ATS reports higher revenue and EBITDA, but earnings miss and lower order bookings pressure investor sentiment.
Stock Earnings Results
May 28, 2026
Table of Contents
May 28, 2026
ATS Corporation (NYSE: ATS) reported fourth-quarter fiscal 2026 results with higher revenue and improved adjusted EBITDA, but shares came under pressure after adjusted earnings missed expectations and order bookings declined.
ATS is an automation solutions company that designs and builds advanced manufacturing systems for life sciences, consumer products, food and beverage, energy, transportation, and other industrial markets.
The company reported adjusted EPS of $0.26, below estimates of $0.31, representing a negative 16.1% earnings surprise. Revenue came in at $544.64 million, slightly below estimates of $546.61 million, though revenue growth was 36.2%.
ATS reported fourth-quarter revenue of C$747.1 million, up 30.1% from the prior-year quarter.
Adjusted revenue was C$744.3 million, up 3.2% year-over-year. The increase was supported by organic growth, foreign exchange benefits, and the impact of a prior-year EV customer settlement comparison.
Adjusted EBITDA rose to C$102.5 million, up from C$97.1 million in the prior-year quarter.
Adjusted EBITDA margin improved to 13.8%, compared with 13.5% last year.
Adjusted basic EPS was C$0.36, down from C$0.41 in the prior-year quarter.
ATS reported a net loss of C$16.2 million, or C$0.16 per basic share, compared with a net loss of C$68.9 million, or C$0.70 per share, a year earlier.
Order bookings fell to C$704 million, down 18.4% year-over-year.
The decline reflected lower bookings in life sciences, consumer products, energy, and transportation, partially offset by stronger food and beverage order timing. Transportation bookings declined as expected due to lower EV-related capacity needs.
Order backlog was C$1.96 billion as of March 31, 2026, down 8.5% from C$2.14 billion a year earlier.
Management said the backlog still provides revenue visibility into fiscal 2027, but the decline likely weighed on investor sentiment.
ATS said it took steps to restructure and reposition its transportation-related businesses.
The company is consolidating certain operations, reducing its facility footprint, and shifting engineering and automation capabilities toward applications with stronger returns. Management expects the transportation reorganization to remove about C$50 million of dilutive revenue in fiscal 2027.
For the first quarter of fiscal 2027, ATS expects revenue of C$700 million to C$740 million.
For fiscal 2027, the company expects modest revenue growth and adjusted earnings from operations margin improvement of about 50 to 75 basis points.
Investors are likely to watch whether ATS can stabilize bookings while expanding margins.
The key areas are:
ATS delivered higher revenue and better adjusted EBITDA, but the market focused on the earnings miss and weaker bookings.
The company is trying to shift away from lower-return transportation work and toward higher-value automation markets such as life sciences, nuclear, food and beverage, and industrial applications. The next test is whether margin expansion can offset slower bookings and a smaller backlog.
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