Revenue & operating profit
EPS — actual vs consensus
EBITDA margin vs peers
Verdict
Korvane's Q2 revenue of 496M is up 20.4% on a year ago with gross margin at 40.1%, and net cash of 174M funds the order book. The stock closes at $46.82 against a $41 line that would prove the view wrong.
buy · medium conviction
Company overviewKorvane Motion Systems designs motion-control drives and robot joints for factory automation.
Korvane Motion Systems makes servo drives, motion controllers and integrated robot joints for machine builders and factory-automation integrators. It reports two segments: Drives and Controls, and Robot Joints, the faster-growing of the two.
Fictional company · demonstration only, not investment advice
Income statement summaryRevenue 412M → 496M across FY2025Q2–FY2026Q2.
| Metric | FY2025Q2 | FY2025Q3 | FY2025Q4 | FY2026Q1 | FY2026Q2 |
|---|---|---|---|---|---|
| Revenue | 412.0M | 438.0M | 471.0M | 455.0M | 496.0M |
| Cost of revenue | 257.9M | 271.1M | 287.8M | 276.6M | 297.1M |
| Gross profit | 154.1M | 166.9M | 183.2M | 178.4M | 198.9M |
| Operating profit | 53.6M | 60.4M | 69.9M | 68.3M | 77.0M |
| Pre-tax income | 56.1M | 62.9M | 72.4M | 70.8M | 79.5M |
| Net income | 43.8M | 49.1M | 56.5M | 55.2M | 62.0M |
| Diluted EPS | 0.37 | 0.42 | 0.48 | 0.47 | 0.53 |
| Gross margin | 37.4% | 38.1% | 38.9% | 39.2% | 40.1% |
| EBITDA | 70.6M | 78.0M | 88.1M | 87.2M | 96.5M |
| EBITDA margin | 17.1% | 17.8% | 18.7% | 19.2% | 19.5% |
Credit & cash flowNet cash 92M → 174M across FY2025Q2–FY2026Q2.
| Metric | FY2025Q2 | FY2025Q3 | FY2025Q4 | FY2026Q1 | FY2026Q2 |
|---|---|---|---|---|---|
| Cash & equivalents | 121.0M | 130.0M | 148.0M | 152.0M | 171.0M |
| Cash & ST investments | 188.0M | 201.0M | 224.0M | 231.0M | 262.0M |
| Total debt | 96.0M | 94.0M | 92.0M | 90.0M | 88.0M |
| Long-term debt | 78.0M | 77.0M | 75.0M | 74.0M | 72.0M |
| Operating cash flow | 58.0M | 71.0M | 84.0M | 66.0M | 88.0M |
| Capital expenditure | 21.0M | 23.0M | 26.0M | 24.0M | 27.0M |
| Net cash | 92.0M | 107.0M | 132.0M | 141.0M | 174.0M |
EPS — actual vs consensusReported EPS 0.42 → 0.53 across FY2025Q3–FY2026Q2.
| Metric | FY2025Q3 | FY2025Q4 | FY2026Q1 | FY2026Q2 |
|---|---|---|---|---|
| Actual | 0.42 | 0.48 | 0.47 | 0.53 |
| Consensus | 0.39 | 0.44 | 0.49 | 0.48 |
| Surprise | +7.7% | +9.1% | -4.1% | +10.4% |
Peer comparison — EBITDA marginKRVN at 19.5% ranks second of four, behind one peer and ahead of two.
| Metric | FY2025Q4 | FY2026Q1 | FY2026Q2 |
|---|---|---|---|
| Korvane Motion (KRVN) | 18.7% | 19.2% | 19.5% |
| Tarnwick Drives (TWKN) | 16.2% | 16.5% | 16.8% |
| Ostrand Actuation (OSDR) | 20.4% | 20.9% | 21.3% |
| Melrun Robotics (MLRB) | 15.0% | 14.6% | 14.1% |
Key takeawaysRevenue: 412M in FY2025Q2 to 496M in FY2026Q2.
Revenue grew 20.4% year on year to 496.0M, and gross margin widened from 37.4% to 40.1% as robot joints took a larger share of the mix.
EBITDA margin reached 19.5%, second among the four companies compared, and operating cash flow of 88M covered 1.4x net income.
Net cash rose to 174M while total debt fell to 88M. EPS beat consensus in three of the last four quarters; the miss in FY2026Q1 came from a delayed robot-joint shipment.
The main risk is concentration: the two largest customers are 38% of revenue. A close below $41 would break the trend the view relies on.