ATS Corporation
- Open
- 26.83
- Day high
- 26.83
- Day low
- 26.50
- Prev close
- 26.61
- Volume
- 31K
- Mkt cap
- $2.6B
- P/E (TTM)
- 50.4
- EPS (TTM)
- $0.53
- P/B
- 2.1
- P/S
- 1.2
- Yield
- —
- Per share
- —
ATS Corporation (ATS) is a Industrials company listed on NYSE. The stock is down 12% over the past year.
ATS Corporation (ATS) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ATS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 28, 2026 | $0.32 | $0.26 | -18.8% | $535M | +1.1% |
| Feb 4, 2026 | $0.30 | $0.34 | +13.3% | $553M | -24.6% |
| Nov 5, 2025 | $0.31 | $0.33 | +6.5% | $523M | -28.6% |
| Aug 7, 2025 | $0.27 | $0.30 | +11.1% | $541M | -24.7% |
| May 28, 2025 | $0.26 | $0.28 | +7.7% | $403M | -43.2% |
| Feb 5, 2025 | $0.23 | $0.23 | +0.0% | $453M | -34.1% |
| Aug 8, 2024 | $0.38 | $0.37 | -2.6% | $508M | -0.1% |
| May 16, 2024 | $0.41 | $0.48 | +17.1% | $583M | +9.4% |
| Feb 7, 2024 | $0.48 | $0.48 | +0.0% | $566M | +2.5% |
| May 18, 2023 | $0.40 | $0.54 | +34.9% | $540M | +9.5% |
| Feb 9, 2023 | $0.38 | $0.24 | -37.9% | $487M | +5.8% |
| Oct 1, 2022 | $0.38 | $0.23 | -37.8% | $430M | -0.3% |
ATS Corporation company profile
Overview
ATS Corporation (TSX:ATS) is a Canadian industrial automation company founded in 1978 and headquartered in Cambridge, Ontario. Originally known as ATS Automation Tooling Systems Inc., the company rebranded to ATS Corporation in November 2022. ATS went public on the Toronto Stock Exchange in 2009 and later completed a U.S. IPO with a New York Stock Exchange listing in 2024. The company has evolved from a local automation tooling provider into a global leader in custom automation solutions, serving critical industries including life sciences, transportation, food and beverage, and electronics manufacturing.
Business
ATS Corporation operates in the industrial automation sector, designing and building custom automated manufacturing and assembly systems for complex production processes. Industrial automation involves replacing manual labor with sophisticated machinery and software systems that can perform manufacturing tasks with greater precision, speed, and consistency than human workers. The company's core offering centers around turnkey automation solutions - complete systems that take a customer's manufacturing challenge from initial concept through final implementation. These systems typically include robotic assembly lines, automated testing equipment, material handling systems, and sophisticated software controls that orchestrate the entire production process. ATS serves three primary market segments with distinct revenue contributions: 1. Life Sciences (approximately 45% of backlog): ATS creates automated systems for pharmaceutical and medical device manufacturing, including equipment for producing auto-injector devices (like EpiPens), drug packaging systems, and specialized equipment for emerging markets like GLP-1 diabetes medications and radiopharmaceuticals. This segment has become increasingly important as pharmaceutical companies seek to automate complex drug manufacturing processes. 2. Transportation and Mobility (approximately 30% of backlog): The company builds automation systems for automotive manufacturers, particularly focusing on electric vehicle production lines, battery assembly systems, and traditional automotive component manufacturing. This includes everything from automated welding systems to complex battery pack assembly lines. 3. Consumer Products, Food & Beverage, and Other Industries (approximately 25% of backlog): ATS provides automation solutions for food processing, packaging systems, electronics manufacturing, and consumer goods production. This includes automated inspection systems, packaging lines, and assembly equipment for various consumer products. Beyond hardware, ATS offers comprehensive services including pre-automation consulting (process analysis and optimization), post-automation support (maintenance, training, and upgrades), and increasingly, digital solutions that use artificial intelligence and machine learning to optimize production performance and predict maintenance needs.
Revenue model
ATS Corporation generates revenue through multiple complementary business models centered around custom automation solutions. The primary revenue stream comes from project-based automation system sales, where customers pay for complete turnkey automation solutions that can range from hundreds of thousands to tens of millions of dollars per project. These projects typically have development cycles of 12-24 months, with revenue recognized as milestones are achieved. The company's customers are primarily large manufacturers in regulated or high-precision industries who require custom automation solutions that cannot be purchased off-the-shelf. This includes pharmaceutical companies like those producing GLP-1 drugs, automotive manufacturers transitioning to electric vehicles, and food processing companies requiring specialized packaging solutions. A growing portion of revenue comes from recurring service contracts and aftermarket support, including maintenance agreements, spare parts sales, system upgrades, and training services. This creates a more predictable revenue stream and higher margins compared to initial system sales. The company has been strategically expanding this segment through acquisitions and organic growth initiatives. ATS also generates revenue from contract manufacturing services where the company produces components or sub-assemblies for customers using its automation expertise, and increasingly from software and digital solutions that help customers optimize their existing automation systems through data analytics and AI-powered insights. Several factors significantly impact the company's margins. Supply chain disruptions and component shortages can compress margins as ATS faces longer lead times and higher costs for electrical and mechanical components, which the company noted as an ongoing challenge. Project complexity and customization levels directly affect profitability, with more standardized solutions offering better margins. Competition intensity varies by market segment, with life sciences commanding premium pricing due to regulatory requirements and specialized expertise, while transportation markets face more price pressure. Labor availability and costs for skilled engineers and technicians also influence margins, as does the company's ability to leverage digital tools and AI to improve operational efficiency. The mix between new system sales and higher-margin service revenue significantly impacts overall profitability, with the company strategically focusing on expanding its service capabilities.
