Novanta Inc (NOVT)

Novanta Inc. Announces $300 Million Private PlacementJune 9, 2026 6:15 AM
Business Wire Novanta Inc. ("Novanta" or the “Company”) announced today that it has entered into a securities purchase agreement for a private placement of the Company’s common shares (“Common Shares”) to institutional and other accredited investors that is expected to result in gross proceeds of approximately $300 million to the Company, before placement agent fees and offering expenses. Pursuant to the terms of the securities purchase agreement, the investors agreed to purchase an aggregate of 2,142,857 Common Shares at a purchase price of $140.00 per share. The private placement is expected to close on or about June 11, 2026, subject to satisfaction of customary closing conditions. The offer and sale of the foregoing Common Shares are being made in a transaction not involving a public offering and the Common Shares have not been registered under the Securities Act of 1933, as amended, and may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Concurrently with the execution of the securities purchase agreement, the Company and the investors also entered into a registration rights agreement pursuant to which the Company has agreed to register the resale of the Common Shares sold in the private placement. This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. Cautionary Statement Regarding Forward-Looking Statements Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding Novanta's intent, belief or expectations. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "could," "potential," "intend," "expect," "estimate," "believe," "plan," or other similar words or expressions, and include statements regarding the closing of the private placement, Novanta’s agreement to register the resale of the securities issued in the private placement and the expected amount of proceeds from the private placement. Although Novanta believes that expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its assumptions or expectations will be attained, and actual results and performance could differ materially from those projected. Factors which could have a material adverse effect on Novanta's operations and future prospects or which could cause events or circumstances to differ from the forward-looking statements include, but are not limited to the risks detailed from time to time in Novanta's filings with the SEC, including those set forth in its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements in such SEC filings. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect management's views as of the date of this press release. Novanta cannot guarantee future results, levels of activity, performance or achievements, and, except as required by law, it expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based. View source version on businesswire.com: https://www.businesswire.com/news/home/20260609910581/en/ Novanta Inc.
Investor Relations Contact:
Ray Nash
(781) 266-5137
InvestorRelations@novanta.com Original: Novanta Inc. Announces $300 Million Private Placement

Novanta to Present at Jefferies Global Healthcare Conference on Thursday, June 4, 2026May 15, 2026 4:27 PM
Business Wire Novanta Inc. (Nasdaq: NOVT) (the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that Robert Buckley, Chief Financial Officer, is scheduled to present at Jefferies Global Healthcare Conference on Thursday, June 4, 2026, in New York, NY. About Novanta 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 customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation and customer success. Novanta’s common shares are quoted on Nasdaq under the ticker symbol “NOVT.” More information about Novanta is available on the Company’s website at www.novanta.com. For additional information, please contact Novanta Inc. Investor Relations at (781) 266-5137 or InvestorRelations@novanta.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260515529512/en/ Novanta Inc.
Investor Relations Contact:
Ray Nash
(781) 266-5137
InvestorRelations@novanta.com Original: Novanta to Present at Jefferies Global Healthcare Conference on Thursday, June 4, 2026

Novanta to Present at Baird 2026 Global Consumer, Technology & Services Conference on Wednesday, June 3, 2026May 15, 2026 4:05 PM
Business Wire Novanta Inc. (Nasdaq: NOVT) (the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that Robert Buckley, Chief Financial Officer, is scheduled to present at Baird 2026 Global Consumer, Technology & Services Conference on Wednesday, June 3, 2026, in New York, NY. About Novanta Novanta is a leading global supplier of core technology solutions that give medical, life science, and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges. This enables Novanta to engineer proprietary technology solutions that deliver extreme precision and performance, tailored to our customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation, the Novanta Growth System, and our customers’ success. Novanta’s common shares are quoted on Nasdaq under the ticker symbol “NOVT.” More information about Novanta is available on the Company’s website at www.novanta.com. For additional information, please contact Novanta Inc. Investor Relations at (781) 266-5137 or InvestorRelations@novanta.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260515853388/en/ Novanta Inc.
Investor Relations Contact:
Ray Nash
(781) 266-5137 Original: Novanta to Present at Baird 2026 Global Consumer, Technology & Services Conference on Wednesday, June 3, 2026

