ATS Corporation Common Shares

Investor Relations at ATS.

Thank you, Operator, and good morning, everyone. On the call today are Andrew Heider, 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 atsautomation.com. 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 two of the slide deck. Now, it's my pleasure to turn the call over to Andrew.

Thank you, David. Good morning, everyone, and thank you for joining us. Today, we reported another successful quarter, headlined by solid and diversified order bookings, organic revenue growth, and strong execution across our business. Consistent with our strategy, we announced two acquisitions which are expected to expand our capabilities in key areas including biomedical research and digital. The quarter also featured our Institutional Investor Day and IWK's 130th anniversary of providing specialized packaging solutions for global customers in pharma and consumer products. I will update you on the business and markets, and then Ryan will provide his financial report. Starting with our financial value drivers. Order bookings for the quarter were $742 million, which included growth in life sciences, consumer products, and energy, and solid bookings in our transportation and food and beverage verticals. Our trailing 12-month book-to-bill ratio at the end of the quarter was 1.10 to 1. Q2 revenues were $736 million, up 25% from Q2 last year, including organic growth of 16%. Adjusted earnings from operations in Q2 were $98 million, up 29% versus Q2 last year. Moving to our outlook. Order bookings included new orders across all markets. particularly in life sciences and EV. Our backlog remained consistent versus last quarter at over $2 billion, despite the revenue ramp-up on our EV projects and normal project execution in other areas. By market, the life sciences funnel remained strong, and backlog was $857 million, up 10% compared to Q2 last year. We secured key orders in several areas of our important sub-markets, including medical devices. Our Symphony platform supported key wins, as did our track record for quality and on-time delivery. In radiopharma, Coma Chair successfully secured several new orders and remains positioned as a leader in its space. All of our life sciences businesses are focused on identifying opportunities to provide expanded or integrated solutions to our customers. Transportation ending backlog was $736 million, up 20% year-over-year. Our OEM EV programs continue to be executed well and remain on track from a cost and timing perspective. Recent labor disruptions in the automotive industry have not materially affected our performance or our ability to serve our customers. In the short term, consumer demand may influence the timing of OEM investments However, our outlook has not changed and our transportation funnel remains strong, reflects diversified long-term opportunities with additional investments in production capacity will be required to reach stated EV production targets. In food and beverage, we saw a strong finish to the tomato harvest season for both CFT and Raytech. Customer interest is growing for our recently developed Opportunity Optical Sorting product, which leverages AI and a patented feed system, enabling improved productivity and higher quality inspection for peeled tomatoes.