Q4 2024 ATS Corp Earnings Call

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Operator: Welcome to the ATS Corporation fourth quarter conference call and webcast. This call is being recorded on May 16, 2024 at 8.30 a.m. Eastern Time. Following the presentation, we will conduct a question and answer session. I'd now like to turn the call over to David Galison, Head of Investor Relations at ATS. You may now go ahead.

Speaker Change: Welcome to the a T S Corporation fourth quarter conference call and webcast. This big this.

Speaker Change: Call is being recorded on May 16th 'twenty 'twenty four at 830 a M.

Speaker Change: Following the presentation, we will conduct a question and answer session I'd now like to turn the call over to David Nelson head of Investor Relations.

Speaker Change: You May now go ahead.

David Galison: Thank you, operator, and good morning, everyone. On the call today are Andrew Hider, Chief Executive Officer of ATS, and Ryan McLeod, Chief Financial Officer. Please note that our remarks today are accompanied by a slide deck, which can be viewed via our webcast and available at ATSAutomation.com. We caution that the statements made on the webcast and conference call may contain forward-looking information and are cautionary statement regarding such information, including the material factors that could cause actual results to differ materially from the statements and the material factors or assumptions applied in making the statements are detailed on slide two of the slide deck. Now, it's my pleasure to turn the call over to Andrew.

David Nelson: Thank you operator, and good morning, everyone.

Speaker Change: On the call today are Andrew Hider, Chief Executive Officer of Etfs, and Ryan Mcleod Chief Financial Officer.

Speaker Change: Please note that our remarks today are accompanied by a slide deck, which can be viewed via our webcast and available at Etfs automation Dot com.

Speaker Change: We caution that the statements made on the webcast and conference call may contain forward looking information.

Speaker Change: Our cautionary statement regarding such information, including the material factors that could cause actual results to differ materially from the statements and the material factors or assumptions applied in making these statements are detailed on slide two of the slide deck.

Speaker Change: Now, it's my pleasure to turn the call over to Andrew.

Andrew P. Hider: Thank you David.

Andrew P. Hider: Good morning, everyone. And thank you for joining. Today, ATS reported our fourth quarter and annual results. For the fiscal year as a whole, ATS drove profitable growth, supported by the highest revenues and earnings in company history. In the fourth quarter, we delivered one of our strongest bookings quarters on record, along with record revenue. Unknown Speaker, Unknown Speaker, Unknown Speaker, Our value creation strategy is being advanced as we completed four acquisitions during fiscal 24 and continued to invest in innovation, increasing our patent portfolio by almost 10% over last year. In addition, we have been active with our share buyback program since late March, having deployed $45 million to repurchase just over 1 million shares.

Andrew P. Hider: Good morning, everyone and thank you for joining us.

Andrew P. Hider: Today H S reported our fourth quarter and annual results for the fiscal year as a whole etfs drove profitable growth supported by the highest revenues and earnings in company history.

Andrew P. Hider: In the fourth quarter, we delivered one of our strongest bookings quarters on record along with record revenues.

Adjusted earnings were in line with our expectations.

Andrew P. Hider: Our value creation strategy is being advanced as we completed four acquisitions during fiscal 'twenty four.

Andrew P. Hider: Continued to invest in innovation, increasing our patent portfolio by almost 10% over last year.

Andrew P. Hider: In addition, we have been active with our share buyback program since late March having deployed $45 million.

Andrew P. Hider: To repurchase just over 1 million shares.

Andrew P. Hider: The results reported today reflect the importance of deploying our strategy in our chosen markets, along with our team's commitment to the ABM as we drive continuous improvement throughout our global operation. This morning, I will update you on the business and our market. And then Ryan will provide his financial report, starting with our financial value drivers. Order bookings for the quarter were $791 million.

Andrew P. Hider: The results reported today reflect the importance of deploying our strategy in our chosen markets along with our team's commitment to the a b M. As we drive continuous improvement throughout our global operations.

Speaker Change: This morning, I will update you on the business and our markets.

And then Ryan will provide his financial report.

Ryan McLeod: Starting with our financial value drivers.

Order bookings for the quarter were $791 million.

Andrew P. Hider: Supported by Organic Growth and Life Sciences, Food and Beverage, and Energy. The underlying trends driving demand for ATS solutions remain favorable. For the full year, bookings were $2.9 billion.

Ryan McLeod: Supported by organic growth in life Sciences, food and beverage and energy.

Ryan McLeod: The underlying trends driving demand for HTS solutions remain favorable.

Ryan: For the full year bookings were $2 9 billion.

Andrew P. Hider: Q4 revenues were $792 million, up 8% from Q4 last year, including organic growth of 4%, along with our first full quarter of AVIDITY results. For the full year, revenues increased by 18%. Adjusted earnings from operations in Q4 were $96 million. Full year adjusted earnings were $398 million, up 16% compared to fiscal 23.

Ryan: Q4 revenues were $792 million up 8% from Q4 last year.

Ryan: Putting organic growth of 4%.

Ryan: Along with our first full quarter of avidity results.

Ryan: For the full year revenues increased by 18%.

Adjusted earnings from operations in Q4 were $96 million.

Full year adjusted earnings were $398 million up 16% compared to fiscal 'twenty three.

Andrew P. Hider: Moving to our Outlook. Our backlog remains strong at $1.8 billion. By market, Life Sciences backlog was $871 million. 14% higher than Q4 last year, supported by WINS across all of our major life sciences businesses, including WINS and Auto Injector Assembly, Automated Pharmacy. Radio Pharma and Pharma.

Ryan: Moving to our outlook.

Ryan: Our backlog remains strong at $1 8 billion.

Ryan: By market life Sciences backlog was $871 million.

Ryan: <unk> thousand 14% higher than Q4 last year.

Supported by wins across all of our major life Sciences businesses.

Ryan: Including wins in auto injector Assembly automated pharmacy.

Ryan: Radio pharma and pharma.

Andrew P. Hider: Our Life Sciences Opportunity Funnel is strong. Supported by market growth in key areas, including increased demand for GLP-1 drugs, wearable devices. Automated Pharmacies and Contact Cleansers.

Ryan: Our life Sciences opportunity funnel is strong.

Ryan: Supported by market growth in key areas, including increased demand for <unk> one drugs.

Ryan: Wearable devices automated pharmacies and contact lenses.

Andrew P. Hider: Our teams continue to offer and deliver integrated solutions to our customers from across the breadth of our life sciences operations. To give context on the GLP-1 opportunity for ATS. Revenues from auto-injector orders represented a low single-digit percentage of Fiscal 24 revenue.

Ryan: Our teams continue to offer and deliver integrated solutions to our customers from across the breadth of our life Sciences operations.

Ryan: To give context on the G. L P one opportunity for Hs.

Ryan: Revenues from auto injector orders represented a low single digit percentage of fiscal 'twenty four revenues.

Andrew P. Hider: However, with the auto-injector orders currently in our backlog, and additional customer orders, We expect this to move towards a high single-digit percentage of total revenues over the next several years as demand grows for GLP-1 drugs and associated drug delivery solutions. Additional growth drivers include potential approvals for new applications such as cardiovascular disease combined with improved consumer access for GLP-1 drugs, in transportation. Backlog was $425 million, reflecting our ongoing execution of large programs won in the prior fiscal year. Combined with expected variability of program awards.

Ryan: However, with the auto injector orders currently in our backlog and additional customer orders. We expect this to move towards a high single digit percentage of total revenues over the next several years as demand grows for G. L. P. One drugs and associated drug delivery solutions.

Speaker Change: Additional growth drivers include potential approvals for new applications, such as cardiovascular disease combined with improved consumer access for G. L. P. One drugs.

Speaker Change: In transportation.

Speaker Change: Backlog was $425 million, reflecting our ongoing execution of large programs one in the prior fiscal year.

Speaker Change: Combined with expected variability of program Awards.

Andrew P. Hider: We expect to see year-over-year pressure on EV revenues as we continue to execute on our backlog. Our sales funnel and transportation reflects short-term market uncertainty, as we have seen some opportunities move further out into the future. Our near-term funnel contains smaller opportunities relative to the size of the order bookings we've seen over the past 24 months. Longer term, the fundamentals remain intact, and we are well positioned to compete as the market continues to evolve, in Food and Beverage. Q4 bookings were strong and our ending backlog was $230 million. We typically experience seasonal variations in bookings and revenue in this vertical related to primary processing as customers place orders ahead of the harvest season.

Speaker Change: We expect to see year over year pressure on <unk> revenues as we continue to execute on our backlog.

Speaker Change: Our sales funnel and transportation reflects short term market uncertainty as we have seen some opportunities move further out into the future.

Speaker Change: Our near term funnel contains smaller opportunities relative to the size the order bookings we've seen over the past 24 months.

Speaker Change: Longer term the <unk>.

Speaker Change: Fundamentals remain intact, and we are well positioned to compete as the market continues to evolve.

Speaker Change: And food and beverage.

Speaker Change: Q4 bookings were strong and our ending backlog was $230 million.

Speaker Change: We typically experienced seasonal variations in bookings and revenue in this vertical related to primary processing as customers place orders ahead of the harvest season.

Andrew P. Hider: However, the team continues to drive diversification into secondary processing and packaging. Digitally Enabled Applications, as well as its customer base to offset some of this variability. To compliment ATS's food and beverage offerings in packaging and end of line solutions, yesterday afternoon, we announced an agreement to acquire Paxium, a global provider of primary, secondary, and end of line packaging machines in food and other industries, headquartered in Montreal.

Speaker Change: However, the team continues to drive diversification into secondary processing and packaging.

Speaker Change: Digitally enabled applications as well as its customer base to offset some of this variability.

Speaker Change: To complement Ags as food and beverage offerings and packaging and end device solutions yesterday afternoon, We announced an agreement to acquire Patheon a global provider of primary secondary and end of line packaging machines and food and other industries headquartered in Montreal.

