ATS Corporation filed a notice with the Toronto Stock Exchange to launch a normal course issuer bid (NCIB) that will allow the company to repurchase up to 10% of its public float, or 8,225,621 shares, over a 12‑month period beginning December 22, 2025 and ending by December 21, 2026.
The bid is structured to purchase no more than 25% of the average daily trading volume, capped at 48,695 shares per day, unless block‑purchase exemptions apply. The program is part of ATS’s broader capital‑structure strategy, which also includes a planned restructuring effort slated to begin in the third quarter of fiscal 2026 and a $15 million cost‑optimization initiative.
Management said the buyback is intended to provide liquidity for shareholders and to support the share price, citing a belief that the market price may not fully reflect the company’s intrinsic value. The move follows a prior NCIB that ended on December 15, 2025, during which ATS repurchased 308,758 shares at an average price of $32.39 and was authorized to buy up to 8,259,180 shares.
ATS’s financial performance in recent quarters has been mixed. The company reported a negative earnings per share of –$0.27 and a net margin of –1.52% in the most recent quarter, with an operating margin of 1.01%. These figures highlight ongoing profitability challenges that the buyback seeks to offset by improving earnings per share and providing a buffer against market volatility.
The announcement comes amid a broader industry shift toward automation solutions across life sciences, transportation, food & beverage, consumer products, and energy. While demand for automation is rising, ATS faces headwinds from cost inflation and competitive pricing pressure, especially in legacy segments. The buyback, coupled with the planned restructuring, signals management’s confidence that the company can strengthen its balance sheet and return value to shareholders over the next year.
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