<\/p>\n
ATS Reports Second Quarter Fiscal 2027 Results<\/b><\/p>\n
CAMBRIDGE, Ontario–(BUSINESS WIRE<\/a>)– \nToday ATS reported second quarter results for fiscal 2027. Order Bookings were $827 million, up 12.7% year over year and 26.1% from the first quarter, led by life sciences. Life sciences Order Backlog ended the quarter at the highest level in the Company’s history. The Company also continued to make improvements on aftermarket services and the ATS Business Model (“ABM”), with a clear view on the portfolio, strategy and execution across its businesses, while driving progress on its previously announced Fixed Cost Transformation Program.<\/p>\n Second quarter highlights:<\/b><\/p>\n \n“We continue to see healthy customer demand across all served markets, and our growing aftermarket business further strengthens the quality and resilience of our portfolio,” said Doug Wright, Chief Executive Officer. “While a delay in non-life sciences Order Bookings, including from tariff uncertainty, has added near-term pressure as some customers delay capital decisions, I am encouraged by both the year-over-year and sequential increase in Order Bookings in the quarter and believe we have the pieces in place to return to strong growth at improved returns on capital.”<\/p>\n Year-to-date highlights:<\/b><\/p>\n \nMr. Wright added: “We remain confident in the long-term growth opportunities across our markets, supported by strong momentum in radiopharma and nuclear, as well as a healthy trailing twelve-month book-to-bill ratio. We are taking deliberate actions to strengthen execution, including enhancing our leadership team and advancing our Fixed Cost Transformation Program. With our return-driven operating models and disciplined capital deployment, we believe we are well positioned to capitalize on the opportunities ahead as a leading global automation player.”<\/p>\n 1<\/sup> Non-IFRS measure: see “Non-IFRS and Other Financial Measures”.<\/p>\n<\/td>\n<\/tr>\n 2<\/sup> Supplementary financial measure: see “Non-IFRS and Other Financial Measures”.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Second quarter performance highlights<\/b><\/p>\n \nSecond quarter revenues were $665.8 million and decreased by 8.6% year-over-year, due to a more normalized level of GLP-1-related activities compared to the prior year, and lower activity in other non-life sciences businesses, partially offset by growth in energy and revenues from services.<\/p>\n \nAdjusted earnings from operations for the quarter were $57.4 million (8.6% adjusted earnings from operations margin), compared to $79.1 million (10.9% adjusted earnings from operations margin) a year ago, primarily due to lower volumes and mix.<\/p>\n \nDuring the second quarter, the Company purchased 2,244,461 common shares for an aggregate purchase cost of approximately $61.3 million under its normal course issuer bid (“NCIB”), at an average price of $27.32 per share. The NCIB remains one component of the Company\u2019s overall capital allocation strategy and is complementary to its acquisition growth plans.<\/p>\n Updated fiscal 2027 performance expectations<\/b><\/p>\n \nManagement continues to see healthy activity in the Company’s pipelines across its chosen end markets, supported by its differentiated technologies, deep domain expertise, and strong customer relationships. In the second quarter of fiscal 2027, Order Bookings were $827 million, including the highest life sciences quarterly total since the second quarter of fiscal 2025, and the Company’s second-highest quarter of life sciences Order Bookings on record. Strength in radiopharmaceuticals and medical devices markets drove Order Bookings, resulting in ATS’ book-to-bill ratio being approximately 1.05:1 on a trailing-twelve-month basis. Management also continues to see increasing revenue contribution from services and remains well positioned to participate in the long-term growth of the nuclear and radiopharmaceutical markets, although customer awards in these markets can vary in timing and size.<\/p>\n \nDuring the second quarter of fiscal 2027, the Company experienced temporary delays in Order Bookings within its non-life sciences businesses, primarily related to packaging automation equipment. These delays reflected a timing shift in customer orders, which was further exacerbated by tariffs imposed under Section 338 of the Tariff Act of 1930 (“Section 338 tariffs”) that came into effect in late August 2026 following the breakdown of trade talks between Canada and the U.S. and affected packaging equipment manufactured in Canada and sold into the U.S. As a result of these delays and the execution time for the Company’s Order Backlog to convert to revenues, Management does not expect to achieve its previous goals for modest revenue growth and for margin expansion of 50 to 75 basis points in fiscal 2027. Third quarter fiscal 2027 revenues are expected to be $640 million to $680 million. Management’s revenue estimates are calculated each quarter based on the assessment of project schedules across all customer contracts in Order Backlog, expectations for faster-turn product and services revenues, expected delivery timing of third-party equipment and operational capacity.