Andrew P. Hider: In energy, our funnel is strong with a focus on refurbishment of existing nuclear reactors where new projects in Canada and around the world are being approved and moving towards implementation. We also have opportunities to serve customers as they build new reactors, including SMRs, over the long run. With our experience.

Speaker Change: In energy our funnel is strong with a focus on refurbishment of existing nuclear reactors, where new projects in Canada and around the world are being approved and moving towards implementation.

Speaker Change: We also have opportunities to serve customers as they build new reactors, including <unk> over the long run.

Speaker Change: With our experience specialized skills and proven track record in these markets.

Andrew P. Hider: Specialized skills and proven track record in these markets. ATS is well positioned to support customers in our area of expertise, and Consumer Products, our funnel remains stable, with niche opportunities in areas such as warehouse automation and consumer packaging, and After Sales Services. The value of our offerings to customers is clear. Customer Proximity and Speed of Response are critical. Our service teams are focused on delivering complete lifecycle solutions, including spare parts and digitally enabled services to help our customers improve their overall equipment effectiveness. In addition.

Speaker Change: <unk> is well positioned to support customers in our area of expertise.

Speaker Change: In consumer products, our funnel remains stable with niche opportunities in areas, such as warehouse automation and consumer packaging.

Speaker Change: On after sales services the value of our offerings to customers as clear cut.

Speaker Change: Customer proximity and speed of response are critical.

Speaker Change: Our service teams are focused on delivering complete lifecycle solutions.

Speaker Change: Including spare parts and digitally enabled services to help our customers improve their overall equipment effectiveness.

Speaker Change: In addition.

Andrew P. Hider: As we build momentum on higher value offerings, we drove some early performance as a service solution wins. On our digital offerings, our funnel is strong, and we are focused on developing capabilities for our customers to utilize an integrated architecture and analyze data in an efficient manner to drive performance and value across all markets that we serve. During the quarter, a global consumer products customer award ATS with a contract to build and service a global IoT platform. On ABM, we hosted our annual President Kaizen event.

Speaker Change: As we build momentum on higher value offers we drove some early performance as a service solution wins.

Speaker Change: On our digital offerings, our funnel is strong we are.

Speaker Change: We're focused on developing capabilities for our customers to utilize an integrated architecture and analyze data in an efficient manner to drive performance and value across all markets that we serve.

Speaker Change: During the quarter, a global consumer products customer word etfs with a contract to build and service a global Iot platform.

Speaker Change: On a b M. We hosted our annual President's Kaizen events.

Andrew P. Hider: This year's events focus on a variety of improvement areas, from new product launches, to how we respond to customer inquiries for after-sales services, as well as automating several manual processes to great efficiencies in how we process transactions. President's Kaizen Week is a great demonstration of our team's collective drive for breakthrough change. The level of work we completed in a single week is a testament to the evolution of our ABM culture over time.

Speaker Change: This year's events focused on a variety of improvement areas from new product launches to how we'll respond to customer inquiries for after sales services.

Speaker Change: As well as automating several manual processes to create efficiencies in how we process transactions.

Speaker Change: The President's Kaizen week is a great demonstration of our team's collective drive for breakthrough change.

Speaker Change: The level of work we completed in a single week, it's a testament to the evolution of our ABM culture over time.

Andrew P. Hider: ABM Activity shows strong engagement and we measure and monitor our success, to identify areas for ongoing improvement and deployment of our tools across the organization. I am particularly encouraged by the ongoing rollout and AVM adoption by the team at Avidity, as part of our integration activity. On M&A, our funnel is active, healthy, and diversified across a range of target sizes. We continue to be actively engaged in cultivating opportunities of various sizes that fit with our strategy. The acquisition of Paxium, which we announced last night, is expected to close in the coming weeks, subject to customary closing conditions.

Speaker Change: ABM activity saw strong engagement and we measure and monitor our success to identify areas for ongoing improvement and deployment of our tools across the organization.

Speaker Change: I am, particularly encouraged by the ongoing rollout and AVM adoption by the team at avidity.

Speaker Change: As part of our integration activities.

Speaker Change: On M&A, our funnel was active healthy and diversified across a range of target sizes.

Speaker Change: We continue to be actively engaged in cultivating opportunities of various sizes that fit with our strategy.

Speaker Change: The acquisition of <unk>, which we announced last night is expected to close in the coming weeks subject to customary closing conditions.

Andrew P. Hider: We are disciplined in our approach and assessment of each target, and we continue to drive integration activities at our more recently-acquired business. Integrations are progressing in line with our expectations, on innovation. We are committed to investing capital strategically to create solutions that drive return. A few highlights from the quarter, and Life Sciences, our teams developed a new solution called Modulus to be used for miniaturized diagnostic devices. Modulus uses Biodat dispensing stations integrated with ATS SuperTrek Conveyance Platform and our Cortex Vision System.

Speaker Change: We are disciplined in our approach and assessment of each target.

Speaker Change: We continue to drive integration activities at our more recently acquired businesses.

Speaker Change: Integrations are progressing in line with our expectations.

Speaker Change: On innovation.

Speaker Change: We are committed to invest in capital and strategically to create solutions that drive returns.

Speaker Change: A few highlights from the quarter.

Speaker Change: In life Sciences, our teams develop a new solution called modulus to be used for miniaturized diagnostic devices.

Speaker Change: Modulus uses biodot dispensing stations integrated with HFF Superdrug can vance platforms, and our cortex vision system.

Andrew P. Hider: Also in Life Sciences, our Coma Chair team has developed new innovations to address GMP NX1 requirements related to the manufacture of sterile medicinal products. Finally, we're pleased to report that our PA FACTS platform is the basis for a newly launched customer portal in IWK, as well as for Marco Insights, a digital dashboard and machine benchmarking platform. PAFACS, which is our cloud-based IoT platform, also houses an energy management solution and several other increasingly scalable IoT offerings to support our customers across multiple industries.

Speaker Change: Also in life Sciences, our KOL mature team to develop new innovations to address GMP Nx, one requirements related to the manufacturer of sterile medicinal products.

Speaker Change: Finally, we are pleased to report that our <unk> platform is the basis for our newly launched customer Portland W. K.

Speaker Change: As well as for Marco insights.

Speaker Change: A digital dashboard and machine benchmarking platform.

Speaker Change: <unk>, which is our cloud based Iot platform also houses and energy management solution and several other increasingly scalable Iot offerings to support our customers across multiple industries.

Andrew P. Hider: In summary, Q4 and full year performance illustrates our continued progress as we execute on our strategy. Along with our financial results, our teams are focused on driving improvements across all of our value drivers. Fiscal 24, we saw continued strength in on-time delivery and quality, increased our internal fill rate, and reduced our voluntary turnover. We continue to be recognized as an employer of choice. We are recently included on the list of Southwestern Ontario's top employers for 2024.

Speaker Change: In summary, Q4, and full year performance illustrates our continued progress as we execute on our strategy.

Speaker Change: Along with our financial results. Our teams are focused on driving improvements across all of our value drivers.

Speaker Change: In fiscal 'twenty four we saw continued strength in on time delivery and quality increased our internal fill rate and reduced our voluntary turnover.

Speaker Change: We continue to be recognized as an employer of choice. We are recently included on the list of southwestern Ontario's top employers for 2024.

Andrew P. Hider: As you drive forward in fiscal 25, our opportunity funnel is well diversified, and we look forward to welcoming Paxium to the ATS portfolio. We are confident in our ability to drive our ABM culture as we continue to focus on creating shareholder value. Now I will turn the call over to Ryan. Ryan, over to you. Thank you.

Speaker Change: As we drive forward in fiscal 'twenty, five our opportunity funnel is well diversified and we look forward to welcoming axiom to the Ats portfolio.

Speaker Change: We are confident in our ability to drive our ABM culture as we continue to focus on creating shareholder value now.

Speaker Change: Now I will turn the call over to Ryan Brian over to you.

Ryan McLeod: Thank you, Andrew, and good morning, everyone. ATS delivered solid financial results this And we finished the year with a strong balance sheet and backlog that provides good revenue visibility for fiscal 2025. Starting with our operating results for the quarter, order bookings were $791 million, up 7.3% compared to Q4 last year. Year-over-year growth was led by life sciences.

Ryan McLeod: Thank you Andrew and good morning, everyone.

Ryan McLeod: <unk> delivered solid financial results this quarter.

Ryan McLeod: And we finished the year with a strong balance sheet and backlog that provides good revenue visibility for fiscal 2025.

Ryan McLeod: Starting with our operating results for the quarter order bookings were $791 million up seven 3% compared to Q4 last year.

Ryan McLeod: Year over year growth was led by life Sciences with strong organic growth in bookings as well as contributions from our recent acquisitions, including <unk>.

Ryan McLeod: Strong Organic Growth in Wokings, as well as contributions from our recent acquisitions, including a vidded. Our Cherilyn 12-month book-to-bill ratio at the end of Q4 was 0.95 to 1. Excluding transportation, our trailing 12 month book-to-bill ratio was 1.12, with all other market verticals above 1.

Ryan McLeod: Our trailing 12 month book to Bill ratio at the end of Q4 was <unk> 95 to one.

Ryan McLeod: Excluding transportation, our trailing 12 months book to Bill ratio was 112 with all other market verticals above one.

Ryan McLeod: Q4 revenues were $792 million, up 8.3% over Q4 last year, driven by an increase in life sciences revenues of 15.6%. Organic revenue growth was 3.5% in the quarter, while recently acquired companies added approximately 5% growth. Revenues were higher than we had expected at the outset of the fourth quarter, as our teams were able to offset headwinds from the delayed EV projects with incremental site support work complemented by strong execution in our life sciences business.

