ATS (ATS) Q4 2025 earnings summary

Executive summary

• Fourth quarter bookings reached CAD 863 million, up 9% year-over-year, with diversified growth across all markets and strong contributions from acquisitions.

• Full-year bookings hit a record CAD 3.3 billion, up 14.3% year-over-year, setting a strong foundation for fiscal 2026.

• The company settled a major EV customer dispute, resulting in a one-time after-tax impact of CAD 129 million and a $171.1 million pre-tax charge, but improving financial flexibility and leverage.

• Recent acquisitions of Paxium and Heidolph expanded the product portfolio and contributed to growth in life sciences and food & beverage.

• Strategic focus remains on innovation, operational efficiency, and disciplined M&A to drive long-term shareholder value.

Financial highlights

• Q4 adjusted revenues were CAD 721 million, down 9% year-over-year due to lower EV revenues; full-year adjusted revenues declined 12%.

• Q4 adjusted earnings from operations were CAD 74 million, down 23% from the prior year, mainly from lower transportation volumes.

• Q4 adjusted EBITDA was $97.1 million (down 16.1% year-over-year); Q4 net loss was $(68.9) million.

• Adjusted EPS for Q4 was $0.41, down from last year; full-year adjusted EPS was $1.47, down from $2.61.

• Free cash flow for fiscal 2025 was negative $52.3 million, compared to negative $67.6 million last year.

Outlook and guidance

• Order backlog ended the quarter at approximately CAD 2.1 billion, the highest in eight quarters, supporting revenue visibility for fiscal 2026.

• Q1 fiscal 2026 revenues are expected in the range of CAD 680 million–CAD 730 million.

• Management expects margin expansion in fiscal 2026 as life sciences bookings convert to revenue and transportation volumes recover.

• Effective tax rate is expected in the mid-20% range going forward.

• Margin expansion initiatives are ongoing, but inflation and supply chain volatility may impact short-term results.