- Automation leader ATS Corporation (TSX:ATS) reported Q1 F2026 results, ending June 29, 2025, continuing a stretch of uninterrupted profitability that extends back to 2015, driven by increasing industrial demand to ramp up efficiency and enhance margins
- Revenue, for its part, jumped by 4.5x from C$591.1 million in F2013 to C$2.7 billion adjusted in F2025
- ATS stock has added 7.01 per cent year-over-year, 125.58 per cent since 2020 and approximately 200 per cent since 2015
Industrial automation leader ATS Corporation (TSX:ATS) reported Q1 F2026 results, ending June 29, 2025, continuing a stretch of uninterrupted profitability that extends back to 2015.
This content has been prepared as part of a partnership with ATS Corporation, and is intended for informational purposes only.
Here are the highlights:
- Revenue added 6.1 per cent year-over-year (YoY) to C$736.7 million thanks primarily to contributions from new acquisitions.
- Net income fell to C$24.3 million, down from C$35.3 million YoY, impacted by higher SG&A, stock-based compensation and net finance costs.
- Adjusted EBITDA was C$101.5 million, down from C$106 million YoY.
- Order bookings of C$693 million, down by 15.2 per cent from C$817 million YoY.
- Order backlog of C$2.06 billion, up by 9.9 per cent YoY.
The money-making quarter adds to a value-accretive run for ATS, including positive net income since 2015, complemented by a 4.5x jump in revenue from C$591.1 million in F2013 to C$2.7 billion adjusted in F2025.
Over the past five years, momentum remains palpable, with net income rising from C$64.09 million in F2021 to C$144.4 million adjusted in F2025, and revenue following suit, climbing from C$1.43 billion to C$2.53 billion, respectively, despite lingering post-pandemic inflation and the threat of US tariff renegotiations.
Management is confident in ATS’s ability to deliver increased profits and market share, regardless of how US tariffs play out, thanks to the majority of the company’s shipments from Canada into the US complying with the US-Mexico-Canada trade agreement, and equipment and product adjusted revenues from its Canadian and European operations being sold into the US remaining consistent at just over 20 per cent since Q4 F2025.
From a broader perspective, according to the Q1 F2026 news release, management expects to be shielded from short-term economic uncertainty thanks to rising demand for its automation solutions to counteract labor shortages, higher labor costs, production onshoring or reshoring and the ever pressing, cross-industrial need for more efficient production to remain competitive in the marketplace. According to Grand View Research, the global industrial automation market is estimated to grow from US$206.33 billion in 2024 to US$378.57 billion in 2030, posting a robust 10.8 per cent compound annual growth rate.
As expressed in the Q1 F2026 news release, “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’s global footprint and decentralized operating model, supported by the ATS Business Model (see slide 8 of the August 2025 investor deck), provide some flexibility to address potential disruptions over the long term.”
Management estimates Q2 2026 revenue to be between C$700 million and C$740 million, supported by stable to strong demand across its business segments.
Leadership insights
“Today ATS reported our first quarter results for fiscal 2026, with revenue growth, including contributions from recent acquisitions, and adjusted earnings margins in line with our expectations,” Andrew Hider, ATS’s outgoing chief executive officer (CEO), said in a statement. “These results reflect continued focus on our value drivers, the resilience of our business model and the dedication of our global teams.”
“ATS is well-positioned as a leader in automation, supported by our strong presence in growing, diversified end markets, a sizeable, high-quality order backlog and the ATS business model firmly entrenched within the culture of our decentralized businesses,” added Ryan McLeod, ATS’ chief financial officer and incoming interim CEO. “Our leadership team is well prepared to leverage these advantages and drive value during this transition period.”
About ATS
ATS, founded in 1978, is a top automation solutions provider to the world’s most successful companies, including multinational brands in life sciences, energy, transportation, consumer products and food & beverage. Its operations span more than 65 manufacturing facilities and over 85 offices in North America, Europe, Asia and Oceania.
ATS stock (TSX:ATS) is down by 5.97 per cent on the news trading at C$40.13 as of 10:51 am ET. The stock has added 7.01 per cent year-over-year, 125.58 per cent since 2020 and approximately 200 per cent since 2015.
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