ATS Corporation (NYSE:ATS) Q3 2024 Earnings Conference Call February 7, 2024 8:30 AM ET

Company Participants

David Galison - Head of Investor Relations

Andrew Hider - Chief Executive Officer

Ryan McLeod - Chief Financial Officer

Conference Call Participants

Patrick Sullivan - TD Cowen

David Ocampo - Cormark Securities Inc.

Michael Doumet - Scotiabank

Patrick Baumann - JPMorgan Chase & Co.

Michael Glen - Raymond James & Associates, Inc.

Justin Keywood - Stifel GMP

Maxim Sytchev - National Bank Financial

Sabahat Khan - RBC Capital Markets

Operator

Welcome to the ATS Corporation Third Quarter Conference Call and Webcast. This call is being recorded on February 07, 2024 at 8.30 a.m. Eastern time. Following the presentation, we will conduct a question-and-answer session.

I'll now turn the call over to David Galison, Head of Investor Relations at ATS.

David Galison

Thank you, operator, and good morning, everyone. On the call today are Andrew Hider, Chief Executive Officer of ATS; and Ryan McLeod, Chief Financial Officer.

Please note that our remarks today are accompanied by a slide deck, which can be viewed via our webcast and available at atsautomation.com. We cautioned that the statements made on the webcast and conference call may contain forward-looking information and our cautionary statement regarding such information, including the material factors that could cause actual results to differ materially from the statements and the material factors or assumptions applied in making the statements are detailed on Slide 2 of the slide deck.

Now, it's my pleasure to turn the call over to Andrew.

Andrew Hider

Thank you, David. Good morning, everyone, and thank you for joining us. Today, we reported strong third quarter organic revenue growth, good contributions from recent acquisitions and adjusted earnings in line with our expectations as we've built on the momentum achieved in the first half of the year.

We completed the acquisition of Avidity, which further expands our life sciences products and services offerings and this complementary to our existing businesses. At the beginning of Q4, our PA Solutions Group completed the acquisition of ITACA, an Italian based automation integrator with a focus on primary processing and pharmaceuticals. Avidity and ITACA are the most recent examples of how we use acquisitions to drive our strategy and evolve our portfolio. We are pleased to welcome both teams to ATS.

Now I will update you on the business and our markets, and then Ryan will provide his financial report. Starting with our financial value drivers. Order bookings for the quarter were $668 million, supported by organic growth in life sciences and strong performance in food and beverage. The underlying trends driving demand for ATS solutions remain favorable. Q3 revenues were $752 million, up 16% from Q3 last year, including organic growth of 9%. Adjusted earnings from operations in Q3 were $101 million, up 17% versus Q3 last year.