Canada's ATS Q1 revenue misses estimates on lower construction contracts

ATS

06/08/2026 11:28

Overview
Canada automation solutions provider's Q1 revenue declined 5.8% yr/yr, missing analyst expectations
Company posted net loss of C$0.3 mln, compared to net income a year ago
ATS announced 18-month Fixed Cost Transformation Program to improve profitability, starting with European facility consolidation

Outlook
ATS expects Q2 revenue between C$660 mln and C$700 mln
Company expects recurring revenues to be 25%-35% of total on a trailing-twelve-month basis
ATS targets annual cost reductions of C$20 mln in first phase of Fixed Cost Transformation Program

Result Drivers
LOWER CONSTRUCTION CONTRACTS - Co said revenue decline was mainly due to lower order backlog entering the period, impacting construction contract revenues
TIMING DELAYS - Co cited timing variability in anticipated customer awards, particularly in life sciences, as affecting revenue and backlog
RESTRUCTURING COSTS - Co incurred restructuring and reorganization expenses, including transportation and services divisions, which impacted profitability

Company press release: ID:nBwc8Mtf1a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
C$693.70 mln
C$725.07 mln (7 Analysts)
Q1 Net Loss
 
C$0.3 mln
 
Q1 Basic EPS
 
C$0
 
Q1 Order Backlog
 
C$1.89 bln
 
Q1 Order Bookings
 
C$656 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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 Corporation is C$50.00, about 27.2% above its August 5 closing price of C$39.30
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago

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Aug 4 - Rockwell Automation raises 2026 profit forecast on strong industrial demand
Aug 5 - Allient Q2 revenue beats estimates on industrial automation, data center growth
Aug 5 - Symbotic Q3 revenue rises 22%, slightly beats estimates

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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.)