11:25 AM EDT, 05/26/2025 (MT Newswires) -- National Bank has reiterated its Outperform rating and $54 target on ATS after the company announced the resolution of a disputed contract with a large EV client, and reported solid preliminary fourth-quarter results.

Following a protracted process in which the company pursued compensation for previously completed work, ATS will receive a US$135 million cash settlement in the fiscal fourth quarter, with no further work associated with the contract required. The net impact of the settlement will be a $129 million reduction against net income for the quarter.

Given the uncertain global economic environment and the ongoing adjustment of the pace of EV adoption, ATS management will focus its growth efforts on the Life Sciences, Food and Beverage, and Energy verticals.

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