NOVANTA INC

NOVANTA INC. reported strong financial results for the second quarter and first half of 2026. Q2 revenue increased by 10.3% to $265.8 million, while net income saw a significant 178.9% rise to $12.5 million, leading to diluted EPS of $0.30. The company also saw a substantial increase in cash and cash equivalents, driven in part by a $288.5 million private placement of common shares. Operating cash flow for the first six months also improved significantly.

Novanta Inc. reported strong financial results for the second quarter of 2026, with GAAP revenue increasing 10% to $266 million and GAAP diluted EPS at $0.30. The company also announced the recent acquisition of Riverpoint Medical, which is expected to significantly boost its medical consumables business and overall medical end-market exposure. Consequently, Novanta raised its full-year 2026 guidance, anticipating GAAP revenue between $1,130 million and $1,140 million.

Novanta Inc. completed its acquisition of Riverpoint Medical on July 23, 2026, for approximately $1.2 billion in cash, with an additional $250.0 million milestone payment due by January 8, 2027. The acquisition was funded by borrowing $616.0 million and using cash on hand, increasing Novanta's consolidated debt to $854.7 million. This strategic move is expected to double Novanta's recurring medical consumables revenue to $300 million, increase medical end-market exposure to 60% of total revenue, and contribute $0.18 to $0.25 to adjusted EPS in 2027.

Novanta Inc. announced a private placement expected to raise approximately $300 million through the sale of 2,142,857 common shares at $140.00 per share. The transaction is anticipated to close on June 11, 2026. Concurrently, the company entered into a registration rights agreement to register the resale of these shares. J.P. Morgan Securities LLC, William Blair & Company, L.L.C., CJS Securities, Inc., and PNC Capital Markets LLC acted as placement agents.

Novanta Inc. announced a definitive agreement to acquire Riverpoint Medical for $1.2 billion in cash plus a $250 million milestone payment. This strategic acquisition aims to accelerate Novanta's growth, expand its portfolio into the high-growth minimally invasive surgery segment, and double its recurring medical consumables revenue. The transaction is expected to be immediately accretive to Novanta's financial performance and is anticipated to close in the third quarter of 2026, subject to customary regulatory approvals and closing conditions. The deal will be financed through a combination of cash on hand, existing credit facilities, and a recent equity raise.

Novanta Inc. entered into a Second Amendment to its Fourth Amended and Restated Credit Agreement, establishing $200.0 million in delayed draw term loan commitments. These commitments will be available for borrowing for up to six months and will mature on June 27, 2030. The amendment also adjusts interest rates based on the company's leverage ratio and resets incremental capacity for term loan and revolving commitments.

Novanta Inc. reported a 10.4% increase in revenue to $257.7 million for the first quarter of 2026, compared to $233.4 million in the prior year. However, net income slightly decreased by 0.5% to $21.1 million, resulting in diluted earnings per share of $0.51, down from $0.59. The company also entered into an approximately $26.7 million buy-in contract for its U.K. defined benefit pension plan in January 2026 and made a $4.4 million contingent consideration payment related to the Keonn acquisition.

Novanta Inc. reported strong financial results for the first quarter of 2026, with GAAP revenue increasing 10.4% to $257.7 million and Adjusted Diluted EPS growing 9% to $0.81. The company also saw a 37% increase in bookings, achieving a 1.10 book-to-bill ratio, and a 63% rise in operating cash flow. Novanta provided an optimistic outlook, expecting 6% to 8% organic revenue growth in Q2 and raising its full-year 2026 guidance.