Ryan McLeod: Q4 revenues were $792 million up eight 3% over Q4 last year.

Ryan McLeod: Driven by an increase in life Sciences revenues of 15, 6% or.

Speaker Change: Organic revenue growth was three 5% in the quarter, while our recently acquired companies added approximately 5% growth revenues.

Speaker Change: Revenues were higher than we had expected at the outset of the fourth quarter as our teams were able to offset headwinds from the delayed <unk> projects with incremental site support work complemented by strong execution in our life Sciences business.

Ryan McLeod: We finished Q4 with just under $1.8 billion of order back. Looking ahead, our revenue conversion for Q1 is estimated to be in the 36 to 40% range of order back. As a reminder, this assessment is updated every quarter based on revenue expectations from existing backlog and new orders booked and billed within the quarter.

Speaker Change: We finished Q4 with just under $1 $8 billion of order backlog looking ahead. Our revenue conversion for Q1 is estimated to be in the 36% to 40% range of order backlog.

Speaker Change: As a reminder, this assessment is updated every quarter based on revenue expectations from existing backlog and new orders booked and billed within the quarter.

Ryan McLeod: This conversion range also factors in the impact of approximately $150 million of transportation or backlog with one of our EV customers that remains delayed. For fiscal 25, despite expected lower revenues from EV, our business is well positioned to drive top line growth in our other markets, including our largest market, life science. We expect this growth, combined with the addition of paxium, to largely offset reduced volumes from EV. If the EV program on hold restarts, this would be additive to our expectation.

Speaker Change: This conversion range also factors in the impact of approximately $150 million of.

Speaker Change: Of transportation order backlog with one of our TV customers that remains delayed.

Speaker Change: For fiscal 'twenty five despite expected lower revenues from EV, our business is well positioned to drive top line growth in our other markets, including our largest market life Sciences. We expect this growth combined with the addition of patheon to largely offset reduced volumes from EV.

Speaker Change: If the EV program on hold restarts this would be additive to our expectations.

Ryan McLeod: Moving to earnings, Q4 adjusted earnings from operations were $95.9 million, down 6% from Q4 last year, primarily due to an increase in SG&A costs. Q4 gross margin, excluding acquisition-related inventory fair value charges, was 28.1%, down 71 basis points from Q4 last year, primarily reflecting some lower margin projects in the quarter compared to last year. We consider this to be a short-term issue and expect improvement in our gross margins going forward. In the quarter, we were able to mitigate the majority of impacts from the delayed EV order backlog and we continue to work with one of our EV customers as they solidify their battery design and realign their production schedule.

Speaker Change: Moving to earnings Q4, adjusted earnings from operations were $95 9 million.

Speaker Change: Down 6% from Q4 last year, primarily due to an increase in SG&A costs.

Speaker Change: Q4 gross margin excluding acquisition related inventory fair value charges was 28, 1% down 71 basis points from Q4 last year, primarily reflecting some lower margin projects in the quarter compared to last year.

Speaker Change: We consider this to be a short term issue and expect improvement in our gross margins going forward.

Speaker Change: In the quarter, we were able to mitigate the majority of the impacts from the delayed EV order backlog and we continue to work with one of our <unk> customers as they solidify their battery design and realign their production schedule.

Ryan McLeod: On supply chain, we are starting to see improvement in lead times, although these improvements will take a few quarters to work their way through our back. As a reminder, lead times on specific components have impacted our ability to drive margin expansion. Material cost pressures continue to challenge in some areas of the business driven by higher raw material costs for our suppliers.

Speaker Change: On supply chain, we are starting to see improvement in lead times. Although these improvements will take a few quarters to work their way through our backlog.

Speaker Change: As a reminder, lead times on specific components have impacted our ability to drive margin expansion.

Speaker Change: The real cost pressures continue to challenge in some areas of the business driven by higher raw material costs for our suppliers. We are actively managing and working to offset these pressures through our supply chain leaders.

Ryan McLeod: We're actively managing and working to offset these pressures through our supply chain levers. Moving to SG&A, excluding acquisition related amortization and transaction costs, Q4's SG&A was $122.7 million, $17.9 million higher than last year. The increase reflected incremental SG&A expenses from our acquisition, excluding the mark to market impact related to changes in our share price. Stock based compensation expense was $4.2 million in Q4, consistent with Q4 last year. EPS was $0.49 in Q4, up 53% over last year, or adjusted EPS was down 11% to $0.65 in Q4. In respect of our previously announced reorganization plan, in the fourth quarter, we incurred $6.6 million of restructuring costs, bringing the total to $22.8 million for the full year.

Moving to SG&A, excluding acquisition related amortization and transaction costs Q4's, SG&A was $122 7 million $17 9 million higher than last year the.

Speaker Change: The increase reflected incremental SG&A expenses from our acquisitions excluding.

Speaker Change: Excluding the mark to market impact related to changes in our share price stock based compensation expense was $4 2 million in Q4, consistent with Q4 last year.

Speaker Change: EPS was <unk> 49 in Q4 up 53% over last year, our adjusted EPS was down 11% to <unk> 65 in Q4.

Speaker Change: In respect of our previously announced reorganization plan in the fourth quarter, we incurred $6 $6 million of restructuring costs, bringing the total to $22 8 million for the full year.

Ryan McLeod: We expect that these targeted cost reductions will allow us to invest further into accelerating growth in areas of the business to provide opportunity for higher returns in support of our strategic growth plan. Q4 costs also included additional actions related to cost control measures within our EV business. Moving to the balance sheet, the Q4 cash flows generated by operating activities were $9.6 million. As noted in prior quarters, our operating cash flows can fluctuate between periods based on current progress billings of our larger projects, particularly in EV.

Speaker Change: We expect that these targeted cost reductions will allow us to invest further into accelerating growth in areas of the business to provide opportunity for higher returns in support of our strategic growth plans.

Speaker Change: Q4 costs also included additional actions related to cost control measures within our EV business.

Speaker Change: Moving to the balance sheet Q4 cash flows generated by operating activities were $9 6 million as noted in prior quarters. Our operating cash flows can fluctuate between periods based on current progress billings of our larger projects, particularly in EV.

Ryan McLeod: Non-cash working capital as a percentage of revenue was 19% at the end of Q4, up from 17.8% at the end of Q3. This was primarily due to an increase in working capital from project milestones and billings on our large EV program. In the short term, we expect working capital to remain above our 15% target as we work through our existing background. Total year-to-date investments in CapEx and intangible assets were $88.4 million, which included $25.9 million in Q4, fiscal 25, our CapEx investment is expected to be in the range of 70 to $90 million.

Speaker Change: Noncash working capital as a percentage of revenue was 19% at the end of Q4 up from 17, 8% at the end of Q3.

Speaker Change: This was primarily due to an increase in working capital from project milestones and billings on a large television programs.

Speaker Change: In the short term, we expect working capital to remain above our 15% target as we work through our existing backlog.

Speaker Change: Total year to date investments in Capex and intangible assets were $88 4 million.

Speaker Change: Which included $25 9 million in Q4.

Speaker Change: For fiscal 'twenty five our Capex investment is expected to be in the range of $70 million to $90 million.

Ryan McLeod: On leverage, our net debt to adjusted EBITDA ratio is 2.4 to 1 as of the end of Q4, down from 2.7 times last year. This remains in line with our targeted leverage range of 2 to 3 times net debt to adjusted EBITDA.

Speaker Change: On leverage or net debt to adjusted EBITDA ratio was 241 as of the end of Q4 down from two seven times last year.

Speaker Change: This remains in line with our targeted leverage range two to three times net debt to adjusted EBITDA.

Ryan McLeod: As Andrew noted, we were active on our share buyback program as part of our overall capital deployment strategy. In summary, our quarterly and annual performance highlighted the strength of our diversified and evolving portfolio and our positions in strategic and marketing. Booking's growth in life sciences and other market verticals provided some offset to the more measured pace of activity in the EV space compared to last year. Strong order backlog in our key markets, particularly life sciences, provides good revenue visibility through fiscal 25.

Speaker Change: As Andrew noted we were active on our share buyback programs as part of our overall capital deployment strategy.

Speaker Change: In summary, our.

Speaker Change: Our quarterly and annual performance highlighted the strength of our diversified and evolving portfolio and our positions in strategic end markets book.

Speaker Change: Bookings growth in life Sciences, and other market verticals provided some offset to the more measured pace of activity in the EV space compared to last year.

Speaker Change: Strong order backlog in our key markets, particularly life Sciences provides good revenue visibility through fiscal 'twenty five.

Speaker Change: And we look forward to closing the acquisition of <unk> in the coming weeks.

Ryan McLeod: And we look forward to closing the acquisition of Paxium in the coming week. Overall, we're pleased with the performance of our business. The ABM remains at the core of how we operate, and we're confident in our team's ability to continue to drive long-term value creation for our customers and our shareholders. Now we will open the call to questions from our analysts. Operator, could you please provide instructions? Thank you.

Speaker Change: Overall, we're pleased with the performance of our business. The ABM remains at the core of how we operate and we're confident in our team's ability to continue to drive long term value creation for our customers and our shareholders.

Now we will open the call to questions from our analysts operator could you. Please provide instructions. Thank you.

Operator: Thank you very much. We are now opening the floor for question and answer session. If you'd like to ask a question, please press star followed by the number one sign on your telephone keypad. That's star followed by the number one on your telephone keypad. Our first question comes from David Ocampo from Cormark Securities. Your line is now open.

Speaker Change: Thank you very much we are now opening the floor for a question and answer session.

Speaker Change: Like to ask a question. Please press star followed by the number one sign on your top on key pad. That's star followed by the number one on your telephone keypad.

Speaker Change: Our first question comes from David Ocampo from Cormack Securities. Your line is now open.

David Ocampo: Thanks. Good morning, everyone.