Competitive moat
ATS Corporation possesses a moderate but defensible competitive moat built primarily around specialized technical expertise and customer switching costs. The company's strongest moat exists in highly regulated industries like life sciences, where ATS has developed deep domain knowledge in pharmaceutical manufacturing requirements, FDA validation processes, and specialized equipment design. This expertise creates significant barriers for new entrants, as customers cannot easily switch automation providers without extensive re-validation and regulatory approval processes. The company's custom engineering capabilities and extensive intellectual property portfolio provide additional protection, as each automation solution is tailored specifically to customer needs, making it difficult for competitors to replicate exact solutions. ATS has built strong relationships with key customers over multi-year project cycles, creating switching costs as customers become familiar with ATS's systems and support capabilities. However, the moat faces several challenges. The industrial automation market includes large, well-capitalized competitors like Siemens, ABB, and Rockwell Automation, who possess greater financial resources and broader geographic reach. Technology disruption represents a significant threat, as advances in artificial intelligence, robotics, and software could potentially commoditize some of ATS's specialized expertise. Additionally, some customers are developing internal automation capabilities, potentially reducing demand for external providers. The company's moat is also market-dependent, being strongest in life sciences where regulatory barriers are highest, but weaker in more commoditized segments like general manufacturing. The cyclical nature of key end markets, particularly automotive, can create periods of intense price competition that erode the company's pricing power. While ATS's focus on custom solutions provides differentiation, it also limits scalability compared to companies offering more standardized products, potentially constraining long-term competitive advantages as markets mature.
Risks & safety
ATS Corporation presents a moderate margin of safety with manageable financial risks but some operational challenges that warrant attention. • Liquidity and Solvency: Strong current ratio of 1.92x and quick ratio of 1.58x indicate solid short-term liquidity. Cash position of $184 million provides adequate working capital buffer. Debt-to-equity ratio of 0.99x is manageable but elevated, requiring monitoring of leverage levels. • Cash Flow Concerns: Free cash flow has been inconsistent and negative in recent quarters (-$39M in Q2, +$35M in Q3), reflecting the project-based nature of the business and working capital fluctuations. Operating cash flow volatility requires careful management of project timing and collections. • Valuation Metrics: EV/EBITDA of 19.2x appears elevated for an industrial company, suggesting limited valuation cushion. Price-to-book ratio of 2.45x is reasonable but not deeply discounted. Graham number analysis suggests the stock may be trading above conservative value estimates. • Other Considerations: Large backlog of $1.9 billion provides revenue visibility, but execution risk remains significant. Supply chain challenges continue to pressure margins. Heavy dependence on project-based revenue creates inherent volatility in financial performance.
Recent development
Over the past few years, ATS Corporation has executed several strategic initiatives to strengthen its market position and expand capabilities. The company completed a significant milestone by achieving a U.S. IPO and New York Stock Exchange listing in 2024, providing greater access to capital markets and enhanced visibility with American investors. ATS has pursued an active acquisition strategy to expand both geographic reach and technical capabilities. Notable acquisitions include Avidity in the life sciences sector, ITACA (an Italian automation integrator), Yazzoom, and Odyssey Validation Consultants. These acquisitions have strengthened the company's presence in key markets while adding specialized expertise in areas like validation consulting and digital solutions. The company has made substantial investments in digital transformation and AI capabilities, developing new software solutions for predictive maintenance, anomaly detection, and process optimization. ATS launched enhanced versions of its Symphoni platform for auto-injector device assembly and developed new software specifically for the radiopharmaceutical market. The company also introduced a 3D scanning vision system for food and beverage inspection applications. ATS has strategically focused on high-growth markets, particularly the GLP-1 drug manufacturing segment within life sciences, recognizing the massive growth potential as this market is projected to expand from $18.8 billion in 2023 to potentially $100 billion by 2030. The company has also maintained its position in the evolving electric vehicle market despite near-term uncertainties, leveraging digital twin technology to provide high-value solutions. Sustainability initiatives have gained prominence, with ATS earning a silver medal in the EcoVadis sustainability program and launching water platform systems with reusable cartridges. The company hosted its first Global Innovation Summit, demonstrating commitment to innovation leadership and knowledge sharing across its global operations.
ATS company profile · for informational purposes only — not investment advice.
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