Good morning, ladies and gentlemen. Welcome to the ATS Corporation third quarter conference call and webcast. This call is being recorded on February 9, 2023 at 8:30 A.M. Eastern Time. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star followed by zero for operator assistance at any time. I'll now turn the call over to David Galison, Head of Investor Relations at ATS. 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. Our cautionary statement regarding such information, including the material factors that could cause actual results to differ materially from the statements and 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. Thank you, David. Good morning, ladies and gentlemen, and thank you for joining us. ATS is proud to report another quarter of record bookings, backlog, and revenues. Adjusted earnings were in line with our expectation and, as anticipated, cash generation was strong as EV programs progressed. Despite continued economic volatility, our performance in this environment demonstrates the strength of our strategy and market focus and an unwavering commitment to the ATS business model, which is at the core of everything we do. In the quarter, we announced two acquisitions, made further progress on current integrations, and published our sustainability report. We also completed a corporate name change and rebranding to reflect the evolution of ATS as a diversified, technologically advanced organization delivering solutions that positively impact lives around the world. Our new name, ATS Corporation, under the new trading symbol ATS, better reflects the company we are today and creates consistency in our brand presence. Today, I will update you on the business and Ryan will provide his financial report. Starting with our financial value drivers. Q3 revenues were CAD 647 million, up 18% from Q3 last year, driven by a combination of acquired businesses and continued strength across our core operations. Organic revenue growth was 10% year-over-year, reflecting good execution across our strategic markets. Order bookings for the quarter of CAD 979 million were another record, up 46% year-over-year, including CAD 355 million of life sciences bookings and CAD 392 million from transportation. Our adjusted EBIT margin in Q3 was 12.5%. Moving to our outlook. We finished the quarter with a record backlog of over CAD 2.1 billion. Our backlog once again provides us with a solid base to work from in key markets. Life sciences backlog was CAD 739 million. In the quarter, we drove strong organic bookings growth versus last year. Our funnel has progressively strengthened throughout the year. We're also building our integrated funnel across life sciences businesses and see momentum continuing to build with great examples of ongoing collaboration between SP, Comecer, Life Sciences Systems and BioDot. For example, this quarter, SP partnered with Comecer and booked an integrated solution that included a flexible filling line for vials, syringes and cartridges with an isolator. Synergies like this support our direction and the value proposition of our integrated Life Sciences group. Transportation ending backlog was CAD 887 million, up 350% year-over-year, driven by the shift to electrification of vehicles. Subsequent to the end of the quarter, we announced another $120 million in follow-on work from EV. Our experience in this space, combined with market dynamics, creates further opportunity for us to support key customers and the challenges they're facing in transforming their production capacity. In food and beverage, we're seeing a strong funnel, particularly in the produce processing and keg filling spaces. Our backlog is now at its highest level since we entered this space. Our energy efficient solutions continue to be in demand in a higher energy cost environment, particularly in Europe. In energy, governments are moving to decarbonize and boost energy security. Our focus remains on supporting nuclear customers, as well as those working in such areas as grid battery storage. In Q3, we received an order from a leading small modular reactor customer in the U.S., which sets us up for additional orders for their production plants. In consumer products, our backlog and funnel remain stable. However, inflationary pressures in this market can impact end consumer buying habits, which drives our customers' automation needs. On our digital journey, connectivity, visualization, and data analytics can improve production outcomes for our customers by capturing and leveraging data in new ways and converting it to meaningful actions. With our existing and expanding capabilities in PA, along with other ATS offerings such as Illuminate, we are providing new opportunities for our aftermarket service teams to deliver collaborative value-added services. Aftermarket services remains an area of strategic focus across all parts of the business. Our funnel remains strong, and our regional networks are now supporting more of our acquired businesses, including CFT and SP, in addition to all other operations. On supply chain, we're still experiencing higher prices. Despite some improvement in lead times within the quarter, overall lead times remain extended, and the situation remains challenging. Some of our component suppliers are experiencing gradual improvement. That said, we expect continued pressure until they're able