David Ocampo: Thanks, Good morning, everyone.

David Ocampo: I guess my first question, Andrew, I mean, the large enterprise easy program that you have was reduced by $50 million. And you guys have made, you know, some pretty significant investments over the last few years to support that program, terms of investments and even working capital. Curious if there's any recourse for the adjustments and delays to your

David Ocampo: I guess my first question, Andrew I mean, the large enterprise EV program that you have was reduced by $50 million and you guys have made some pretty significant investments over the last few years to support that program.

Speaker Change: The investments in and even working capital curious if theres any recourse for the adjustments and delays to your customer.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Unknown Speaker: We're having some... Sorry, David, did you hear that response? No, we did not. Okay, we're having some technical challenge here. So, I'm sorry, you asked with the cancellation. So, under the terms of the contract, [inaudible]

Speaker Change: We're having some inventory David did you hear that response here.

Did that.

Speaker Change: Okay.

Speaker Change: Technical challenge here so.

Speaker Change: Sorry, you asked what the cancellation so under the terms of the contract.

Speaker Change: And customers are responsible for compensating us up into the points.

Speaker Change: Of when the work has stopped and canceled.

Speaker Change: Call. It a normal course scope change and this happens fairly regularly for business. So.

Speaker Change: And in terms of an investment year.

Speaker Change: Year.

Speaker Change: I think you identified it as primarily working capital and our expectation is we'll recover that as part of this cancellation.

Andrew P. Hider: Gotcha, gotcha. And I guess, curious if you see any potential risk of a further reduction just given the ongoing softness that we're seeing with EV demand.

Speaker Change: Gotcha Gotcha.

Speaker Change: I guess I'm curious if you see any potential risk of a further reduction just given the ongoing softness that we're seeing with EV demand.

Andrew P. Hider: Well, I mean, that's not our expectation. You know, in addition to the de-scoping that happened in the quarter, the net overall program continued to increase. The piece that was de-scoped, or canceled, I mean, it was in the design phase, so fairly early on. And so from a customer investment standpoint, if it was a, you know, call it an easier decision to make that change. But, I mean, you know, I don't expect further cancellations. Normal core scope changes, that happens, and that's happened more frequently in EVs. But outright cancellations, as I think we've talked about in the past, are unusual.

Speaker Change: Well I mean, that's not our expectation.

Speaker Change: Hello.

Speaker Change: In addition to the Destocking that happened in the quarter.

Speaker Change: Sure.

Speaker Change: The net overall program continued to increase.

Speaker Change: The piece that would de scoped.

Speaker Change: Or canceling it was in the design phase.

Speaker Change: Fairly early on and so from a customer investment standpoint.

Speaker Change: With all of them.

Speaker Change: So the easier decision to make that.

Speaker Change: To make that change.

Speaker Change: But I mean.

Speaker Change: I don't expect further further cancellations.

Speaker Change: Normal course scope changes that that happens and that's happened more frequently and UV <unk> cancellation rate is I think we've talked about in the past or are unusual.

Ryan McLeod: And then my last question, Ryan, it's probably better suited to you or to you, but networking capital was pretty bloated in the quarter, I think closer to 19%. And understanding, you know, a lot of that has to do with timing of payments as it relates to EV. Are there any milestone payments that we should be aware of over the next few months that could push that working capital to more normal levels?

Speaker Change: Okay and then my last question Brian.

Speaker Change: Better suited to you argue but networking capital looks pretty blurred in the quarter and closer to 19%.

Speaker Change: And understanding that a lot of that has to do with timing of payments as it relates to EV.

Speaker Change: Are there any milestone payments that we should be aware of over the next few months that could push that working capital to.

Speaker Change: More normal levels.

Ryan McLeod: Yeah, there are, but I mean, we've seen, I mean, first... Some of those are going to push out into further quarters and we're based on the restart. And then normal course, as projects are getting finalized and ramped up, we'll start to see those milestones. I mean, Warwick's going to be into the Q2, Q3 timeframe, but we are approaching those milestones. Okay, that's it.

Speaker Change: Yes, there are.

Speaker Change: We have seen.

Speaker Change: Maybe first.

Speaker Change: Some of those are going to push out into Q2 for.

Speaker Change: For the quarter that were based on on the restart and the normal course.

Speaker Change: Projects are getting finalized in a ramped up we'll start to see those milestones would be more attributable to the Q2 Q3 timeframe, but we are approaching holds both milestones.

David Ocampo: Okay, that's all I have for you guys. Thank you so much.

Speaker Change: Okay. That's all I had for you guys. Thank you so much.

Speaker Change: Thank you David.

Michael Doumet: Question comes from Michael Doumet from Scotland Bank. Your line is now open.

Speaker Change: Question comes from Mike and Ned Hemscott Bank. Your line is now open.

Michael Doumet: Hey, good morning, guys. I'm just curious on why the commentary on the Revenue Outlook excludes the revised EV order? You know, is it just reflecting of, you know, uncertainty around timing? And then on the commentary on the Outlook, as far as the transportation funnel, you know, your Outlook indicates that some of the large orders, effectively, not all the large orders have moved further into the future. I mean, is there an expectation that, you know, you could potentially close another large order in the near term?

Speaker Change: Hey, good morning, guys.

Mike: I was just curious on why the commentary on the revenue outlook excludes the revised order is it just reflecting.

Speaker Change: The uncertainty around timing.

Speaker Change: And then on the commentary on the outlook as far as the Transportation fund all your outlook indicate that some of the large orders.

Certainly not all of the large orders have moved further into the future I mean is there an expectation that.

You could potentially close another large order in the near term.

Speaker Change: So I'll start.

Ryan McLeod: So I'll start. Good morning, Michael.

Speaker Change: Morning, Michael.

Speaker Change: Got it.

Speaker Change: We've taken that out of our expectation.

Ryan McLeod: I mean, it really, we've taken that out of our expectation, really just tied to timing. You know, it's just something, and Andrew talked about it, it could restart in Q1, or staying very close with the customer. But, you know, we've taken it over Outlook, because there is uncertainty around that timing. And I'll let Andrew talk about that. Yeah, and to add on to that.

Speaker Change: Time to time.

Speaker Change: Is it something.

Speaker Change: And Andrew Andrew Parker.

Speaker Change: It could restart in Q1.

Speaker Change: We're staying very close with the customer but.

Speaker Change: We've taken that out of our outlook.

Speaker Change: There is uncertainty around the timing.

Speaker Change: And I'll, let Andrew talk yes.

Andrew P. Hider: Unknown Speaker, Unknown to that, Michael, so there's two key areas this customer is focused on, and it is the customer indication of when this will restart. But there's two key areas. First, Unknown Speaker, Unknown Attendee, Unknown Speaker, Unknown Speaker, Unknown Speaker, And when the, you know, if the delay comes back online, it will be added to our expectation.

Speaker Change: Add on to that.

Michael: Michael So there's two key areas of this customers focused on and it is a customer indications of wetness. So we'll start with these two key areas first.

Speaker Change: It's really around the battery technology that they plan to move forward with.

Then second end market demand and so we obviously have very bird frequent ongoing conversations both on the work we're involved in as well as as well as this application. So we took it off and it will be largely offset with growth in other areas and so we're setting the business up really around the timing of <unk>.

Speaker Change: Business in this program.

Speaker Change: When the if the delay comes back online it will be additive to our expectations as far as your second part of the question.

Andrew P. Hider: As far as your second part of the question and the business and the market, just a couple of comments on this. First, we want to work in the quarter and to continue to engage customers. We do view their approach is going to be a bit more measured in the short term. Measured means they're looking at their technology, they're looking at their market demand and really aligning their expectations around investment for that.

Speaker Change: And in the business and the market just a couple of comments on this first we won work in the in the quarter.

Speaker Change: Key to engage customers would give you there their approach is going to be a bit more measured in the short term measured means they're looking at their technology better looking at air market demand and really aligning their expectations are invested for that and so we continue to see opportunities we've set the business up and.

Andrew P. Hider: And so we continue to see opportunities. We've set the business up and we can be patient in the situation we sit in today. We've taken the right action to set ourselves up and we continue to see strength in other parts of our business. So.

Speaker Change: We can be patient in this situation we sit in today, we've taken the right action to set ourselves up and we've continued to see strength in other parts of our business. So.

Andrew P. Hider: Long term, when we step back and look at EV, you know, the market is slated to grow, call it double every two and a half years, two to two and a half years. And ATS has strong value and it is an organic area of focus for us. So relatively muted, relatively low investment, strong return, and we take that return and put it in other areas of the business to continue to grow.

Speaker Change: Long term when we step back and look at EV. The market is slated to grow cohort.

Speaker Change: <unk> 11, two and a half years, two to two and a half years and Acs has strong value and it is an organic area of focus for us. So so relatively muted at relatively low investment strong return and we take that return and put it in other areas of the business continued to grow.

Ryan McLeod: Very helpful, guys. Thanks. And then, you know, for the next quarter, should we expect somewhat of a similar margin impact? You know, given the deferral so far, and maybe just a higher level question, assuming declines in transportation, how are you guys thinking about managing labor and overhead in the near term to shield yourself some potential margin variability, given that the outlook still kind of remains you know, potentially quite favorable in the long term.

Speaker Change: Very helpful guys. Thanks, and then.

Speaker Change: For the next quarter should we expect somewhat of a similar margin impact.

Speaker Change: Given the deferrals so far.

Speaker Change: And maybe just a higher level question assuming declines in transportation. How are you guys thinking about managing labor.

Speaker Change: Overhead in the near term to shield yourself, some potential margin variability given that the outlook still remains.

Speaker Change: Actually quite favorable in the longer term.

Ryan McLeod: Yeah, so we've aligned the business, our cost structure to meet the current levels of demand. And, you know, that said, we're always going to monitor and if further adjustments are required, we'll do that.

