The combination of declining revenue, negative free cash flow, and lowered Q2 guidance creates a bearish setup for ATS. Traders should watch for the pace of order bookings recovery in the coming quarters and execution of the Fixed Cost Transformation Program. The unremediated material weakness in internal controls adds governance risk. Monitor the Q2 earnings call for updates on large customer award timing and restructuring progress.
Price Chart
Executive Summary
ATS Corp reported a weak fiscal Q1 2027 with revenue declining 5.8% YoY to $693.7M and a net loss of $0.3M vs net income of $24.3M a year ago. The company announced an 18-month Fixed Cost Transformation Program targeting ~$20M in annual savings from European footprint consolidation, representing roughly half the margin expansion needed for its 15% long-term margin target. Management guided Q2 revenue of $660M-$700M, below consensus expectations, and noted that achieving modest organic growth in FY2027 depends on stronger order bookings in the back half of the year.
Key Facts
- Revenue declined 5.8% YoY to $693.7M (adjusted revenue -5.2% to $698.3M)
- Net loss of $0.3M vs net income of $24.3M in prior year; basic EPS $0.00 vs $0.25
- Adjusted EBITDA fell 8.5% to $92.9M; adjusted EBITDA margin contracted 47bps to 13.3%
- Order Bookings fell 5.3% to $656M; Order Backlog down 8.7% to $1,889M
- Q2 FY2027 revenue guidance of $660M-$700M implies continued YoY decline
- Announced 18-month Fixed Cost Transformation Program; initial European phase targets ~$20M annual savings
- Recorded $5.7M restructuring charges, $7.6M transportation reorganization costs, $7.1M software impairment
- Free cash flow was negative $25.9M vs positive $139.5M a year ago
- Net debt to pro forma adjusted EBITDA increased to 2.9x from 2.8x at March 31, 2026
- Material weakness in internal controls over financial reporting remains unremediated
Financial Impact
Revenue decline of $43M YoY; net income swing of -$24.6M; adjusted EBITDA decline of $8.6M; negative free cash flow of $25.9M
Risk Factors
- Continued revenue decline if order bookings do not recover in H2 FY2027
- Execution risk on Fixed Cost Transformation Program and European footprint consolidation
- Unremediated material weakness in internal controls over financial reporting
- Tariff uncertainty on Canadian/European shipments to the US (just over 20% of adjusted revenues)
- Timing delays in large customer awards, particularly in nuclear and radiopharmaceutical markets
- Elevated leverage at 2.9x net debt/EBITDA limits financial flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001394832-26-000023 |
| Document: ats-mdaxfy27q1.htm | 0001394832-26-000023 |
| Document: ats-pressreleasexfy27q1.htm | 0001394832-26-000023 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 3, 2026 29d ago | 6-K | $19.57 $18.26 | ▼ −6.69% | ▼ −5.51% | $18.26 (−6.69%) |
Aug 10, 2026 7w ago | Press Release | $19.73 $19.43 | ▲ +1.52% | ▲ +0.61% | $18.26 (+7.45%) |
Aug 9, 2026 7w ago | Institutional Cluster | $19.73 $19.43 | ▲ +1.52% | ▲ +0.61% | $18.26 (+7.45%) |
Aug 7, 2026 8w ago | 6-K | $21.13 $19.65 | ▼ −7.00% | ▼ −6.61% | $18.26 (−13.58%) |
Aug 6, 2026 8w ago | 6-K | $20.53 $19.57 | ▲ +4.68% | ▲ +5.28% | $18.26 (+11.06%) |
Jul 27, 2026 9w ago | 6-K | $26.59 $19.23 | ▼ −27.68% | ▼ −30.98% | $18.26 (−31.33%) |
Jul 2, 2026 13w ago | 6-K | $27.68 $26.79 | ▼ −3.22% | ▼ −2.80% | $18.26 (−34.03%) |
Jun 11, 2026 16w ago | 6-K | $26.88 $27.74 | ▲ +3.20% | ▲ +1.31% | $18.26 (−32.07%) |
Jun 11, 2026 16w ago | Institutional Cluster | $26.88 $27.74 | ▲ +3.20% | ▲ +1.31% | $18.26 (−32.07%) |
May 28, 2026 18w ago | 6-K | $30.43 $28.01 | ▼ −7.95% | ▼ −4.81% | $18.26 (−39.99%) |
US Market Status
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