BOSTON--(BUSINESS WIRE)--Novanta Inc. (Nasdaq: NOVT) (the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that Chuck Ravetto, Chief Operating Officer, will be participating at the CJS Securities 26 Annual New Ideas for the New Year Investor Conference on Wednesday, January 14, 2026, which is being held virtually. More information about Novanta is available on the Company's website at www.novanta.com. For additional information, please cont ...

Novanta is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary technology expertise and competencies in precision medicine and manufacturing, medical solutions, and robotics and automation with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to our cu ...

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Core Viewpoint - Novanta Inc. has announced the pricing of its public offering of 11 million tangible equity units at $50.00 per unit, indicating a strategic move to raise capital for its operations [1] Group 1: Company Details - The public offering consists of 6.50% tangible equity units, which are being offered under Novanta's effective shelf registration statement [1] - The total amount raised from this offering is expected to be significant, given the number of units and the price per unit [1] Group 2: Market Context - Novanta serves as a trusted technology partner to manufacturers in the medical and advanced technology equipment sectors, highlighting its role in these critical industries [1]

Financial Data and Key Metrics Changes - Novanta reported record revenue of $248 million for Q3 2025, surpassing guidance, with a reported revenue growth of +1% and organic revenue declines of 4% [5][6] - Adjusted gross margins were 46.5%, up 30 basis points year over year, and adjusted EBITDA margins were above 23% [5][17] - Non-GAAP adjusted earnings per share was $0.87, up 2% year over year and up 14% sequentially [18] Business Line Data and Key Metrics Changes - Medical markets accounted for 53% of year-to-date revenue, intelligent subsystems contributed nearly 30%, and medical consumables represented about 15% of sales, with the latter growing at a high teens rate [8][10] - Advanced surgery business revenue grew 17% year over year, while precision medicine business sales declined 4% year over year but grew sequentially by 3% [24][25] - Robotics and automation applications saw revenue growth driven by demand for products supporting physical AI applications [12] Market Data and Key Metrics Changes - Customer bookings grew 17% year over year and 4% sequentially, indicating a stronger backlog and positive outlook [20] - Sales to China increased by 11% sequentially, with strong design win activity and new product revenue growth [25][26] - The advanced industrial markets showed continued improvement, with normalized order patterns leading to sequential growth in precision manufacturing [13] Company Strategy and Development Direction - Novanta's long-term growth strategy focuses on markets with secular tailwinds such as AI-driven robotics, advanced minimally invasive surgery, and precision medicine [6][9] - The company is investing in regionalized manufacturing and a new ERP system to build a strong foundation for growth and resilience [10] - Novanta aims to deliver sustainable mid-to-high single-digit organic revenue growth with less cyclicality [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to positive organic growth and double-digit profit growth in Q4 2025, with expectations for mid-single-digit organic growth for the full year of 2026 [6][31] - The company noted strong momentum in growth platforms, design wins, and new product launches, positioning it well for future performance [15][31] - Management highlighted the importance of customer partnerships and proprietary technology solutions in driving growth [8][10] Other Important Information - Novanta's adjusted gross profit for Q3 2025 was $115 million, with R&D expenses at $24 million and SG&A expenses at $44 million [17] - The company ended Q3 with gross debt of $457 million and a net leverage ratio of approximately 1.7 times [19] - An additional $200 million share buyback program was authorized by the board of directors [19] Q&A Session Summary Question: Update on robotics retail customer contracts - Management confirmed ongoing excitement about a major design win with a large e-commerce player, with deployment expected to start in 2026 [32][33] Question: Potential for revenue and scaling in humanoid robotics - The combined physical AI market opportunity is estimated at $1 billion by 2030, with current deployments still in early stages [34] Question: Progress on regional manufacturing footprint - Management indicated that the transition to regional manufacturing is expected to be completed by the end of Q1 2026, with potential for 100 basis points of margin expansion [36][37] Question: Growth expectations for 2026 across business units - Advanced surgery and robotics are expected to be the higher growth categories, while precision manufacturing is anticipated to return to growth [38][40] Question: Update on tariff-related revenue dynamics - Management noted that solid growth in China and strong design win activity are contributing to the recovery of revenue previously impacted by tariffs [44][45] Question: Outlook for DNA sequencing and EUV business - The DNA sequencing business is not expected to grow, while the EUV business is anticipated to gain momentum in 2026 [46][47] Question: Recognition of the $50 million warehouse automation opportunity - Management confirmed that bookings and revenue from the warehouse automation opportunity are expected to materialize in 2026 [49][50]

