ATS is undergoing a significant portfolio transformation, exiting transportation and restructuring operations, which creates near-term earnings noise but targets 50-75bps margin expansion in FY2027. The 18.4% bookings decline and 8.5% backlog contraction signal demand softness, particularly in life sciences, that may pressure revenue visibility. Watch Q1 FY2027 revenue guidance of $700M-$740M and monitor whether margin improvement materializes as restructuring costs phase down.
Price Chart
Executive Summary
ATS reported Q4 FY2026 results with adjusted revenues of $744.3M (+3.2% YoY) and adjusted EBITDA of $102.5M (+5.6% YoY), but adjusted EPS declined 12.2% to $0.36. The company is executing a major restructuring of its transportation business, incurring $28.3M in reorganization costs and closing facilities, while guiding for modest FY2027 revenue growth and 50-75bps margin expansion. Order bookings fell 18.4% YoY to $704M and backlog declined 8.5% to $1.958B, signaling demand headwinds.
Key Facts
- Q4 adjusted revenues $744.3M, +3.2% YoY; organic revenue growth was only 1.5%
- Q4 adjusted EPS $0.36, -12.2% YoY from $0.41
- Q4 adjusted EBITDA $102.5M, +5.6% YoY; adjusted EBITDA margin improved 31bps to 13.8%
- Q4 net loss of $16.2M improved from -$68.9M a year ago, driven by $146.9M prior-year EV customer settlement
- Order bookings $704M, -18.4% YoY; organic bookings declined 19.3%
- Order backlog $1,958M, -8.5% YoY; life sciences backlog down 10.2% to $1,077M
- Transportation revenues collapsed 61.1% YoY to $26.6M; segment being restructured and will cease to be reported separately
- Restructuring charges of $15.2M in Q4; $28.3M in transportation reorganization costs; $9.8M in services reorganization costs
- Net debt reduced to $1,151.2M from $1,474.5M; leverage ratio improved to 2.8x from 3.9x
- Free cash flow of $124.1M in Q4, up from $10.3M a year ago
- FY2027 guidance: Q1 revenues $700M-$740M; modest full-year revenue growth; adjusted operating margin expected to improve 50-75bps
- Transportation reorganization expected to remove ~$50M in dilutive revenues in FY2027
Financial Impact
Q4 adjusted revenues $744.3M (+3.2% YoY), adjusted EPS $0.36 (-12.2% YoY), adjusted EBITDA $102.5M (+5.6% YoY). FY2026 full-year adjusted revenues $2,970.1M (+10.8% YoY), adjusted EPS $1.69 (+15.0% YoY).
Risk Factors
- Order bookings declining 18.4% YoY with organic bookings down 19.3% signals weakening demand pipeline
- Life sciences revenue fell 9.3% YoY and backlog dropped 10.2%, the company's largest end market
- Transportation restructuring carries execution risk; $28.3M in reorganization costs already booked with more expected
- Tariff exposure: ~20% of adjusted revenues from Canadian/European operations sold into the U.S. face potential tariff impacts
- Adjusted EPS declining 12.2% YoY despite revenue growth indicates margin pressure from restructuring costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001394832-26-000017 |
| Document: form6k-fy26q4.htm | 0001394832-26-000017 |
| Document: 0001394832-26-000017-index-headers.html | 0001394832-26-000017 |
| Document: 0001394832-26-000017-index.html | 0001394832-26-000017 |
| Document: 0001394832-26-000017.txt | 0001394832-26-000017 |
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
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access