Novanta Announces Financial Results for the First Quarter 2026May 11, 2026 4:45 PM
Business Wire First Quarter 2026 GAAP Revenue increased 10% to $258 million First Quarter 2026 GAAP Net Income was $21 million, and Adjusted EBITDA increased 14% to $57 million First Quarter 2026 GAAP Diluted EPS was $0.51, and Adjusted Diluted EPS increased 9% to $0.81 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 first quarter 2026. Financial Highlights Three Months Ended   (In millions, except per share amounts) April 3,     March 28,     2026     2025   GAAP           Revenue $ 257.7     $ 233.4   Operating Income $ 27.5     $ 32.4   Net Income $ 21.1     $ 21.2   Diluted EPS $ 0.51     $ 0.59   Non-GAAP*           Adjusted Operating Income $ 43.2     $ 39.1   Adjusted Diluted EPS $ 0.81     $ 0.74   Adjusted EBITDA $ 57.1     $ 50.0   *Reconciliations of GAAP to non-GAAP financial measures, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below. First Quarter “Novanta delivered another quarter of excellent bookings, growing 37% year-over-year and representing a 1.10 book-to-bill ratio, driven by continued new product momentum and strong commercial execution by our business teams,” said Matthijs Glastra, Chair and Chief Executive Officer. “We exceeded expectations with revenue growth of more than 10% year-over-year on a reported basis and 3% organically. Adjusted EBITDA advanced 14%, Adjusted Diluted EPS of $0.81 increased 9%, and Operating Cash Flow grew 63%.” For the first quarter of 2026, Novanta generated GAAP revenue of $257.7 million, an increase of $24.3 million or 10.4%, compared to prior year. The Company’s acquisition activities resulted in a net increase in revenue of $9.0 million or 3.8%. Year-over-year changes in foreign currency exchange rates favorably impacted revenue by $8.2 million or 3.5%. Organic Revenue Growth, which excludes the net impact of acquisitions and changes in foreign currency exchange rates, was an increase of 3.1% (see “Organic Revenue Growth” in the non-GAAP reconciliations below). For the first quarter of 2026, GAAP operating income was $27.5 million, compared to $32.4 million in the prior year. GAAP net income was $21.1 million, compared to $21.2 million in the prior year. GAAP diluted earnings per share (“EPS”) was $0.51, compared to $0.59 in the prior year. Diluted weighted average shares outstanding was 41.2 million for the first quarter of 2026. Adjusted Diluted EPS increased 9.5% to $0.81, compared to $0.74 in the prior year. Adjusted EBITDA increased 14.2% to $57.1 million, compared to $50 million in the prior year. Operating cash flow was $51.6 million, compared to $31.7 million in the prior year. The year-over-year increase in operating cash flow was primarily driven by improvements in net working capital. Financial Guidance “Strong bookings and a growing backlog support a step up to 6% to 8% organic revenue growth in the Second Quarter. We see building momentum across several of our end markets, especially in AI-driven advanced industrial and semiconductor markets, as well as advanced robotics, and minimally invasive and robotic surgery; all of which look set to compound as the year continues,” said Matthijs Glastra. “We remain confident in delivering strong organic revenue growth for the full year and rigorously executing in a dynamic trade and economic climate to drive meaningful shareholder value.” For the second quarter of 2026, the Company expects GAAP revenue to be in the range of $259 million to $264 million. The Company expects Adjusted EBITDA to be in the range of $58 million to $62 million and Adjusted Diluted EPS to be in the range of $0.81 to $0.86. The Company’s guidance assumes no significant changes in foreign exchange rates. For the full year 2026, the Company expects GAAP revenue to be in the range of $1,040 million to $1,055 million. The Company expects Adjusted EBITDA to be in the range of $245 million to $250 million and Adjusted Diluted EPS to be in the range of $3.50 to $3.65. The Company’s guidance assumes no significant changes in foreign exchange rates. Novanta provides earnings guidance on a non-GAAP basis and does not provide earnings guidance on a GAAP basis, with the exception of GAAP revenue guidance. A reconciliation of the Company’s forward-looking Adjusted EBITDA and Adjusted Diluted EPS guidance to the most directly comparable GAAP financial measures is not provided because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including acquisitions and related expenses; impact of purchase price allocations for recently completed acquisitions; future changes in the fair value of contingent considerations; future restructuring expenses; foreign exchange gains/(losses); significant discrete income tax expenses (benefits); benefits or expenses associated with the completion of tax audits; divestitures and related expenses; gains and losses from sale of real estate assets; costs related to product line closures; intangible asset impairment charges and related asset write-offs; and other charges reflected in the Company’s reconciliation of historical non-GAAP financial measures, the amounts of which, based on past experience, could be material. For additional information regarding Novanta’s non-GAAP financial measures, see “Use of Non-GAAP Financial Measures” below. Conference Call Information The Company will host a conference call on Tuesday, May 12, 2026 at 8:00 a.m. ET to discuss these results and to provide a business update. To access the call, please dial (888) 346-3959 prior to the scheduled conference call time. Alternatively, the conference call can be accessed online via a live webcast on the Events & Presentations page of the Investors section of the Company’s website at www.novanta.com. A replay of the audio webcast will be available approximately three hours after the conclusion of the call in the Investor Relations section of the Company’s website at www.novanta.com. The replay will remain available until Monday, July 06, 2026. Use of Non-GAAP Financial Measures The non-GAAP financial measures used in this press release are Organic Revenue Growth, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Income Before Income Taxes, Adjusted Income Tax Provision/(Benefit) and Effective Tax Rate, Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Free Cash Flow as a Percentage of Net Income, and Net Debt. The Company believes that these non-GAAP financial measures provide useful and supplementary information to investors regarding the operating performance of the Company. It is management’s belief that these non-GAAP financial measures would be particularly useful to investors because of the significant changes that have occurred outside of the Company’s day-to-day business in accordance with the execution of the Company’s strategy. This strategy includes streamlining the Company’s existing operations through site and functional consolidations, strategic divestitures and product line closures, expanding the Company’s business through significant internal investments, and broadening the Company’s product and service offerings through acquisitions of innovative and complementary technologies and