to work through their backlogs. We are prepared to operate with ongoing volatility in our supply chain, and our teams remain focused on minimizing disruption to schedules and budgets through ABM savings workshops and other events. Our ABM continues to drive the business forward. During the quarter, we completed 37 ABM events across all business segments and affecting all of our value drivers. Key events in Q3 targeted on-time delivery with a focus on process improvements and time savings, as well as margin expansion with a focus on material usage and cost savings. As you know, ABM events are directly aligned to enhance our eight value drivers. The ABM also creates a continuous improvement culture that underpins our focus on profitable growth. On M&A, integration of previous acquisitions across the business is progressing to plan, and our funnel development remains active and healthy. During the quarter, our PA group announced and finalized the acquisition of IPCOS group based in Belgium and agreed to acquire ZI-ARGUS, a well-established automation systems integrator in Southeast Asia and Australia. These acquisitions add to our advanced process optimization and digital solutions and further strengthen our position in key regions and markets. On sustainability, the report that we released in Q3 highlighted our 2030 targets, including three new ESG goals, and strengthen our commitments to our employees, customers, and shareholders. I encourage you to review our report if you have not done so already. On innovation, we constantly work to strategically deploy capital and talent to create differentiated enabling solutions and drive return. A few highlights. In energy, we're developing a manipulator system prototype for refueling small modular nuclear reactors as part of the order I mentioned earlier. Within food and beverage, Raytec launched two new specialized machines to provide better imaging of produce. Lead generation for both is positive. Within Comecer, we're testing a new solution for faster decontamination of aseptic pharmaceutical isolators and hot cells. This will be additive to our radiopharmaceutical product and technology portfolio. Finally, we held our fifth Global Innovate Day. The event featured over 100 people from four participating divisions, plus participation from a local college as part of our focus on community outreach. The winning idea is expected to allow us to add laser marking functionality to our high-speed SYMPHONI platform. All teams focused on ROI and quickly advancing concepts to refresh our innovation funnel in a single day. Innovate Day is a powerful way to bring our teams together to drive creative, fast turn innovation. In summary, we are encouraged by Q3 performance, including our record bookings and revenue. Notably, our order backlog gives us an extended platform of work on hand that contains high-value, mission-critical work for customers. We are pleased to be recognized again as both the best employer in Canada by Forbes Magazine, as well as a Waterloo Region Top Employer. In Chicago, ATS was recognized as being one of the best and brightest companies to work for by the National Association for Business Resources. These are meaningful acknowledgments that help us retain and recruit top talent and drive further growth. We're excited to refine and improve the ABM as it truly drives a competitive advantage for us. Despite economic uncertainty, our performance is validating our strategy, and we remain confident in our ability to generate profitable growth across the business. We look forward to continuing to deliver on our commitments to our customers and our shareholders. I will turn the call over to Ryan. Ryan, over to you. Thank you, Andrew. Good morning, everyone. I'll start with a review of our Q3 operating results and then provide details on our balance sheet. Beginning with orders, bookings were CAD 979 million, up 46% compared to Q3 last year. The increase was driven by organic growth of 38%, an additional 6% growth from acquired companies, and a 2% benefit due to foreign exchange translation. During the quarter, ATS booked another $221 million US dollars in EV orders from an existing global automotive customer as an expansion of their program. Bookings were up sequentially by CAD 175 million compared to Q2 of this year. Our trailing 12-month book-to-bill ratio for Q3 was 1.29-1, positioning us well for continued revenue growth. With Q3 revenues of CAD 647 million, total top-line growth was 18.3% over last year. Organic growth was strong at 9.6% and related primarily to increases in the transportation and consumer verticals. Acquired companies added 7.5% to revenue growth, and foreign exchange translation created a 1.2% benefit compared to Q3 last year. Sequentially, revenues were up 9.9% compared to Q2 of this year and were in range with our backlog conversion expectations based on program timing, including stage of completion of some of our large enterprise orders. Our Q3 ending backlog of CAD 2.14 billion was 45% higher than Q3 last year. With continued positive growth in our order backlog, our revenue conversion for Q4 is estimated to be in the 29%-32% range of backlog. We make this assessment every quarter based on revenue expectations for both the execution of projects from backlog and work that will be booked and billed within the quarter. Strong growth