NOVTU · Novanta Inc.

Novanta Inc. delivered first quarter 2026 results exceeding expectations, with GAAP revenue reaching $257.7 million, a 10.4% increase from $233.4 million in the prior year, driven by $9.0 million from acquisitions (3.8% impact) and $8.2 million from favorable foreign exchange (3.5% impact), yielding 3.1% organic growth. Despite a decline in GAAP operating income to $27.5 million from $32.4 million, non-GAAP measures showed strength: Adjusted Operating Income rose to $43.2 million, Adjusted EBITDA expanded 14.2% to $57.1 million, and Adjusted Diluted EPS grew 9.5% to $0.81. GAAP net income remained stable at $21.1 million, with diluted shares at 41.2 million. CEO Matthijs Glastra highlighted excellent bookings growth of 37% year-over-year and a 1.10 book-to-bill ratio, fueled by new product momentum and commercial execution, alongside 63% higher operating cash flow of $51.6 million from net working capital improvements. Guidance reflects optimism, with Q2 organic revenue growth targeted at 6-8%, GAAP revenue at $259-264 million, and full-year GAAP revenue at $1,040-1,055 million, Adjusted EBITDA $245-250 million, and Adjusted Diluted EPS $3.50-3.65, assuming stable FX rates. Momentum in AI-driven industrial, semiconductor, robotics, and surgery markets supports the outlook, positioning Novanta for continued shareholder value creation amid dynamic trade conditions.