solutions. The financial impact of certain elements of these activities, particularly acquisitions, divestitures, and site and functional restructurings, is often large relative to the Company’s overall financial performance and can adversely affect the comparability of its operating results and investors’ ability to analyze the business from period to period. The Company’s Adjusted EBITDA, Organic Revenue Growth and Adjusted Gross Profit Margin are used by management to evaluate operating performance, communicate financial results to the Board of Directors, benchmark results against historical performance and the performance of peers, and evaluate investment opportunities, including acquisitions and divestitures. In addition, Adjusted EBITDA, Organic Revenue Growth and Adjusted Gross Profit Margin are used to determine bonus payments for senior management and employees. The Company has also used in the past, and may use in the future, Adjusted Diluted EPS and Adjusted EBITDA as performance targets for certain performance-based restricted stock units. Accordingly, the Company believes that these non-GAAP financial measures provide greater transparency and insight into management’s method of analysis. Non-GAAP financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on the Company’s reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company’s financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release. Safe Harbor and Forward-Looking Information Certain statements in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as “expect,” “intend,” “anticipate,” “estimate,” “believe,” “future,” “target,” “could,” “should,” “may,” “plan,” “aim,” and other similar expressions. These forward-looking statements include, but are not limited to, the statements of Mr. Glastra in this press release; statements regarding anticipated financial performance and financial position, including our financial outlook for the second quarter of 2026; expectations for our future growth and prospects; expectations for our customers and for our end markets; expectations for our strategy and business model; expectations for new product launches and commercial activities; expectations with respect to productivity enhancements, expectations for margin and cash flow performance; expectations for our site regionalization strategy; expectations for capital deployment to acquisitions or other investment options; and other statements that are not historical facts. These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various important factors, including, but not limited to, the following: economic and political conditions and the effects of these conditions on our businesses and on our customers’ businesses, capital expenditures and level of business activities; our dependence upon our ability to respond to fluctuations in product demand; our ability to continuously innovate, to introduce new products in a timely manner, and to manage transitions to new product innovations effectively; customer order timing and other similar factors; disruptions or breaches in security of our or our third-party providers’ information technology systems; risks associated with our operations in foreign countries; our increased use of outsourcing in foreign countries; risks associated with increased outsourcing of components manufacturing; our exposure to increased tariffs, trade restrictions or taxes on our products; our ability to contain or reduce costs; violations of our intellectual property rights and our ability to protect our intellectual property against infringement by third parties; risk of losing our competitive advantage; our failure to successfully integrate recent and future acquisitions into our business; our ability to attract and retain key personnel; our restructuring and realignment activities; product defects or problems integrating our products with other vendors’ products; disruptions in the supply of certain key components and other goods from our suppliers; our failure to accurately forecast component and raw material requirements leading to additional costs and significant delays in shipments; production difficulties and product delivery delays or disruptions; our exposure to extensive medical device regulations, which may impede or hinder the approval, certification or sale of our products and, in some cases, may ultimately result in an inability to obtain approval or certification of certain products or may result in the recall or seizure of previously approved or certified products; potential penalties for violating foreign and U.S. federal and state healthcare laws and regulations; impact of healthcare industry cost containment and healthcare reform measures; changes in governmental regulations related to our business or products; actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards, and other requirements; our failure to implement new information technology systems successfully; changes in foreign currency rates; our failure to realize the full value of our intangible assets; our reliance on original equipment manufacturer customers; the loss of sales, or significant reduction in orders from, any major customers; increasing scrutiny and changing expectations from investors, customers, governments and other stakeholders and third parties with respect to corporate sustainability policies and practices; the effects of climate change and related regulatory responses; our exposure to the credit risk of some of our customers and in weakened markets; being subject to U.S. federal income taxation even though we are a non-U.S. corporation; changes in tax laws and fluctuations in our effective tax rates; any need for additional capital to adequately respond to business challenges or opportunities and repay or refinance our existing indebtedness, which may not be available on acceptable terms or at all; our existing indebtedness limiting our ability to engage in certain activities; volatility in the market price for our common shares; and our failure to maintain appropriate internal controls in the future. Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company’s operating results and financial condition are discussed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated by our subsequent filings with the Securities and Exchange Commission. Such statements are based on the Company’s beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to publicly update or revise any such forward-looking statements as a result of developments occurring after the date of this document except as required by law. About Novanta Novanta is a leading global supplier of core technology solutions that give medical, life science, and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges. This enables Novanta to engineer proprietary technology solutions that deliver extreme precision and performance, tailored to our customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation, the Novanta Growth System, and our customers’ success. Novanta’s common shares are quoted on Nasdaq under the ticker symbol “NOVT.” More information about Novanta is available on the Company’s website at www.novanta.com. For additional