ATS ATS Corp /ATS
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Executive Summary
ATS reported Q4 FY2026 results with adjusted revenues of $744.3M (+3.2% YoY) and adjusted EBITDA of $102.5M (+5.6% YoY), but adjusted EPS declined 12.2% to $0.36. The company is executing a major restructuring of its transportation business, incurring $28.3M in reorganization costs and closing facilities, while guiding for modest FY2027 revenue growth and 50-75bps margin expansion. Order bookings fell 18.4% YoY to $704M and backlog declined 8.5% to $1.958B, signaling demand headwinds.
Actionable Insight
ATS is undergoing a significant portfolio transformation, exiting transportation and restructuring operations, which creates near-term earnings noise but targets 50-75bps margin expansion in FY2027. The 18.4% bookings decline and 8.5% backlog contraction signal demand softness, particularly in life sciences, that may pressure revenue visibility. Watch Q1 FY2027 revenue guidance of $700M-$740M and monitor whether margin improvement materializes as restructuring costs phase down.
Key Facts
- Q4 adjusted revenues $744.3M, +3.2% YoY; organic revenue growth was only 1.5%
- Q4 adjusted EPS $0.36, -12.2% YoY from $0.41
- Q4 adjusted EBITDA $102.5M, +5.6% YoY; adjusted EBITDA margin improved 31bps to 13.8%
- Q4 net loss of $16.2M improved from -$68.9M a year ago, driven by $146.9M prior-year EV customer settlement
- Order bookings $704M, -18.4% YoY; organic bookings declined 19.3%
- Order backlog $1,958M, -8.5% YoY; life sciences backlog down 10.2% to $1,077M
- Transportation revenues collapsed 61.1% YoY to $26.6M; segment being restructured and will cease to be reported separately
- Restructuring charges of $15.2M in Q4; $28.3M in transportation reorganization costs; $9.8M in services reorganization costs
- Net debt reduced to $1,151.2M from $1,474.5M; leverage ratio improved to 2.8x from 3.9x
- Free cash flow of $124.1M in Q4, up from $10.3M a year ago
- FY2027 guidance: Q1 revenues $700M-$740M; modest full-year revenue growth; adjusted operating margin expected to improve 50-75bps
- Transportation reorganization expected to remove ~$50M in dilutive revenues in FY2027
Financial Impact
Q4 adjusted revenues $744.3M (+3.2% YoY), adjusted EPS $0.36 (-12.2% YoY), adjusted EBITDA $102.5M (+5.6% YoY). FY2026 full-year adjusted revenues $2,970.1M (+10.8% YoY), adjusted EPS $1.69 (+15.0% YoY).
Risk Factors
- Order bookings declining 18.4% YoY with organic bookings down 19.3% signals weakening demand pipeline
- Life sciences revenue fell 9.3% YoY and backlog dropped 10.2%, the company's largest end market
- Transportation restructuring carries execution risk; $28.3M in reorganization costs already booked with more expected
- Tariff exposure: ~20% of adjusted revenues from Canadian/European operations sold into the U.S. face potential tariff impacts
- Adjusted EPS declining 12.2% YoY despite revenue growth indicates margin pressure from restructuring costs
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001394832-26-000017 |
| Document: form6k-fy26q4.htm | 0001394832-26-000017 |
| Document: 0001394832-26-000017-index-headers.html | 0001394832-26-000017 |
| Document: 0001394832-26-000017-index.html | 0001394832-26-000017 |
| Document: 0001394832-26-000017.txt | 0001394832-26-000017 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 11, 2026
3d ago
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6-K
| $26.70 awaiting T+5 | awaiting T+5 | — | $27.37 (+2.51%) |
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Jun 11, 2026
3d ago
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Institutional Cluster
| $26.42 awaiting T+5 | awaiting T+5 | — | $27.37 (+3.60%) |
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May 28, 2026
17d ago
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6-K
| $30.43 $28.85 | ▼ −5.19% | ▼ −5.14% | $27.37 (−10.06%) |
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May 18, 2026
27d ago
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6-K
| $31.95 $34.70 | ▲ +8.61% | ▲ +6.99% | $27.37 (−14.33%) |
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