Automation company ATS Corp's Q1 revenue beats estimates, profit drops on higher costs

ATS

07/08/2025 11:12

Overview

ATS Corp fiscal Q1 revenue rises 6.1% yr/yr, beating analyst expectations

Net income and adjusted EPS decline due to higher SG&A and finance costs

CEO Andrew Hider steps down, CFO Ryan McLeod named interim CEO

Outlook

ATS expects Q2 revenues between C$700 mln and C$740 mln

Company sees strong funnel activity in life sciences and energy

ATS notes inflationary pressures may disrupt margin expansion

Company anticipates opportunities in nuclear refurbishment projects

Result Drivers

ACQUISITIONS - Revenue growth driven by contributions from recent acquisitions and positive foreign exchange impact

HIGHER COSTS - Net income decline attributed to increased SG&A, stock-based compensation, and finance costs

ORDER DECLINE - 15.2% decrease in order bookings mainly due to reduced EV production investments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$736.70 mln
C$712.90 mln (7 Analysts)
Q1 Net Income
C$24.30 mln
Q1 Basic EPS
C$0.25
Q1 Order Backlog
C$2.07 bln
Q1 Orders
C$693 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for ATS Corp is C$49.00, about 12.9% above its August 6 closing price of C$42.68

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw4kzhDBa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)