information, please contact Novanta Investor Relations at (781) 266-5137 or InvestorRelations@novanta.com. NOVANTA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars or shares, except per share amounts) (Unaudited)     Three Months Ended     April 3,     March 28,     2026     2025   Revenue $ 257,707     $ 233,366   Cost of revenue   144,129       129,012   Gross profit   113,578       104,354   Operating expenses:           Research and development and engineering   23,251       23,238   Selling, general and administrative   54,409       45,596   Amortization of purchased intangible assets   5,774       5,554   Restructuring, acquisition, and related costs   2,605       (2,455 ) Total operating expenses   86,039       71,933   Operating income   27,539       32,421   Interest income (expense), net   (1,843 )     (5,644 ) Foreign exchange transaction gains (losses), net   731       (368 ) Other income (expense), net   (73 )     9   Income before income taxes   26,354       26,418   Income tax provision (benefit)   5,255       5,210   Net Income $ 21,099     $ 21,208               Earnings per common share:           Basic $ 0.52     $ 0.59   Diluted $ 0.51     $ 0.59               Weighted average common shares outstanding—basic   40,425       36,024   Weighted average common shares outstanding—diluted   41,158       36,130   NOVANTA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars) (Unaudited)     April 3,     December 31,     2026     2025   ASSETS           Current Assets           Cash and cash equivalents $ 388,799     $ 380,871   Accounts receivable, net   173,934       184,880   Inventories   193,143       188,284   Prepaid expenses and other current assets   30,927       28,566   Total current assets   786,803       782,601   Property, plant and equipment, net   116,961       118,491   Operating lease assets   40,361       41,697   Intangible assets, net   170,299       180,776   Goodwill   643,379       647,348   Other assets   41,252       36,193   Total assets $ 1,799,055     $ 1,807,106   LIABILITIES AND STOCKHOLDERS’ EQUITY           Current Liabilities           Current portion of long-term debt $ 40,416     $ 38,291   Accounts payable   96,203       94,865   Accrued expenses and other current liabilities   84,173       79,211   Total current liabilities   220,792       212,367   Long-term debt   201,005       212,538   Operating lease liabilities   37,244       38,873   Other long-term liabilities   28,986       29,041   Total liabilities   488,027       492,819   Stockholders’ Equity:           Total stockholders’ equity   1,311,028       1,314,287   Total liabilities and stockholders’ equity $ 1,799,055     $ 1,807,106   NOVANTA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (Unaudited)     Three Months Ended     April 3,     March 28,     2026     2025   Cash flows from operating activities:           Net Income $ 21,099     $ 21,208   Adjustments to reconcile net income to net cash provided by operating activities:           Depreciation and amortization   14,160       13,563   Share-based compensation   9,796       7,100   Deferred income taxes   (2,877 )     (2,393 ) Loss (gain) on disposal of fixed assets   (248 )     (4,367 ) Other   1,749       1,150   Changes in assets and liabilities which (used)/provided cash, excluding effects from business acquisitions:           Accounts receivable   9,703       (12,188 ) Inventories   (6,827 )     (61 ) Other operating assets and liabilities   5,051       7,672   Net cash provided by operating activities   51,606       31,684   Cash flows from investing activities:           Purchases of property, plant and equipment   (4,138 )     (4,284 ) Proceeds from sale of property, plant and equipment   345       5,537   Net cash (used in) provided by investing activities   (3,793 )     1,253   Cash flows from financing activities:           Repayments of debt   (8,800 )     (29,719 ) Payments of issuance costs related to tangible equity units   (1,293 )     —   Payments of withholding taxes from share-based awards   (6,982 )     (6,669 ) Repurchases of common shares   (18,638 )     (6,157 ) Payments of contingent consideration related to acquisitions   (4,393 )     —   Other financing activities   (16 )     (186 ) Net cash used in financing activities   (40,122 )     (42,731 ) Effect of exchange rates on cash and cash equivalents   237       1,850   Increase (decrease) in cash and cash equivalents   7,928       (7,944 ) Cash and cash equivalents, beginning of period   380,871       113,989   Cash and cash equivalents, end of period $ 388,799     $ 106,045   NOVANTA INC. Revenue by Reportable Segment (In thousands of U.S. dollars) (Unaudited)     Three Months Ended     April 3,     March 28,     2026     2025   Revenue           Automation Enabling Technologies $ 131,244     $ 123,167   Medical Solutions   126,463       110,199   Total $ 257,707     $ 233,366   NOVANTA INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands of U.S. dollars) (Unaudited)    Adjusted Gross Profit and Adjusted Gross Profit Margin by Reportable Segment (Non-GAAP):     Three Months Ended     April 3,     March 28,     2026     2025   Automation Enabling Technologies           Gross Profit (GAAP) $ 62,751     $ 59,386   Gross Profit Margin (GAAP)   47.8 %     48.2 % Amortization of intangible assets   1,201       1,359   Operational transformation costs   18       —   Adjusted Gross Profit (Non-GAAP) $ 63,970     $ 60,745   Adjusted Gross Profit Margin (Non-GAAP)   48.7 %     49.3 %             Medical Solutions           Gross Profit (GAAP) $ 52,175     $ 45,961   Gross Profit Margin (GAAP)   41.3 %     41.7 % Amortization of intangible assets   2,558       2,202   Operational transformation costs   170       —   Adjusted Gross Profit (Non-GAAP) $ 54,903     $ 48,163   Adjusted Gross Profit Margin (Non-GAAP)   43.4 %     43.7 %             Unallocated           Gross Profit (GAAP) $ (1,348 )   $ (993 ) Operational transformation costs   37       —   Adjusted Gross Profit (Non-GAAP) $ (1,311 )   $ (993 )             Novanta Inc.           Gross Profit (GAAP) $ 113,578     $ 104,354   Gross Profit Margin (GAAP)   44.1 %     44.7 % Amortization of intangible assets   3,759       3,561   Operational transformation costs   225       —   Adjusted Gross Profit (Non-GAAP) $ 117,562     $ 107,915   Adjusted Gross Profit Margin (Non-GAAP)   45.6 %     46.2 % NOVANTA INC. Reconciliation of GAAP to Non-GAAP Financial Measures (Amounts in thousands except per share amounts) (Unaudited)    Adjusted Operating Income and Adjusted Diluted EPS (Non-GAAP):     Three Months Ended April 3, 2026     Operating Income     Operating Margin     Income Before Income Taxes     Income Tax Provision / (Benefit)     Effective Tax Rate     Net Income     Diluted EPS   GAAP results $ 27,539       10.7 %   $ 26,354     $ 5,255       19.9 %   $ 21,099     $ 0.51   Non-GAAP Adjustments:                                         Amortization of intangible assets   9,533       3.7 %     9,533                           Restructuring costs   1,525       0.6 %     1,525                           Acquisition and related costs   1,080       0.4 %     