Speaker Change: Yeah. So so we've aligned the business our cost structure to meet the current levels of demand.

Speaker Change: And at.

At that time were always sort of monitoring.

Speaker Change: Yes.

Speaker Change: Further adjustments are required more will do that.

Speaker Change: In terms of our margin outlook.

Speaker Change: Part of how we were able to offset the headwind in this quarter were tied to onsite or work in that way.

Speaker Change: Work is continuing.

Ryan McLeod: In terms of our margin outlook, part of how we were able to offset the headwinds in this quarter were tied to onsite support work, and that work is continuing. And, you know, we do expect that to tail off again as these projects get ramped up on onsite customers. In the fourth quarter, I did talk about some lower margin programs that impacted our gross margin. Those are largely behind us, and from an SG&A standpoint, sequentially, we have a little bit of additional spend really tied to people costs. And that'll be more normalized through next year. So from a margin standpoint, we don't expect any headwinds going into next fiscal year.

Speaker Change: We do expect that to tail off again.

Speaker Change: Yes.

Speaker Change: Projects get tough on unlimited customers.

Speaker Change: In the fourth quarter I did talk about some lower margin programs.

Speaker Change: It impacted our gross margin results.

Speaker Change: Gross margin sorry, those are largely behind us.

Speaker Change: And from an SG&A standpoint sequentially, we added a little bit of additional spend.

Speaker Change: Really.

Speaker Change: Tied to the type of people costs and that will be more normalized throughout next year. So.

Speaker Change: From a margin standpoint, we don't.

Speaker Change: Expect any headwind going into next fiscal year.

Michael Doumet: Very helpful. I'll pass the line. Thank you, Chris.

Speaker Change: Very helpful I'll pass lines of credits.

Speaker Change: Okay.

Jill Ritchie: Our next question comes from Jill Ritchie from Goldman Sachs. Your line is now open.

Speaker Change: Our next question comes from Joe Ritchie from Goldman Sachs. Your line is now open.

Speaker Change: Yes.

Jill Ritchie: Thanks. Good morning, everybody. Can we touch on the auto-injector ramp over the next several years getting to high single-digit portion of your revenue? I just want some clarification on that. Is there an expectation that in fiscal 25 you'll get there, and if not, maybe just talk to us a little bit about how you expect that ramp to go in the coming years?

Joe Ritchie: Hi, Thanks, good morning, everybody.

Joe Ritchie: Good morning can we just touch on can we touch on the auto injector ramp.

Speaker Change: As open debt over the next several years getting to high single digits Sports gaming revenue I. Just wanted some clarification on that is there an expectation that in fiscal 'twenty five you'll get there and if not maybe just talk to us a little bit about like how you expect that ramp to go in the coming years.

Ryan McLeod: Yeah, Joe, so I'll start. So this has been the last couple of quarters, high single digit, low double digit percentage of our overall bookings. So it's been a it's been a strong area of growth for bookings. We've started, you know, these programs, there are 12 to 14 months, you know, kind of on average, so we're getting into higher revenue phases. And so we're going to see that that revenue contribution move from where it was in 24 low single digits, up into that high single digits and quarters will get into double digits. But that's, that's how the backlog, the revenue is going to unfold.

Ben: Yes, Joe So I'll start so this is Ben.

Ben: The last couple of quarters high single digit low double digit percentage of our overall bookings. So it's been a it's been a strong area of growth for bookings.

Speaker Change: We have started.

Speaker Change: These programs there are 12 to 14 months.

Speaker Change: On average so we're getting into.

Speaker Change: Higher revenue basis, and so we're going to see that that revenue contribution move.

Speaker Change: Move from where it was in 24 low single digits up into that high single digit in quarters, we'll get into double digits.

Speaker Change: That tells us the backlog to revenue is going to unfold.

Andrew P. Hider: And Joe, just to add a little bit more color on this area, this space, and I know I walked through it in my prepared remarks. You know, we're double digit customers in this area, strong offering with strong capability. And, you know, as a reminder, we've invested, in this space and continue to invest in this space. We've been here, you know, even with the EpiPen call it two decades.

Speaker Change: Yes.

Joe Ritchie: And Joe just to add a little bit more color on this area of the space and I walked through it in my prepared remarks.

Speaker Change: We're double digit customers in this area strong offering with strong capability as a reminder, we've invested.

Andrew P. Hider: But we've launched with our symphony platform, the ability to be, you know, up to double the output of the standard process in half the full So strong capability for customers that are moving into the space and or have gained approvals. And when we see areas like cardiovascular disease or even continued approvals around GLP-1, it really is an area for strategy for ATS. Now, all that said, we have many areas that we like in the life sciences space, whether it's radiopharmaceuticals or wearable devices, or even in the last couple quarters, we had strong awards from contact lenses.

Speaker Change: In this space and continue to invest in this space and been here, where even with the IV patent costs two decades, but we've launched with our symphony platform the ability to be up to double the output of the standard process and have the footprint. So strong capability for customers that are moving into the space <unk>.

Speaker Change: <unk> gained approvals.

Speaker Change: And when we see areas like cardiovascular disease, or even even continued approvals around <unk> one it is.

Speaker Change: It really is an area for strategy for adjust now all that said we have many areas that we like in the life Sciences space, whether it's radiopharmaceuticals or or wearable devices or even in the last couple of quarters. We had strong awards from contact lenses. So we see strong tailwind.

Andrew P. Hider: So we see strong tail on GLP-1 drugs and the auto-injector space, and the approvals this year are actually outpacing last year. And so we see that for the foreseeable future, this being a strong area of focus for ATS.

Speaker Change: <unk>, one drugs and the auto injector space and the approval. This year are actually outpacing last year.

Speaker Change: And so we see it for the foreseeable future this being a strong strong area of focus for Ags.

Jill Ritchie: Got it. That's that's helpful, guys. Thank you.

Speaker Change: Got it that's helpful guys. Thank you and then I guess my second question I really want to focus on free cash flow and just given that there is that there is an outlay in free cash flow. This past year, how do I think about this framework going forward I know you guys have talked about networking capital.

Speaker Change: Getting down below that mid teen percentage, but help me understand what the expectations are for 2025 for fiscal year 'twenty five and then beyond.

Speaker Change: Yes.

Jill Ritchie: And then I guess my second question, I really want to focus on free cash flow. And just just given that there is a, you know, there was an outlay in free cash flow this past year. How do I think about this framework going forward? I know you guys have talked about net working capital, getting down below that mid team percentage, but help me understand what the expectations are for 2025 or fiscal year 25. And then beyond Yeah, so so

Ryan McLeod: Yeah, so, so, I mean, the biggest, the biggest impact on our free cash flow in 24 was, was working capital and that's tied to EV. You know, we talked about in the past, there being higher variability given the size of these programs. And as we're getting into latter stages, the question, similar questions asked, but we are going to see some of those milestones towards, towards the middle to Q2, Q3 of our fiscal year this year.

Speaker Change: Yes, so so.

Speaker Change: The biggest impact on our free cash flow in 2004 was was working capital tightly.

Speaker Change: We talked about in the past certainly higher variability given the size of these programs and as we're.

Speaker Change: Getting into later stages.

Speaker Change: The question similar question was asked.

Speaker Change: We are going to see some of those milestones.

Speaker Change: Towards towards the middle.

Speaker Change: Q2, Q3 of our fiscal year this year.

Speaker Change: So.

Speaker Change: Our goal and we talked about it.

Speaker Change: In that 15% below range.

Ryan McLeod: So, you know, our goal when we talked about it is to be in that 15% below range. We've, we've had some inventory build outside of the specific EV area, but, but, you know, they're pretty small overall. AR collections have continued to be quite strong. The biggest driver has really been in that EV space. As the business, you know, I'll say the portfolio shifts into next year, we're going to see, as we've talked about, larger contributions from early sciences, from our food and energy businesses. We will see that reflected in lower working capital. But as I said, it's going to be tied to EV milestones and likely in the Q or the second half of the

Speaker Change: We had some inventory build to suit side of the specifics.

Speaker Change: Area, but.

Speaker Change: They're pretty small overall AR collections have continued to be quick.

Speaker Change: Strong.

Speaker Change: The biggest driver has really been in that space as the business.

Speaker Change: I will say the portfolio shifted into next year, we're going to see as we've talked to your larger contributions from life Sciences.

Speaker Change: From our food and energy businesses.

Speaker Change: We will see that reflected in.

Speaker Change: Lower working capital, but as I said is tied to heavy model holdings and likely into Q.

Speaker Change: The second half.

Speaker Change: Okay, great. Thank you.

Michael W. Glen: Our next question comes from Michael Glen from Raymond James, your line is now open.

Speaker Change: Our next question comes from Michael Glen from Raymond James Your line is now open.

Michael W. Glen: Hey, good morning. So there's a lot of moving parts taking place in the quarter, but I'm just really interested. Can you give some updated commentary surrounded your target for a 15% adjusted EBIT margin? I know there is no timeframe for this, but would you say this is still within reach? Is it being pushed out? Just trying to get some indication as to that particular metric?

Michael W. Glen: Hey, good morning so.

Michael W. Glen: There's a lot of moving parts, taking place in the quarter, but I'm just really interested can you give some updated commentary surrounding your target for <unk>.

Michael W. Glen: 15% adjusted EBIT margin I know there is no timeframe for this but would you say this is still within reach as it being pushed out just trying to get some indication as to.

Michael W. Glen: And that particular metric.

