Financial Data and Key Metrics Changes - Revenue reached $241 million, representing reported revenue growth of 2% and organic revenue declines of 2% [7] - Adjusted gross margins held at 46% and adjusted EBITDA margin was 22%, both in line with expectations [8][29] - Non-GAAP adjusted earnings per share was $0.76, up 4% versus the prior year [29] - Operating cash flow for the quarter was $15 million compared to $41 million in the prior year, primarily driven by timing of tax payments and increased inventory purchases [29][30] Business Line Data and Key Metrics Changes - New product revenue grew by over 50% year over year, with a vitality index climbing to 21% of total sales [33] - Advanced surgery business experienced 17% growth year over year, driven by strong patient procedural growth rates [35] - Robotics and automation business unit revenue was up nearly 16% year over year, with a book to bill ratio of 1.05 [34] - Precision medicine business saw a 13% decline in sales year over year, but grew 10% sequentially [35] Market Data and Key Metrics Changes - Sales to medical device markets remained strong, driving sustained double-digit growth in advanced surgery [11] - Sales to industrial capital equipment saw declines year over year, but revenue has stabilized and bookings are rising at a double-digit pace [18] - Total China sales were up 15% year over year, despite challenges related to tariffs [80] Company Strategy and Development Direction - Long-term growth strategy focuses on markets with secular tailwinds such as precision and AI-driven robotics, minimally invasive surgery, and precision medicine [10] - The company aims to expand its portfolio into high-growth areas, increasing recurring consumables revenue to approximately 15% of sales [11] - The acquisition of Keon Technologies is expected to enhance the company's capabilities in RFID and AI-enhanced cloud-based software [30][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $50 million of incremental new product revenue for 2025, mainly due to strong outlook for next-generation medical devices [12] - The company is optimistic about the growth in physical AI applications, expecting sales to double in 2026 versus 2025 [15] - Management acknowledged the impact of tariffs but indicated that mitigation strategies are in place, with a focus on regional manufacturing [37][40] Other Important Information - The company expects full-year 2025 GAAP revenue to be approximately $970 million to $985 million, representing overall revenue growth of 2% to 4% [41] - Adjusted EBITDA for the full year of 2025 is expected to be $225 million to $230 million, or approximately a 23% EBITDA margin [42] - The company has a strong balance sheet and credit facility, positioning it well for future acquisitions [47] Q&A Session Summary Question: Can you break down your revenue guidance? - The full year guidance indicates reported organic growth will likely be down 1% to up 1% [53] Question: What is the FX implied impact for benefit? - The FX impact is expected to carry forward from the second quarter [55] Question: What are the biggest drivers of organic growth in 2026? - Key drivers include advanced surgery product ramps, physical AI applications, and strong design wins [60][64] Question: Have we seen the low point for the year in industrial and precision medicine? - Management believes the industrial business has reached its bottom and will improve sequentially [72] Question: What is the status of the $35 million held up due to tariffs? - This amount is factored into guidance, and recovery is not assumed yet [79] Question: Can you elaborate on the warehouse robotics win? - The technology involves sensing and fast, safe reactions, essential for advanced warehouse automation [90]

Financial Data and Key Metrics Changes - Revenue for the second quarter reached $241 million, representing a reported revenue growth of 2% and organic revenue declines of 2% [6][24] - Adjusted gross margins held at 46%, while adjusted EBITDA margin was 22%, both in line with expectations [7][28] - Non-GAAP adjusted earnings per share was $0.76, up 4% year over year [28] - Operating cash flow decreased to $15 million compared to $41 million in the prior year, primarily due to timing of tax payments and increased inventory purchases [28][29] Business Line Data and Key Metrics Changes - Medical market sales represented 54% of total sales, while advanced industrial markets accounted for 46% [30] - Advanced surgery business experienced 17% growth year over year, driven by strong patient procedural growth rates [33] - Revenue from the robotics and automation business unit was up nearly 16% year over year [32] - Precision medicine business saw a 13% decline in sales year over year, but grew 10% sequentially [33][34] Market Data and Key Metrics Changes - Customer orders grew 10% year over year and 20% sequentially, indicating a strengthening outlook [7] - Sales to medical device markets remained strong, with sustained double-digit growth in advanced surgery [10] - Total China sales increased by 15% year over year, despite uncertainties related to tariffs [75] Company Strategy and Development Direction - Long-term growth strategy focuses on markets with secular