ATS Corporation Reports First Quarter 2024 Financial Results
Intellectia.AI1970-01-01
ATS Corporation Reports First Quarter 2024 Financial Results
ATS Corporation (NYSE: ATS) ("ATS" or the "Company") reported its financial results for the first quarter of fiscal 2025, which ended on June 30, 2024.
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | Year-Over-Year Change |
|---|---|---|---|
| Total Revenue | $694.3M | $753.6M | -7.9% |
| Net Income | $35.3M | $47.7M | -26.0% |
| Basic Earnings Per Share | $0.36 | $0.50 | -28.0% |
| Adjusted EBITDA | $106.0M | $119.2M | -11.1% |
| Adjusted Basic EPS | $0.50 | $0.69 | -27.5% |
The company faced a revenue decrease of 7.9% year-over-year, largely due to a reduction in organic revenue by 12.7%, partially offset by increased revenues from acquired companies. This resulted in lower net income and earnings per share compared to the same period last year.
Revenue Performance by Segment
| Segment | Q1 FY2025 Revenue | Q1 FY2024 Revenue | Year-Over-Year Change |
|---|---|---|---|
| Life Sciences | $328.8M | $285.4M | +15.2% |
| Transportation | $144.1M | $218.2M | -33.9% |
| Food & Beverage | $96.8M | $130.6M | -25.9% |
| Consumer Products | $88.2M | $84.0M | +5.0% |
| Energy | $36.3M | $35.3M | +2.8% |
The Life Sciences segment showed significant growth due to both organic revenue increases and contributions from acquisitions. Conversely, the Transportation and Food & Beverage segments saw notable declines in revenue due to lower Order Backlog and timing of program executions, respectively.
Key Operational Data
| Operational Metric | Q1 FY2025 |
|---|---|
| Order Bookings | $817M |
| Order Backlog | $1.882B |
Order Bookings saw an 18.4% year-over-year increase, making this the second-highest quarter in company history. The Order Backlog at the end of the quarter was $1.882 billion, providing substantial revenue visibility.
Officer Comments
Andrew Hider, CEO, noted the record-high Order Bookings and largest life sciences Order Backlog in company history. He emphasized the company's strategic focus on expanding in regulated markets like food & beverage and life sciences and highlighted recent acquisitions such as Avidity and Paxiom as opportunities for growth.
Dividends or Share Repurchase Program
No dividends or share repurchase programs were announced in this reporting period.
Forward Guidance
The company expects continued strong performance in the life sciences and food & beverage markets with a strategic focus on these regulated segments. However, the transportation segment is anticipated to face challenges due to a slowdown in electric vehicle market demand, prompting cost-structure adjustments. The conversion of Order Backlog to revenues is expected to be in the 33% to 36% range in the next quarter.
Stock Price Movement
Post-earnings release, ATS Corporation’s stock price saw a change of -1.84%.
Overall, despite a drop in year-over-year revenue and earnings, ATS Corporation's strong Order Bookings and strategic focus on regulated markets are set to drive future growth potential.
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