ATS Corporation Common Shares

Welcome to the ATS Corporation fourth quarter conference call and webcast. This call is being recorded on May 28th, 2025 at 6 p.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 evening, everyone. On the call today are Andrew Hyder, chief executive officer of ATS, and Ryan McLeod, chief financial officer. Please note that our remarks today are accompanied by a slide deck which could 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 three of the slide deck. Now, it's my pleasure to turn the call over to Andrew.

Thank you, David. Good evening, everyone, and thank you for joining us. Today, ATS reported fourth quarter and four-year results for fiscal 2025. As you know, we announced a negotiated settlement with our EV customer. It was important that we put this matter behind us to enable us to continue to execute on our growth strategy. On the net front, Q4 was the third highest booking supporter in company history and included organic growth, along with contributions from acquisitions. Our life sciences businesses demonstrated strength and market leadership, complemented by contributions from across ATS and other key market verticals. During the year, we welcomed Paxium and Hideoff, further expanding our product portfolio. Fiscal 25 was not without its challenges. and the results reported today reflect the resilience of our teams, the breadth and depth of our capabilities across our vertical markets, and the value of the AATS business model. This evening, I'll update you on our business and markets, including macroeconomic influences, and Ryan will provide his financial report. Starting with our financial value drivers, order bookings for the quarter were $863 million, up 9%, from the fourth quarter last year. Our growth was supported by diversified bookings across all of our markets. Bookings for the full year were $3.3 billion, a record for ATS, setting us up well for fiscal 26. Q4 adjusted revenues were $721 million, down 9% from Q4 last year. For the full year, adjusted revenues were 12% lower year-over-year as a result of lower EV revenues as expected. Adjusted earnings from operations in Q4 were $74 million, and for the full year were $283 million. Moving to outlook. Order backlog ended the quarter at approximately $2.1 billion, the highest in the last eight quarters. Our trailing 12-month book-to-bill ratio was 1.23 to 1, again, highlighting the importance of our entire portfolio of offerings across services, standard equipment and products, as well as custom integration. From a macro perspective, geopolitical and trade tensions are creating an uncertain environment. Although we are not immune to this uncertainty, we have not seen any material change in customer behavior to date. It is possible that we could see impacts on demand in some areas of our business if uncertainty continues in the near to midterm. That said, given our Q4 order bookings, we remain optimistic. ATS is well positioned in regulated markets with strategic customer relationships. Our global footprint gives us capacity to help our customers address their risks as well as our own. Further, our embedded ABM tools help our teams respond to changing requirements. Expanding our market reach through our capabilities while growing recurring revenue is important for shareholder value creation. To that end, our teams are dedicated to delivering for customers globally and actively planning for and addressing any short-term disruptions. This includes further optimizing our global supply chain, strengthening regional capabilities, and taking targeted price action where necessary to support margins while ensuring reliable delivery across customer programs. Within life sciences, order backlog ended the quarter at 1.2 billion. with key wins across all of our major life sciences businesses, including diversification in bookings such as auto injector assembly, radio pharma, wearables, and other medical devices. Our life sciences opportunity funnel is strong, supported by market growth in key submarkets, including the demand for GLP-1 drugs, wearable devices for diabetes care, automated pharmacies, and contact lenses, and the ongoing need for solutions to support detection, and treatment in pharma and radiopharma. Our capabilities and deep understanding of the life sciences markets position us well to explore new areas to broaden our customer base. In the current environment, some customers are evaluating capital spending plans, particularly within the lab research space. But as I indicated, we have not seen a material shift or change at this time. In food and beverage, our funnel remains strong We ended the year with a backlog of 258 million. The team is actively pursuing greater diversification to offset some seasonal variability in the CFT business with advancements into services and secondary processing, as well as packaging, which is supported by the addition of Paxium. In energy, our funnel remains strong as the global nuclear industry experiences growth and transformation driven by increasing energy demands. advancements in nuclear technology, and sustained government support. Near-term demand is driven by ongoing can-do refurbishment of projects, and we expect that longer-term demand will also come from new nuclear builds in both large-scale and small module reactors. Our end-to-end strategic capabilities enable us to support customers across all phases, from concept and design through to factory automation of modular assemblies and waste handling. ATS is well positioned for sustained growth in these key energy markets. In consumer products, our funnel remains stable with attractive niche opportunities. Our capabilities in such areas as warehouse automation and packaging solutions delivered strength in bookings in the quarter. Within transportation, our funnel remains stable with smaller opportunities as expected due to lower end market demand than previous years, particularly in EV battery space. During the quarter, we received an additional order from an EV customer in Europe. On after sales, we continue to make progress on our strategy. Our evolving service plan offerings, including higher value services and the expansion of digital tools are helping to drive greater customer adoption and retention. Our goal is to serve as a global partner for continuous productivity optimization across our customer base. Globally, our ATS teams are aligned and have a deep understanding of where value can be driven for our customers with our digital solutions. Our strategy and ability to drive improved lifecycle performance, asset utilization, and overall operational efficiency through areas like our Connected Care Hub will allow us to help our customers reduce their enterprise risk over time. On the ATS business model, we hosted our seventh annual President's Kaizen events, which included teams from across all ATS groups and major geographies. The teams brought focus to strategic areas, including resource planning and optimization, business simplification, product development, quotation processes, and re-imagining processes to drive greater efficiency in operations. These events are a great demonstration of our team's collective drive for breakthrough change. The level of work completed in a single week is a testament to the evolution of our ABM culture over time. On M&A, we are making steady progress on cultivating strategic opportunities that align with our long-term growth priorities and enhance the value of our portfolio over time. In the short term, We remain focused on returning leverage to targeted levels and on the continued integration of our recent acquisitions to maximize their long-term contributions to our business. On innovation, we're deploying capital and empowering our talent to create differentiated solutions that drive value for our customers. Going into fiscal 26, we've identified opportunities to innovate in such areas as expanding the utilization of our Symfony platform incorporating more digital applications in our portfolio to drive further efficiency. For example, in our digital tomato solution for food and beverage markets and adding additional functionality into our proprietary SuperTrac system. In summary, our global businesses continue to demonstrate ongoing commitment to serving our customers supported by deep industry knowledge and experience. To that end, I want to congratulate 2 businesses on hitting significant milestones this past year. Coma chair celebrated their 50th anniversary and CFT celebrated their 80th. I'm also pleased to note that APS was once again recognized by Canada's top 100 for being a leading employer in both the Waterloo region and southwestern Ontario. Strong fourth quarter bookings combined with a record order backlog provides us with good revenue visibility and a strong foundation for profitable growth heading into fiscal 26. Our teams remain focused on driving improvements across all of our value drivers. As we enter fiscal 26, our opportunity funnel is well diversified, and we are confident in our ability to drive our ABM culture as our engaged and dedicated teams remain intensely focused on creating strong customer and long-term shareholder value. We are responding to the challenges in the macro environment with clear alignment across the leadership team and our individual businesses. Now I will turn the call over to Ryan. Ryan, over to you.