<\/p>\n \nAt the end of October the U.S. announced modifications to Section 338 tariffs, which eliminate the impact on a majority of the covered products. This modification is expected to be beneficial to ATS and its affected customers as they digest the various changes over time and advance their capital expenditure plans. The near-term impact has been driven primarily by customer deferral of capital decisions, including as a result of tariff uncertainty, rather than by the Company’s ability to serve those customers, or the strength of the Company’s pipelines. The Company’s global manufacturing footprint provides the flexibility to shift production of tariff-impacted volume to U.S. facilities if needed and the Company has been evaluating such adjustments in consultation with affected customers.<\/p>\n Fixed Cost Transformation Program and margin expansion update<\/b><\/p>\n \nIn the second quarter of fiscal 2027, the Company advanced the implementation of its previously announced Fixed Cost Transformation Program, a multi-phase initiative to simplify its operating structure, optimize its global footprint and reduce fixed costs. When completed, the program is designed to deliver $65 million to $75 million of annualized cost savings, equivalent to approximately 250 basis points of adjusted earnings from operations margin. This represents approximately half of the 500 basis points of adjusted earnings from operations margin expansion required to move from ATS’ fiscal 2026 base of approximately 10% to the Company’s long-term target of 15%. The Company has made initial progress in line with its expectations; however, lower revenues and mix are temporarily offsetting the benefits of the program in the near term. To date, the Fixed Cost Transformation Program has resulted in several announced facility closures, including in Europe, which will result in the reduction of approximately 10% in the Company’s overall square footage. As a result of the announced actions from Fixed Cost Transformation and other restructuring activities, the Company expects to reduce its workforce, including subcontractors, by approximately 300 to 400, with additional adjustments expected as further steps in the program are taken.<\/p>\n \nOf the $21.3 million of restructuring costs recorded in the second quarter of fiscal 2027, approximately half was related to the Fixed Cost Transformation Program. Management continues to expect that payback on restructuring will be less than one year, with some variability depending on jurisdiction.<\/p>\n \nGiven the nature of the facility and reorganization activities involved, implementation is expected to continue over the next 15 months, with benefits accruing progressively as program actions are completed within the original 18-month timeframe.<\/p>\n \nManagement continues to believe that executing on the Company’s long-term growth opportunities and operational-improvement initiatives, together with portfolio optimization and cost-reduction activities, including the Fixed Cost Transformation Program, support the Company’s achievement of its long-term adjusted earnings from operations margin target of 15%.<\/p>\n Financial results \n\u00a0<\/p>\n<\/td>\n Three Months \nThree Months \nVariance<\/p>\n<\/td>\n Six Months \nSix Months \nVariance<\/p>\n<\/td>\n \nRevenues<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 665.8<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n728.5<\/p>\n<\/td>\n \n(8.6)%<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 1,359.5<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,465.2<\/p>\n<\/td>\n \n(7.2)%<\/p>\n<\/td>\n \nAdjusted revenues1<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 665.8<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n728.5<\/p>\n<\/td>\n \n(8.6)%<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 1,364.1<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,465.2<\/p>\n<\/td>\n \n(6.9)%<\/p>\n<\/td>\n \nNet income (loss)<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n (5.0)<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n33.6<\/p>\n<\/td>\n \n(114.9)%<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n (5.3)<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n57.9<\/p>\n<\/td>\n \n(109.2)%<\/p>\n<\/td>\n \nAdjusted earnings from operations1<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 57.4<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n79.1<\/p>\n<\/td>\n \n(27.4)%<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 125.5<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n157.7<\/p>\n<\/td>\n \n(20.4)%<\/p>\n<\/td>\n \nAdjusted earnings from operations margin2<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 8.6%<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10.9%<\/p>\n<\/td>\n \n(224)bps<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 9.2%<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10.8%<\/p>\n<\/td>\n \n(156)bps<\/p>\n<\/td>\n \nAdjusted EBITDA1<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 80.7<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n103.7<\/p>\n<\/td>\n \n(22.2)%<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 173.4<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n205.3<\/p>\n<\/td>\n \n(15.5)%<\/p>\n<\/td>\n \nAdjusted EBITDA margin2<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 12.1%<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n14.2%<\/p>\n<\/td>\n \n(211)bps<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 12.7%<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n14.0%<\/p>\n<\/td>\n \n(130)bps<\/p>\n<\/td>\n \nBasic earnings (loss) per share<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n (0.05)<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.34<\/p>\n<\/td>\n \n(114.7)%<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n (0.05)<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.59<\/p>\n<\/td>\n \n(108.5)%<\/p>\n<\/td>\n \nAdjusted basic earnings per share1<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 0.27<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.45<\/p>\n<\/td>\n \n(40.0)%<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 0.62<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.85<\/p>\n<\/td>\n \n(27.1)%<\/p>\n<\/td>\n \nOrder Bookings3<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 827<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n734<\/p>\n<\/td>\n \n12.7%<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 1,482<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,427<\/p>\n<\/td>\n \n3.9%<\/p>\n<\/td>\n As At<\/b><\/p>\n<\/td>\n September 27 \nSeptember 28 \n\u00a0<\/p>\n \n\u00a0<\/p>\n \n\u00a0<\/p>\n \nVariance<\/p>\n<\/td>\n \nOrder Backlog3<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 2,009<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2,070<\/p>\n<\/td>\n \n(2.9)%<\/p>\n<\/td>\n 1<\/sup> Non-IFRS financial measure \u2014 See “Non-IFRS and Other Financial Measures”.<\/p>\n<\/td>\n 2<\/sup> Non-IFRS ratio \u2014 See “Non-IFRS and Other Financial Measures”.<\/p>\n<\/td>\n 3<\/sup> Supplementary financial measure \u2014 See “Non-IFRS and Other Financial Measures”.<\/p>\n<\/td>\n Second quarter summary \nBy market, revenues generated in life sciences decreased $18.7 million or 5.0% year-over-year. This was primarily due to timing of both customer capital allocation as well as project execution. Revenues in industrial & consumer decreased $41.8 million or 23.5% compared to the prior year as a result of lower activity in certain legacy industrial applications, as the Company continues to reposition its capabilities towards other strategic areas. Revenues generated in food & beverage decreased $25.2 million or 20.2% from the corresponding period last year due to lower Order Backlog entering the period, in addition to timing of project execution. Revenues in energy increased $23.0 million or 45.1% year-over-year primarily related to execution of nuclear projects.<\/p>\n \nNet loss for the second quarter of fiscal 2027 was $5.0 million ((5) cents per share basic), compared to net income of $33.6 million (34 cents per share basic and diluted) for the second quarter of fiscal 2026. The decrease primarily reflected lower revenues. Adjusted basic earnings per share were 27 cents compared to 45 cents in the second quarter of fiscal 2026.<\/p>\n \nDepreciation and amortization expense was $37.3 million in the second quarter of fiscal 2027, compared to $39.4 million a year ago.<\/p>\n \nRestructuring costs for the three and six months ended September 27, 2026 were $21.3 million and $27.0 million, respectively, compared to nil and $2.5 million in the corresponding periods a year ago.<\/p>\n \nEBITDA was $60.5 million (9.1% EBITDA margin) in the second quarter of fiscal 2027 compared to $114.6 million (15.7% EBITDA margin) in the second quarter of fiscal 2026. EBITDA for the second quarter of fiscal 2027 included $21.3 million of restructuring charges, $0.1 million of incremental costs related to acquisition activity, $1.4 million related to CEO inducement costs, $1.2 million of other reorganization-related costs, and a $3.8 million recovery of stock-based compensation revaluation expense. EBITDA for the corresponding period in the prior year included $0.1 million of incremental costs related to acquisition activity, $7.3 million of stock-based compensation recovery due to forfeiture of unvested awards, and $3.7 million recovery of stock-based compensation revaluation expenses. Excluding these amounts, adjusted EBITDA was $80.7 million (12.1% adjusted EBITDA margin), compared to $103.7 million (14.2% adjusted EBITDA margin) for the corresponding period in the prior year. Lower adjusted EBITDA primarily reflected lower revenues. EBITDA and adjusted EBITDA are non-IFRS financial measures, and EBITDA margin and adjusted EBITDA margin are non-IFRS ratios \u2014 see “Non-IFRS and Other Financial Measures.”