Q2 2025 ATS Corp Earnings Call Transcript
Key Points
- ATS Corp (ATS) reported record order backlog in Life Sciences, with a 32% increase compared to the previous year.
- The company successfully completed the acquisitions of Paxi and HDA, which are expected to complement existing portfolios in food and beverage and Life Sciences.
- ATS Corp (ATS) achieved its highest ever quarterly bookings in Life Sciences, driven by organic growth and recent acquisitions.
- The company is expanding its recurring revenue streams, with a target to reach or exceed 40% in the future.
- ATS Corp (ATS) was recognized as one of Canada's most responsible companies for 2025 by Newsweek, highlighting its commitment to innovation and customer-centric approaches.
- Q2 revenues were down 17% from the previous year, primarily due to lower revenues in the transportation sector.
- The company is facing ongoing discussions with a customer regarding outstanding payments on large projects, impacting cash flow and working capital.
- ATS Corp (ATS) had to realign its cost structure, including workforce reductions, to address lower revenues in the transportation business.
- The transportation segment is expected to be a smaller portion of the overall business moving forward, reflecting market challenges.
- The company's leverage ratio is currently above its target range, with a commitment to reduce it back to the desired levels.
Welcome to the ATS Corporation second quarter conference call and webcast. This call is being recorded on November 6th, 2024, at 8:30 a.m. Eastern time.
Following the presentation, we will conduct a question-and-answer session.
I'll now turn the call over to David Gallison, head of Investor relations at ATS.
Thank you, operator and good morning. Everyone on the call today is Andrew Hider, Chief Executive Officer of ats and Ryan mcleod Chief Financial Officer.
Please note that our remarks today are accompanied by a slide deck which can be viewed via our webcast and available at ATS automation dotcom.
We caution that the statements made on the webcast and conference call may contain forward-looking information and our cautionary statement regarding such information including the material factors that could cause actual results to differ materially from the statements and the material factors or assumptions applied in making the statements are detailed on slide 3 of the
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