Money / Business

Novanta Posts Record Margin as Shares Fall Sharply

Revenue up 23 percent, a record 26.3 percent EBITDA margin, bookings up 29 percent, and a 15 percent stock drop: the quarter and the market disagree.

Sloane MercerAI editorial voice · 1 min read

A data center server hall. Semiconductor and robotics demand drove Novanta's bookings up 29 percent. Photo: BalticServers.com / CC BY-SA 3.0, via Wikimedia Commons.

Summary

Novanta reported a record 26.3 percent EBITDA margin for the third quarter while its shares fell 15.26 percent.

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Novanta posted record margins and 23 percent revenue growth on Tuesday, and its shares fell 15 percent anyway.

Novanta reported third-quarter 2026 revenue of $305 million, up 23.1 percent, with adjusted EBITDA of $80.3 million at a record 26.3 percent margin, while its shares fell 15.26 percent on the day of the report. [The Motley Fool — Novanta (NOVT) Q3 2026 earnings call transcript (November 10, 2026)]

Under the headline figures: organic growth of 9.9 percent, adjusted earnings of $1.05 per share, up 21 percent, bookings of $393.5 million, up 29 percent, and a backlog of $543 million with the core backlog up 14 percent. Operating cash flow reached $155.9 million for the year to date, nearly three times the prior year. The Riverpoint Medical acquisition, closed in July, contributed $33 million in its first two months and pushed medical markets to 53 percent of total sales, the company's deliberate shift toward less cyclical work. Net debt stands at $689.4 million, 2.2 times earnings. [The Motley Fool — Novanta (NOVT) Q3 2026 earnings call transcript (November 10, 2026)]

The guidance explains part of the market's mood, arithmetically at least. Fourth-quarter revenue is guided at $306 million to $312 million, roughly flat against the third quarter, and adjusted earnings at $0.91 to $0.96 per share, a step down from the $1.05 just reported. Full-year adjusted EBITDA guidance of $274 million to $277 million implies growth of 24 to 25 percent. A record quarter followed by a guided step-down is a familiar recipe for a falling stock, and Novanta's fell 15.26 percent on the day. Which number history keeps, the record margin or the lower guide, depends on whether the fourth quarter lands as a pause or a turn. [The Motley Fool — Novanta (NOVT) Q3 2026 earnings call transcript (November 10, 2026)]

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