ATS Corporation Common Shares

Welcome to the ATS Corporation first quarter conference call and webcast. This call is being recorded on August 7, 2025 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 Arjun Kapoor, Invest Relations Associate 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 by 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 in slide three of the slide deck. Now, it's my pleasure to turn the call over to Andrew. Thank

you, Arjun. Good morning, everyone, and thank you for joining us. Before we discuss our Q1 results, I want to take a moment to acknowledge the leadership transition as I move on from ATS. I've been honored to lead this great company through a period of growth and transformation as we expanded our capabilities, strengthened our position in key markets, and created a solid foundation for the future. While the board conducts its CEO search, the company will be in the very capable hands of Ryan McLeod as interim CEO with the support of our experienced senior leadership team. During this transition, ATS will drive forward with its growth strategy, enabled by the ATS business model, our well-entrenched playbook for continuous improvement. Now to our Q1 results, which we reported today. I will update you on our business and markets, and then Ryan will provide his report. ATS delivered revenue growth with solid contributions from recent acquisitions and adjusted earnings margins in line with our expectations. Starting with our financial value drivers, Q1 revenues were $737 million, up 6% from Q1 last year. Order bookings were $693 million, with good diversification across our portfolio. Adjusted earnings from operations in Q1 were $79 million. On to our outlook. Order backlog ended the quarter at approximately $2.1 billion as we continue to win and deliver across our diversified portfolio of offerings, including custom integration, standard equipment and products and services. Our funnel remains healthy, reflecting the strategic nature of the customer programs we serve. As noted in past quarters, investment timing is variable. We are closely monitoring the business environment, given the dynamics of cross-border tariffs. In parallel, we continue to advance our strategy to grow repeatable revenue through services, consumables and digital offerings. Within life sciences, order backlog at quarter end was $1.2 billion. We secured wins across submarkets, including auto injectors, radiopharma and blood glucose monitoring wearables. Our diversified life sciences opportunity funnel remains strong, supported by our proven capabilities in regulated markets and deep customer relationships. By way of example, ComaChair continues to be a partner of choice for radiopharma customers who value quality and a proven track record for execution. As more customer programs advance towards commercial readiness, ComaChair is uniquely positioned to provide localized and specialized support from our new site in Indianapolis, which opened at the end of July. Separately and discussed previously, some customers in the lab research space are taking a more measured approach to capital spending as a result of changes in U.S. government funding, although this does not change our outlook for life sciences overall. In food and beverage, our funnel remains strong, and we ended the quarter with a backlog of $229 million, an increase of 6% compared to Q1 last year. We continue to see investment in primary processing solutions, including a strong focus on aftermarket service. In addition, we are actively executing on our growth strategy for secondary processing, packaging and services, further supported by the addition of Paxium. In energy, our funnel includes a mix of short and long-term opportunities, as the nuclear industry continues to benefit from renewed investment in favorable government policy. In the near term, there is momentum from ongoing can-do refurbishment activity, while both large-scale new builds and emerging small modular reactor programs provide further potential for growth. Drawing on our expertise in early-stage design through to modular assembly and waste handling, we are well positioned to support customers across their nuclear program life cycles. In consumer products, our funnel remains stable with attractive niche opportunities. Our capabilities in warehouse automation and packaging continue to resonate with customers. In transportation, our funnel remains stable in line with expectations due to relatively lower EV and market demand. On services, we continue to advance our offerings, including our digital solutions, across the range of markets we serve. Through our evolving capabilities, including our connected care hub, ATS is well positioned to help customers proactively enhance system utilization and mitigate risk. From a strategic perspective, our services portfolio is designed to strengthen customer relationships over the full life cycle of equipment ownership, reinforce our role as a trusted partner, and drive reoccurring revenue. On the ATS business model, in Q1, our global teams actively engaged in key initiatives, including Kaizen's, workshops, and problem-solving events, focused on all of our value drivers. At our annual ABM awards, teams were recognized for excellence in innovation, reoccurring revenue, customer engagement, health and safety, and overall performance, underscoring the sustained impact of our ABM culture. On M&A, our teams remain active in cultivating strategic opportunities that align with our long-term growth ambitions and contribute to value creation. In the near term, our focus is on returning leverage to our target range and on realizing further synergies from our recent acquisitions. On innovation, we continue to deploy capital and empower our teams to develop differentiated solutions that create value across our end markets. On digital innovation, we leveraged our acquisition of Ureality to develop and launch a new interactive and scalable virtual reality training platform for customers. In energy, we advanced the deployment of our Multiflex system. Multiflex is a patent-protected concept designed for the safe, precise cutting and removal of large nuclear reactor components in decommissioning and waste handling applications. Multiflex is one example of our ability to innovate and deliver safe, efficient solutions within the highly regulated nuclear space. Finally, in June, we held our bi-annual ATS Automation Summit for Customers and other partners at our Cambridge campus. This event showcased the most recent solutions from across our portfolio of companies, including ATS advancements in digital transformation, intelligent automation, and technology-enabled scalability. Through our workshops over several days, we focused on innovation trends in automation, including time to market, as well as digitalization and AI advancements, further positioning ATS as a thought leader for global customers. In summary, our opportunity funnel is well diversified, and our current order backlog provides solid revenue visibility and a strong foundation for profitable growth. I'm also pleased to share that ATS was included in Time magazine's inaugural list of Canada's best companies 2025, and we were number one in the engineering, manufacturing, and medical technology category. This recognition and our results today reflect the continued progress we are making across our Valley drivers, the resilience of our business model, and the dedication of our exceptional talent. I'm proud of what we've accomplished together, and I look forward to watching ATS continue to grow and succeed. Now I will turn the call over to Ryan. Ryan, over to you.