<\/p>\n Order Backlog Continuity \n\u00a0<\/p>\n<\/td>\n Three Months \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nThree Months \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Six Months \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nSix Months \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOpening Order Backlog<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 1,889<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2,068<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 1,958<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2,139<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdjusted Revenues<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n (666<\/b><\/p>\n<\/td>\n )<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(728<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n (1,364<\/b><\/p>\n<\/td>\n )<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1,465<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nOrder Bookings<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 827<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n734<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 1,482<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,427<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOrder Backlog Adjustments1<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n (41<\/b><\/p>\n<\/td>\n )<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n (67<\/b><\/p>\n<\/td>\n )<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(31<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nTotal<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 2,009<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2,070<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 2,009<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2,070<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n 1<\/sup> Order Backlog adjustments include foreign exchange adjustments, and normal course scope changes and cancellations.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Order Bookings Backlog Outlook \nFunnel activity in industrial & consumer is stable. While discretionary consumer spending may influence the timing of certain customer investments, the Company continues to broaden its opportunity pipeline across specialized industrial applications. These opportunities allow ATS to deploy its differentiated automation, testing and high-speed assembly capabilities into higher-value areas such as data center infrastructure, warehouse packaging automation and other mission-critical production environments.<\/p>\n \nFunnel activity in food & beverage remains strong despite lower order activity in certain markets, particularly global tomato processing, following elevated investment levels in recent years. ATS continues to see opportunities across its core and adjacent end markets and is expanding its opportunity set beyond tomato processing into fresh fruit processing, secondary processing and packaging applications. Customer demand is increasingly focused on solutions that improve productivity and reduce operating costs, rather than investments primarily intended to add capacity. In addition, customers’ equipment replacement requirements may support investment activity even during periods of softer underlying demand. Through its market position and capabilities, management believes it is well positioned to participate as customer investment activity improves over time.<\/p>\n \nFunnel activity in energy remains strong, supported by industry investment in energy security, infrastructure modernization and new power generation capacity to support data center needs. Within nuclear, demand related to CANDU reactor refurbishment and life-extension programs continues to support capital project opportunities in the near term and lifecycle service opportunities over the longer term. ATS is also engaged in front-end engineering, design and prototype-equipment development for small modular reactors and conventional new builds. As customer programs advance, ATS can support automation for modular fabrication and assembly, fuel fabrication and related manufacturing processes, as well as fuel handling and other specialized testing systems designed for reliable and repeatable operation in high-risk environments. Opportunities in fuel fabrication are also emerging as customers seek to strengthen domestic supply chains and invest in the facilities and equipment required to support future reactor deployment. Based on management’s assessment of where ATS’ capabilities can be deployed, the Company’s addressable opportunity on a reactor program may represent a low-single-digit percentage of total customer capital expenditure, depending on the application.<\/p>\n \nAfter-sales revenues and reoccurring revenues, which ATS defines as revenues from ancillary products and services associated with equipment sales, and revenues from customers who purchase non-customized ATS products at regular intervals, are expected to provide some balance to customers’ capital expenditure cycles. Management expects reoccurring revenues to be in the range of 25%-35% on a trailing-twelve-month basis and remains focused on expanding this proportion of the business over time. After-sales service revenues are accretive to the Company’s overall margin, and growth in this proportion is expected to support the Company’s margin expansion targets.