ATS posts Q1 earnings miss, unveils 18‑month cost‑cutting plan

ATS reported fiscal 2027 first‑quarter adjusted revenue of CAD 698 million, a 5.2% decline year over year, and adjusted earnings per share of CAD 0.35, missing analysts’ consensus of CAD 0.28. Adjusted earnings from operations fell 13.4% to CAD 68.1 million, and the company ended the quarter with a backlog of about CAD 1.9 billion.

CEO Doug Wright announced an 18‑month Fixed‑Cost Transformation Program aimed at boosting the operating margin toward a 15% target. The initial European phase is expected to generate roughly CAD 20 million in annualized savings, representing about 30% of the anticipated savings from the overall program, with total potential savings of CAD 60‑70 million per year. The initiative focuses on consolidating facilities, reducing overhead, and improving efficiency across the business.