1,080                           Planning and design phase of the financial and operation system implementation   2,658       1.0 %     2,658                           Operational transformation costs   556       0.2 %     556                           EU medical device regulation charges   269       0.1 %     269                           Foreign exchange transaction (gains) losses, net               (731 )                         Tax effect of non-GAAP adjustments                     3,359                     Non-GAAP tax adjustments                     (752 )                   Total non-GAAP adjustments   15,621       6.0 %     14,890       2,607             12,283       0.30                                             Adjusted results (Non-GAAP) $ 43,160       16.7 %   $ 41,244     $ 7,862       19.1 %   $ 33,382     $ 0.81                                             Weighted average shares outstanding - Diluted                                       41,158   NOVANTA INC. Reconciliation of GAAP to Non-GAAP Financial Measures (Amounts in thousands except per share amounts) (Unaudited)    Adjusted Operating Income and Adjusted Diluted EPS (Non-GAAP):     Three Months Ended March 28, 2025     Operating Income     Operating Margin     Income Before Income Taxes     Income Tax Provision / (Benefit)     Effective Tax Rate     Net Income     Diluted EPS   GAAP results $ 32,421       13.9 %   $ 26,418     $ 5,210       19.7 %   $ 21,208     $ 0.59   Non-GAAP Adjustments:                                         Amortization of intangible assets   9,115       3.9 %     9,115                           Restructuring costs   (3,005 )     (1.3 )%     (3,005 )                         Acquisition and related costs   550       0.2 %     550                           Foreign exchange transaction (gains) losses, net               368                           Tax effect of non-GAAP adjustments                     1,006                     Non-GAAP tax adjustments                     446                     Total non-GAAP adjustments   6,660       2.8 %     7,028       1,452             5,576       0.15                                             Adjusted results (Non-GAAP) $ 39,081       16.7 %   $ 33,446     $ 6,662       19.9 %   $ 26,784     $ 0.74                                             Weighted average shares outstanding - Diluted                                       36,130   NOVANTA INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands of U.S. dollars) (Unaudited)    Adjusted EBITDA (Non-GAAP):     Three Months Ended     April 3,     March 28,     2026     2025   Net Income (GAAP) $ 21,099     $ 21,208   Net Income Margin   8.2 %     9.1 % Interest (income) expense, net   1,843       5,644   Income tax provision (benefit)   5,255       5,210   Depreciation and amortization   14,160       13,563   Share-based compensation   9,796       7,100   Restructuring, acquisition and related costs(1)   2,098       (3,106 ) Planning and design phase of the financial and operation system implementation   2,658       —   Operational transformation costs   556       —   EU medical device regulation charges   269       —   Other, net   (658 )     359   Adjusted EBITDA (Non-GAAP) $ 57,076     $ 49,978   Adjusted EBITDA Margin (Non-GAAP)   22.1 %     21.4 % (1) This excludes the impact of depreciation costs categorized as restructuring for the three months ended April 3, 2026 and March 28, 2025, of $0.5 million and $0.7 million, respectively. Organic Revenue Growth (Non-GAAP):     Three Months Ended April 3, 2026     Compared to     Three Months Ended March 28, 2025   Reported Revenue Growth/(Decline) (GAAP)   10.4 % Less: Change attributable to acquisitions   3.8 % Plus: Change due to foreign currency   (3.5 )% Organic Revenue Growth/(Decline) (Non-GAAP)   3.1 % Net Debt (Non-GAAP):     April 3,     December 31,     2026     2025   Total Debt (GAAP) $ 241,421     $ 250,829   Plus: Deferred financing costs   8,008       8,726   Gross Debt   249,429       259,555   Less: Cash and cash equivalents   (388,799 )     (380,871 ) Net Debt (Non-GAAP) $ (139,370 )   $ (121,316 ) Free Cash Flow (Non-GAAP):     Three Months Ended     April 3,     March 28,     2026     2025   Net Cash Provided by Operating Activities (GAAP) $ 51,606     $ 31,684   Less: Purchases of property, plant and equipment   (4,138 )     (4,284 ) Plus: Proceeds from sale of property, plant and equipment   345       5,537   Free Cash Flow (Non-GAAP) $ 47,813     $ 32,937   Net Income (GAAP) $ 21,099     $ 21,208   Net Cash Provided by Operating Activities as a Percentage of Net Income   244.6 %     149.4 % Free Cash Flow as a Percentage of Net Income   226.6 %     155.3 % Non-GAAP Financial Measures The following provides additional explanations for non-GAAP financial measures used by the Company, including explanations for certain non-GAAP adjustments that may not be present in the quarterly disclosures included in the current earnings release but have been used by the Company in the two most recent fiscal years. See the tables above for the calculations of the non-GAAP financial measures used in this earnings release. Organic Revenue Growth The Company defines the term “organic revenue” as revenue excluding the impact from business acquisitions, divestitures, product line discontinuations, and the effect of foreign currency translation. The Company uses the related term “organic revenue growth” to refer to the financial performance metric of comparing current period organic revenue with the reported revenue of the corresponding period in the prior year. The Company believes that this non-GAAP financial measure, when taken together with our GAAP financial measures, allows the Company and its investors to better measure the Company’s performance and evaluate long-term performance trends. Organic revenue growth also facilitates easier comparisons of the Company’s performance with prior and future periods and relative comparisons to its peers. The Company excludes the effect of foreign currency translation from these measures because foreign currency translation is subject to volatility and can obscure underlying business trends. The Company excludes the effect of acquisitions and divestitures because these activities can vary dramatically between reporting periods and between the Company and its peers, which the Company believes makes comparisons of long-term performance trends difficult for management and investors. Organic Revenue Growth is also used as a performance metric to determine bonus payments for senior management and employees. Adjusted Gross Profit and Adjusted Gross Profit Margin The calculation of Adjusted Gross Profit and Adjusted Gross Profit Margin excludes amortization of acquired intangible assets, inventory fair value adjustments related to business acquisitions, and inventory related charges associated with product line closures because: (i) the amounts are non-cash; (ii) the Company cannot influence the timing and amount of future expense recognition; and (iii) excluding such expenses provides investors and management better visibility into the underlying trends and performance of our businesses. The Company also excludes