ATS 4Q Loss Narrows as Consumer Products, Energy Drive Revenue Growth

Dow Jones05-28

By Adriano Marchese

ATS reported a narrowed loss in the fourth quarter as revenue surged on strong consumer products and energy demand.

For the three months ended March 31, the Canadian industrial automation company posted on Thursday a narrowed net loss of 16.2 million Canadian dollars ($11.7 million), or C$16 a share, compared with C$68.9 million, or C$0.70 a share, in the comparable quarter a year ago.

Adjusted earnings were C$0.36 a share. According to FactSet, analysts were expecting C$0.44 a share.

Revenues were 30% higher at C$747.1 million. Adjusted revenues rose 3.2% to C$744.3 million, and came in ahead of C$736.4 million expected by analysts.

ATS credits the rise to an increase in organic revenue, which excludes contributions from acquired companies and foreign exchange translation, as well as from a C$146.9 million effect from the one-time settlement with an electric vehicle customer in the prior year.

ATS' revenue growth in the quarter was driven mainly by an 81% jump in consumer product sales and a doubled energy revenue, which more than offset declines in life sciences, food and beverage and transportation, it said.

The company noted that revenue from services rose over 17% thanks to growth in its backlog as well as from the sale of goods, which rose 6%. Revenue from construction contracts decreased 3.4% from the prior period primarily due to lower order backlog entering the period, it said.

Looking ahead, ATS expects modest revenue growth in fiscal 2027, supported by strong demand across most of its end markets and a C$1.96 billion backlog that includes several long-term life sciences programs.

Adjusted operating margin is projected to improve 50 to 75 basis points, thanks to cost-savings and stronger aftermarket mix, but the company warned that inflation, tariffs and project-timing volatility could affect growth.

For the first quarter, the company expects revenue of C$700 million to C$740 million. ATS said its backlog should help offset normal variability in quarterly orders.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

May 28, 2026 07:03 ET (11:03 GMT)

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ATS 4Q Loss Narrows as Consumer Products, Energy Drive Revenue Growth

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