, driven by organic growth, particularly in the EV segment, which supports future recurring revenue [51][52] Question: Expectations for gross margin in 2026 - Management expects to maintain high gross margins, with continued growth in processing and hardware margins [55][56] Question: Acquisition targets for 2026 - The company plans to pursue 2 to 3 acquisitions per year, leveraging its strong cash position for strategic opportunities [58][60] Question: Revenue mix between traditional and higher value verticals - Higher growth verticals like EV charging and amusement are expected to contribute more to revenue, diversifying the mix away from traditional vending [64][65] Question: Opportunities in Asia Pacific markets - Significant opportunities are seen in Japan, with investments made to prepare for market entry [66][68] Question: ARPU expansion from existing products and services - Future ARPU growth is expected from processing growth and additional value-added services, including embedded financial services [70][72]

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]