TD Securities Maintains Bullish View on ATS Corporation (OTC: ATSAF) After Mixed Q4 Results

• TD Securities reportedly raised its price target for ATS Corporation (OTC: ATSAF), while maintaining a Buy rating, reflecting confidence in the company’s long-term automation growth outlook.
• ATS Corporation reported fourth-quarter fiscal 2026 revenue of C$747.1 million, up from C$574.2 million in the prior-year period.
• Despite stronger revenue, order bookings declined 18.4% year over year, while the company ended the quarter with an order backlog of C$1.96 billion.

ATS Corporation (OTC: ATSAF) is a provider of automation solutions for customers across life sciences, transportation, food and beverage, consumer products, and energy markets. The company designs, builds, and services advanced automation systems used by manufacturers that require precision, efficiency, and scale.

TD Securities’ positive view comes as ATS reported stronger revenue for the fourth quarter of fiscal 2026. Revenue increased to C$747.1 million, compared with C$574.2 million in the same period last year. For the full fiscal year, ATS also reported approximately 11% growth in both revenue and adjusted earnings from operations, which management described as evidence of solid execution.

However, the quarter was not entirely positive. Order bookings declined 18.4% year over year to C$704 million, compared with C$863 million a year earlier. Management explained that the prior-year period benefited from several large orders, making the comparison more difficult. The company’s order backlog stood at C$1.96 billion at quarter-end, down from C$2.14 billion a year ago, but still providing revenue visibility heading into fiscal 2027.

ATS also reported a net loss of C$16.2 million for the quarter, a significant improvement from a net loss of C$68.9 million in the prior-year period. Adjusted earnings from operations reached C$76.8 million, with an adjusted earnings from operations margin of 10.3%. Adjusted basic earnings per share were C$0.36 for the quarter.

Looking ahead, ATS is focused on restructuring actions designed to improve margins, free cash flow generation, and asset efficiency. CEO Doug Wright is expected to emphasize operational discipline, portfolio focus, and stronger execution across the company’s automation businesses.

Overall, ATS delivered solid revenue growth and improved profitability metrics, but the decline in order bookings and lower backlog show that demand trends remain uneven. For investors, the key question is whether ATS can convert its backlog into profitable growth while improving margins and cash flow in fiscal 2027.