TSX Shariah screener · October 2026

Is ATS Corporation (ATS) Halal?

FAIL

ATS Corporation · TSX: ATS / NYSE: ATS · Industrials

The short answer

ATS Corporation (TSX: ATS) is a FAIL in our October 2026 screen. The business gate passes: ATS designs and builds automated manufacturing and assembly systems - industrial machinery, a permissible segment. The income gate passes: interest income of C$956K in FY2026 is about 0.04% of revenue. But the debt gate fails: interest-bearing debt of about C$1,235.5M at June 28, 2026 is ≈47.2% of the ~C$2,616M market cap, over the ~33% ceiling.

Gate 1 — Business activity: PASS

ATS Corporation, based in Cambridge, Ontario, is “an industry leader in planning, designing, building, commissioning and servicing automated manufacturing systems - including automation products and test solutions - for a broadly diversified base of customers” (FY2026 interim statements). It offers pre-automation services (discovery, simulation, concept development), post-automation services (training, maintenance, spare parts, retooling), contract manufacturing, and after-sales support. The company is listed on the TSX and NYSE under the symbol ATS, employs about 7,000 people, and is led by CEO Doug Wright. Industrial automation equipment is a permissible business segment. Gate 1 passes.

Gate 2 — Debt and cash: FAIL

Interest-bearing debt at June 28, 2026 (Q1 FY2027) was about C$1,235.5M — long-term debt of C$1,234.5M (credit facility C$150M plus senior notes of ~C$1,097.3M) plus the current portion of C$0.2M and bank indebtedness of C$0.9M, per the 6-K filed August 6, 2026. Against a market cap of ~C$2,616M (C$25.72, October 1, 2026) that is about 47.2% — over the ~33% ceiling. (C$155.3M of lease liabilities are excluded per the screen’s methodology.) Gate 2 fails.

Gate 3 — Non-compliant income: PASS

Interest income is separately disclosed in the annual notes. The FY2026 audited statements (40-F filed May 28, 2026) show interest income of C$956K against FY2026 revenue of about C$2,150.7M — about 0.04%, well under the ~5% ceiling. (The company pays substantial interest on its own debt — C$93.8M of interest expense in FY2026 — but that does not affect this gate.) Gate 3 passes.

Key figures used

Q1 FY2027 (June 28, 2026) revenue C$693.7M; net loss C$0.3M; announced 18-month Fixed Cost Transformation Program (reported August 6, 2026).
Interest-bearing debt ~C$1,235.5M at June 28, 2026 (long-term debt C$1,234.5M + current portion C$0.2M + bank indebtedness C$0.9M; 6-K filed Aug 6, 2026).
Market cap ~C$2,616M (C$25.72, October 1, 2026, TSX).
Debt-to-market-cap ≈47.2% vs ~33% ceiling — FAIL.
FY2026 interest income C$956K vs revenue ~C$2,150.7M = ≈0.04% vs ~5% ceiling — PASS.
Cash and cash equivalents C$198.9M at June 28, 2026 (≈7.6% of market cap).

Frequently asked questions

Is ATS Corporation (ATS) halal?

Our October 2026 screen gives ATS Corporation (ATS) a FAIL. The business gate passes: ATS designs and builds automated manufacturing and assembly systems - industrial machinery, a permissible segment. The income gate passes: interest income of C$956K in FY2026 is about 0.04% of revenue. But the debt gate fails: interest-bearing debt of about C$1,235.5M at June 28, 2026 is about 47.2% of the ~C$2,616M market cap, over the ~33% ceiling.

What business is ATS Corporation in?

ATS Corporation, based in Cambridge, Ontario, describes itself as an industry leader in planning, designing, building, commissioning and servicing automated manufacturing systems - including automation products and test solutions - for a broadly diversified customer base. It offers pre-automation services (discovery, simulation, concept development), post-automation services (training, maintenance, spare parts, retooling), contract manufacturing, and after-sales support. The company is listed on the TSX and NYSE under the symbol ATS and employs about 7,000 people. Industrial automation equipment is a permissible business segment.

Why does ATS Corporation fail the debt gate?

Interest-bearing debt at June 28, 2026 (Q1 FY2027) was about C$1,235.5M - long-term debt of C$1,234.5M (credit facility C$150M plus senior notes ~C$1,097.3M) plus the current portion of C$0.2M and bank indebtedness of C$0.9M, per the 6-K filed August 6, 2026. Against a market cap of ~C$2,616M (C$25.72, October 1, 2026), that is about 47.2% - over the ~33% ceiling. (C$155.3M of lease liabilities are excluded per the screen's methodology.) The debt gate fails.

Is ATS Corporation's income compliant?

Interest income is separately disclosed in the annual statements. The FY2026 audited notes (40-F filed May 28, 2026) show interest income of C$956K against FY2026 revenue of about C$2,150.7M - about 0.04%, well under the ~5% ceiling. (The company pays substantial interest on its own debt - C$93.8M of interest expense in FY2026 - but that does not affect this gate.) The income gate passes.

What do Musaffa, Zoya or ShariaPortfolio say about ATS Corporation?

No Zoya, Musaffa, or ShariaPortfolio rating was found for ATS Corporation in public search - none of the three named providers surfaced coverage, so no rating is claimed here. This page's FAIL result is based on the company's own filings and market data.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.