Ryan McLeod: Yeah, I mean, so absolutely, that's, that's our target that that goal is unchanged. And, you know, I mean, I'll start with, with our operations. We've got a number of initiatives, they're well embedded in our business, and they've served us particularly, they serve as well, supply chain, that's been an area that's, that's performed very well, even in challenging conditions over the last, call it 18 months. We're investing in growth areas. We produce spend in other areas, and we populate through the organization activities we undertook this year. All that said, there is, there's, there's the EV headwind in the short term, from a revenue standpoint. Again, we do expect the growth in our other market verticals to largely offset and support continued margin

Michael W. Glen: Yes.

Speaker Change: So absolutely that's that's our targeted goal of unchanged.

Michael W. Glen: No.

Speaker Change: I'll start with with our operations.

Speaker Change: We've got a number of initiatives they are well embedded in our business they've served us, particularly.

Speaker Change: Shows as well a supply chain.

Speaker Change: That's been an area that's performed very well even in challenging conditions over the last.

Speaker Change: Call It 18 months.

Speaker Change: We're continuing to make good progress in our after sales business after sale service business, which is accretive.

Speaker Change: Other areas of focus such as standardization are continuing to progress.

Speaker Change: Standardization is an interesting one.

Speaker Change: As Andrew mentioned.

Speaker Change: <unk> platform, which is the standard technology platform that we're utilizing and the auto injector space I mean, that's a great example of how our team has identified a core technology standardizing early driving efficiency through through the engineering process through the assembly process.

Speaker Change: So all of those.

Speaker Change: Initiatives are like I said well embedded.

Speaker Change: We're more managing our SG&A spend.

Speaker Change: We're investing in growth areas.

Speaker Change: Reduced spend in other areas and repopulate the organization activities, we undertook this year.

Speaker Change: All that said there is there is there is the EZ headwind in the short term from a revenue standpoint.

Speaker Change: But.

Speaker Change: Again, we do expect the growth in our other market verticals to largely offset and support continued margin expansion.

Michael W. Glen: Okay, and I'll ask one on on the EV as well. The 150 Um, in delayed, is that where is that right now? Is that sitting in your bookings? Or is that contained in working capital? That's the 150 of delayed work?

Speaker Change: Okay and.

Speaker Change: I'll ask one on on the EV as well the 150.

Speaker Change: And delayed is that where is that right now is that sitting in your bookings or is that contained in working capital Thats. The 150 of delayed work.

Ryan McLeod: So the 150 is a backlog number, and it is in our backlog. Again, it's contracted, so we haven't removed it from the backlog number, but we have taken it out of our revenue expectations for the year. There's a working capital impact tied to that, but it's much smaller than the 150.

Speaker Change: So the 150 of the backlog number and it is in our backlog again, it's contracted so we haven't we haven't removed it.

Speaker Change: From the backlog number, but we have we have taken it out of our kind of our revenue expectations for the year.

Speaker Change: There is a working capital impact tied to that but it's a smaller much smaller than 150.

Ryan McLeod: Okay, and the working capital build that we're seeing right now, like, as you've said, that is really tied to EV, all the other verticals remain largely where you would Yeah, that's correct. That's correct.

Speaker Change: Okay, and the working capital build that were that we're seeing right now like as you've said that is really tied to <unk>. All the other verticals remain largely where you would want them to be.

Ryan McLeod: I do, I would point out some of the acquisitions also changed the profile. I mean, not in a material way, but you know, Avidity, for example, is a high team, low 20% working capital intensity business. Paxium is more in line.

Ryan McLeod: Yeah, that's correct. That's correct.

Speaker Change: Yes, that's correct that's correct.

Speaker Change: I would point out some of the acquisition also change the profile and not in a material way but.

Speaker Change: Sure.

Speaker Change: <unk> for example.

Speaker Change: It's a high teen low 20% working capital intensity business.

Speaker Change: Packaging is more in line.

Ryan McLeod: It's not obviously not part of our business yet, but it's in the mid team. But some of those shorter cycle businesses typically do have more inventory that carries the business. And so there will be areas of opportunity to improve those metrics. But from a portfolio, those do drive a bit of a shift over

Speaker Change: Obviously that part of our business yet.

Speaker Change: It's in the mid teens, but some of those shorter cycle businesses.

Speaker Change: Typically do have more inventory that thats carried in the business and so there will be areas of opportunity to improve both metrics.

Speaker Change: But from a portfolio of both do drive a bit of a shift overtime.

Speaker Change: Okay. Thank you.

Speaker Change: Okay.

Operator: Before we move on to the next question, if you'd like to ask a question, please press star followed by the number one sign on your telephone keypad. That's star followed by number one. Thank you. Our next question comes from Justin Keywood from Your line is now open.

Speaker Change: Before we move onto the next question if you'd like to ask a question. Please press star followed by the number one sign on your telephone keypad.

Speaker Change: Followed by number one thank you.

Speaker Change: Your next question comes from Justin Keyword.

Speaker Change: Stifel. Your line is now open.

Justin Keywood: Good morning. Thanks for taking my call.

Justin Keywood: Good morning, Thanks for taking my call just on the margin contribution of projects how should we be looking at G. L. P. One is this.

Justin Keywood: Just on the margin contribution of projects, how should we be looking at GLP-1? Is this at about the same level, higher or lower.

Justin Keywood: At about the same level higher or lower.

Ryan McLeod: So what the gross margin line is, it's largely in line with our life sciences business, Justin, that's, that's typically ahead of where we are from a corporate average standpoint, but not materially different from the life sciences portfolio.

Speaker Change: So at the gross margin line is largely in line with our life Sciences business Justin that.

Speaker Change: Typically ahead of where we are from a corporate average standpoint.

Speaker Change: Not materially different.

Speaker Change: Life Sciences portfolio.

Justin Keywood: Okay, understood. And then on the Paxium acquisition, 19% EBITDA margins, that's much higher than the food and beverage space as the portfolio sits today. I think it's around 10%. Is there anything unique that Paxium's doing?

Speaker Change #100: Okay understood and then on the <unk> acquisition at 19% EBITDA margins Thats much higher.

Speaker Change #101: The food and beverage space as the portfolio sits today I think it's around 10% is there anything unique that pack seems doing to drive that higher margins and also is there any synergy opportunities with that acquisition.

Speaker Change #100: Okay.

Andrew P. Hider: Yeah, so Justin, a couple items first. And I want to highlight, we've seen nice progress, the packaging and food technology portfolio. And as a reminder, CFT was low single digits, and the team is really actually computing the plan and explaining that. So proud of the work being done.

Speaker Change #100: Yes.

Speaker Change #102: So just a couple of items first.

Speaker Change #103: And I want to highlight we've seen nice progress the packaging improved technology portfolio and as a reminder, CFT was low single digits and the team is really achieving the plan.

So proud of the work being done.

Speaker Change #103: Package.

Speaker Change #103: Really aligns well with what we view as longer term on a margin perspective.

Andrew P. Hider: Because, you know, Paxium really aligns well with what we view as longer term on a margin perspective. And, you know, just to give you some insight, the business is a very strong brand of the customers they serve. It's highly valued in not only the solution, but their capability for servicing and supporting their customers. And so when we went through the diligence process and really peeled and really dug into understanding their customer engagement, they have a very strong brand, a very strong name in the space they serve.

Speaker Change #103: Just to give you some insight the business with a very strong brand and the customers they serve.

It's highly valued in not only the solution.

Speaker Change #103: Their capability for servicing and supporting their customers and so when we went through the diligence process and really chilled and really dug into understanding their customer engagement. They have a very strong brand very strong name in the space. They serve and so we're pleased that they've decided to join the team.

Andrew P. Hider: And so we're pleased that they've decided to join the team. We've been actually scouting this for close to two years, actively engaged for over a year around cultivation activities. And as far as synergies goes, this fits right in line with our business. And first and foremost, it's an offset to seasonality around the harvest season. It's primary and secondary packaging, which fundamentally means that you're in line on the packaging process. And whether it's Marco, NCC, CFT, Comac or IWK, it's squarely in line to offer and add higher value as we look at the adjacencies around those spaces.

Speaker Change #104: Actually Scott and Mitch.

Speaker Change #104: Close to two years actively engaged for over a year around around cultivation activities.

Speaker Change #104: And as far as synergies goes this fits right in line with our business and first and foremost, it's an offset to seasonality around the harvest season. This is.

Speaker Change #104: Its primary and secondary packaging, which fundamentally means that you are in line and the packaging process and whether it's Margo MCC CFT Kobacker IW K, it's squarely in line to offer and add higher value as we look at the adjacencies around those space itself.

Andrew P. Hider: First and foremost, we need to close and have them add, but I'm very excited about this business being a part of the future for ATS and what it will offer from both a synergy and capability perspective.

Speaker Change #104: First and foremost we need to close and add them add but are very excited about this business being a part of the future for Etfs and what it will offer from both the synergy and capability perspective.

Justin Keywood: Unknown Speaker That's very helpful. You answered one of my questions, Paxium being a cultivated deal. Could you also describe your pipeline for additional transactions, if it would be focused in food and beverage or other segments, and any other indication as far as target multiples and size of transactions? Yes, so so if we

Understood. That's very helpful. You answered one of my questions taxi them being cultivated deal could you also describe your pipeline for additional transactions if it would be focused in food and beverage or our other segments and any other indication as far as.

Speaker Change #105: Target multiples and size of transaction. Thank you.

Ryan McLeod: Yeah, so so if we step back, and actually talked a little bit about this in the prepared remarks, but to put more meat on the bones here, the funnel is healthy. And our teams continue to cultivate and if you look at the areas we target, We often use the phrase high consequence of failure, and it aligns well with regulated spaces, but also spaces that customers value and often niche applications. So you're going to see us targeting and continue to target life sciences applications, food safety applications, digital and services applications around really where we view high value for customers and ones that we can help support and drive synergies and take our supply chain capability and reduce their cost structure or help them reduce their overall spend to drive improvements on the bottom line.

Yes, so if we step back.

And actually talk a little bit about this in the prepared remarks, but to put more meat on the volunteer the funnel is healthy.