tailwinds, such as precision and AI-driven robotics, minimally invasive surgery, and precision medicine [8][10] - The company aims to expand its portfolio into high-growth areas, increasing recurring consumables revenue to approximately 15% of sales [10] - The acquisition of Keon Technologies is expected to enhance the company's capabilities in RFID and AI-enhanced software solutions [29][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $50 million of incremental new product revenue for 2025, mainly due to strong outlook for next-generation medical devices [11][24] - The company anticipates that the advanced surgery business revenue will nearly double by 2026 [11] - Despite challenges in the industrial capital equipment market, bookings are rising at a double-digit pace, indicating stabilization [18] Other Important Information - The company is committed to delivering sequential revenue and profit growth driven by innovation and operational discipline [37] - Tariff impacts are being mitigated through strategic shifts in production and cost reduction plans [35][36] - The company expects full-year 2025 GAAP revenue to be approximately $970 million to $985 million, representing overall revenue growth of 2% to 4% [38] Q&A Session Summary Question: Can you break down your revenue guidance? - The full-year organic growth is expected to be down 1% to up 1%, with the key driver being the Keon acquisition [52][56] Question: What are the biggest drivers of organic growth in 2026? - Key drivers include the continuation of advanced surgery product ramps, growth in physical AI applications, and strong design wins [57][61] Question: Have we seen the low point for the year in industrial and precision medicine? - Management believes both businesses have reached their bottom and expect sequential improvement moving forward [68][69] Question: What is the status of the $35 million held up due to tariffs? - This amount is factored into guidance, and recovery is not yet assumed due to ongoing uncertainties [74][75] Question: Can you elaborate on the warehouse robotics win? - The technology involves sensing capabilities and servo drives, essential for advanced warehouse automation applications [82][84]

Company Performance - Novanta reported quarterly earnings of $0.76 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and showing an increase from $0.73 per share a year ago, representing an earnings surprise of +2.70% [1] - The company posted revenues of $241.05 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.68% and increasing from $235.86 million year-over-year [2] - Over the last four quarters, Novanta has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Future Outlook - The sustainability of Novanta's stock price movement will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $259.39 million, and for the current fiscal year, it is $3.44 on revenues of $989.7 million [7] - The estimate revisions trend for Novanta was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Electronics - Miscellaneous Components industry, to which Novanta belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Exhibit 99.1 FOR IMMEDIATE RELEASE August 5, 2025 Novanta Announces Financial Results for the Second Quarter 2025 BOSTON, August 5, 2025 -- Novanta Inc. (Nasdaq: NOVT) ("Novanta" or the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, today reported financial results for the second quarter 2025. Adjusted Diluted EPS was $0.76 in the second quarter of 2025, compared to $0.73 in the second quarter of 2024. Adjusted EBITDA was $52.2 million in the second quar ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $233 million, reflecting organic growth of 2% and reported growth of 1% year over year [7][21] - Adjusted gross margins were 46%, consistent with expectations, and adjusted EBITDA was $50 million, showing a 1% increase year over year [24][7] - Free cash flow reached $32 million, exceeding expectations and demonstrating strong cash conversion capabilities [24][21] Business Line Data and Key Metrics Changes - The Automation Enabling Technologies segment saw sales grow by 5% year over year, driven by strength in robotics and automation [27] - The Medical Solutions segment experienced a revenue decline of 3% year over year, primarily due to a decrease in the precision medicine business unit [29] - New product sales grew strong double digits year over year, with the vitality index reaching nearly 25% of total sales in the Medical Solutions segment [30][17] Market Data and Key Metrics Changes - Sales to healthcare markets grew with strong patient procedure growth and hospital spending, driving high single-digit growth in the advanced surgery business [10] - The company expects to grow faster than the healthcare market in 2025, driven by new product launches in surgical robotics and minimally invasive surgery [11] - The industrial market is facing short-term uncertainty, but long-term growth potential remains strong in sectors like robotics and automation [16] Company Strategy and Development Direction - The company focuses on markets with long-term secular tailwinds, such as precision robotics, advanced minimally invasive surgery, and precision medicine [9] - A strategic tuck-in acquisition