<\/p>\n \nAcross its end markets, ATS’ competitive position is reinforced by a broad base of differentiated technologies, products and engineering know-how developed across the portfolio. These capabilities include precision and high-speed assembly systems for medical-device applications, modular sterile-filling platforms that integrate containment, inspection and magnetic conveyance, and adaptable automation platforms that can be deployed across emerging industrial applications. The Company is also advancing practical artificial intelligence and data-enabled automation applications combining machine vision, data, analytics and machine learning with automated equipment and lifecycle service offerings. Current applications include advanced inspection and sorting, digital tools for regulated workflows, and solutions intended to improve equipment performance, maintenance and operator effectiveness. These capabilities are at varying stages of development and are expected to support higher-value automation solutions and lifecycle service opportunities across complex and regulated applications.<\/p>\n \nCustomers seeking to de-risk or enhance supply chain resiliency, address skilled worker shortages or combat higher labour costs present ongoing and future opportunities for ATS. Management believes that the underlying trends driving customer demand for ATS solutions, including growing labour constraints, production onshoring or reshoring and the need for scalable, high-quality, energy-efficient production, remain favourable. In addition, funnel growth in markets where sustainability requirements are a focus for customers \u2014 including nuclear and grid battery storage, as well as consumer goods packaging \u2014 provides ATS with opportunities to use its capabilities to respond to customer needs, such as global and regional requirements to reduce carbon emissions.<\/p>\n \nOrder Backlog of $2,009 million is expected to help mitigate some of the impact of quarterly variability in Order Bookings on revenues in the short term. The Company’s Order Backlog includes several large enterprise programs that have longer periods of performance and therefore longer revenue recognition cycles, particularly in life sciences.<\/p>\n \nManagement’s approach to long-term value creation is centered on disciplined execution of the Company’s Growth Algorithm, which is designed to drive sustainable growth in per-share cash generation. The Growth Algorithm combines organic growth, disciplined acquisitions, margin expansion and improved working-capital efficiency, while supporting continued investment in differentiated technologies, lifecycle services and strategic acquisitions. Together, these priorities are intended to enhance the quality, resilience and growth of the Company’s earnings and cash flow profile. Management also considers return on invested capital and cash return on investment as part of its capital allocation framework. This framework is intended to balance growth, profitability and capital efficiency across organic investments, acquisitions and operational improvement initiatives, with the objective of maximizing long-term shareholder value.<\/p>\n \nAs management increases its focus on cash returns, improving non-cash working capital velocity and asset utilization more broadly are clear priorities within the Company’s operating models. These priorities are intended to support stronger cash generation and improved returns on invested capital. The Company’s long-term goal is to maintain its investment in non-cash working capital as a percentage of annualized revenues below 15%, although fluctuations are expected on a quarter-over-quarter basis. The Company expects that continued cash flows from operations, together with cash and cash equivalents on hand and credit available under operating and long-term credit facilities, will be sufficient to fund its requirements for investments in non-cash working capital and capital assets, and to fund strategic investment plans including some potential acquisitions. Acquisitions could result in additional debt or equity financing requirements for the Company. Non-cash working capital as a percentage of adjusted revenues is a non-IFRS ratio \u2014 see “Non-IFRS and Other Financial Measures.”<\/p>\n \nFor further details on the Company’s outlook, please see “Outlook” in its Management’s Discussion and Analysis for the second quarter ending September 27, 2026 (“Q2 MD&A”).<\/p>\n Reorganization and Transformation Activity Fixed Cost Transformation Program Transportation reorganization and other restructuring activities \nAt quarter end, two U.S. facilities and one German facility were held for sale, with one U.S. facility expected to be structured as a sale and leaseback following quarter end. Subsequent to quarter end, the Company completed the sale of the two U.S. facilities for consideration of $71.2 million, resulting in an estimated gain on disposal of approximately $12.2 million. The Company entered into an agreement to lease back one of the facilities to support the growth of the nuclear business in the U.S. The transaction will be recognized in the third quarter of fiscal 2027. Proceeds from the sale of these facilities are expected to fund restructuring activities and other costs of exiting businesses.<\/p>\n Tariffs Quarterly Conference Call
