ATS (NYSE:ATS) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

ATS (NYSE:ATS) announced its earnings results on Wednesday. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.04, Zacks reports. The business had revenue of $553.81 million for the quarter, compared to analysts’ expectations of $722.96 million. ATS had a positive return on equity of 8.82% and a negative net margin of 0.08%.The business’s revenue for the quarter was up 16.7% on a year-over-year basis. During the same period last year, the firm posted $0.32 earnings per share.

Here are the key takeaways from ATS’s conference call:

• New CEO Doug Wright is prioritizing ABM/lean execution, margin expansion and disciplined capital allocation, signaling a leadership change focused on operational improvement.
• Q3 results showed strong demand with order bookings of $821M, revenue of $761M (up 16.7% YoY), adjusted operating earnings of ~$80M, and a backlog of approximately $2.1B.
• End-market momentum is broadening — life sciences (Q3 revenues $391M, backlog $1.1B) remains a key growth driver while energy backlog hit a record (CAD 296M) and consumer/warehouse automation also posted record backlog levels.
• Gross margin fell to 29.6% (down 111 bps) due to program mix, the company increased restructuring charges to ~CAD 20M, and net debt/adj. EBITDA sits at ~3x, indicating near-term margin and cost-pressure risks.
• Management is embedding the services business into operating units to grow recurring, aftermarket revenue and says it will remain disciplined on M&A, targeting acquisitions that improve margins, aftermarket mix or core capabilities.

ATS Stock Performance

Shares of ATS traded down $1.01 during mid-day trading on Thursday, hitting $29.24. The stock had a trading volume of 168,920 shares, compared to its average volume of 152,827. The company has a market cap of $2.87 billion, a PE ratio of -2,920.18 and a beta of 1.21. The company has a quick ratio of 1.34, a current ratio of 1.63 and a debt-to-equity ratio of 0.84. The company’s fifty day simple moving average is $28.15 and its two-hundred day simple moving average is $27.74. ATS has a fifty-two week low of $20.90 and a fifty-two week high of $32.73.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Weiss Ratings reiterated a “sell (d)” rating on shares of ATS in a research note on Wednesday, January 21st. Zacks Research raised shares of ATS from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 14th. Wall Street Zen upgraded ATS from a “hold” rating to a “buy” rating in a research note on Saturday, January 17th. Scotiabank reiterated an “outperform” rating on shares of ATS in a research note on Thursday, January 29th. Finally, JPMorgan Chase & Co. increased their target price on shares of ATS from $33.00 to $35.00 and gave the company a “neutral” rating in a report on Friday, January 16th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $35.00.

Key ATS News

Here are the key news stories impacting ATS this week:

• Positive Sentiment: Q3 EPS beat analyst estimates — reported roughly $0.35 vs. ~$0.30 consensus, showing margin improvement and beating expectations. Q3 2026 Earnings Call Transcript
• Positive Sentiment: Revenue and net income were up year‑over‑year (company reported ~16.7% revenue growth and a material increase in net income), supporting the beat on the bottom line. ATS Reports Third-Quarter Fiscal 2026 Results
• Neutral Sentiment: Management hosted the earnings call and published the slide deck and transcript — useful for investors wanting detail on segment trends, backlog and margin drivers. Listen to Conference Call / Slide Deck
• Negative Sentiment: Q4 revenue guidance was provided in a range (about $509.2M–$537.9M) that sits at/just below consensus midpoints, introducing near‑term uncertainty about growth momentum and relieving some upside expectations. (Guidance referenced by company release/updates.)
• Negative Sentiment: Analysts and coverage pieces flagged mixed orders and recent leadership changes that could pressure sentiment until clarity on bookings and execution is restored. ATS Delivers Strong Q3 Earnings Growth Amid Mixed Orders and Leadership Changes

Institutional Trading of ATS

Several large investors have recently added to or reduced their stakes in ATS. Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in shares of ATS by 235.8% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 91,611 shares of the company’s stock valued at $2,397,000 after purchasing an additional 64,332 shares in the last quarter. Russell Investments Group Ltd. boosted its position in shares of ATS by 10.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 33,085 shares of the company’s stock valued at $866,000 after acquiring an additional 3,226 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of ATS by 15.8% in the third quarter. Dimensional Fund Advisors LP now owns 89,223 shares of the company’s stock worth $2,338,000 after buying an additional 12,161 shares during the period. Ewing Morris & Co. Investment Partners Ltd. lifted its position in shares of ATS by 11.7% in the 2nd quarter. Ewing Morris & Co. Investment Partners Ltd. now owns 31,600 shares of the company’s stock worth $1,006,000 after purchasing an additional 3,320 shares during the period. Finally, BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp grew its stake in shares of ATS by 7.8% in the second quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 50,516 shares of the company’s stock worth $1,612,000 after acquiring an additional 3,645 shares during the last quarter. 75.84% of the stock is owned by institutional investors.

About ATS

ATS Corporation (NYSE: ATS) is a Canada-based global provider of automation and energy solutions. Headquartered in Cambridge, Ontario, the company specializes in the design, engineering and manufacturing of custom automation and test systems, as well as fluid handling and control products. Since its founding in 1978, ATS has focused on delivering integrated hardware and software solutions that help original equipment manufacturers (OEMs) improve efficiency, quality and throughput across a range of industries.

Through its Automation segment, ATS develops bespoke assembly and testing platforms for sectors such as life sciences, consumer electronics, automotive and industrial equipment.