ATS (ATS) investor relations material

Leadership and organizational updates

• Interim CEO Ryan McLeod, formerly CFO, is leading the company following the previous CEO's resignation in July.

• Sarah Moore was appointed as group executive for Life Sciences, bringing significant industry and M&A experience.

• The CEO search is well advanced, with a focus on candidates with strong continuous improvement and M&A backgrounds.

• The decentralized structure has enabled business continuity during the leadership transition.

Financial performance and outlook

• First half revenues increased by about 12%, with backlog up 13.5% year-over-year, supporting a positive outlook.

• High single-digit organic revenue growth and margin expansion are reaffirmed targets for the year.

• Margin expansion continues, with Q2 showing significant improvement and further gains expected.

• The 15% margin target remains achievable, with levers including operating leverage, sales mix, and standardization.

• Working capital target of 15% of sales is considered achievable, with improvements expected in the fiscal fourth quarter.

Segment performance and strategy

• Life Sciences is highly diversified, with GLP-1 auto-injectors, radiopharma, med devices, and wearables as key growth drivers.

• GLP-1s represent about 10% of total revenues and are expected to remain significant for at least five years.

• Radiopharma and wearables are poised for higher growth, with consumer applications expanding.

• The nuclear segment is driven by CANDU refurbishment, decommissioning, and new build opportunities, with a growing backlog.

• Transportation has stabilized at lower revenue levels, with focus shifting to adjacent markets and optimization.