ATS Corporation Common Shares

Hello. Welcome to the ATS Corporation fourth quarter conference call and webcast. This call is being recorded on May 28, 2026 at 830 a.m. Eastern Time. Following the presentation, we will conduct a question and answer session. I'd now like to turn the call over to David Ocampo, head of investor relations at ATS.

Thank you, operator, and good morning, everyone. On the call today are Doug Wright, chief executive officer. and Ann Cebulski, Interim 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 in slide three of the slide deck. Now it's my pleasure to turn the call over to Doug. Thank you, David, and good morning, everyone.

Today, ATS reported fourth quarter and annual results for fiscal 2026. For the full year, revenue and adjusted earnings from operations grew by approximately 11%, reflecting solid execution across the platform as our teams delivered innovative solutions to our global customer base. Since I joined in January, I've spent time with our business leaders and teams, which has continued to sharpen my conviction about what makes ATS distinctive. Regardless of the end market, what consistently stands out is how focused our people are on our customers and how genuinely committed they are to innovating so that our businesses excel. This starts with our ability to engineer and deliver in markets of consequence with the depth of our expertise and the precision of our execution of what customers depend on. A good example is how we're evolving our digital twin offering, moving beyond individual project execution to support customers on a continuous basis. My priority now is translating these capabilities into stronger financial performance. We see a clear path to margin improvement in free cash flow generation through disciplined execution, a greater mix of aftermarket revenue, sharper commercial acumen, innovation, and improved utilization of our asset base. Consistent with these priorities, we are taking several actions to better position the portfolio. Our businesses previously involved in transportation are being consolidated, and we are refocusing their capacity to other areas. In particular, we are moving away from large-scale automotive projects and repositioning the related capabilities into specialized applications where differentiation creates greater value and the return profile is more attractive. As an example, We are partnering with a customer on novel technology to break down end of life tires and recover reusable byproducts, bringing our engineering expertise, digital tools, and lifecycle support to address a complex environmental challenge. We've also advanced the integration of our aftermarket businesses directly into our operating units. This gives each business ownership of the full equipment lifecycle and is a key lever in improving both margins and the predictability of our revenue. Across the business, We continue to evaluate our portfolio based on strategic focus areas and market dynamics. Any further actions will be aligned to our goals and continuing to grow the business with improved margin performance and cash flow efficiency. Now shifting over to the results and outlook. Q4 adjusted revenues were up more than 3% versus last year, while order bookings were down 18%, reflecting the presence of several large enterprise orders in the prior period. Of note, Excluding transportation, our three-year CAGR on adjusted revenues and order bookings is approximately 12%. This performance again reinforces to me the strength of our chosen markets and the opportunity available to us over the longer term as we execute on our plans going forward. On profitability, Q4 adjusted earnings from operations were in line with our expectations, driven by execution against our backlog. Now, turning to Outlook. We ended fiscal 26 with an order backlog of approximately $2 billion, providing good revenue visibility. In life sciences, demand remains strong with a healthy backlog and a diversified funnel against a range of applications. Our radiopharma business continues to build momentum and remains a key growth driver, supported by growing customer investment across the value chain. Demand is driven by the expanding use of targeted therapies as adoption broadens across treatment settings and cancer types. As isotope supply and production capacity expand, customers increasingly require specialized infrastructure to support complex, high-value programs at scale. As an example of our ability to innovate to meet this demand, we recently introduced FlexLine, our sterile, pharmaceutical production platform, which integrates key manufacturing steps into a single solution to help customers accelerate market entry and reduce process complexity. Entering fiscal 27, our life sciences funnel is broader, extending beyond any single program type into areas such as mail order pharmacy, automated visual inspection, and lab automation. On GLP-1 auto injector equipment, we remain engaged on active programs and to continue to support customers as production requirements and delivery formats evolve. In food and beverage, we have a strong funnel across our core processing markets, including tomato and fresh fruit applications. We are focused on expanding into adjacent packaging and produce categories, broadening the revenue base, and building resilience against the timing of customer capital spending. In energy, Backlog increased approximately 40% year-on-year, driven particularly by nuclear, including refurbishment, life extension, and new build programs. The pipeline is strong and diversified across program stages and reactor technologies. Our work on nuclear refurbishment and life extension programs continues to progress with service opportunities expected to build as these programs advance. Alongside this base, we remain actively engaged with several small modular reactor developers across fuel systems, fuel handling, modular fabrication, and waste management. Within consumer products, we continue to see orders across warehouse automation and packaging applications. Funnel activity remains stable, supported by customers' ongoing focus on automation, efficiency, and fulfillment capabilities. On capital allocation, With leverage now within our target range, our near-term focus is on deploying capital within our framework. As our financial flexibility increases, we expect to have the capacity to pursue larger transactions. We have a funnel in our chosen end markets, and we are in position to act with conviction when the right opportunity arises. In evaluating potential acquisitions, we first focused on the industrial logic. In particular, we look for businesses that can enhance our margin profile positively affect our aftermarket and service mix, and where relevant, strengthen our technical capabilities in the markets we serve. This also includes considering how an opportunity may allow us to apply our engineering and automation expertise across adjacent applications and improve performance through disciplined execution. Our objective is to deploy capital toward opportunities that enhance long-term cash generation and support disciplined, sustainable value creation for our shareholders. In summary, we enter fiscal 27 with strong positions in our core end markets and a clear strategic focus. I'm encouraged by the alignment and accountability across the organization and by the strength of our business leaders. We begin fiscal 27 with a solid backlog and good funnel visibility. With the actions taken and underway, ATS is a more focused company, and we are positioned to translate that into higher margins, stronger cash generation, and long-term value creation. Now, I will turn the call over to Anne for her financial report. Anne, over to you.