Novanta Inc.

Novanta said Q2 2026 adjusted gross profit was $125 million, with adjusted gross margin of 47% versus $111 million and 46% in Q2 2025, up 100 bps year over year and 150 bps sequentially. Adjusted EBITDA was $60.7 million, up more than 16% year over year, with a nearly 23% margin, and adjusted EPS was $0.89, up 17% year over year. Revenue grew 9% organically and 10% reported, while operating cash flow was $65 million versus $15 million a year ago and YTD operating cash flow was $117 million. For full-year 2026, management raised guidance to approximately $1,130 million to $1,140 million in revenue, adjusted EBITDA of $273 million to $278 million, and adjusted diluted EPS of $3.68 to $3.74. For Q3 2026, they guided to approximately $300 million to $304 million in revenue, 7% to 9% organic growth, adjusted EBITDA of $74 million to $77 million, adjusted gross margin of about 48%, and adjusted EPS of $0.95 to $1. Riverpoint is expected to contribute about $35 million of revenue in Q3 and around $25 million of adjusted EBITDA for the back half of the year.

Matthijs Glastra struck an upbeat tone and framed Q2 as validation of the company’s strategy, pointing to broad organic growth, strong new product momentum, and record cash generation. He said Riverpoint is a transformative acquisition that accelerates the shift toward minimally invasive surgery and expands recurring medical consumables, while also supporting a larger medical exposure. He also emphasized the manufacturing footprint changes as a way to reduce complexity, lower costs, and improve resilience against trade disruptions.

Robert Buckley focused on the financial bridge from the quarter to the updated outlook, citing Q2 adjusted gross margin of 47%, adjusted EBITDA of $60.7 million, adjusted EPS of $0.89, and year-to-date operating cash flow of $117 million. He said Q2 SG&A included $5.6 million of MRP-related and nonrecurring costs, and noted gross debt of $239 million, cash of $719 million, and net debt of negative $480 million. On guidance, he said full-year revenue is now expected at $1,130 million to $1,140 million, adjusted EBITDA at $273 million to $278 million, and Q3 gross margin at about 48%, with Riverpoint contributing roughly $35 million of revenue in Q3.

Analysts focused on what drove the raised outlook, the initial humanoid robotics orders, Riverpoint’s revenue and margin contribution, and the path for gross margins after manufacturing moves. Management said the guidance increase was mostly driven by the AET segment and the Riverpoint contribution, while humanoid-related orders are still early-stage and not yet a major profit driver. On Riverpoint, Robert Buckley said Q3 revenue should be around $35 million and described the business as still conservative in forecasting because it is new to closing quarters as a public-company asset.