ATS (ATS) Q2 2025 earnings summary

Executive summary

• Q2 fiscal 2025 revenues declined 17% year-over-year to $612.8 million, mainly due to lower transportation/EV segment revenues, while life sciences achieved record order bookings, offsetting transportation weakness.

• Adjusted earnings from operations were $56.5 million (9.2% margin), down 42.5% year-over-year; net loss was $0.9 million compared to net income of $50.7 million in Q2 2024.

• Order backlog at quarter-end was $1,824 million, providing strong revenue visibility; trailing twelve-month book-to-bill ratio (excluding transportation) was 1.20.

• Acquisitions of Paxiom and Heidolph completed, expanding offerings in food, packaging, and life sciences; UReality/VREALITY acquisition enhanced digital and AR/VR capabilities.

• Ongoing commercial dispute with a major EV customer has impacted collections and working capital.

Financial highlights

• Q2 order bookings were $742 million, flat year-over-year; life sciences bookings reached an all-time high.

• Q2 revenues were $612.8 million, down 17% from Q2 last year, mainly due to lower EV revenues.

• Adjusted EBITDA was $78.3 million, down 32.6% year-over-year; adjusted earnings from operations were $56.5 million.

• Adjusted EPS was $0.25, down from $0.63 in Q2 2024; reported basic EPS was $(0.01) versus $0.51.

• Free cash flow for Q2 was negative $61.6 million, compared to negative $13.3 million last year.

Outlook and guidance

• Q3 revenues are estimated at $620–680 million.

• Order backlog by segment: Life Sciences $1,132 million, Food & Beverage $210 million, Energy $109 million, Consumer Products $166 million, Transportation $207 million.

• Sequential revenue growth and margin improvement expected as transportation reorganization completes.

• Life sciences pipeline remains strong, with focus on pharmaceuticals, radiopharmaceuticals, and medical devices.

• Transportation expected to remain a smaller portion of the business (around 10–11% of backlog).