ATS Corporation's second-quarter revenue fell 8.6% year over year to C$665.8 million, below the C$681.59 million estimate, while adjusted EPS of C$0.27 also missed expectations. The company withdrew its fiscal 2027 outlook for modest revenue growth and 50-75 basis points of margin expansion.
ATS said lower organic revenue and reduced construction contract activity drove the decline. It reported a C$5 million net loss, a C$2.009 billion order backlog and C$827 million in orders. Revenue and adjusted EPS missed analyst estimates of C$681.59 million and C$0.33, respectively.
ATS expects third-quarter fiscal 2027 revenue of C$640 million to C$680 million. The company cited lower revenue in life sciences, industrial and consumer, and food and beverage, linked to customer-project timing and lower backlog. Delays in non-life sciences order bookings were worsened by US tariffs on Canadian packaging equipment. ATS said recent US tariff modifications are expected to benefit future order activity and customer capital expenditure plans.
ATS repurchased C$61.3 million of shares under its normal course issuer bid.
