ATS Corp Q2 2026 slides: revenue jumps 19%, adjusted EPS surges 80%

ATS Corp (NYSE:ATS) reported strong financial results for its fiscal second quarter of 2026, with significant year-over-year growth across key metrics. The company’s presentation, delivered during its November 5, 2025 earnings call, highlighted robust performance despite an ongoing leadership transition, with interim executives at the helm.

The stock responded positively to the results, trading up 5.01% to $28.07 following the announcement, after closing at $26.73 the previous day.

Quarterly Performance Highlights

ATS delivered impressive top-line growth in Q2 2026, with revenues reaching $728.5 million, representing a 19% increase compared to the same period last year. The company attributed this growth primarily to organic expansion of 12.6%, with additional contributions from acquisitions (2.4%) and favorable foreign exchange movements (3.9%).

Profitability metrics showed even stronger improvement. Adjusted earnings from operations jumped 40% year-over-year to $79.1 million, while adjusted EBITDA increased 32.4% to $103.7 million. The company’s adjusted earnings from operations margin stood at 10.9%.

Perhaps most notably, adjusted basic earnings per share surged 80% to $0.45, compared to $0.25 in the prior-year period. Basic earnings per share showed a dramatic improvement, reaching $0.34 compared to a $0.01 loss in Q2 2025.

Detailed Financial Analysis

The company’s order intake remained strong, with Q2 bookings of $734 million that were "well-diversified across all market verticals," according to the presentation. While this represents a slight decline from the previous year’s bookings (the earnings article noted a 1.1% year-over-year decrease), the company maintains a healthy trailing twelve-month book-to-bill ratio of 1.12:1.

Order backlog grew 14% year-over-year to $2.07 billion, providing what management described as "good revenue visibility" for upcoming quarters. This backlog is distributed across multiple sectors, with Life Sciences representing the largest portion at $1.14 billion, followed by Energy ($277 million), Consumer Products ($245 million), Food and Beverage ($218 million), and Transportation ($186 million).

The company’s financial health also showed improvement, with its leverage ratio (net debt to pro forma adjusted EBITDA) decreasing to 3.4x from 3.9x in the previous year. This progress aligns with management’s stated goal of reducing leverage to the 2-3x range, as mentioned in the earnings article.

Forward-Looking Statements

Looking ahead, ATS provided revenue guidance for the third quarter of fiscal 2026, projecting between $700 million and $740 million. Management indicated they continue to monitor the macroeconomic environment but have not observed any material impacts on customer order bookings or their supply chain.

The company expressed confidence in its long-term outlook across strategic end-markets. In the earnings call, management highlighted particular strength in life sciences, nuclear energy, and automation sectors as key drivers for future growth.

Strategic Initiatives

ATS is currently operating under interim leadership, with Ryan McLeod serving as Interim Chief Executive Officer and Anne Cybulski as Interim Chief Financial Officer. Despite this transition, the presentation emphasized that the company’s "priorities and plans remain unchanged during the leadership transition."

"Our results this quarter reflect good progress across our value drivers, supported by a strong backlog," said Ryan McLeod, Interim CEO, according to the earnings article. The interim CFO, Anne Cybulski (referred to as Anne Sobolsky in the earnings article), added that the company continues to expect "adjusted operating margin improvement on a full-year basis in fiscal 2026."

The presentation highlighted that ATS continues to execute on its strategic initiatives while delivering value for customers and shareholders. The company also mentioned a $15 million restructuring initiative aimed at cost efficiency, according to the earnings article, though specific details about this program were not elaborated upon in the presentation slides.

As ATS moves forward with its growth strategy, the robust Q2 results and strong order backlog provide a solid foundation despite the ongoing leadership transition. The company appears well-positioned to maintain its momentum into the second half of fiscal 2026, with particular focus on margin expansion and leverage reduction.

Full presentation:

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