Canada's ATS Q2 revenue falls 8.6%, misses estimates

ATS

Today 11:10

Overview
Canada automation solutions provider's Q2 revenue fell 8.6% yr/yr, missing analyst expectations
Adjusted EPS missed analyst expectations
Company repurchased C$61.3 mln in shares under NCIB

Outlook
ATS expects Q3 fiscal 2027 revenues of C$640 mln to C$680 mln
Company no longer expects modest revenue growth or 50-75 bps margin expansion in fiscal 2027
ATS expects recent US tariff modifications to benefit future order activity and customer capex plans

Result Drivers
LOWER ORGANIC REVENUE - Co said revenue decline was mainly due to lower organic revenue and reduced construction contract activity
MIXED END-MARKET PERFORMANCE - Co cited lower life sciences, industrial & consumer, and food & beverage revenues due to timing of customer projects and lower backlog
ORDER DELAYS AND TARIFFS - Co said delays in non-life sciences order bookings were worsened by US tariffs on Canadian packaging equipment

Company press release: ID:nBw5pYDZba

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$665.80 mln
C$681.59 mln (7 Analysts)
Q2 Adjusted EPS
Miss
C$0.27
C$0.33 (7 Analysts)
Q2 Net Loss
 
C$5 mln
 
Q2 Loss Per Basic Share
 
C$0.05
 
Q2 Order Backlog
 
C$2.009 bln
 
Q2 Orders
 
C$827 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 Corporation is C$41.00, about 54.7% above its November 3 closing price of C$26.50
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)