Speaker Change #105: And our teams continue to cultivate and if you look at the areas we target.

Speaker Change #105: We often use the phrase high consequence of failure.

Speaker Change #105: It aligns well with regulated spaces, but also spaces.

Speaker Change #105: But customers value.

Speaker Change #105: Often niche application, so so you're going to see us targeting and continue to target life Sciences applications.

Speaker Change #105: Safety application.

Speaker Change #105: And services applications around really where we view hide the ICU for customers and ones that we can help support and drive synergies and take or our supply chain capability and reduced our cost structure help them reduce their overall spend to drive improvement on the bottom line. So we have seen.

Speaker Change #105: Our total continue to grow via key area of focus multiples have not largely changed.

Speaker Change #105: In targeted areas.

Ryan McLeod: So we've seen our funnel continue to grow via key area focus. Multiples have not largely changed and targeted areas. You know, as we continue to evolve our portfolio, we see future opportunities and Paxium being just one of those where we think we can continue to expand upon.

Speaker Change #105: As we continue to evolve our portfolio, we see we see future opportunities in packaging and being just one of those where we think we can continue to expand upon.

Speaker Change #106: Thank you.

Patrick Baumann: Our next question comes from Patrick Baumann from JP Morgan. Your line is now open.

Speaker Change #107: Our next question comes from Patrick Baumann from JP Morgan. Your line is now open.

Speaker Change #106: Okay.

Patrick Baumann: Oh, hi. Good morning.

Patrick Baumann: Hi, good morning, Thanks for taking my questions.

Ryan McLeod: Thanks for taking my questions. Maybe just the first one, if you could help us understand mechanically why backlog was down $100 million or so from the third quarter when the book to bill was won one times. And I know you mentioned something about like $50 million of de-scoped business in that EV contract, but the decline sequentially was a bit above that. So just wondering if you give us some color on why that was.

Patrick Baumann: Maybe just first one if you could help us understand mechanically why backlog was down $100 million yourself from the third quarter. When the book to Bill was one one times.

Speaker Change #109: I know you mentioned something about like $50 million of disco.

Speaker Change #109: Business and that EV contract.

Speaker Change #109: The decline sequentially was a bit above that so just wondering if you could give us some color on why that was.

Ryan McLeod: Yeah, good morning, Patrick. So so that was the biggest impact was that the cancellation, there was some other normal course scope changes, content gets removed, stations, capacity changes, things like that. There was there was actually Two cancellations tied to acquisitions. Now, these are smaller dollars, but businesses that were acquired and projects from unholds. So that I would call a little bit more unusual but the rest is really normal, of course. There was some effects, had one in the quarter as well. I mean, it's a mixture of things. But overall, I think, and you said it, we're in a good position with our backlog despite that delayed project.

Patrick Baumann: Yes, good morning, Patrick So that was the biggest impact with that.

Patrick Baumann: Our EV.

Patrick Baumann: Installation there were some other normal course scope changes youll content gets removed.

Patrick Baumann: Station's capacity changes things like that.

Patrick Baumann: There was there was actually.

Patrick Baumann: Two cancellations tied to acquisitions now these are smaller dollars, but businesses that were acquired and projects from a hold so.

That I would call a little bit more unusual but the rest is really normal course.

Patrick Baumann: FX headwinds in the quarter as well.

Patrick Baumann: I mean.

Patrick Baumann: It's a mixture of things, but but overall.

Patrick Baumann: Again, we've said that we're in a good position with our backlog despite that delayed project.

Patrick Baumann: Sure.

Patrick Baumann: Okay, and then my follow up is on the 2025 outlook for flat sales. What do you expect the EV sales to be down for the year? I'm just trying to get a sense of how much growth you would need in the other markets to offset it. And then if you could talk about how it profiles, because You're sort of guiding, I guess, first quarter down about 10% year over year. So just wondering when you expect the growth rate to flip positive to offset the slower start.

Okay and then.

Speaker Change #110: My follow up is on the 2025 outlook for flat flat. So what do you expect.

Speaker Change #111: The EV sales to be down for the year I'm, just trying to get a sense of how much growth you would need in the other markets to offset it.

Speaker Change #111: Then if you could talk about how it profiles because.

Speaker Change #112: Youre sort of guiding I guess first quarter down about 10% year over year. So just wondering when you expect the growth rate to flip positive to offset the slower start.

Ryan McLeod: Well, from a book to bill standpoint, that's [inaudible] ATS Corporation, UTC, UTV, ATS, UTC, UTC, UTC, UTC, UTC, UTC, UTC, UTC, UTC, UTC, UTC, [inaudible] So it's not exactly a normal annual book-to-bill cycle, but the rest of the business is, you know, that's the way to think about it.

Speaker Change #113: Well from a book to Bill standpoint.

Speaker Change #112: No.

Speaker Change #112: Thats.

Probably the best.

Speaker Change #114: Sure. So as we've talked about life sciences within the 113.

Speaker Change #114: Area on a trailing 12 month transportation was five eight.

Speaker Change #114: Consumer food, both 1.0 sex and that energy was one four so organically I mean, directionally, that's how to think about it.

Speaker Change #114: Given given projects.

Speaker Change #114: Tom.

Speaker Change #114: Projects in progress, where we are on the various in the various markets we do see.

Speaker Change #114: A bigger ramp in the second half one on revenues relative to the first.

Speaker Change #114: But of course, that's going to be impacted by what we book over the next couple of quarters and then also by service revenues and the shorter cycle businesses that we have as well.

Speaker Change #114: And the other piece on transportation and these projects are typically 18 months to 24 months. So its not exactly a normal annual book to Bill cycle.

Speaker Change #114: But the rest of the business is.

Speaker Change #114: That's the way to think about it.

Patrick Baumann: and transport being 18 to 24 months, I guess you're just signaling that, not to take the full book to bill impact into account for 25. Is that what your message is on that?

Speaker Change #115: And transport being 18% to 2024 months I guess youre just signaling that.

Speaker Change #116: Not to take the full book to Bill impact into account for 25 things that went through messages on that.

Ryan McLeod: Yeah, or said another way, You know, there's more time from a from a backlog and funnel perspective to replenish that.

Speaker Change #117: Yes, Sir.

Speaker Change #117: In another way.

Speaker Change #117: <unk>.

Speaker Change #117: There's more time from a from our backlog and funnel perspective to replenish that business.

Patrick Baumann: Understood. Okay, thanks so much for the time.

Speaker Change #118: Understood. Okay. Thanks, so much for the time.

Maxim Sytchev: Next question comes from Maxim Sytchev from National Bank Financial. Your line is now open.

Speaker Change #119: Next question question comes from Maxim <unk> from National Bank Financial Your line is now open.

Speaker Change #120: Hi, gentlemen.

Speaker Change #121: Good morning, good morning.

Maxim Sytchev: Andrew, maybe just one kind of high level question, as we've seen a couple of protectionist measures being implemented in the US when it comes to tariffs on, you know, Chinese EVs, syringes, that type of stuff. Just curious from a sort of a secular positioning perspective, how do you think this potential actions could be presumably positively impacting ATS down the road?

Speaker Change #122: And maybe just one kind of high level question as we've seen couple of protectionist measures being implemented in the U S. When it comes to.

Speaker Change #123: Tariffs on Chinese Ete's syringes that type of stuff.

Speaker Change #124: Just curious from a sort of a secular positioning perspective, how do you think this potential actions could be presumably positively impacting ETF on the road. Thanks.

Andrew P. Hider: Yeah, you know, Max, whenever there's a whenever there's a regulation around driving

Max: Yes, Max whenever there is whenever the regulation around driving North America European.

Speaker Change #126: Focus it's.

Speaker Change #127: Largely plays are positive for automation and we would see this is no different.

No.

Speaker Change #127: Whether it's onshore supply chain derisking.

Meeting or driving regulation.

Speaker Change #127: Paul.

Speaker Change #127: Assess around building manufacturer in a region that we had a strong position within and then what you will generally find is labor shortages labor cost lean in even heavier with automation. So we would we would largely see that as favorable or Etfs and really strong value from what we offer for our customers.

Andrew P. Hider: [inaudible] and we're a strong value for what we offer for our customers.

Speaker Change #128: Okay makes sense and then my last question is maybe when you look at potential choices between and CIB versus kind of doing M&A.

Maxim Sytchev: And then my last question is, maybe when you look at potential choices between NCIB versus kind of doing M&A, because I mean, you bought stock at an average, I think it was like 45 bucks a share. How do you think about what makes the most sense now? I mean, like, obviously, I understand that every opportunity is idiosyncratic, but like, what is your framework of thoughts around these two capital allocation strategies?

Speaker Change #129: I mean, you bought stock at an average I think it was up 45 Bucks a share.

How do you think about what makes the most sense now I mean, like obviously understand that every opportunity with idiosyncratic, but like what is your framework of thoughts around these two capital allocation.

Speaker Change #130: Strategies. Thanks.

Speaker Change #130: Okay.

Ryan McLeod: Yeah, so I don't think so, Max. So in the past, we have been active with what we've done. So on the NCAV, we've been active. Just over a million shares deployed with a 45 million capital so it's roughly 44 $44 a shares is what we've been buying at what we purchased at over the last, And then we've also been active on M&A.

Speaker Change #130: Yes, so I don't think so Matt.

Speaker Change #130: So over the past.

Speaker Change #131: We have an AD server with what we've done so on the NCS, we've been active re purchaser.

Speaker Change #131: Just over 1 million shares deployed about 45 billion in capital.

Speaker Change #131: Roughly 44.

Speaker Change #131: <unk> $44 a share is what we've been buying at what we purchased several glass.

Ryan McLeod: So it's not really a more choice. Now, the NCIB is really, we view it as opportunistic. So we don't have a set allocation in our annual planning. It's opportunistic.

