ATS (ATS) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 revenues rose 17.4% year-over-year to $2,972.9 million, with adjusted revenues up 10.8% to $2,970.1 million; Q4 adjusted revenues were $744.3 million, up 3.2% year-over-year.

• Net income for the year was $71.7 million, reversing a prior year loss of $28.0 million; Q4 net loss narrowed to $16.2 million from $68.9 million a year ago, reflecting higher revenues and restructuring costs.

• Strategic restructuring and reorganization in transportation and services businesses aimed at margin expansion and portfolio focus, with significant costs recorded in Q4.

• Order backlog at year-end was $1,958 million, supporting strong revenue visibility into fiscal 2027.

• Free cash flow and cash flow from operations saw significant year-over-year increases, with free cash flow for fiscal 2026 at $371.7 million.

Financial highlights

• Adjusted EBITDA for fiscal 2026 was $413.0 million, up 12.0% year-over-year; Q4 adjusted EBITDA was $102.5 million, up 5.6%.

• Adjusted basic EPS for the year was $1.69, up 15.0%; Q4 adjusted basic EPS was $0.36.

• Q4 adjusted earnings from operations were $76.8 million, up 3.4% year-over-year, with a margin of 10.3%.

• Order bookings for the year were $2,952 million, down 10.7%; Q4 order bookings were $704 million.

• Gross margin for Q4 was 29.4%, up 36 basis points year-over-year.

Outlook and guidance

• Fiscal 2027 revenue is expected to show modest growth, with transportation reorganization removing ~$50 million in dilutive revenues.

• Q1 fiscal 2027 revenues are projected between $700 million and $740 million.

• Adjusted earnings from operations margin is expected to improve by 50–75 basis points in fiscal 2027, with a long-term target of 15%.

• Reoccurring revenues are expected to be 25–35% of total revenues on a trailing twelve-month basis.

• Life sciences and energy backlogs remain strong and diversified, supporting growth in key sub-segments.