Novanta returns to organic growth as bookings jump 37%
The precision components maker reported first-quarter GAAP revenue of $257.7 million.
Novanta (NOVT), the precision components maker, reported a return to organic growth in the first quarter.
The results marked a reversal of a downward trend in organic performance. Organic revenue growth for the quarter was 3.1%, following a period of volatility that included contractions of 2.1% in the second quarter of 2025 and 3.8% in the third quarter of 2025, before a slight recovery to 2.2% in the fourth quarter.
GAAP revenue rose 10.4% year-over-year to $257.7 million. Adjusted diluted earnings per share increased 9.5% to $0.81 a share, while adjusted EBITDA rose 14.2% to $57.1 million.
Growth was distributed across both primary business lines. Revenue for the Medical Solutions segment rose to $126.5 million from $110.2 million a year earlier, and Automation Enabling Technologies revenue increased to $131.2 million from $123.2 million.
Demand signals strengthened as bookings grew 37% year-over-year. This activity resulted in a book-to-bill ratio of 1.10, nearly flat compared to the 1.11 ratio reported at the end of the previous quarter.
Cash flow from operations grew 63% to $51.6 million. The company attributed this increase primarily to improvements in net working capital. Non-GAAP adjusted gross profit margin compressed slightly to 45.6% from 46.2% in the prior-year period.
Novanta expects second-quarter GAAP revenue to range between $259 million and $264 million. The company projects adjusted EBITDA between $58 million and $62 million and adjusted diluted EPS between $0.81 and $0.86 for the period.
Full-year 2026 GAAP revenue guidance is set between $1.04 billion and $1.055 billion. The company forecasts full-year adjusted EBITDA of $245 million to $250 million and adjusted diluted EPS of $3.50 to $3.65 a share.
Novanta also disclosed a new private placement and an agreement to register the resale of securities.