in our order backlog, combined with the presence of longer duration enterprise programs, has changed the range of our backlog conversion for this quarter. Overall, the increased size and duration of our backlog serves us well. Q3 gross margin of 28.4% was 140 basis points lower than adjusted gross margin in Q3 last year. The year-over-year change was primarily due to the timing of execution of higher margin programs in Q3 last year, as well as higher than normal inflation and longer lead times in our supply chain this year. Sequentially, our adjusted gross margin compared to Q2 was up 30 basis points as we continue to effectively address challenges in our supply chain. During the quarter, we saw some reductions in lead times on several key components and some price relief on raw materials from Q2. Electrical, mechanical, and fabricated parts were impacted by inflationary pressures and lead times remain longer than normal. We expect the environment to remain volatile through Q4, and we are seeing continued price increases in some areas. As I've noted previously, over time, we are able to pass along many of these increases through our pricing, and we are actively mitigating in other ways, including accelerating vendor order timing, passing along increased pricing contractually where possible, and securing alternative sources of supply. Moving to SG&A, excluding acquisition-related amortization and transaction costs, as well as CAD 10.5 million of restructuring costs, Q3's SG&A was CAD 93.2 million, CAD 13.3 million higher than last year, primarily reflecting incremental SG&A costs from acquired companies. Third quarter stock-based compensation expense was CAD 9.9 million, down CAD 2.8 million from Q3 last year. Sequentially, stock-based compensation expenses increased by CAD 4.6 million. As a reminder, our stock-based compensation expense is subject to mark-to-market adjustments and is impacted by approximately CAD 1 million for every CAD 1 change in our share price. Q3 adjusted earnings from operations were CAD 80.6 million or 12.5%, up CAD 10.2 million compared to last year and up CAD 5.5 million sequentially. Compared to both periods, this primarily reflected revenue growth, partially offset by increased SG&A. On restructuring, actions are underway to implement our previously announced plan to improve our cost structure and efficiency, primarily through management headcount and other cost reductions. We expensed CAD 10.5 million in Q3 out of the total estimated cost of CAD 20 million-CAD 25 million for this plan. The majority of the remaining costs are expected to be incurred in the fourth quarter. Our estimated payback period is approximately 18 months. Moving to the balance sheet, in Q3, cash flows generated from operating activities were CAD 116 million as we reduced our working capital, primarily driven by timing of receipts against key billing milestones on some of our large EV projects. Our non-cash working capital as a percentage of revenue was 13% in Q3. This is better than our stated target of 15% and an improvement from 16.1% in Q2. Over the next several quarters, we expect our period end working capital to fluctuate as we continue to work through large program milestones. This may cause some variability to our working capital percentage over the next several quarters. We invested CAD 25.5 million in CapEx and intangible assets in Q3, compared to CAD 11.3 million last year. We've had incremental spend this year to support our growth. Our year-to-date spend is approximately CAD 47 million, and we expect to spend around CAD 80 million-CAD 90 million for the entire year based on the needs of the business and timing of projects. On leverage, since our acquisition of SP in December 2021, when our net debt to adjusted EBITDA ratio was 3.1- 1, our leverage has reduced to 2.8- 1 as of the end of Q3. As noted in previous quarters, we generally target to be in the range of two-three times, but are willing to increase our leverage for acquisitions or for short-term working capital needs. During the quarter, we extended our CAD 750 million revolving credit facility to November 2026. We also added a two year, CAD 300 million term loan to our capital structure in order to provide flexibility and support our growth. Our focus is on maintaining a strong balance sheet while giving us the flexibility to execute our strategies and drive long-term value creation for our shareholders. In summary, ATS produced another quarter of record revenue and bookings, as well as adjusted earnings in line with our expectations. We ended the period with record order backlog that supports sustained growth, and our global teams are working hard to pursue new opportunities to continue to drive this growth. Through our commitment to the ABM, our objective remains clear to deliver value for our customers and our shareholders. Now, we'll open the call to questions from our analysts. Operator, could you please provide instructions? Thank you. