ATS Corporation, headquartered in Cambridge, Ontario, is a leading automation solutions provider catering to various sectors including life sciences, transportation, food and beverage, consumer products, and energy. The company reported its fourth-quarter and full-year results for fiscal 2025, indicating a stable condition with both challenges and opportunities for future growth.

In the fourth quarter, ATS achieved order bookings of $863 million, reflecting a 9% increase from the same period last year, driven by a combination of 2.6% organic growth, a 4% contribution from acquisitions, and a 2.5% favorable effect from foreign exchange translation. For the full fiscal year, order bookings reached a record $3.3 billion, representing a 14.3% increase year-over-year. Adjusted revenues for Q4 were reported at $721 million, down 9% from the fourth quarter of the previous year, with annual adjusted revenues decreasing by 12% due to a drop in electric vehicle (EV) revenues, as expected.

Adjusted earnings from operations in Q4 were $74.3 million, down 23% compared to the prior year. The adjusted earnings margin for the quarter was reported at 10.3%. Following adjustments for the EV settlement, the adjusted EBITDA was $97.1 million, resulting in an adjusted EBITDA margin of 13.5%. The company incurred a loss from operations of $113.6 million for the quarter, which includes a significant after-tax impact of approximately CAD 129 million related to the EV settlement.

ATS ended the quarter with an order backlog of approximately $2.1 billion, marking the highest level in the last eight quarters, and a trailing 12-month book-to-bill ratio of 1.23:1. The company anticipates Q1 revenues to be in the range of $680 million to $730 million. In terms of cash flow, ATS reported $39.3 million from operating activities during the quarter, with noncash working capital at 22.4% of revenue. Excluding the settlement receivable from the EV dispute, noncash working capital was just over 15%.

During fiscal 2025, the company invested $78.1 million in capital expenditures and intangible assets, with expectations for similar investments of $80 million to $100 million in fiscal 2026. The net debt to adjusted EBITDA ratio at the end of Q4 stood at 3.9x, which is expected to improve upon receipt of the EV settlement. Share buybacks were executed earlier in Q1, with 309,000 shares acquired for approximately $10 million as part of the company’s capital deployment strategy.

In summary, ATS Corporation’s fourth-quarter results reflect a mix of growth in order bookings and challenges with revenue and adjusted earnings amid restructuring in its EV business. The strong backlog and bookings provide a foundation for expectations regarding revenue visibility into fiscal 2026, despite ongoing pressures within certain markets.