Operating globally, Novanta Inc. and its affiliated companies specialize in the development, production, and distribution of advanced photonics, vision, and precision motion ...
Novanta Inc. (NASDAQ: NOVT) is a technology company that designs, develops, and markets advanced photonics, vision, and precision motion solutions. The company's products are critical for OEMs in medical, life sciences, and industrial sectors, enabling applications such as laser surgical procedures, DNA sequencing, and high-precision manufacturing. Novanta's Photonics segment provides ...Novanta Inc. (NASDAQ: NOVT) is a technology company that designs, develops, and markets advanced photonics, vision, and precision motion solutions. The company's products are critical for OEMs in medical, life sciences, and industrial sectors, enabling applications such as laser surgical procedures, DNA sequencing, and high-precision manufacturing. Novanta's Photonics segment provides laser scanning, beam delivery, and laser sources (CO2, solid-state, ultrafast) used in industrial manufacturing, metrology, and medical treatments. The Vision segment offers medical-grade devices like insufflators, pumps, surgical visualization, RFID, and machine vision systems. The Precision Motion segment supplies encoders, motors, drives, and air bearings for robotics and automation. Founded in 1968 as General Scanning, Inc., later GSI Group, the company rebranded to Novanta in 2016. With approximately 3,000 employees, Novanta has a global presence across North America, Europe, and Asia. Financially, the company has shown consistent revenue growth, with TTM revenue of approximately $1.03 billion, a gross margin of 42.5%, and a net margin of 6%. Key leaders, including CEO Matthijs Glastra, focus on innovation in core technologies, and the company continuously invests in R&D (9.1% of revenue) to maintain competitive advantage. Novanta's long-term strategy emphasizes high-growth markets, product differentiation, and operational efficiency.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$980.6M
+3.3%
+3.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$53.8M
-16.0%
-40.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+41.6%
-6.4%
+8.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+11.9%
+2.1%
-41.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+5.5%
-18.7%
-42.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$48.4M
-65.7%
+27.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+4.9%
-66.8%
+23.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
26.0%
-58.8%
-21.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.69x
+42.6%
+28.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning. My name is Andrea, and I will be your conference operator today. At this time, I would like to welcome everyone to Novanta Incorporated Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Marcy Meditz, Corporate Finance Leader for Novanta. Please go ahead.
Marcella Meditz: Thank you very much. Good morning, and welcome to Novanta's second quarter 2026 earnings conference call. This is Marcy Meditz, Corporate Finance Leader for Novanta. With me on today's call is our Chair and Chief Executive Officer, Matthijs Glastra; our Chief Financial Officer, Robert Buckley; and our Co-Chief Operating Officers, Chuck Ravetto and John Lesica. If you have not received a copy of our earnings press release issued last night, you may obtain it from the Investor Relations section of our website at www.novanta.com. Please note, this call is being webcast live and will be archived on our website shortly after the call. Before we begin, we need to remind everyone of the safe harbor for forward-looking statements that we've outlined in our earnings press release issued last night and also those in our SEC filings. We may make some comments today, both in our prepared remarks and in our responses to questions that may include forward-looking statements. These involve inherent assumptions with known and unknown risks and other factors that could cause our future results to differ materially from our current expectations. Any forward-looking statements made today represent our views only as of this time. We disclaim any obligation to update forward-looking statements in the future, even if our estimates change. So, you should not rely on any of these forward-looking statements as representing our views as of any time after this call. During this call, we will be referring to certain non-GAAP financial measures. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures is available as an attachment to our earnings press release. To the extent that we use non-GAAP financial measures during this call that are not reconciled to GAAP measures in the earnings press release, we will provide reconciliations promptly on the Investor Relations section of our website after this call. I'm now pleased to introduce the Chair and Chief Executive Officer of Novanta, Matthijs Glastra.
Matthijs Glastra: Thank you, Marcy. Good morning, everybody, and thanks for joining our call. Novanta delivered an outstanding second quarter. We delivered strong results, 9% organic sales growth, 10% on a reported basis, 16% adjusted EBITDA growth, 47% adjusted gross margin, which was a 100 basis point improvement year-over-year, adjusted EPS growth of 17% and operating cash flow that year-to-date exceeds the operating cash flow we generated in all of 2025. All of our business units grew organically in the quarter. The combination of these strong …