Ats Stock Earnings Reports

Q1 highlights: Revenue of $737M (up 6% YoY) with order bookings of $693M and a year-end backlog of ~$2.1B. Adjusted earnings from operations were $78.6M (10.7% of revenue) and adjusted EPS was $0.41. Recently acquired businesses contributed meaningfully to revenue (4.1%) and FX added ~3.2%; organic revenue was down ~1.2% due to lower transportation activity. Trailing 12-month book-to-bill remained healthy (1.17) and management says the opportunity funnel is diversified, led by Life Sciences (auto-injectors, radiopharma, wearables), Food & Beverage (primary processing and aftermarket service), and Energy (notably nuclear refurbishment activity such as CANDU and decommissioning). Gross margin was stable (29.8%); sequential operating margin improved slightly and management expects margin expansion over fiscal 2026 though not necessarily linear quarter-to-quarter. Balance sheet and cash: operating cash flow strong ($156M), EV settlement received in the quarter, inventory/working capital elevated at 17.3% of revenues with a target of <=15%, pro forma net debt/EBITDA ~3.6x with a stated target leverage of 2–3x (management expects to reach target this year). Q2 revenue guidance: $700M–$740M. Other items: continued focus on services/recurring revenue and digital offerings, active but disciplined M&A pipeline (deleveraging priority), integration of recent acquisitions proceeding in line with plans, and ongoing ABM continuous-improvement initiatives. Management cautioned about timing variability in customer investment decisions and is monitoring tariff and funding dynamics but has not seen material impacts to date.