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be polled in the order they are received. Should you wish to decline from the polling process, please press star followed by two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Cherilyn Radbourne of TD Securities. Please go ahead. Good morning. Thanks for taking my question. This is Patrick Sullivan on behalf of Cherilyn Radbourne. In the commentary around gross margins, it was mentioned that execution of higher margin programs in the prior period and some of those supply chain headwinds and inflation played a part on the slight year-over-year decline. Looking at next quarter or the next quarters, would you again be comparing to higher margin programs executed in the prior period? I think you said that you're still seeing price increases, but would you say that the length of lead times has peaked or is moderating? Hi. Good morning, Patrick. A couple items, and I'll try and address all the points, but if I miss one, please come back. First of all, on the comparison to year-over-year, you know, you'll recall we booked a large life sciences program a year ago. As I said, most of that was completed over the last year. And so that's really what we're referring to in terms of year-over-year. That was part of our Q4 results as well. In terms of going forward, you know, if we start with where we are in Q3 as a jump-off point in terms of margins, the environment and the dynamics we're dealing with today are similar to what we had in Q3. We're in the early stages of some of these newer large enterprise projects, which will be additive and improve margins over time. Supply chain challenges do remain a part of what we're dealing with in the short term, and that's both from a cost and lead time perspective. We've mitigated a lot of this to date, but it is still what I would characterize as a dynamic environment. Our target remains to perform and drive margin expansion over the long term. Certainly as the environment improves, that is our expectation. Thank you very much. If I can have another one. Sticking with the supply chain theme, you've mentioned in prior periods that food and beverage saw elevated impacts based on, you know, the need for certain materials like stainless steels. As you begin executing on more of these large EV orders, is there anything specific to those projects that may be impacted from a parts or material availability standpoint? The short answer is no, nothing of note. With food, what we've talked about in the past was there's a higher exposure to raw materials. As an example, that business is a consumer, uses a lot of high-grade stainless steel. Within what we're doing in EV, we don't have that same raw material exposure. Yeah. Hey, good morning. This is Andrew. Just to add, we have a very collaborative discussion with the customer on when there's challenges, how we both come together to ensure that we minimize impact. While there is certainly challenges, we look to overcome those. It's, you know, I've mentioned this in the past, but just as a reminder, we go to daily visual management across the board here. We've aligned around ensuring that we look at short-term, mid-term, and long-term countermeasures, and the team continues to drive to minimize impact across ATS. Thank you very much. Thank you. The next question comes from David Ocampo of Cormark Securities. Please go ahead. Thanks. Good morning, everyone. Andrew, if I take a look at all your large EV awards, they've all been for one program with one North American OEM. You guys are opening up a second facility in Ohio. I'm guessing that that facility isn't just for your one customer. Maybe you could speak to where you are with other OEMs, as it relates to battery pack assembly. Absolutely. Good morning. Look, we have, we have an important customer, and we continue to execute. As we look at the work we've done, we're very, very proud of what we've accomplished to date and continuing to execute to align around this specific customer shift. That said, as you're well aware, we've been in this market for over a decade. We've won work and executed work in Europe. We have multiple customers in the U.S., and therefore, while we're very pleased with our progress and our continued alignment with the value for this specific customer, we work with many of the OEMs that are moving into this area and this space. When is that second facility in Ohio opening up? I know you broke ground last year. Yeah. It'll be likely early April. Okay. Ryan, I missed this on the call as it cut off for me. The backlog turnover that remains low just 'cause of the EV related awards. How should we be thinking about the range in terms of turnover as a go forward basis? I'm just trying to get a better sense on what we should be running through our models, not just for the upcoming quarter, but for future quarters as well. David, it's gonna continue to be a little bit variable, and it's really gonna depend on, you know, future bookings, duration of bookings and so forth. There's been, you know, a shift in the portfolio given the growth in EV and these are longer duration projects than what we would've typically had in our backlog in the past. These are from start to finish, typically 18-24 months, where as, you know, the average prior would've been in the nine-12 month range. As these are part of our backlog, I generally expect it to remain lower. We also have shorter cycle business. We have product services, original equipment, which is more standard that does have a shorter book-to-bill cycle. all of that work is growing, but the growth in these large programs has caused this shift in the conversion rate. Got it. That's my cue. Thanks, guys. Thank you. Thank you. The next question comes from Michael Glen, Raymond