Novanta reports strongest organic growth since 2023
The company reported GAAP revenue of $265.8 million for the quarter.
Novanta (NOVT), a provider of precision motion control and photonics solutions, reported GAAP revenue of $265.8 million.
The result represents a 10.3% increase year-over-year, driven by organic revenue growth of 9.3%. This was the strongest organic growth quarter since the first quarter of 2023.
Adjusted diluted earnings per share rose 17.1% to $0.89, up from $0.76 in the prior year. Adjusted EBITDA increased 16.4% to $60.7 million, and the adjusted EBITDA margin expanded to 22.8% from 21.6% in the prior year. Adjusted gross margin also rose to 47.1% from 46.1%.
Performance diverged across business segments. The adjusted gross profit margin for Automation Enabling Technologies expanded to 53.4% from 48.9%. Conversely, the adjusted gross profit margin for Medical Solutions compressed to 41.1% from 44.0% year-over-year.
Cash flow from operations grew to $64.9 million, compared to $15.1 million in the prior year. The company also closed the acquisition of Riverpoint Medical. The acquisition is expected to increase medical end-market exposure to approximately 60% of revenue and double recurring medical consumables to roughly 25% of sales.
For the third quarter of 2026, the company expects GAAP revenue between $300 million and $304 million, with adjusted EBITDA between $74 million and $77 million and adjusted diluted EPS between $0.95 and $1.00.
Full-year 2026 guidance projects GAAP revenue between $1.13 billion and $1.14 billion, representing growth of more than 15%. The company expects full-year adjusted EBITDA between $273 million and $278 million and adjusted diluted EPS between $3.68 and $3.74.