Canadian efficiency is it. When factories, labs, and logistics networks squeeze more output from the same inputs, someone earns the spread. Canada has a quiet edge here because it sits close to U.S. supply chains, it builds for regulated industries, and has companies that sell “do more with less” tools to the world. If interest rates stay higher than the old days and labour stays tight, efficiency turns from a nice-to-have into a boardroom obsession. That’s when the best builders of automation, robotics, and process controls can get paid twice, once in demand and again in pricing power. So, where should investors look?
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ATS
ATS Corporation (TSX:ATS) is one of the cleanest ways to invest in that theme on the TSX today. It designs and builds automation systems that help companies make products faster, safer, and with fewer errors. It serves a mix of end markets, but life sciences and healthcare automation sit near the centre of the story now.
The last year brought a few reminders that this is a real-world operator, not a glossy concept stock. The Canadian stock had to manage customer concentration risk in parts of its portfolio, especially where electric vehicle spending slowed and project timing shifted. It also highlighted that it will not chase every headline sector if the economics do not work.
It also went through a meaningful leadership change. ATS named Doug Wright as chief executive officer in mid-December 2025, following a period with an interim leader after its prior CEO announced a departure. Markets often treat CEO transitions like a stress test, but for an execution-heavy business, leadership focus can become a catalyst. A new CEO can tighten capital allocation, push accountability through the operating teams, and sharpen what types of projects the company takes on.
Earnings support
In its third quarter of fiscal 2026, ATS reported revenue of $760.7 million, up 16.7% from the year before. Net income came in at $30 million, up from $6.5 million, and basic earnings per share (EPS) rose to $0.31 from $0.07. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $105.2 million from $87.5 million, and adjusted basic EPS rose to $0.48 from $0.32. Those are the kinds of figures that say, “The demand is real, and the work is landing.”
Orders and backlog give you a better forward read than a single quarter of profit. ATS posted order bookings of $821 million in the quarter, compared with $883 million a year earlier, and it ended the quarter with order backlog of $2.053 billion, basically flat versus $2.06 billion a year earlier. Flat backlog can sound boring, but in an automation cycle that has seen customers pause and restart spending, “flat and sturdy” can be a win. It suggests ATS still has a thick pipeline to convert into revenue, even if the mix shifts between industries.
The outlook rests on a simple idea: companies keep paying for automation when it saves money, reduces waste, or solves labour problems. ATS also benefits when regulated customers, like life sciences firms, prioritize quality and uptime over the lowest upfront costs. Management also pointed to organic growth alongside contributions from past acquisitions, and that blend can support steadier results if integration stays on track.
Foolish takeaway
ATS tries to earn a higher-quality multiple by leaning into life sciences, services, and repeatable platforms, while still taking attractive industrial work. If it keeps growing revenue, protects margins, and turns backlog into cash, investors may start treating it less like a contractor and more like a durable enabler of modern manufacturing.
Efficiency investing can pay off big as it rides a stubborn reality: companies will always want to make more with less. ATS gives you a Canadian name that sits right inside that spending trend, with a large backlog, improving profitability, and a product that solves real problems. It may not be a straight line, and it will never feel as calm as a utility. But if you want a long-term way to own the “do more with less” era, ATS looks like a practical contender worth watching closely.