was completed in April 2025, with plans for further acquisitions remaining a top priority [9][20] - The company aims to mitigate tariff impacts through a multipronged strategy, including regional manufacturing and cost containment actions [14][32] Management's Comments on Operating Environment and Future Outlook - The management highlighted the current macroeconomic environment as one of the most uncertain and volatile since the early COVID pandemic days [12] - Despite challenges, the company remains confident in achieving $50 million of incremental new product revenue for 2025 [11][22] - The management expressed optimism about the company's resilience and ability to navigate near-term dynamics while focusing on long-term growth [23][47] Other Important Information - The company ended Q1 with gross debt of $392 million and a net leverage ratio of approximately 1.4 times, providing ample capacity for further acquisitions [25] - The company repurchased approximately $6 million worth of common shares in Q1 [26] - The anticipated impact of tariffs on profitability is being managed through various strategies, including price increases and sourcing adjustments [33][82] Q&A Session Summary Question: Can you provide insight into the acquisition's potential revenue contribution? - The upfront payment for the acquisition was around $66 million, with expectations for it to be slightly accretive to earnings per share in the first year [52] Question: Can you elaborate on the $20 million in annual cost savings? - The $20 million in savings will help achieve full-year EBITDA targets, with some actions being deferrals of investments that could be reinstated if demand improves [57][59] Question: What is the current trend in revenue guidance for Q2? - The company is currently trending towards the high end of the Q2 revenue guidance range, estimating revenue at $240 million [62] Question: Which end markets are experiencing deferrals in investments? - The most significant deferrals are related to US-based production to China, with additional uncertainty in life sciences and broader industrial markets [64][66] Question: How much of the revenue is tied to NIH funding? - The precision medicine business unit has exposure to NIH funding, with current declines largely attributed to funding cuts and general capital spending pullbacks in life sciences [72][75]

Financial Data and Key Metrics Changes - In Q1 2025, Novanta reported revenue of $233 million, reflecting organic growth of 2% and reported growth of 1% year over year [6][21] - Adjusted gross margins were 46%, consistent with expectations, while adjusted EBITDA was $50 million, showing a 1% increase year over year [24][6] - Free cash flow reached $32 million, exceeding expectations and demonstrating strong cash conversion capabilities [24][6] Business Line Data and Key Metrics Changes - Medical market sales accounted for 55% of total sales, while advanced industrial markets made up 45% [14] - The Automation Enabling Technologies segment saw sales grow by 5% year over year, driven by strength in robotics and automation [27] - The Medical Solutions segment experienced a revenue decline of 3% year over year, primarily due to a drop in the precision medicine business unit [28] Market Data and Key Metrics Changes - Sales to healthcare markets grew at a high single-digit rate, particularly in the advanced surgery business [9][10] - The precision medicine business unit faced disruptions from NIH funding cuts and tariffs, impacting overall sales [29][30] - Design wins in the automation enabling technology segment grew by strong double digits year over year, indicating robust demand despite market turbulence [16][27] Company Strategy and Development Direction - Novanta's strategy focuses on markets with long-term secular tailwinds, such as precision robotics and advanced minimally invasive surgery [7][8] - The company aims to achieve $50 million in incremental new product revenue in 2025, driven by new product launches [10][21] - The acquisition of Keyon is part of Novanta's strategy to expand into intelligent embedded software solutions [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current macroeconomic environment as uncertain and volatile, similar to the early COVID pandemic days [11] - The company is confident in its ability to navigate these challenges, citing enhanced operational scalability and resilience [12][22] - Despite short-term uncertainties, management remains optimistic about long-term growth opportunities in high-growth markets [21][40] Other Important Information - Novanta's gross debt was $392 million, with a gross leverage ratio of 1.9 times, providing capacity for further acquisitions [25] - The company repurchased approximately $6 million worth of common shares in Q1 2025 [25][26] - The vitality index for new products reached nearly 20% of total sales, indicating strong growth potential [17] Q&A Session Summary Question: Can you provide insights on the Keyon acquisition and its revenue contribution? - The upfront payment for Keyon was around $66 million, with expectations for it to be slightly accretive to earnings per share in the first year [51][52] Question: What are the sources of the $20 million in annual