Chris Glynn

Chris Glynn from Oppenheimer followed up on the lower end of the guidance, confirming it's more hypothetical than based on current indicators. He then asked if the lumpiness of electronics processing systems orders is negated over a 12-month period, allowing ATS to fully participate in its anticipated multi-year growth run. He also inquired about customer activity in polymer processing and its potential to drive upside to the guidance range, given previous comments about a decisive turn.

Answer

Daniel Hopgood, Executive Vice President and CFO, confirmed the downside guidance is hypothetical and stated that ATS lumpiness tends to normalize over a 12-month period, expecting mid-single-digit growth for the segment. Sundaram Nagarajan, President and CEO, reiterated that polymer processing has bottomed out, with nominal growth expected in the guide, and any stronger recovery would represent upside for the segment. He also noted similar stabilization and nominal growth expectations for automotive businesses.

Chris Glynn asked if the low end of the guidance range is purely hypothetical and how the lumpiness of ATS orders might be negated over a 12-month period, contributing to a multi-year run. He also inquired about customer activity and upside potential in polymer processing after its steep downturn.

Answer

CFO Daniel Hopgood confirmed the low end of guidance is largely hypothetical. He stated that ATS lumpiness is typically smoothed over a 12-month period, with expectations for mid-single-digit growth. CEO Sundaram Nagarajan indicated that polymer processing has bottomed, with improving order entry and backlog for systems, though the dyes business shows a different recovery pace. He noted that any recovery beyond nominal growth would represent upside to the guidance, similar to the automotive businesses.