What does ATS do and what are its main business segments?

What factors drove the changes in ATS's revenue and profit?

What guidance did ATS's management provide for the next earnings period?

What is ATS's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for ATS year over year?

Did ATS beat or miss consensus estimates last quarter?

What is ATS's gross profit margin?

What were the key takeaways from ATS's earnings call?

- **Cash Flow Recovery**: Operating free cash flow turned positive (+€125M vs. -€345M YoY), signaling financial turnaround.
- **Revenue Growth**: €846M (+6% YoY, +11% in USD), IC substrates up 19% YoY in EUR, driven by AI and server demand.
- **Profitability**: EBITDA margin 21% (€175M), Q2 EBIT breakeven, 2026 guidance for €391M EBITDA (23% margin).
- **Cost Efficiency**: AURORA program delivered €150M+ savings, supporting 2026+ cost competitiveness.
- **Customer Diversification**: 15+ key IC substrate customers, reducing reliance on a few clients; PCB key customers up 30% in revenue share.
- **T-Glass Supply**: Actively qualifying alternatives, no immediate shortage but long-term growth risks; supplier partnerships progressing.
- **New Plant Progress**: Kulim site ramping with existing equipment, potential for stepwise expansion; Hinterberg site generating classical revenue.
- **China Strategy**: Local-for-local production in Chongqing to mitigate trade risks, power electronics focus.
- **AI & Power Electronics**: Embedding components in substrates (e.g., AMD partnership), power electronics growth driver with 2026+ revenue contribution.


**【CEO Summary Section】**
- **Cash Flow Turnaround**: Operating free cash flow improved from -€345M to +€125M YoY, signaling financial recovery.
- **Revenue Growth**: €846M (H1 2025/26) vs. €800M prior, +6% in EUR, +11% in USD, driven by IC substrates (+19% YoY in EUR).
- **Profitability**: EBITDA margin rose to 21% (€175M vs. €157M), with Q2 EBIT breakeven achieved.
- **Cost Savings**: AURORA program exceeded targets, delivering €150M+ savings vs. €130M goal, supporting 2026+ cost efficiency.
- **Customer Diversification**: 15+ key IC substrate customers, reducing reliance on a few clients; PCB key customers up 30% in revenue share.
- **T-Glass Supply**: Actively qualifying alternative suppliers, with no immediate shortage but long-term growth concerns; supplier partnerships and customer collaboration ongoing.
- **New Plant Progress**: Kulim site ramping with existing equipment, potential for stepwise expansion; Hinterberg site generating classical revenue.

**【CFO Financial Commentary】**
- **Revenue & Profitability**: €846M (+6% YoY), EBITDA €175M (21% margin), operating cash flow €209M (vs. €186M prior).
- **Balance Sheet**: Net debt €1.4B (stable), net debt/EBITDA 2.2x, financial flexibility maintained with €811M unused credit lines.
- **Guidance**: FY25/26: €1.7B rev, 23% EBITDA margin (€391M), +20%+ growth in USD; FY26/27: €2.1-2.4B rev, 20%+ EBITDA margin.

**【Q&A Highlights】**
- **T-Glass Qualification**: Actively testing alternatives, supplier partnerships progressing; no immediate shortage but long-term growth risks.
- **Kulim Plant**: Stepwise ramp using existing equipment, potential for new contracts in 2026; embedding capabilities a key differentiator.
- **AI & Power Electronics**: Embedding components in substrates (e.g., AMD partnership), power electronics growth driver with 2026+ revenue contribution.
- **China Strategy**: Local-for-local production in Chongqing to mitigate US-China trade risks, solid-state power electronics focus.
- **Market Trends**: Server/AI infrastructure demand strong, automotive exposure limited; 2025/26 substrate CAGR 29% YoY, 2026+ growth cautious due to industry uncertainty.


ATS Corp (ATS) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ATS

ATS fundamentals

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