cost savings? - The $20 million in savings is primarily from deferrals of investments and prioritization of actions to mitigate tariff impacts [55][56] Question: How is Novanta addressing the impact of tariffs on its supply chain? - The company has implemented a tariff response playbook, which includes sourcing from second vendors and regionalizing manufacturing to mitigate costs [33][80] Question: What is the outlook for revenue in Q2 2025? - Novanta expects Q2 revenue in the range of $230 million to $240 million, trending towards the higher end of this range [41][61] Question: How much of Novanta's revenue is tied to NIH funding? - The precision medicine business unit is sensitive to NIH funding cuts, which have impacted revenue, but specific revenue percentages are difficult to quantify [70][73]

Group 1 - Novanta reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.68 per share, with an earnings surprise of 8.82% [1] - The company posted revenues of $233.37 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.28%, compared to $230.92 million in the same quarter last year [2] - Over the last four quarters, Novanta has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - The stock has underperformed, losing about 21.4% since the beginning of the year, while the S&P 500 has declined by 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $240.56 million, and for the current fiscal year, it is $3.48 on $1 billion in revenues [7] - The Zacks Industry Rank for Electronics - Miscellaneous Components is in the bottom 45% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Novanta reported GAAP revenue of $233.4 million for Q1 2025, a 1.1% increase from $230.9 million in Q1 2024[5]. - GAAP net income for Q1 2025 was $21.2 million, reflecting a 45% increase compared to $14.7 million in Q1 2024[6]. - Diluted EPS for Q1 2025 was $0.59, up from $0.41 in Q1 2024, while adjusted diluted EPS remained stable at $0.74[7][8]. - Organic revenue growth for Q1 2025 was 1.7%, excluding the impact of acquisitions and foreign currency fluctuations[5]. - Revenue for the three months ended March 28, 2025, was $233.366 million, a 1.9% increase from $230.916 million for the same period in 2024[25]. - Gross profit increased to $104.354 million, representing a gross profit margin of 44.7%, compared to $100.416 million and a margin of 43.5% in the prior year[25]. - Operating income rose to $32.421 million, with an operating margin of 13.9%, up from $25.607 million and an 11.1% margin in the same quarter last year[25]. - Net income for the quarter was $21.208 million, a significant increase of 44.6% compared to $14.676 million in the prior year[25]. - Basic and diluted earnings per share both increased to $0.59, compared to $0.41 for the same period in 2024[25]. - Adjusted EBITDA for Q1 2025 increased by 1% to $50 million compared to $49.7 million in Q1 2024[8]. - Adjusted EBITDA for the same period was $49,978,000, with an Adjusted EBITDA Margin of 21.4%, slightly down from $49,688,000 and 21.5% in the prior year[39]. Cash Flow and Liquidity - Operating cash flow for Q1 2025 was $31.7 million, slightly down from $32.8 million in Q1 2024[8]. - Cash and cash equivalents at the end of the period were $106.045 million, down from $113.989 million at the beginning of the period[29]. - The company reported a net cash provided by operating activities of $31.684 million, slightly down from $32.829 million in the prior year[29]. - Free Cash Flow for the three months ended March 28, 2025, was $32,937,000, which is 155.3% of Net Income, compared to $26,414,000 and 180.0% in the same period of 2024[42]. - Net Cash Provided by Operating Activities was $31,684,000, representing 149.4% of Net Income for the period[42]. - The company emphasizes the importance of Free Cash Flow as a key indicator of liquidity and ability to fund future growth[54]. Debt and Interest - Total Debt decreased to $390,131,000 as of March 28, 2025, down from $416,640,000 at the end of 2024, resulting in a Net Debt of $286,314,000[41]. - The company reported a decrease in interest expense from $8,254,000 in 2024 to $5,644,000 in 2025[39]. Business Strategy and Outlook - The company expects Q2 2025 GAAP revenue to be between $230 million and $240 million, with adjusted EBITDA projected between $50 million and $55 million[10]. - Novanta plans to implement cost containment actions targeting approximately $20 million in annualized savings due to trade policy changes and global disruptions[10]. - The company successfully closed a tuck-in acquisition in April 2025 and continues to focus on launching new products throughout the year[4]. - Novanta emphasizes innovation and operational excellence as part of its growth strategy in high-growth markets such as precision robotics and automation[9]. - The company did not report any revenue growth attributable to acquisitions for the period[40]. Segment Performance - The Automation Enabling Technologies segment generated $123.167 million in revenue, up from $117.389 million, while Medical Solutions revenue decreased to $110.199 million from $113.527 million[31]. - Adjusted gross profit margin improved to 46.2% from 46.3% year-over-year, with adjusted gross profit totaling $107.915 million[33].