\nATS Corporation (TSX and NYSE: ATS) (“ATS” or the “Company”) today reported its financial results for the three and six months ended September 27, 2026. All references to “$” or “dollars” in this news release are to Canadian dollars unless otherwise indicated.<\/p>\n\n
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September 27,
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2026<\/b><\/p>\n<\/td>\n\n \n
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September 28,
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2025<\/p>\n<\/td>\n\n \n \n \n
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September 27,
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2026<\/b><\/p>\n<\/td>\n\n \n
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September 28,
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2025<\/p>\n<\/td>\n\n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n<\/table>\n \n
\n \n \n
\n
<\/b>2026<\/b><\/p>\n<\/td>\n\n \n
\n
2025<\/p>\n<\/td>\n\n \n <\/tr>\n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n <\/tr>\n \n \n <\/tr>\n \n \n <\/tr>\n<\/table>\n
\n
<\/b>Second quarter fiscal 2027 revenues were 8.6% or $62.7 million lower than in the corresponding period a year ago, primarily reflecting a year-over-year decrease in organic revenue (excluding contributions from acquired companies and foreign exchange translation) of $66.1 million or 9.1%, partially offset by the positive impact of foreign exchange translation. Revenues generated from construction contracts decreased 19.2% or $77.2 million from the prior period primarily due to lower Order Backlog entering the period. Revenues from services increased 6.1% or $10.3 million, primarily due to organic revenue growth on higher Order Backlog entering the period and the positive impact of foreign exchange translation. Revenues from the sale of goods increased 2.7% or $4.2 million, which included a positive impact from foreign exchange translation. Organic revenue is a non-IFRS financial measure – see “Non-IFRS and Other Financial Measures.”<\/p>\n
\n
<\/b>(In millions of dollars)<\/p>\n\n
\n \n \n
\n
Ended
\n
September 27,
\n
2026<\/b><\/p>\n<\/td>\n\n \n \n
\n
Ended
\n
September 28,
\n
2025<\/p>\n<\/td>\n\n \n \n
\n
Ended
\n
September 27,
\n
2026<\/b><\/p>\n<\/td>\n\n \n \n
\n
Ended
\n
September 28,
\n
2025<\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
<\/b>Second quarter of fiscal 2027 Order Bookings were $827 million, a 12.7% year-over-year increase, primarily reflecting a 12.4% increase in organic Order Bookings. By market, Order Bookings in life sciences increased compared to the prior-year period, reflecting continued customer capital investment across a broad range of applications, including large enterprise orders. Order Bookings within life sciences remain well diversified, including orders for radiopharmaceutical applications and for a range of pharmaceutical and medical device automation solutions. Order Bookings decreased in industrial & consumer compared to the prior period a year ago, primarily due to the timing of customer projects and the Company’s ongoing portfolio repositioning towards opportunities that support improved profitability and capital efficiency. Order Bookings in food & beverage increased compared to the prior-year period due to the timing of customer orders. Order Bookings in energy decreased compared to the prior-year period primarily due to the timing of customer projects, specifically for nuclear refurbishment projects, and due to strong nuclear refurbishment-related activity in the prior-year period that benefited from several large project awards. Given the nature of the nuclear market, Order Bookings can fluctuate based on the timing of customer investment decisions and project awards. Organic Order Bookings and Organic Order Bookings growth are supplementary financial measures \u2014 see “Non-IFRS and Other Financial Measures.”<\/p>\n
\n
<\/b>At September 27, 2026, Order Backlog was $2,009 million, 2.9% lower than at September 28, 2025.<\/p>\n
