ATS (ATS) Q3 2026 earnings summary

Executive summary

• Q3 revenues rose 16.7% year-over-year to $761 million, driven by 12.6% organic growth and FX benefits, with strong performance in most segments except transportation.

• Adjusted earnings from operations were $79.9 million, with a 10.5% margin, and adjusted EBITDA reached $105.2 million, up 20.2% year-over-year.

• Net income surged to $30.0 million, with basic EPS at $0.31, and adjusted EPS at $0.48.

• Order Bookings were $821 million, down 7% year-over-year but up 12% sequentially, while Order Backlog remained robust at $2,053 million.

• CEO Doug Wright appointed, with a CFO transition and leadership changes in key segments.

Financial highlights

• Q3 revenues were $760.7 million, up $108.7 million or 16.7% year-over-year, with 13% organic growth.

• Adjusted earnings from operations were $79.9 million, up 21.6% from Q3 last year, with a margin of 10.5%.

• Net income for Q3 was $30.0 million, up 361.5% year-over-year; basic EPS increased to $0.31 from $0.07.

• Adjusted EBITDA was $105.2 million, a 20.2% increase year-over-year, with a margin of 13.8%.

• Free cash flow for Q3 was $98.0 million, nearly doubling year-over-year.

Outlook and guidance

• Q4 revenues are expected between $710 million and $750 million, supported by a $2.1 billion order backlog.

• Margin expansion initiatives are ongoing to offset inflation and supply chain pressures.

• Year-to-date revenue growth is 13.6%, with 8% organic growth.

• Adjusted earnings from operations up 14% year-to-date.

• Management expects backlog to help mitigate short-term variability in bookings.