Revenue Performance - Novanta reported Q4 2024 GAAP revenue of $238.1 million, a 12.5% increase from Q4 2023[5] - Full year 2024 GAAP revenue reached $949.2 million, up 7.7% compared to 2023[10] - Revenue for Q4 2024 was $238.06 million, a 12.5% increase from $211.57 million in Q4 2023[30] - Full-year revenue for 2024 reached $949.25 million, up 7.7% from $881.66 million in 2023[30] - Novanta's acquisition activities contributed to a 9.4% revenue increase in Q4 2024 compared to the same quarter in 2023[5] - Organic revenue growth for full year 2024 was a decrease of 1.6%, excluding acquisitions and foreign currency impacts[10] - Novanta expects full year 2025 GAAP revenue of approximately $1.0 billion, representing a 5% year-over-year growth[14] Earnings and Profitability - Q4 2024 GAAP diluted EPS was $0.46, compared to $0.35 in Q4 2023, reflecting a 31.4% increase[8] - Full year 2024 net income was $64.1 million, down from $72.9 million in 2023[11] - Net income for Q4 2024 was $16.46 million, compared to $12.51 million in Q4 2023, reflecting a 31.5% increase[30] - The diluted adjusted EPS for Q4 2024 was $0.76, compared to $0.63 in Q4 2023, indicating a 20.6% growth[40] - Adjusted Operating Income for the year ended December 31, 2023, was $619 million, reflecting a 17.8% operating margin[46] - Adjusted Diluted EPS for the same period was $3.02, with a total of 156 million weighted average shares outstanding[46] Cash Flow and Financial Position - Operating cash flow for Q4 2024 increased 58% to $61.6 million, compared to $39.0 million in Q4 2023[9] - Free Cash Flow for the year ended December 31, 2024, was $141.5 million, which is 221% of Net Income[51] - Cash Provided by Operating Activities for the year ended December 31, 2024, was $158.5 million, compared to $120.1 million in 2023[51] - Cash and cash equivalents at the end of Q4 2024 were $113.99 million, up from $105.05 million at the end of Q4 2023[34] - Total assets increased to $1.39 billion in 2024 from $1.23 billion in 2023, marking a 13.3% growth[32] - Total Debt as of December 31, 2024, increased to $416.6 million from $354.4 million in 2023[50] - Net Debt as of December 31, 2024, was $305.2 million, up from $253.0 million in 2023[50] Gross Profit and Margins - Gross profit for Q4 2024 was $108.23 million, representing a gross margin of 45.4%, compared to $96.56 million and 45.6% in Q4 2023[30] - The company’s gross profit margin for the Medical Solutions segment decreased to 40.8% in Q4 2024 from 46.4% in Q4 2023[38] - The adjusted gross profit margin for the Automation Enabling Technologies segment improved to 51.2% in Q4 2024, up from 47.7% in Q4 2023[38] - For the year ended December 31, 2024, the adjusted gross profit reached $241,256,000, slightly down from $242,316,000 in 2023[38] - The company reported a GAAP gross profit of $421,545,000 for the year ended December 31, 2024, compared to $399,897,000 in 2023, with a margin of 44.4%[38] - Adjusted Gross Profit Margin for the year ended December 31, 2023, was 22.3%[48] Research and Development - Research and development expenses for Q4 2024 were $25.29 million, a 7.8% increase from $23.45 million in Q4 2023[30] Future Outlook - The company anticipates adjusted EBITDA for 2025 to be in the range of $225 million to $235 million[14] - Full year 2024 adjusted EBITDA increased 7% to $209.8 million, compared to $196.2 million in 2023[12] - Adjusted EBITDA for the year ended December 31, 2024, was $209.8 million, representing a 22.1% margin[48] - The effective tax rate for adjusted results in Q4 2024 was 23.9%, compared to 20.8% in Q4 2023[40]

