ATS Corporation reported Q2 fiscal 2026 results on November 5 2025, delivering revenue of $728.5 million, up 18.9% year‑over‑year, and net income of $33.6 million, a turnaround from a $0.9 million loss a year earlier. Adjusted earnings from operations rose to $79.1 million and adjusted EBITDA reached $103.7 million, giving an EBITDA margin of 14.2% versus 12.8% in the prior year. The company beat consensus revenue estimates of $721.5–$723.4 million by $5.1–$7.0 million and surpassed the consensus EPS estimate of $0.30–$0.31 with an adjusted EPS of $0.45, a beat of $0.14–$0.15.
Revenue growth was driven by a 12.6% organic expansion and a 2.4% contribution from acquisitions, with the life sciences, food & beverage, and energy segments each reporting double‑digit growth. The shift away from the lower‑margin transportation segment and a higher mix of high‑margin automation solutions helped lift the overall revenue mix, offsetting modest headwinds in legacy product lines.
Margin expansion stemmed from disciplined cost management and a favorable product mix. Adjusted EBITDA margin improved by 1.4 percentage points, largely because the company reduced spending on legacy maintenance contracts and increased pricing power in its high‑margin industrial automation portfolio. The move away from transportation, which historically carried thinner margins, further contributed to the margin lift.
For the third quarter of fiscal 2026, ATS projects revenue of $700–$740 million, a range that aligns with the current quarter’s performance and signals confidence in continued demand. Management emphasized ongoing margin expansion through cost efficiencies and a focus on high‑margin product lines, while reaffirming its deleveraging strategy with a target net debt to adjusted EBITDA ratio of 2x–3x.
Interim CEO Ryan McLeod highlighted the company’s “continuous improvement culture” and the resilience of its business model during the leadership transition, noting that the strong backlog of $2.07 billion—up 13.5% year‑over‑year—provides a solid foundation for future growth.
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