ATS (NYSE:ATS) reported a sharp rise in third-quarter profit and revenue, fueled by organic growth across its diversified automation portfolio and continued momentum in its high-margin services business.
The Cambridge, Ontario-based company said Wednesday that revenue for the three months ended Dec. 28 rose 16.7% to $760.7 million, up from $652.1 million a year earlier.
Net income surged to $30 million, or 31 cents a share, compared with $6.5 million, or 7 cents, in the prior-year period.
The results highlight a period of "disciplined execution," according to Chief Executive Officer Doug Wright, who noted that the company has successfully navigated shifting demand in key sectors like life sciences and energy.
Adjusted EBITDA climbed to $105.2 million, reflecting improved operational leverage as the company works toward its long-term margin targets.
While the topline showed robust growth, new orders saw a slight cooling.
Order bookings for the quarter were $821 million, down from $883 million a year ago.
However, the company’s total order backlog remains a pillar of stability at $2.05 billion, providing significant revenue visibility through the remainder of the fiscal year.