Financial Data and Key Metrics Changes - In Q4 2024, the company achieved $238 million in revenue, representing a 3% organic growth year over year and a 13% reported revenue increase [11] - For the full year 2024, total revenue was $949 million, with an 8% reported revenue growth and a 2% organic decline [13] - Adjusted EBITDA for Q4 2024 was $52 million, a 15% increase from the previous year, while for the full year, it grew 7% to $210 million [42][13] - Operating cash flow reached a record $62 million in Q4 2024, up 58% year over year, and $159 million for the full year, up 32% [45][13] - Non-GAAP adjusted earnings per share for Q4 2024 was $0.76, a 21% increase year over year, and $3.08 for the full year [45] Business Line Data and Key Metrics Changes - The medical market accounted for 55% of total sales in 2024, growing at a high single-digit rate, particularly in minimally invasive surgery and robotics [19] - Advanced industrial markets made up 45% of total sales, growing at a low double-digit rate despite challenges [20] - The automation enabling technologies segment saw a 9% year-over-year sales growth in Q4, while the medical solutions segment experienced a 17% reported revenue growth but a 4% organic decline [50][52] Market Data and Key Metrics Changes - Bookings grew 54% year over year in Q4 2024, driven by major OEM customers confirming new product launches for 2025 [12] - The book-to-bill ratio for the automation enabling technologies segment was 0.89% in Q4, while the medical solutions segment had a book-to-bill of 1.05% [47][54] - The company noted a gradual return of growth in end markets, particularly in robotics and automation applications [16] Company Strategy and Development Direction - The company plans to launch 50% more new products in 2025 compared to 2024, aiming for $50 million in incremental new product revenue [15][38] - The focus remains on leveraging the Novanta growth system to drive operational excellence and margin expansion [36][63] - The company is prioritizing acquisitions aligned with its cash flow compounding strategy, with a robust pipeline of potential targets [27][125] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025 despite market uncertainties, particularly in healthcare markets driven by strong patient procedure growth [14] - The geopolitical disruptions and market economic uncertainty are expected to impact capital spending in various sectors, but the company remains confident in its fundamentals [16][60] - Management highlighted the importance of adapting to changing market conditions and maintaining operational resilience [17] Other Important Information - The company has made significant organizational changes to better scale operations, appointing two co-COOs to lead different segments [29] - The Novanta Way culture is emphasized as a key differentiator in attracting and retaining talent [33] - The company aims to maintain a net leverage ratio below 1.4 times to ensure financial flexibility for acquisitions [46][126] Q&A Session Summary Question: Comments on DNA sequencing product lines and expected recovery - Management noted that shipments have normalized, but funding cuts from the National Institute of Health have created caution among customers, leading to increased volatility in the DNA sequencing market [84][85] Question: Outlook for organic growth in 2026 - Management expects accelerating organic growth in 2026, driven by innovation and new product launches, with a focus on consumables in the advanced surgery business [88][92] Question: Clarification on EUV and DUV subsystem product orders - Management confirmed initial orders for an intelligent subsystem product, with revenue expected to ramp in the second half of the year [98][100] Question: Update on humanoid robotics orders - Management indicated that while the humanoid category is small, it is growing rapidly, with increasing demand for high-precision robotics [102][104] Question: Guidance on the cadence of the $50 million incremental revenue - Management expects a gradual increase in revenue contribution throughout the year, with significant growth anticipated in the second half [111][114] Question: Update on short-cycle business and semiconductor demand - Management reported sustained growth in short-cycle businesses, with positive signs of demand filling in for the first half of 2025 [116] Question: Comfort level around leverage for acquisitions - Management reiterated a disciplined approach to acquisitions, aiming to stay below three times leverage while pursuing meaningful opportunities [125][126]