| Metric | Value ($ M) | Q2 FY25 |
|---|---|---|
| Revenue | 257.71 | 6.9% |
| Total Income | 257.71 | 6.9% |
| Expenditure | 230.17 | 1.8% |
| PBT | 26.35 | 355.1% |
| Net Profit | 21.10 | 368.9% |
| OPM | 10.69% | 4.50pp |
| NPM | 8.19% | 6.32pp |
| EPS | 0.52 | 333.3% |
Novanta Announces Q2 2026 Financial Results: Revenue Up 10.3% to $266 Million
06 Aug 2026 · 6 Aug, 2:26 am
Summary
Novanta Inc. reported strong financial results for the second quarter of 2026, with GAAP revenue increasing by 10.3% year-over-year to $265.8 million. The company also saw a significant rise in profitability, with Adjusted EBITDA growing 16.4% to $60.7 million and Adjusted Diluted EPS increasing 17.1% to $0.89. Management expressed optimism about accelerating momentum, citing strong bookings, a healthy backlog, and new product contributions. The recent acquisition of Riverpoint Medical is expected to further enhance growth and profitability.
Key Highlights
- 1
Novanta reported second quarter 2026 GAAP revenue of $265.8 million, an increase of 10.3% year-over-year.
- 2
Adjusted EBITDA increased 16.4% to $60.7 million for the second quarter of 2026, compared to $52.2 million in the prior year.
- 3
GAAP Net Income for the second quarter of 2026 was $12.5 million, a significant increase from $4.5 million in the prior year.
- 4
GAAP Diluted EPS was $0.30 for the second quarter of 2026, up from $0.12 in the prior year.
- 5
Adjusted Diluted EPS increased 17.1% to $0.89 for the second quarter of 2026, compared to $0.76 in the prior year.
- 6
Operating cash flow was $64.9 million for the second quarter of 2026, compared to $15.1 million in the prior year.
- 7
The company announced the acquisition of Riverpoint Medical, expected to be immediately accretive to growth and profitability.
Management Comments
Matthijs Glastra
Novanta delivered an exceptional second quarter, exceeding expectations across revenue, margins, and profitability. Revenue increased 10.3% year-over-year to $266 million on a reported basis and grew 9.3% organically, marking our strongest organic growth quarter since the first quarter of 2023. We also delivered a strong Adjusted Gross Margin of 47%, and generated Adjusted EBITDA of $60.7 million, a 16.4% increase year-over-year, representing an Adjusted EBITDA margin of 22.8%. As we enter the second half of 2026, we are encouraged by the accelerating momentum across our portfolio. Strong bookings, a healthy backlog, new product revenue contributions and disciplined commercial execution in market segments benefiting from long-term secular growth trends, reinforce our confidence in delivering robust organic revenue growth. In addition, we recently closed the acquisition of Riverpoint Medical, accelerating our expansion into minimally invasive surgery markets and adding another engine for growth and profitability. The acquisition roughly doubles our recurring medical consumables business, to approximately 25% of sales on an annualized basis, and increases our medical end-market exposure to approximately 60% of revenue. It also strengthens our regional manufacturing strategy for FDA-registered products. We expect Riverpoint to be immediately accretive to revenue growth, gross margins, EBITDA margins, and earnings per share.
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