Canadian effectivity is it. When factories, labs, and logistics networks squeeze extra output from the identical inputs, somebody earns the unfold. Canada has a quiet edge right here as a result of it sits near U.S. provide chains, it builds for regulated industries, and has corporations that promote “do extra with much less” instruments to the world. If rates of interest keep increased than the outdated days and labour stays tight, effectivity turns from a nice-to-have right into a boardroom obsession. That’s when the perfect builders of automation, robotics, and course of controls can receives a commission twice, as soon as in demand and once more in pricing energy. So, the place ought to buyers look?
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ATS
ATS Company (TSX:ATS) is likely one of the cleanest methods to spend money on that theme on the TSX at this time. It designs and builds automation techniques that assist corporations make merchandise sooner, safer, and with fewer errors. It serves a mixture of finish markets, however life sciences and healthcare automation sit close to the centre of the story now.
The final yr introduced a couple of reminders that this can be a real-world operator, not a shiny idea inventory. The Canadian inventory needed to handle buyer focus threat in components of its portfolio, particularly the place electrical car spending slowed and mission timing shifted. It additionally highlighted that it’ll not chase each headline sector if the economics don’t work.
It additionally went by way of a significant management change. ATS named Doug Wright as chief govt officer in mid-December 2025, following a interval with an interim chief after its prior CEO introduced a departure. Markets typically deal with CEO transitions like a stress take a look at, however for an execution-heavy enterprise, management focus can turn into a catalyst. A brand new CEO can tighten capital allocation, push accountability by way of the working groups, and sharpen what sorts of tasks the corporate takes on.
Earnings help
In its third quarter of fiscal 2026, ATS reported income of $760.7 million, up 16.7% from the yr earlier than. Internet earnings got here in at $30 million, up from $6.5 million, and primary earnings per share (EPS) rose to $0.31 from $0.07. Adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) elevated to $105.2 million from $87.5 million, and adjusted primary EPS rose to $0.48 from $0.32. These are the sorts of figures that say, “The demand is actual, and the work is touchdown.”
Orders and backlog offer you a greater ahead learn than a single quarter of revenue. ATS posted order bookings of $821 million within the quarter, in contrast with $883 million a yr earlier, and it ended the quarter with order backlog of $2.053 billion, mainly flat versus $2.06 billion a yr earlier. Flat backlog can sound boring, however in an automation cycle that has seen clients pause and restart spending, “flat and durable” could be a win. It suggests ATS nonetheless has a thick pipeline to transform into income, even when the combination shifts between industries.
The outlook rests on a easy thought: corporations preserve paying for automation when it saves cash, reduces waste, or solves labour issues. ATS additionally advantages when regulated clients, like life sciences corporations, prioritize high quality and uptime over the bottom upfront prices. Administration additionally pointed to natural development alongside contributions from previous acquisitions, and that mix can help steadier outcomes if integration stays on monitor.
Silly takeaway
ATS tries to earn a higher-quality a number of by leaning into life sciences, providers, and repeatable platforms, whereas nonetheless taking enticing industrial work. If it retains rising income, protects margins, and turns backlog into money, buyers could begin treating it much less like a contractor and extra like a sturdy enabler of contemporary manufacturing.
Effectivity investing can repay large because it rides a cussed actuality: corporations will all the time need to make extra with much less. ATS offers you a Canadian identify that sits proper inside that spending pattern, with a big backlog, enhancing profitability, and a product that solves actual issues. It will not be a straight line, and it’ll by no means really feel as calm as a utility. However in order for you a long-term strategy to personal the “do extra with much less” period, ATS seems like a sensible contender price watching intently.