James. Please go ahead. Thanks. Good morning. I just wanna start with the life sciences segment. If we're, if we're thinking, I know you don't provide specific guidance, but if we're thinking over fiscal 2024 and 2025, you referred to the strong funnel. I'm just wondering how you think that translates into organic revenue growth in the segment? Hey, Michael. Just a minor correction, it's actually CAD 73 million in backlog in this area, and I did comment around the strong funnel. Let me kinda walk through a little bit. As we step back on this market, we've seen what looks like nice booking growth. More specifically, some of the areas we're seeing around this is, auto-injectors continues to be a strength area. If you're following some of the FDA approvals around the obesity aspect, certainly this is an area that will help and an area that ATS can really support as customers drive here. We're also seeing an impact in continued kind of alignment on growth on eye care. In our radiopharmaceutical space, there's a new radioisotope that's coming out of 225 that we've got a position that can really help customers as this new isotope helps with the discovery and treatment of cancer. As you step back, and I talk a bit about this, the total impact of our Life Sciences group together and what that means on pharma and other industries and other spaces. We've seen an increased growth in our funnel across whether it's, you know, our SP working with Comecer, which was in my prepared remarks, as well as we're seeing the likes of IWK engage and really align around this with BioDot and our Life Sciences Systems group really bringing higher level of value to our customers. Overall, we view this as a key market for ATS, one that we see, and I mentioned it, continued increase in our funnel and areas that we really can help our customers as they navigate and launch products on time, on budget at the highest level of quality. thanks for the... Go ahead. Sorry, let me add a bit of color around some numbers too. You know, EV's been a large part of our growth, but Life Sciences order bookings also grew 30% organically in the quarter. We are very pleased with the performance there. The book-to-bill over the last six months has been 1.11- 1. The business is performing very well and it's still 40% of our total Corporation's bookings over the last four quarters. Okay. And just on, just switching over to some additional info on the EV business. A couple questions that we do receive frequently on this topic. A, I mean, as we think about you refer to these milestone payments that come in from the OEMs. Like, can you identify what some of those specific milestone items are that trigger payment? The other part of the question too is, I know that you do look to mitigate cost when you bill out programs or bookings. Are you able to secure enough of the cost input so that you're comfortable with the margin profile on these larger programs? I'll start on milestones. It's not unique to EV. This is when we're doing turnkey or even any equipment build, we have milestone payments in all those contracts, and they do vary from contract to contract or customer to customer. The typical milestones will be, there could be an upfront deposit, there could be a milestone around completion of design, there could be milestones related to receipt of materials, you know, power on, completing the equipment in our factory or factory acceptance testing, then of course, site acceptance testing. The level of milestone or the percentage of the total contract associated with each does vary. What's a little bit unique in EV is we do get milestones, typically these contracts don't have an initial deposit. As we take orders in, there is a working capital build, and some of the bookings we won earlier in the year, so back in Q1, Q2, we have received milestone payments on those. As we look forward in some of the bookings we did in the most recent quarter or the last three months, those will get into billing milestones in the short term. All that drives some variability. Given the size of these EV orders, we do, as I said, expect some variability there. In terms of your cost question, our typical process is to go out, when we're bidding on work and quoting work, we are going out to our suppliers at that time and locking in pricing on major components. It varies from contract to contract, but typically it's in the 60%-80% range of materials that we are locking in. That gives us a lot of cost certainty on these contracts. There's other things we do too. If a customer requires us to use a certain component or a certain supplier, we will build in terms in the contract that allow us to pass on any changes in pricing. You know, for these longer term projects, yes, we are able to mitigate a lot of that margin risk from inflation. We also build in expectations around our own costing too, whether it's, you know, labor increases and so forth. We don't do 100%. It's not practical at that bidding stage. We haven't done the complete design, but we do get good coverage through that process. Okay. Thanks for the information. You're welcome. Thank you. Once again, ladies and gentlemen, if you do have a question, please press star one at this time. Our next question comes from Justin Keywood of Stifel. Please go ahead. Good morning. Thanks for taking my call, nice to see the momentum continue