Canada's ATS Corp Q4 Revenue Beats on Consumer Products Strength
ATS Corp Q4 Revenue Surpasses Expectations
Canada-based automation solutions provider ATS Corp reported 30% revenue growth in Q4 fiscal 2026, beating analyst estimates. Revenue came in at C$747.1 million versus the consensus estimate of C$736 million.
Quarterly Results and Analyst Expectations
However, adjusted earnings per share (EPS) missed expectations at C$0.36 compared to the expected C$0.44. The company posted a net loss due to restructuring and transportation reorganization costs.
Key Drivers of Revenue Growth
Revenue growth was driven by strong performance in consumer products and energy segments, while life sciences and transportation declined due to lower order backlog. Order bookings fell 18% year-over-year.
Fiscal 2027 Outlook
ATS Corp expects Q1 fiscal 2027 revenue between C$700 million and C$740 million. The company anticipates modest revenue growth for fiscal 2027, with transportation reorganization removing about C$50 million in revenue, but expects adjusted operating margin to improve by 50-75 bps.
Analyst Ratings and Stock Performance
The average analyst rating is "buy," with a median 12-month price target of C$51.00, about 4.1% above the May 27 closing price of C$48.99. The stock currently trades at 24 times next 12-month earnings.
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