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ATS fell 8.6% after earnings, with the likely pressure coming from margin compression and delayed bookings in packaging automation. Adjusted operating margin declined to 8.6% from 10.9% a year earlier, while food and beverage bookings were also below expectations for the year.

• Q2 revenue was $666 million, within management’s expectations; adjusted earnings from operations were $57 million.
• Adjusted operating margin fell to 8.6% from 10.9%, reflecting lower volumes and a mix with fewer higher-margin programs.
• Order bookings were $827 million, and total backlog was approximately $2 billion. Life sciences backlog reached a record $1.2 billion.
• Packaging automation orders were delayed as Section 38 tariffs affected customer decisions; ATS said US tariff modifications announced in late October removed the impact on nearly all covered products.
• Food and beverage bookings rose year over year for a third consecutive quarter but remained below the company’s expectations for the year, partly due to cyclicality in the tomato business.