By Adriano Marchese

Shares of ATS jumped in early trading Monday after the company reported preliminary fourth-quarter results that were better than expected after receiving $134.8 million from a customer for payments owed.

Shares traded 16% higher at 40.76 Canadian dollars ($29.68).

The Canadian company said late Friday that it reached a settlement agreement with its electric vehicle customer for outstanding payments owed.

ATS said it was willing to accept the settlement in part due to receiving a cash injection at a time of broader economic volatility and uncertainty, especially in the automotive sector.

Factoring in the payment, the company shared its preliminary earnings for the quarter ended March 31, with revenue of C$721 million, down from C$791.5 million it reported a year earlier, but higher than the C$695.7 million analysts expected, according to FactSet.

Net loss is expected to be C$68.9 million, compared with a profit of C$48.5 million.

On an adjusted basis, earnings per share came to C$0.41, topping analyst expectations of C$0.38.

ATS said its order bookings were of C$863 million with a backlog of C$2.14 billion.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

May 26, 2025 10:15 ET (14:15 GMT)

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