1318 ET - ATS' softer bookings and weaker backlog overshadowed 4Q's slight beat, but Cherilyn Radbourne of TD Cowen says that patience is required for the long-term thesis to play out. In a report, she says that on a long horizon, the thesis remains intact as it "offers exposure to strong/growing end markets, margin upside, and M&A optionality." At the same time, the company is reshaping its transportation business to exit more cyclical, low-margin automotive work, selling three facilities to fund restructuring and wind-down legacy contracts. She says ATS is also pushing to embed services across operating units to improve accountability and expand higher-margin recurring revenue. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

May 29, 2026 13:18 ET (17:18 GMT)

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