inventory related charges associated with product line closures and operational transformation costs as these costs occurred outside of the Company’s day-to-day business for the reasons described above in the introductory paragraphs of the “Use of Non-GAAP Financial Measures.” Adjusted Operating Income and Adjusted Operating Margin The calculation of Adjusted Operating Income and Adjusted Operating Margin excludes amortization of acquired intangible assets, inventory fair value adjustments related to business acquisitions, inventory related charges associated with product line closures, and operational transformation costs for the reasons described above for Adjusted Gross Profit and Adjusted Gross Profit Margin. The Company also excludes restructuring costs, acquisition and related costs, discrete costs related to the planning and design phase of a Financial and Operation system implementation, charges related to an insurance recovery, officer transition costs, and EU medical device regulation charges as the significant charges have occurred outside of the Company’s day-to-day business for the reasons described above in the introductory paragraphs of the “Use of Non-GAAP Financial Measures.” Adjusted Income Before Income Taxes The calculation of Adjusted Income Before Income Taxes excludes amortization of acquired intangible assets, inventory fair value adjustments related to business acquisitions, inventory related charges associated with product line closures, operational transformation costs, restructuring, acquisition and related costs, discrete costs related to the planning and design phase of a Financial and Operation system implementation, charges related to an insurance recovery, officer transition costs, and EU medical device regulation charges for Adjusted Operating Income and Adjusted Operating Margin. The Company also excludes foreign exchange transaction gains (losses) as well as the write-off of costs related to our debt refinancing from the calculation of Adjusted Income Before Income Taxes as the Company cannot fully influence the timing and amount of foreign exchange transaction gains (losses). Non-GAAP Income Tax Provision/(Benefit) and Effective Tax Rate Non-GAAP Income Tax Provision/(Benefit) and Effective Tax Rate are calculated based on the Adjusted Income Before Income Taxes by jurisdiction, the applicable tax rates in effect for the respective jurisdictions and the income tax effect of non-GAAP adjustments discussed above. In addition, the Company excludes significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions not related to current year activity, tax audits, certain changes in tax laws, and acquisition related tax planning actions on the Company’s effective tax rate. Adjusted Net Income Because Income Before Income Taxes is included in determining Net Income, the calculation of Adjusted Net Income also excludes amortization of acquired intangible assets, inventory fair value adjustments related to business acquisitions, inventory related charges associated with product line closures, operational transformation costs, restructuring, acquisition and related costs, discrete costs related to the planning and design phase of a Financial and Operation system implementation, charges related to an insurance recovery, officer transition costs, EU medical device regulation charges, write-off of costs related to our debt refinancing, and foreign exchange transaction gains (losses) for the reasons described above for Adjusted Income Before Income Taxes. In addition, the Company excludes (i) significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company’s effective tax rate; and (ii) the income tax effect of non-GAAP adjustments discussed above. Adjusted Diluted EPS Because Net Income is used in the calculation of Diluted EPS, Adjusted Diluted EPS excludes: (i) amortization of acquired intangible assets; (ii) inventory fair value adjustments related to business acquisitions; (iii) inventory related charges associated with product line closures; (iv) operational transformation costs; (v) restructuring, acquisition and related costs; (vi) discrete costs related to the planning and design phase of a Financial and Operation system implementation; (vii) officer transition costs; (viii) charges related to an insurance recovery; (ix) EU medical device regulation charges; (x) write-off of costs related to our debt refinancing (xi) foreign exchange transaction gains (losses); (xii) significant discrete income tax expenses (benefits) related to releases of valuation allowances, uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company’s effective tax rate; and (xiii) the income tax effect of non-GAAP adjustments for the reasons described above for Adjusted Net Income. Adjusted EBITDA and Adjusted EBITDA Margin The Company defines Adjusted EBITDA as income before deducting interest (income) expense, income tax provision (benefit), depreciation, amortization, non-cash share-based compensation, inventory fair value adjustments related to business acquisitions, inventory related charges associated with product line closures, restructuring, acquisition and related costs, discrete costs related to the planning and design phase of a Financial and Operation system implementation, charges related to an insurance recovery, officer transition costs, operational transformation costs, EU medical device regulation charges, and other non-operating (income) expense items, including foreign exchange transaction (gains) losses, costs related to our debt refinancing and net periodic pension costs of the Company’s frozen U.K. defined benefit pension plan for the reasons described above in the introductory paragraphs of the “Use of Non-GAAP Financial Measures.” Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of Revenue. In evaluating Adjusted EBITDA and Adjusted EBITDA Margin, you should be aware that in the future the Company may incur expenses that are the same as, or similar to, some of the adjustments in this presentation. Free Cash Flow and Free Cash Flow as a Percentage of Net Income The Company defines Free Cash Flow as net cash provided by operating activities less cash paid for purchases of property, plant and equipment and plus cash proceeds from sales of property, plant and equipment. Free Cash Flow as a Percentage of Net Income is defined as Free Cash Flow divided by Net Income. Management believes these non-GAAP financial measures are important indicators of the Company’s liquidity as well as its ability to service its outstanding debt and to fund future growth. Net Debt The Company defines Net Debt as its total debt as reported on the consolidated balance sheet plus unamortized deferred financing costs and less its cash and cash equivalents as of the end of the period presented. Management uses Net Debt to monitor the Company’s outstanding debt obligations that could not be satisfied by its cash and cash equivalents on hand. View source version on businesswire.com: https://www.businesswire.com/news/home/20260511252999/en/ Novanta Inc.
Investor Relations Contact:
Ray Nash
(781) 266-5137 Original: Novanta Announces Financial Results for the First Quarter 2026