Speaker Change #131: 670 weeks.

Speaker Change #131: Now.

Speaker Change #131: And then we've also been active on M&A, so it's not really.

Speaker Change #131: Our choice.

Speaker Change #131: The NCI is really what we viewed as opportunistic so we don't have a set allocation in our annual planning it's opportunistic something we regularly review with the board.

Ryan McLeod: It's something we regularly review with the board. From a priority perspective, M&A is going to typically take higher priority. And that's how we look at it. Of course, internal investment is also something that we're very active in funding. And Andrew talked about a lot of the innovation activities that are ongoing. But that's really our approach and how we're thinking about it.

Speaker Change #131: From a priority perspective.

And they.

Typically take higher priority.

And that's that's how we look at of course internal investment is also something that we're very active in funding Andrew talks a.

Speaker Change #131: A lot of the innovation activity.

Speaker Change #131: That are ongoing.

Speaker Change #131: That's really our approach and how we're thinking about it.

Maxim Sytchev: And Max, just to add on, you know, look, we are very aligned, and again, it's ongoing dialogue with the board, internal investment, greatest return to Ryan's point, M&A and insurer buybacks, obviously, you know, we're in a position to be able to do both, and we continue to drive, you know, a focus on capital allocation to return to shareholders.

Speaker Change #132: And Matt just to add on.

Speaker Change #133: Look we are very aligned again.

Speaker Change #133: Dialogue with our board internal investment greatest return.

Speaker Change #134: To Ryan's point, M&A and share buybacks obviously.

Speaker Change #134: We are in a position to be able to do both.

Speaker Change #134: And we continue to drive.

Speaker Change #134: A focus on capital allocation to return to shareholders.

Maxim Sytchev: Okay, next slide. That's it from me. Thanks.

Speaker Change #135: Okay makes sense, that's it from FX.

Speaker Change #134: Okay.

Cherilyn Radbourne: The next question comes from Cherilyn Radbourne from TD. Your line is now open.

Speaker Change #136: The next question comes from Cherilyn Radbourne from TD. Your line is now open.

Cherilyn Radbourne: Thanks very much and good morning. I guess digging through some of the noise in the quarter, what I think you're saying is that basically notwithstanding the weakness in the ED market, you think that the strength of XEDs plus the acquisition of Paxium will enable you to deliver revenues that are basically flat to up slightly in fiscal 2025? Is that a fair statement? And if it is, can you just give some indication of the level of visibility that you have in those XED markets?

Cherilyn Radbourne: Thanks, very much and good morning.

Cherilyn Radbourne: Good morning.

Cherilyn Radbourne: I guess digging through standard noise in the quarter.

Speaker Change #138: Thank you are saying is that basically notwithstanding the weakness in the EV market, you think that the strength ex EV plus the acquisition of pack CN will enable you to deliver revenues that are basically flat to up slightly in fiscal 2000 2025 is that a fair statement.

Speaker Change #139: Is can you just give some indication.

Speaker Change #140: The level of digital Realty that you had in the EV market.

Ryan McLeod: So, Cherilyn, I'll start on just to clarify. So we said largely offset, which, you know, certainly we're going to drive for upside. But at this point, I'd say we're comfortable that we can largely offset the Edwins through the growth in other parts of the business and with the addition of Paxium and a four-year contribution from Avidity, which is, you know, the other larger, more recent acquisition.

Speaker Change #140: So.

Sharon: Sharon I'll start on just the just to clarify so we said largely offset which.

Speaker Change #142: Certainly we are going to drive for a plane.

Sharon: But at this point I'd say, we're comfortable that we can largely offset the headwinds through the growth in other parts of the business.

Sharon: And with the addition of <unk>.

Sharon: A full year contribution from for mobility, which is.

Sharon: The other.

Sharon: A more recent acquisition.

Andrew P. Hider: And Cherilyn, to add on the second part of the question, this is the third largest book in this quarter in our history. And if you look at the year, you know, WebScience is strong, performance 1.13, and Ryan walked through these, but overall, we're pleased in the markets we serve, and know that the targets really continue to drive expansion and really alignment to value in those areas of focus. So, the end of the quarter, setting up for fiscal 25, really aligned to driving expansion in the markets that we view as high value.

Sharon: And show them to add on the second part of the question look this is the third largest bookings quarter in our history.

Sharon: And if you look at it.

Bryan: Year Life Sciences strong performance 113, and Bryan walk through these but overall, we're pleased that in the markets, we serve and know that the targets, where they continue to drive expansion and really alignment to value those.

Sharon: Areas of focus so.

Sharon: The <unk>.

Sharon: We ended the quarter setting up for fiscal 'twenty, five really aligned to driving expansion in the markets that we do have high value.

Cherilyn Radbourne: Okay, and so if we think about that, then the revenue mix by end market should shift favorably in fiscal 2025. You've got supply chain lead times improving, so you should be able to get some purchase efficiencies, and then presumably you have continued aftermarket growth. So, if we sort of combine all of that, is there any reason to think that margin shouldn't be sort of flat to better in fiscal 2025?

Sharon: Okay.

Sharon: We think about that then the revenue mix by end market Shouldnt shift favorably in fiscal 2020.

Sharon: You got supply chain lead times, improving so you should be able to get some purchasing efficiencies.

Speaker Change #144: And then presumably you had continued aftermarket growth.

Speaker Change #144: So if we.

Speaker Change #144: Combine all of that is there any reason to think that margins shouldn't be sort of flat can better in fiscal 2025.

Ryan McLeod: I mean, you characterized it well. Yeah, I mean, like I said, Our long-term goal is margin expansion in a year where our top line is going to be challenged. You know, a flat margin we would be fine with, but our focus is on long-term margin expansion.

Speaker Change #144: Okay.

Speaker Change #144: Yes.

You characterized it well.

Speaker Change #144: Yes.

Speaker Change #144: Like I said.

Speaker Change #144: <unk>.

Speaker Change #144: Our long term goal is margin expansion in a year, where we're top line is it's going to be challenged.

Speaker Change #144: No.

Speaker Change #144: A flat margin would be we would be fine with what our focus is on long term margin expansion.

Speaker Change #145: Okay and then.

Cherilyn Radbourne: Okay, and then, you know, the bookings were obviously a bright spot in the quarter, a big jump versus $668 million last quarter. Can you kind of help us understand the quarter-over-quarter delta and just whether there was anything

Speaker Change #145: The bookings are obviously, a bright spot in the quarter.

Speaker Change #146: Junk versus 668 million last quarter can you kind of help us understand the quarter over quarter in California, and just whether there was anything.

Speaker Change #146: In this quarter.

Speaker Change #146: So so.

Ryan McLeod: [inaudible] So yes, I'm hesitating a bit because we always have things I would consider lumpy. But yeah, I mean, if I look at our top 10 bookings in the quarter, the average was, sequentially, I'd say the average this quarter was more in line with where we were in Q2. The largest program was in the $50-$60 million range, again, similar to where we were in Q2. Q3 of the largest was in the $30 million range, which I would still consider a large program and I guess I would use the word lumpy on that one too.

Speaker Change #147: So yes.

Speaker Change #148: I'm hesitating a bit because we always have things I would consider lumpy, but yes, I mean, if I look at our top 10 bookings in the quarter.

Speaker Change #148: The average was sequentially a JV average this quarter was more in line with where we were in Q2.

Speaker Change #148: The largest program within the $50 million to $60 million range again, similar to where we were in Q2.

Speaker Change #148: Q3 of the largest within the $30 million range, which I would still consider.

Speaker Change #148: A large program and I guess I would use the word lumpy on that one too but yes.

Ryan McLeod: But yeah, I mean, Andrew said, we're very pleased with how we finished the year from a bookings perspective. Again, for top 10, Life Sciences was very strong, but we had good diversity. There was nuclear, there was consumer, there was food in that grouping. So we're quite pleased with, and EV as well, so we're quite pleased with the diversity in that bookings number.

Speaker Change #149: As Andrew said, we're very pleased with how.

Andrew P. Hider: How we finished the year from a bookings perspective.

Speaker Change #150: Our top 10 life Sciences was very strong, but we had good diversity of areas. There is nuclear there was consumer there was food in that in that group and so.

Speaker Change #150: We're quite pleased with.

Speaker Change #150: And <unk> as.

Speaker Change #150: As well so we're quite pleased with the diversity in that bookings number.

Cherilyn Radbourne: Okay, great. Thank you for the time. I'll leave it there.

Speaker Change #151: Okay, great. Thank you for the time I'll leave it there.

Speaker Change #152: Thank you Cherilyn.

Operator: There are no further questions. Mr. Hider, back to you for closing comments.

Speaker Change #154: There are no further questions Mr. Hider back to you for closing comments.

Andrew P. Hider: Thank you, operator. Will the board continue to execute?

Andrew P. Hider: Thank you operator.

Andrew P. Hider: We are continuing to execute.

Operator: on our goal, putting shareholder and customer value in Fiscal 25. Thank you for joining us today. I look forward to speaking with you on our Q1 call in August. Stay safe and goodbye for now. Thank you everyone for attending today's call, have a wonderful day.

Andrew P. Hider: And our goal pretty sure shareholder and customer value in fiscal 'twenty five.

Speaker Change #154: If you are joining us today.

Speaker Change #154: Good to speak with you on our Q1 call in August stay safe and Goodbye for now.

Speaker Change #154: Okay.

Operator: Thank you everyone for attending today's call. Have a wonderful day. You may now disconnect.

Speaker Change #155: Thank you everyone for attending today's call have a wonderful day you may now disconnect.

Speaker Change #155: [music].

Speaker Change #155: Yes.

Speaker Change #155: Okay.

Speaker Change #155: [music].

Speaker Change #155: Yes.

Speaker Change #155: Okay.