ATS (NYSE:ATS) Conference Transcript

ATS Corporation Conference Call Summary Company Overview - Company: ATS Corporation (NYSE: ATS) - Date: November 18, 2025 - Speaker: Ryan McLeod, Interim CEO Key Points Industry and Market Dynamics - Life Sciences Sector: ATS has six independent life science businesses, with a focus on automation and drug delivery mechanisms, particularly auto injectors, which account for approximately 10% of total revenues and 20% of life science revenues [7][15][16] - Growth in GLP-1 Market: The GLP-1 segment is expected to remain a significant revenue contributor over the next five years, with high growth potential due to increasing consumer demand for drug delivery devices [15][23] - Radiopharma Growth: Investment in radiopharmaceuticals for cancer treatment is driving growth, with a shift towards personalized medicine leading to more specific therapies [17][18] - Wearable Devices: ATS is involved in the development of wearable devices, expanding their market from diabetes treatment to general consumer applications [19][20] Financial Performance - Q2 Fiscal Results: Revenues increased by approximately 12% year-over-year, with a backlog growth of 13.5% [11][12] - Margin Expansion: ATS is on track for high single-digit organic growth and has seen sequential margin expansion, particularly in Q2 [12][13] - Transportation Segment: The transportation business has stabilized at around $50 million per quarter, with no expected growth in the next three to five years due to market saturation and technology changes [30][31] Strategic Initiatives - Restructuring and Optimization: ATS has undergone significant restructuring to optimize performance, particularly in the transportation segment, while exploring adjacent opportunities in industrial manufacturing and reshoring [31][33] - Nuclear Business Growth: The nuclear segment is expected to grow, with a focus on refurbishment, decommissioning, and new builds, particularly in the context of increasing energy demands [25][27][28] Leadership Transition - CEO Search: The board is actively engaged in the search for a new CEO, prioritizing candidates with strong backgrounds in continuous improvement and M&A [56][59] Other Considerations - Working Capital Management: ATS aims to reduce working capital investment from approximately 18% to a target of 15% of sales, with larger life science programs expected to contribute to this goal [46][48] - Market Positioning: ATS is focused on high-consequence markets such as life sciences and food, which are less cyclical and emphasize quality and time to market [44][45] This summary encapsulates the key insights from the ATS Corporation conference call, highlighting the company's strategic focus, market dynamics, and financial performance.