Novanta Inc. Announces Schedule of First Quarter 2026 Earnings Release and Conference CallApril 14, 2026 11:00 AM
Business Wire
Novanta Inc. (Nasdaq: NOVT) (the “Company”), a trusted technology partner to medical and advanced technology equipment manufacturers, will release its first quarter 2026 results after the close of U.S. financial markets on Monday, May 11, 2026.


The Company will host a conference call on Tuesday, May 12, 2026, at 8:00 a.m. ET to discuss these results. To access the call, please dial (888) 346-3959 before the scheduled conference call time. Alternatively, the conference call can be accessed online via a live webcast on the Events & Presentations page of the Investors section of the Company’s website at www.novanta.com.


A replay of the audio webcast will be available approximately three hours after the conclusion of the call on the Events & Presentations page of the Investors section of the Company’s website at www.novanta.com. The replay will remain available until Monday, July 06, 2026.


About Novanta


Novanta is a leading global supplier of core technology solutions that give medical, life science, and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges. This enables Novanta to engineer proprietary technology solutions that deliver extreme precision and performance, tailored to our customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation, the Novanta Growth System, and our customers’ success. Novanta’s common shares are quoted on Nasdaq under the ticker symbol “NOVT.”


More information about Novanta is available on the Company’s website at www.novanta.com. For additional information, please contact Novanta Inc. Investor Relations at (781) 266-5137 or InvestorRelations@novanta.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260414469457/en/
Novanta Inc.

Investor Relations Contact:

Ray Nash

(781) 266-5137


Original: Novanta Inc. Announces Schedule of First Quarter 2026 Earnings Release and Conference Call

Novanta Joins NVIDIA Halos AI Systems Inspection LabMarch 16, 2026 4:40 PM
Business Wire
Novanta Inc. (NASDAQ: NOVT) announced today that it has joined NVIDIA Halos AI Systems Inspection Lab, the first ANSI National Accreditation Board (ANAB) accredited inspection lab for AI-driven physical systems. The lab helps accelerate certification and advance trust in key components and subsystems enabling the next generation of robotics and physical AI systems.


By participating in Halos AI Systems Inspection Lab, Novanta will work with NVIDIA to validate the interoperability of our motion control and sensing technologies with safety requirements of NVIDIA platforms, including NVIDIA IGX Thor. This collaboration is designed to streamline the adoption of critical technology solutions to help original equipment manufacturers (OEMs) of robotics reduce integration complexity, accelerate time-to-market, advance the adoption of robotic safety standards, and simplify system-level certification.


NVIDIA Halos is a comprehensive full-stack safety system for physical AI that unifies safety elements across vehicle and robotics architectures and their underlying AI models. It combines hardware and software components, tools, models, and design principles to safeguard AI-based, end-to-end AV and robotics stacks.


"As physical AI applications move from development to real-world deployment, the adoption of critical safety, performance and interoperability standards has become mission critical," said Chuck Ravetto, Co-Chief Operating Officer at Novanta. "At Novanta, our mission is to deliver innovation that matters — not only by providing our OEM customers and the broader industry with high-performance technology solutions for robotics, but by serving as a catalyst for the adoption of the safety and interoperability standards and certifications that will define the next era of robotic systems. By collaborating with NVIDIA through the Halos AI Systems Inspection Lab, we are reinforcing that commitment and helping pave the way for robotics to scale with confidence."


