Novanta Inc.

Good morning. My name is Betsy, and I will be your conference operator today. At this time, I would like to welcome everyone to Novanta Incorporated's first quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Ray Nash, Corporate Finance Leader for Novanta. Please go ahead.

Thank you very much. Good morning, and welcome to Novanta's first quarter 2026 earnings conference call. This is Ray Nash, Corporate Finance Leader for Novanta. With me on today's call is our Chair and Chief Executive Officer, Matthias Glastrup, and our Chief Financial Officer, Robert Buckley. 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. 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, Matthias Glastra.

Thank you, Ray. Good morning, everybody, and thanks for joining our call. Noventa beat expectations for revenue growth in the first quarter, delivering 10% reported growth and 3% organic growth, a step up versus the prior quarter. Bookings grew 37% year-over-year, with a book-to-bill of 1.10 on continued new product momentum and strong commercial executions. Every business delivered double-digit bookings growth and year-over-year revenue growth. Profit performance was equally strong. Adjusted EBITDA grew 14%, and our adjusted EBITDA margin expanded 70 basis points year-over-year, and adjusted diluted EPS grew 9%. Cash flow performance was particularly encouraging. Operating cash flow increased by 63% year-over-year, And in the quarter, our cash flow conversion to net income was over 200%. I'm very proud of our team for delivering these solid results in an evolving trade and economic climate.