ATS Corporation

At the Jefferies Global Industrials Conference, ATS presented a plan to raise its EBIT margin to 15% and expects long-term margins in the high teens. About 50% of revenue now comes from the life-sciences business; the company aims to achieve margin improvements roughly half through fixed-cost transformation and an internal efficiency program and partly via aftermarket services and the ATS business model. Key growth areas are life sciences, radiopharmaceuticals, personalized medicine and nuclear technology; M&A to strengthen the portfolio remains planned. Management cited risks from project timelines, macroeconomic uncertainty and execution; investors will watch progress on the fixed-cost transformation, aftermarket growth and the ability to integrate future acquisitions. » Mere på de.investing.com

ATS recorded a net loss of C$0.3m in the first fiscal quarter of 2027 versus a profit of C$24.3m a year earlier, and revenues fell 5.8% to C$693.7m. Management announced an 18-month "Fixed Cost Transformation Program" and conceded that significant efforts are required to meet margin targets. Adjusted EPS of $0.35 and adjusted EBITDA of C$92.9m beat expectations but could not offset selling pressure and a roughly 5.5% pre-market share decline. » Mere på de.investing.com

Moody’s has upgraded ATS Corporation’s Corporate Family Rating from Ba3 to Ba2 and its Probability of Default rating to Ba2-PD; the senior unsecured debt rating was raised to Ba3. The move is based on a significant debt reduction over the past 12 months, a recovery in EBITDA, higher free cash flows including a one-time payment, and a lower financing need for acquisitions. Moody’s expects the leverage ratio to fall below 3.5x by the end of fiscal 2027 and notes positive diversification effects in life sciences and energy. Remaining risks include debt re-leveraging from acquisitions, cyclical order volatility, and the company’s comparatively small size. » Mere på de.investing.com