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<\/b>The life sciences funnel remains strong and diversified, with opportunities across strategic submarkets such as pharmaceuticals, radiopharmaceuticals and medical devices, partially offsetting lower levels of GLP\u20111-related activity compared to recent periods. Management continues to identify opportunities with both new and existing customers across diagnostic and therapeutic radiopharmaceuticals, isotope production, wearable devices, automated pharmacy solutions, contact lenses and pre-filled syringes, as well as integrated life sciences solutions that leverage capabilities from across the Company. Management continues to see strong customer interest in specialized radiopharmaceutical production, containment and automation solutions, supported primarily by increasing adoption of therapeutic applications and ongoing investment in isotope production. As programs advance from clinical development towards commercialization, management continues to observe broader market activity aimed at securing capacity, enhancing supply-chain resilience and supporting reliable, compliant operations in highly regulated environments. ATS’ differentiated capabilities in radiopharmaceutical containment systems, integrated automation and lifecycle support position the Company to participate in multiple phases of customer investment across the radiopharmaceutical value chain. ATS continues to strengthen its coordinated go-to-market approach, with initiatives focused on broader market coverage, improved customer engagement and development of a pipeline of opportunities.<\/p>\n
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<\/b>Total restructuring expenses
\n
<\/i>Total restructuring expenses in the second quarter of fiscal 2027 were $21.3 million, with approximately half related to the Fixed Cost Transformation Program.<\/p>\n
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<\/i>In the second quarter of fiscal 2027, the Company recorded restructuring expenses primarily related to its European Footprint Consolidation and the activities described above.<\/p>\n
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<\/i>The Company completed the restructuring activities announced in the fourth quarter of fiscal 2026 in the second quarter of fiscal 2027.<\/p>\n
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<\/b>The majority of the Company’s shipments from Canada into the U.S. fall within the current terms of the U.S.-Mexico-Canada trade agreement (“USMCA”). In 2026, the U.S. declined to agree to extend the USMCA in its current form, triggering annual joint reviews that will continue until the parties either agree to an extension or the agreement expires on July 1, 2036. Although the USMCA remains in full force and effect, the annual review process, and the ability of any party to withdraw from the agreement on six months’ written notice, creates potential long-term uncertainty regarding North American free trade compounded by additional tariffs imposed by the U.S. on certain goods from various jurisdictions globally, including Canada and Europe; and further tariffs and trade agreements continue to be discussed. The uncertainty of Section 338 tariffs has had a more material impact during the quarter than previously anticipated, primarily affecting packaging equipment and customer decision making based on expected tariff impacts. Subsequent changes to tariff policy may reduce the impact of these tariffs on the Company going forward, although the effect of such changes may not translate immediately into Order Bookings and revenues. The Company does not currently expect tariffs imposed under Section 301 of the Trade Act of 1974 (“Section 301 tariffs”) to have a material impact and continues to assess the application of these tariffs. Management continues to actively monitor the situation as it evolves and is taking steps to mitigate risks where possible while continuing to offer support to customers based on their needs, which may include onshoring or reshoring production. Supply chain impacts resulting from shifting trade dynamics have been largely mitigated through alternative sourcing, along with pricing strategies. While the Company could see impacts over time arising from unmitigated costs related to the tariffs themselves, potential supplier price increases, and the timing and geographic shifts in customers’ capital deployment, ATS’ global footprint and decentralized operating model, supported by the ABM, provide some flexibility to address potential disruptions over the long term. On a trailing-twelve-month basis, the Company’s equipment and product adjusted revenues from its Canadian and European operations being sold into the U.S. remained consistent with the range previously disclosed of just over 20% of the Company’s adjusted revenues.<\/p>\n
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<\/b>ATS will host a conference call and webcast at 8:30 a.m. eastern time on Wednesday, November 4, 2026 to discuss its quarterly results. The listen-only webcast can be accessed at https<\/a>:\/\/events.q4inc.com\/attendee\/753614756<\/a> and the conference call can be accessed by dialing (833) 461-5787 <\/b>five minutes prior and quoting reference number 753614756. A replay of the conference will be available on the ATS website following the call. Alternatively, a telephone recording of the call will be available for one week (until midnight November 11, 2026) by dialing (833) 309-1852 <\/b>and using the access code 753614756.<\/p>\n