Thoughts on the quarter? Does it stay in the penalty box?
In Q1-2026, ATS reported a revenue growth of 6.1% to $736.7M, beating estimates of $712M. The revenue growth was driven by a 4.1% growth from acquisitions, 3.2% from the positive impact of foreign exchange and a negative organic growth rate of 1.2%. Adjusted EPS came in at $0.41, compared to $0.50 in the same quarter last year, which is also a miss compared to the forecast of $0.44. Order bookings declined by 15% to $693M, and management indicated that tariffs continue to remain an uncertainty for ATS’s business. The company also announced a leadership transition as ATS is conducting a search for a permanent CEO. Overall, the result is a not-so-great quarter, with negative organic growth and weak bookings. We think the company has room for improvement in terms of operational results.