ATS (ATS) Scotiabank Transportation & Industrials Conference summary

Business performance and market trends

• Strong organic growth in life sciences, with bookings above 20% in the quarter; all core markets except transportation/EVs show book-to-bill ratios above 1.

• EV market has declined, prompting cost structure adjustments and a reduced focus on transportation, now expected to be about 10% of business next year.

• Life sciences segment driven by GLP-1 drug launches, radiopharmaceuticals, and contact lenses, with significant recurring revenue and technology leadership.

• Recent acquisitions in lab, packaging, and digital capabilities support growth and customer value.

• Food and beverage segment expanding from primary to secondary processing, leveraging automation to address labor cost pressures and quality demands.

Competitive positioning and innovation

• Competitive advantage built on brand trust, execution history, high quality, and global service capabilities.

• Technology and innovation, such as the Symphony platform, drive efficiency and customer value.

• Standardization and recurring revenue streams are key levers for margin expansion.

Segment outlooks and strategic focus

• Transportation segment right-sized with $20 million in restructuring; skilled workforce redeployed to growth areas.

• Nuclear energy segment focused on automation for CANDU reactor refurbishment, decommissioning, and small modular reactor initiatives, with a five-year growth horizon.

• End market mix shifting toward life sciences, regulated food, and digital services, supported by over 25 acquisitions in five years.