ATS Corporation: Positioned For Margin Expansion And Steady Organic Growth

Sandpiper Investment Research1.44K FollowersFollow5ShareSavePlay(10min)CommentsSummaryATS Corporation delivered strong Q3'26 results, with 16.7% revenue growth and a healthy $2.05 billion backlog.ATS maintains a 'buy' rating, supported by renewed margin expansion focus, disciplined execution, and robust free cash flow generation.The new CEO's emphasis on profitability and advanced applications positions ATS for 30%+ gross margins and sustained mid-single-digit organic growth.Valuation remains attractive at 12.1x EV/EBITDA and 20.3x P/E, with upside from organic and M&A-driven growth. Klaus Vedfelt/DigitalVision via Getty Images Introduction It’s been a while since my last piece on ATS Corporation (ATS:CA)(ATS) back in August 2024. Since then, the company has shown impressive organic growth despite a softer macro environment. While shares haveThis article was written bySandpiper Investment Research1.44K FollowersFollowI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their invested capital over long periods of time.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.