Management Expects Restructuring Costs of Approximately $5 Million
Management believes that the underlying trends driving customer demand for ATS solutions, including growing labour constraints, production onshoring or reshoring and the need for scalable, high-quality, energy-efficient production, remain favorable. Management has not seen a material impact on its overall life sciences funnel activity. In 1Q27, expects restructuring costs of approximately $5M related to transportation-related divisions and $5M-$10M related to other parts of the business, as warranted. As part of transportation-related restructuring, three smaller facilities in the U.S. will be closed. Two facilities in the U.S. and one facility in Germany are being held for sale, with one of the facilities in the U.S. to be structured as a sale and leaseback transaction. The proceeds from the sale of these facilities, expected in FY27, are expected to fund the restructuring activities and other related costs associated with exiting these businesses and concluding the company's obligations with respect to legacy customer contracts. Management continues to actively monitor the situation as it evolves and is taking steps to mitigate risks where possible while continuing to offer support to customers based on their needs, which may include onshoring or reshoring production.
