ATS Posts Quarterly Loss and Abandons Growth Targets

The company’s net loss of C$0.05 a share marks a sharp reversal from the C$33.6 million profit reported during the same quarter last year. Adjusted earnings reached C$0.27 a share, falling short of the C$0.33 expected by analysts. Revenues slipped to C$665.8 million, missing consensus estimates of C$679.9 million as the business faced a cooling in post-boom demand for GLP-1 equipment and reduced volume in construction contracts.

Management attributed these setbacks to temporary delays in non-life sciences bookings, specifically in the packaging automation sector. These operational hurdles have been exacerbated by new tariffs on imports into the U.S., hindering the company's ability to maintain its previously projected margin expansion of 50 to 75 basis points. While order bookings grew 13% to C$827 million, buoyed by the life sciences segment, the firm now anticipates third-quarter revenues between C$640 million and C$680 million, signaling a period of recalibration.