Canada's ATS Corp Q4 revenue beats on consumer products unit strength

ATS

28/05/2026 11:10

Overview
Canada automation solutions provider's Q4 revenue rose 30% yr/yr, beating analyst expectations
Adjusted EPS for Q4 missed analyst expectations
Company posted net loss as restructuring and transportation reorganization costs weighed on results

Outlook
ATS expects Q1 fiscal 2027 revenue between C$700 mln and C$740 mln
Company expects modest revenue growth for fiscal 2027, with transportation reorganization to remove about C$50 mln in revenue
ATS expects adjusted earnings from operations margin to improve by 50-75 bps in fiscal 2027

Result Drivers
SEGMENT VARIATION - Revenue growth was driven by strong performance in consumer products and energy, while life sciences and transportation declined due to lower order backlog entering the quarter
RESTRUCTURING COSTS - Net loss in the quarter was impacted by $28.3 mln in transportation reorganization costs and $15.2 mln in restructuring charges
LOWER ORDER BOOKINGS - Order bookings fell 18% yr/yr, reflecting declines in life sciences, consumer products, energy, and transportation due to timing of customer investments and end-market capacity needs

Company press release: ID:nBw4hPYB4a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
C$747.10 mln
C$736 mln (7 Analysts)
Q4 Adjusted EPS
Miss
C$0.36
C$0.44 (7 Analysts)
Q4 Net Income
 
-C$16.20 mln
 
Q4 Basic EPS
 
-C$0.16
 
Q4 Order Backlog
 
C$1.96 bln
 
Q4 Orders
 
C$704 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "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$51.00, about 4.1% above its May 27 closing price of C$48.99
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 18 three months ago

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(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.)