in the business. On M&A, we saw two relatively smaller acquisitions contribute in the quarter. I'm wondering, in a more broad sense, how would you describe the funnel currently, if there's been any changes in multiples and any possible verticals of focus that you would be looking to acquire into? Hey, good morning, Justin. look, you know, if I step back and characterize our funnel, I would characterize it as it is and remains healthy. As you've heard me talk in the past, our focus has always been around how do we cultivate in strategic areas of focus. What we've seen in the evolution of ATS and our leadership is our leaders are now driving that cultivation in their businesses and in their divisions. Not only do we do it from a corporate perspective, we also are aligning this with our leadership. you know, just a case in point, ZI-ARGUS was really aligned with the PA business, and they cultivated and they aligned with, you know, talking with this new ad, still needs to close, to the ATS group and convincing them that they should be a part of the family. Our funnel remains healthy. We have key targeted areas. No secret. We like life sciences. We like regulated food and beverage. We like the digital journey and continuing to add to the digital journey. We have done that. We've continued to align around that. So you're gonna see us really continuing to monitor, build out, and stay very close with companies and technologies that we view will help ATS in continuing to create strong shareholder value. As far as multiples, we haven't seen a marked difference as of today. We have four criteria and our financial criteria is around ROIC. That takes that into account. For the right acquisitions, right, areas of focus, we would move forward. Thank you. Appreciate that. We saw the good cash generation in the quarter, and we also saw some large EV contracts get announced subsequent to the quarter. Maybe a question for Ryan is how do you see the working capital needs moving into Q4 and next year and if it will remain below the target range? Good morning, Justin. Q3, you know, was a good cash generating quarter for us as we expected. I would say we do expect variability going forward in this. You know, the contracts that we announced early or late last quarter, early this quarter, those will have an initial working capital build with them. So, and some of those milestone payments associated with those will fall right around quarter ends. So, you know, if we get cash payments, you know, March 31st or April 1st, it can drive a pretty big difference in that working capital percentage. Over the, you know, six month, you know, bit longer term period, we do expect to continue to operate in the range of that target, but we certainly could see that target exceeded at a particular quarter end as we saw it last quarter. Understood. We saw the deleveraging occur in the quarter. Ryan, is there a comfort range that you target where the leverage ratio could come up a bit on potential M&A? I mean, we've talked about two to three times, and operating within that and with the ability to go above for certain M&A targets. In order for us to do that, and it's part of our normal diligence process, but in particular in this kind of environment where there is a little bit more uncertainty, we're gonna have to be really comfortable on the target and where they are in their cycle, their working capital needs, their CapEx requirements, profitability. You know, assuming we could get comfortable and tick all those boxes, we would be willing to add leverage to the balance sheet up into the mid-30's. Understood, thank you for taking my questions. Thank you, Justin. Thank you. The next question comes from Sabahat Khan of RBC Capital Markets. Please go ahead. Great. Thanks, and good morning. Just I guess a question on sort of the EV side and M&A. It is becoming, you know, a larger category for you. As you look at M&A, is there a potential that maybe you look at other opportunities to get involved within the EV space, you know, maybe just, you know, beyond kind of the battery side? Or is the focus still really on some of your legacy business categories like life sciences and food and beverage? Just curious how you're thinking about this sort of growing business. Good morning. Look, our funnel for M&A has many industries in it, and EV is a portion of that. I would say, we do look for to be very specific, for mission critical areas. When I step back and look at where we are today with battery pack assembly and packout, we would view this as a mission critical niche with a lot of potential. So we would look for those or continuing to build on that area as we view that really does allow us to have a unique value into the markets. If and or when that becomes available, we would be in a position to move. We're patient and, you know, we look at the four criteria. We wanna ensure that any new add will check all four and really align with longer term shareholder value creation. Okay, great. Ryan, I think you provided some color earlier on just how the milestone payments work. Big picture question, I guess. A typical project that I think some of these EV orders, you know, over a course of 18- 24 months, you know, how many milestone payments are there over that period? Trying to understand how we should think about maybe cash flow from some of these larger projects