Novanta (NOVT) - 2025 Q1 - Quarterly Results

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].