06:27 AM EST, 11/06/2024 (MT Newswires) -- ATS (TSX and NYSE: ATS) on Wednesday reported a drop in earnings for the second quarter on lower transportation revenues as it tries to come to terms with "shifting customer investment trends in North American electric vehicle production".

In an update on large EV customer projects, ATS management continues to expect that transportation will be a smaller portion of its overall business going forward. The company said it has been implementing its previously disclosed reorganization efforts to reflect these expectations and, where possible, allocate resources to other markets where it has identified greater opportunities for continued growth.

ATS said adjusted basic earnings per share fell to $0.25 compared with $0.63 a year ago. Capital IQ had forecast $0.49.

Revenues decreased 17% to $612.8 million versus $735.7 million. Capital IQ had forecast near $702 million.

Among other highlights, order bookings were $742 million, flat year over year. Order Backlog was $1,824 million at the end of the quarter.

"Today ATS reported second quarter results for fiscal '25. Financial results were mixed, given lower transportation revenues, offset by solid execution across the majority of our businesses, most notably in life sciences where we are driving profitable growth both organically and through acquisition. We also had the highest quarterly bookings in company history for our life sciences business," said Chief Executive Andrew Hider.

ATS was up 1.8% on the TSX yesterday.