or the orders. Yeah. Good morning, Sabahat. On average, it's gonna be in the four-six range. Great. Variation outside of that as well, but that would be the best way to think about it. Sorry, just on that, I guess the four- six, is this typically across most major orders or is this particular to the EV space? That applies across all orders. Great. Thanks very much. You're welcome. Thank you. Once again, ladies and gentlemen, if you do have a question, please press star one at this time. Our next question comes from Maxim Sytchev from National Bank Financial. Please go ahead. Good morning, gentlemen. Good morning, Max. Andrew, I was wondering if you don't mind providing a bit of an update in terms of the CFT asset integration and how the cost base has been adjusted there. Thank you. Yeah. Look, we're, to headline here, on track, on plan for this business. I'll just tell you, the team have done a very nice job of aligning this organization around the ABM continuous improvement. They were part of a recent fairly large Kaizen event across all of ATS. This team continues to make progress. We measure things aligned around when we do an integration around 30, call it 30 days, 90 days, six months, and we have a year look back. I would say they're on track, on plan, we're pleased with the progress. Ryan can provide a little more specifics around performance now. Yeah. Good morning, Max. You know, from a cost synergy perspective, well on track. You know, it is just some of the areas we target. I mean, there's some day one costs from the public company that are out. There's been improvements made in the cost structure through some of the reorganization and rationalization actions we've taken. Their supply chain savings funnel is very strong, and we've seen really good alignment with our team there. It's made good year-over-year progress. It's up several hundred basis points from a margin standpoint, as Andrew said, really benefiting from the ABM. Yes. Wonderful. Thank you. Andrew, just wanted to circle back to one of the earlier comments you made around the grid storage. I'm just curious if you try to potentially, you know, wrap your head around sort of the scale of this opportunity just given, you know, the need for that. Obviously, I presume the client base is gonna be somewhat different. Is the go-to market sort of strategy is gonna be different relative to OEMs on the EV side of things? Just maybe any color there. Thanks. Yeah. Good morning, Max. Let me start by walking a little bit around this market, and we're able to utilize the know-how that we've created for the EV shift to really benefit the customers that we're working with on this shift. That allows us to take the experience and know-how, the strong brand, the presence with our service support and technology to this market. While it's early in its journey, and it is early in its journey, we do view that there is I would say, nice upside for the potential growth, but it's early. I would say, you know, when we think about this space, and I use the phrase mission critical, we would be considered mission critical on this move to this area. Early days, not giving you exact number on market size because the market is new and it's growing significantly, but we need to execute and we need to deliver the value for our customers. You have secured work in this space already, though, right? Is it fair to say? Correct. We have. Okay. Thank you so much. That's it for me. Thank you. Our next question is a follow-up from Patrick Sullivan at TD Securities. Please go ahead. Thank you for taking my follow-up. Many, many months ago, discussions, around nuclear, specifically opportunities within nuclear decommissioning were being had. I was wondering if you can talk about, the opportunities you're seeing there or if more recent world events and focus on energy security has shifted the context of those questions. It sounds like from your prepared remarks that the answer might be yes. Can you just talk a little bit about that? Thank you. Yeah. Hey, good morning, Patrick. While we've continued to see potential in this, in this area, in this space, I would say, as a whole, we've continued to expand around offering value into the refurbishment, and we just signed a longer-term service agreement in that space. The recent award, our second award in the small module reactors is really taking shape. Decommissioning will certainly be an area of continued focus, but we're pleased with our ability to expand into this new area. Again, early days, but certainly one as governments go into either decarbonizing or energy security. When you step back and look at that, nuclear, you know, is viewed as a greener option to be able to provide that energy efficiency and energy usage. Pleased with the progress. More work to do here. This is a niche area for ATS, and it's one that we view that when aligned, can offer high value for our customers. Thank you very much. That's all for me. Thank you. The next question comes from Michael Glen of Raymond James. Please go ahead. Hey, thanks for taking the follow-up. Just to come back in on the, on the EV discussion. If based on the work that you see right now, I guess you have a pretty good sense of where the margins sit, and I think the verbiage you have used is that this will be margin-enhancing over time as it scales. Can you give some idea of, you