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Introduction & Market Context
ATS Corporation (NYSE:ATS) presented its fourth quarter and full-year 2025 results on May 28, 2025, revealing a mixed performance characterized by strong order bookings despite revenue challenges. The automation solutions provider continues to navigate headwinds in its transportation segment while maintaining momentum in other strategic verticals.
The company’s stock closed at $30.62 on the day of the earnings call, down 0.91% from the previous session, with after-hours trading showing a further slight decline of 0.27% to $30.31.
Quarterly Performance Highlights
ATS reported Q4 2025 order bookings of $863 million, representing an approximately 9% year-over-year increase. This growth was diversified across the company’s strategic market verticals, demonstrating resilience despite sectoral challenges.
However, adjusted revenues declined to $721.1 million, approximately 9% lower than the same period last year. Management attributed this decrease primarily to expected lower revenues in the electric vehicle (EV) segment, continuing a trend observed in previous quarters.
As shown in the following key highlights slide:
The company’s order backlog reached $2,139 million, which management indicated provides good revenue visibility moving forward. The trailing twelve-month book-to-bill ratio stood at 1.23, with all end markets maintaining ratios above 1.0, suggesting continued demand strength across segments.
A significant development was the announcement of a negotiated settlement with an EV customer, resulting in a $134.75 million USD (approximately $194.0 million CAD) settlement receivable expected to be paid in Q1. This resolution addresses the payment dispute previously disclosed in earlier earnings reports.
Segment Analysis
ATS provided a detailed breakdown of its market segments, highlighting varying performance and outlook across its diversified portfolio.
The Life Sciences segment maintained the largest backlog at $1,199 million, with management noting that the funnel remains strong, supported by market growth across key submarkets. This continues the positive momentum seen in previous quarters.
The Food and Beverage segment ended fiscal year 2025 with a record backlog of $258 million. Management indicated that the funnel remains strong and highlighted ongoing efforts to identify synergies with Paxiom, a strategic acquisition mentioned in previous earnings reports.
As illustrated in the company’s outlook by segment:
The Energy segment showed a backlog of $186 million, with management expressing optimism about both large-scale and small modular reactor opportunities over the long term.
Consumer Products maintained a stable funnel with a backlog of $282 million, focusing on niche opportunities including warehouse automation and packaging solutions.
The Transportation segment, which has faced challenges in recent quarters, reported a backlog of $214 million. Management characterized the funnel as "stable with smaller opportunities relative to prior years," reflecting the ongoing adjustments in this business area.
Financial Results in Detail
The financial results revealed significant year-over-year declines across key metrics. Revenues for Q4 F2025 were $574.2 million, down from $791.5 million in Q4 F2024. Adjusted revenues, which include the EV customer settlement, were $721.1 million compared to $791.5 million in the prior year.
Most notably, ATS reported a loss from operations of $113.6 million for Q4 F2025, a substantial decline from the $74.8 million profit in Q4 F2024. Similarly, EBITDA was negative at $75.6 million compared to positive $111.1 million in the same period last year.
The detailed financial comparison is presented in this comprehensive table:
On an adjusted basis, earnings from operations were $74.3 million with a 10.3% margin, down from $95.9 million in Q4 F2024. Adjusted EBITDA also declined to $97.1 million from $115.8 million in the prior year period.
Organic revenue growth was negative 15.2% for the quarter and negative 17.8% year-to-date, reflecting the continued challenges in certain segments, particularly transportation.
Outlook and Guidance
Looking ahead, ATS provided revenue guidance for Q1 F2026 in the range of $680 million to $730 million, supported by its substantial order backlog. Management emphasized that fiscal year 2025 order bookings of $3.3 billion represented a record for the company.
The long-term outlook in strategic end-markets remains positive, though management acknowledged short-term margin pressure resulting from lower transportation revenue. The company continues to monitor tariff developments and is positioning to mitigate risks where possible.
As summarized in the company’s forward-looking statements:
The EV customer settlement is expected to reduce leverage, addressing one of the financial concerns highlighted in previous quarters. Management remains focused on strategic customer relationships to navigate challenges in the macro environment.
Despite the mixed results, ATS’s diversified business model and strong order backlog provide a foundation for potential recovery as the company continues to execute its strategic initiatives across its various market segments.
Full presentation:
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