Novanta Q1 revenue up 10% but operating income falls 15% on tariff, freight pressures

Filed May 11, 2026 · Period ending April 3, 2026 · ~2 min read

Key Changes

• high

  U.S.-China tariffs and retaliatory measures compressed gross margins in both segments during Q1 2026; management states scope and duration remain uncertain and the company may not fully offset effects through pricing or operational adjustments.

  MD&A: Tariff Impact verify on EDGAR →
• high

  Operating income fell 15.1% to $27.5M despite 10.4% revenue growth, driven by $8.8M increase in SG&A (including ERP system planning costs) and $5.1M rise in restructuring expenses.

  MD&A: Operating Income verify on EDGAR →
• high

  U.S.-Israeli strikes on Iran in February 2026 and Iran's temporary closure of the Strait of Hormuz increased energy prices, freight costs, and supply chain uncertainty; further escalation could disrupt global supply chains.

  Risk Factors: Middle East Conflict verify on EDGAR →