know, the path towards that work being enhancing overall to your, to your margins? Hi, Michael. I'll speak to this in a couple different areas just to be clear. From a gross margin perspective, this is a creative business was. It is generally in line with where we are from a corporate average, but it will drive operating leverage in that part of our business over time. In the short term, as I've talked about, there's a lot of dynamics that we're dealing with and so forth. What we're doing for customers here, as Andrew's talked about, it's strategic, it has enabled a different conversation commercially with them. Okay. As it stands right now, are the margins you're seeing, are they in line with the overall company average or somewhat meaningfully different? They're in line. In line. Okay. The CapEx guide was CAD 80 million-CAD 90 million. Was that the guidance that was given? That's correct. You know, as I noted, or as it came up on the call, we have a couple of expansion initiatives underway. One is a facility which we expect to come online early in the next fiscal year. You know, that's what's driving a lot of the spend there, those growth initiatives. Okay. Thank you. Thank you. The next question is from, Sabahat Khan of RBC Capital Markets. Please go ahead. Thanks. Maybe Andrew, if I could maybe just follow up on some of the commentary earlier about nuclear. I think you mentioned a couple of times some of the work you're doing on the SMR side. We recently heard one of the companies involved in that space talk about, you know, the TAM could be very, very large globally. Maybe if you just share some color on the type of work or the type of involvement you could have on the SMR side. Obviously, you know, a lot of uncertainty there, but just curious kind of the work you're doing there and if, you know, you're involved with the recent project here announced in Ontario as well. Let me work backwards on that. The recent announcement is potential. I'll just leave it at that. It is potential. Look, it's early in this market journey and while it's been around for a while, it's got a bit of a resurgence. Again, we've had more than one award in this space, on the SMR space. Our mission is to really help these customers and this most recent customer prove out their technology, prove out their capability. Pleased with the order, we do view this as nice upside for ATS. That said, we need to ensure that they can prove their technology before we start to build out kind of the full thinking on the market space. If you step back, what do we do? If you could see me right now, you look like there's multiple tubes. We actually enable and help that as they're changing out the refueling process. It utilizes ATS core experience, know-how capability. It's one that is really aligned with what we can provide for strong value into the space and really aligns to their ability to execute what they set out to execute. We do view this as having nice upside, but the technology needs to be proven and the capability needs to be proven. Okay, great. Thanks so much for that. Thank you. Our last question comes from Justin Keywood of Stifel. Please go ahead. Thanks for the follow-up. On the aftermarket services, I know there's been good progress in this area. Are you able to provide the growth in the quarter and what% the aftermarket services is as overall for the overall sales? Thank you. Yeah. Good morning, Justin. After sales in the quarter, it grew in the low double-digit range. As a percentage, it is high teens. Is there a target on what the aftermarket services could get to as a percentage of sales? Justin, you know, you're well aware, I mean, our target is to be over 20% and then continue to drive this. We have divisions in our businesses that, you know, are close to 40%. When we have others that are under the mark of where they need to be. Our view is this is strategic. It's an area we've invested in. It's, you know. When you look at the customer behaviors, COVID has gone from this is a nice to have to mission-critical. Our customers look to us to really drive this value and drive their ability to get their product out on time, on, you know, on budget and at the highest quality. We've invested here. We now have a North American service center, we have a European service center, we've got digital tools, we've got an online ordering process. All that to be said of, we do view that this is a growth engine, a growth driver. It is one that we when acquire a business, it becomes one of the core things we bring in early on in the integration because it's one we can help with. Our teams in these regions can do different markets, different capabilities, and really help expand that penetration. While we're pleased with the progress, to Ryan's point, low double digits in growth in the quarter, early days in our journey, and one we think we can continue to drive. Good to hear. Thank you for the follow-up. Thank you. Mr. Hider, there are no further questions. Back to you for closing comments. Great. Thank you, operator. We look forward to staying focused on our goal of creating value for our customers and shareholders as we continue to execute. Thank you for joining us today. I look forward to speaking to you on our year-end in May. Stay safe and goodbye for now. Ladies and gentlemen, this does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.