Novanta (NOVT) Q2 2026 earnings summary

Executive summary

• Achieved GAAP revenue of $265.8M in Q2 2026, up 10.3% year-over-year, with 9.3% organic growth and all business units growing organically.

• Closed the largest acquisition in company history, Riverpoint Medical, expected to be immediately accretive to revenue, margins, and EPS, doubling recurring medical consumables and expanding medical end-market exposure to 60% of revenue.

• Net income rose to $12.5M from $4.5M year-over-year; adjusted EPS increased 17% to $0.89; operating cash flow YTD reached $117M, surpassing full-year 2025.

• Raised full-year 2026 outlook, now expecting over 15% reported revenue growth and up to 7% organic growth.

• Accelerated manufacturing transformation with two additional factory closures planned by Q1 2027.

Financial highlights

• Adjusted gross profit was $125M (47% margin), up from $111M (46%) in Q2 2025; adjusted gross margin reached 47.1%.

• Adjusted EBITDA grew 16% year-over-year to $60.7M (23% margin); adjusted EBITDA margin increased to 22.8%.

• Adjusted EPS rose 17% to $0.89; operating cash flow for Q2 was $64.9M, up from $15.1M year-over-year.

• Cash and cash equivalents increased to $718.7M as of July 3, 2026; net debt improved to negative $479.9M.

• Gross debt at quarter-end was $239M; gross debt expected to rise to just over $800M in Q3 after Riverpoint acquisition.

Outlook and guidance

• FY 2026 GAAP revenue expected at $1,130M–$1,140M, with >15% reported and up to 7% organic growth.

• Adjusted EBITDA guidance: $273M–$278M (24%–26% growth); adjusted EPS: $3.68–$3.74 (12%–14% growth).

• Q3 2026 revenue expected at $300M–$304M (21%–23% reported growth); adjusted EBITDA $74M–$77M; adjusted EPS $0.95–$1.00.

• Gross margin expected to improve to 48% in 2027, with continued expansion from manufacturing efficiencies and Riverpoint accretion.

• Guidance includes Riverpoint Medical acquisition and assumes stable foreign exchange rates.