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Financial Performance - Third Quarter 2025 GAAP revenue increased by 1.4% to $247.8 million compared to $244.4 million in the same quarter of 2024[3] - GAAP net income for the third quarter of 2025 was $10.7 million, down from $19.2 million in the third quarter of 2024[5] - Adjusted diluted EPS for the third quarter of 2025 was $0.87, compared to $0.85 in the same quarter of 2024[7] - Revenue for the three months ended September 26, 2025, was $247.836 million, a 1.0% increase from $244.405 million in the same period of 2024[25] - Operating income decreased to $21.848 million, down 32.9% from $32.555 million year-over-year[25] - Net income for the quarter was $10.653 million, a decline of 44.8% compared to $19.192 million in the previous year[25] - Basic and diluted earnings per share were both $0.30, down from $0.53 in the same quarter of 2024[25] Revenue Growth - The company achieved a book-to-bill ratio of 1.03x and reported a 17% year-over-year growth in bookings[4] - Organic revenue growth for the third quarter of 2025 was (3.8)%, excluding the impact of acquisitions and foreign currency exchange rates[4] - The company expects mid-single digit organic revenue growth for the full year 2026, driven by new product launches and market momentum[9] - Revenue from the Medical Solutions segment increased to $122.520 million, up 5.7% from $115.701 million in the same quarter of 2024[31] - Organic Revenue Growth for the three months ended September 26, 2025, showed a decline of 3.8% compared to the previous period[40] Cash Flow and Assets - Operating cash flow for the third quarter of 2025 decreased to $8.5 million from $23.0 million in the third quarter of 2024[8] - Cash flows from operating activities were $8.495 million, significantly lower than $23.026 million in the prior year[29] - Total assets increased to $1.506 billion, up from $1.389 billion at the end of 2024[27] - The company reported a cash and cash equivalents balance of $89.221 million, down from $113.989 million at the end of 2024[27] Debt and Liabilities - Total liabilities rose to $704.335 million, compared to $642.813 million at the end of 2024[27] - Total Debt (GAAP) as of September 26, 2025, was $451,343 million, resulting in a Net Debt of $367,783 million[41] - The company reported a significant increase in cash and cash equivalents, with a decrease in Net Debt from $305,170 million in December 2024 to $367,783 million in September 2025[41] Adjusted Metrics - Adjusted EBITDA for the third quarter of 2025 was $58.1 million, compared to $57.0 million in the same quarter of 2024[7] - Adjusted Operating Income for the three months ended September 27, 2024, was $38,634 million, with an Adjusted Operating Margin of 19.1%[37] - Adjusted Diluted EPS for the same period was $0.85, reflecting a significant increase compared to the previous year's $0.53[37] - Adjusted EBITDA for the three months ended September 27, 2024, was $56,976 million, with an Adjusted EBITDA Margin of 23.3%[39] Other Financial Information - The company incurred $6,156 million in restructuring, acquisition, and related costs during the reporting period[39] - The effective tax rate for the period was 20.8%, with a tax provision of $5,033 million[37] - For the fourth quarter of 2025, the company expects GAAP revenue to be approximately $253 million to $257 million[9] - The company anticipates full year 2025 GAAP revenue of approximately $975 million to $979 million[10]

Core Viewpoint - Novanta Inc. reported its financial results for the third quarter of 2025, showing a slight increase in revenue but a decline in operating income and net income compared to the same period in 2024 [1]. Financial Highlights - Revenue for the third quarter of 2025 was $247.8 million, up from $244.4 million in the same quarter of 2024, representing a year-over-year increase of approximately 1.4% [1]. - Operating income decreased to $21.8 million in Q3 2025 from $32.6 million in Q3 2024, indicating a decline of about 33.0% [1]. - Net income fell to $10.7 million in Q3 2025, down from $19.2 million in Q3 2024, reflecting a decrease of approximately 44.0% [1]. - Diluted earnings per share (EPS) were $0.30 for Q3 2025, compared to $0.53 for Q3 2024, marking a decline of about 43.4% [1].

Company Overview - Novanta (NOVT) shares increased by 8.3% to $128.65 in the last trading session, with a notable trading volume, and have gained 15.6% over the past four weeks [1] - The company is experiencing strong growth in advanced surgery, robotics automation, and new product launches in high-growth markets [1] Earnings Expectations - Novanta is expected to report quarterly earnings of $0.81 per share, reflecting a year-over-year decline of 4.7%, with revenues projected at $245.75 million, a slight increase of 0.6% from the previous year [2] - The consensus EPS estimate for Novanta has remained unchanged over the last 30 days, indicating a lack of upward revisions which typically correlate with stock price movements [3] Industry Context - Novanta is part of the Zacks Electronics - Miscellaneous Components industry, where American Superconductor (AMSC) also operates, having seen a 5.4% increase in its last trading session [3] - AMSC's consensus EPS estimate for its upcoming report is $0.15, representing a significant decline of 44.4% from the previous year, and it also holds a Zacks Rank of 3 (Hold) [4]