Halos AI Systems Inspection Lab supports ecosystem participants in validating and certifying technologies for use in AI-powered systems. Through this engagement, Novanta will align its hardware and subsystem technologies with NVIDIA hardware and software to support robotics developers in building advanced warehouse automation, industrial robotics, and emerging humanoid platforms.


Novanta's portfolio of core Robotic technologies is designed to deliver accurate control, safe movement, and reliable perception in demanding applications. As adoption of physical AI accelerates across logistics, manufacturing and other advanced industrial markets, validated interoperability with leading AI platforms will be critical to scaling deployment, and Novanta is committed to being a pivot point in building the standards-based foundation that makes that scale possible.


About Novanta


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 customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation and customer success. Novanta’s common shares are quoted on Nasdaq under the ticker symbol “NOVT.”


More information about Novanta is available on the Company’s website at www.novanta.com. For additional information, please contact Novanta Inc. Media Relations at MediaRelations@novanta.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260316901538/en/
Novanta Inc.

Media Relations Contact:

Cari Rutkoskie

MediaRelations@novanta.com


Original: Novanta Joins NVIDIA Halos AI Systems Inspection Lab

Novanta Announces Financial Results for the Fourth Quarter and Full Year 2025February 23, 2026 4:45 PM
Business Wire

Fourth Quarter 2025 GAAP Revenue increased 9% to $258 million, and GAAP Diluted EPS was $0.45



Fourth Quarter 2025 Adjusted Diluted EPS was $0.91, increased 20%, and Adjusted EBITDA was $61 million, increased 17%



Full Year 2025 GAAP Revenue increased 3% to $981 million, and GAAP Diluted EPS was $1.47



Full Year 2025 Adjusted Diluted EPS was $3.29, and Adjusted EBITDA was $221 million



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 fourth quarter and full year 2025.




Financial Highlights






Three Months Ended

December 31,






 






 






Year Ended December 31,






 








(In millions, except per share amounts)






2025






 






 






2024






 






 






2025






 






 






2024






 








GAAP






 






 






 






 






 






 






 






 






 






 






 








Revenue






$






258.3






 






 






$






238.1






 






 






$






980.6






 






 






$






949.2






 








Operating Income






$






24.8






 






 






$






26.7






 






 






$






94.0






 






 






$






110.6






 








Net Income






$






17.5






 






 






$






16.5






 






 






$






53.8






 






 






$






64.1






 








Diluted EPS






$






0.45






 






 






$






0.46






 






 






$






1.47






 






 






$






1.77






 








Non-GAAP*






 






 






 






 






 






 






 






 






 






 






 








Adjusted Operating Income






$






48.3






 






 






$






43.3






 






 






$






175.4






 






 






$






171.5






 








Adjusted Diluted EPS






$






0.91






 






 






$






0.76






 






 






$






3.29






 






 






$






3.08






 








Adjusted EBITDA






$






60.7






 






 






$






52.1






 






 






$






221.0






 






 






$






209.8






 







*Reconciliations of GAAP to non-GAAP financial measures, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below.


“Novanta exceeded expectations for revenue in the fourth quarter, delivering accelerated reported growth of 9% and a return to positive organic growth,” said Matthijs Glastra, Chair and Chief Executive Officer. “Solid operating performance resulted in strong 17% improvement in Adjusted EBITDA and 20% in Adjusted EPS. Looking forward, we believe we are well positioned for continued momentum into 2026 as we ended the quarter with a 25% increase in customer bookings, and an overall book-to-bill of 1.11x.”


Mr. Glastra continued, “For the full year 2025, customer bookings advanced 14%, new product revenue surpassed our targets, and we secured several new significant design wins with leading OEMs. The Keonn acquisition continues to perform better than planned, and the recent fundraise has enabled numerous opportunities for potential value-creating acquisitions. I'm very proud of our team’s disciplined execution on our strategic priorities throughout 2025, the resilience of our business, and our collective commitment to creating enhanced long-term value for shareholders.”


Fourth Quarter


For the fourth quarter of 2025, Novanta generated GAAP revenue of $258.3 million, an increase of $20.3 million or 8.5%, compared to prior year. The Company’s acquisition activities resulted in a net increase in revenue of $8.1 million or 3.4%. Year-over-year changes in foreign currency exchange rates favorably impacted revenue by $6.9 million or 2.9%. Organic Revenue Growth, which excludes the net impact of acquisitions and changes in foreign currency exchange rates, was an increase of 2.2% (see “Organic Revenue Growth” in the non-GAAP reconciliations below).


For the fourth quarter of 2025, GAAP operating income was $24.8 million, compared to $26.7 million in the prior year. GAAP net income was $17.5 million, compared to $16.5 million in the prior year. GAAP diluted earnings per share (“EPS”) was $0.45, compared to $0.46 in the prior year. Diluted weighted average shares outstanding was 38.7 million for the fourth quarter of 2025.


Adjusted Diluted EPS increased 20% to $0.91, compared to $0.76 in the prior year. Adjusted EBITDA increased 17% to $60.7 million, compared to $52.1 million in the prior year.


Operating cash flow was $8.8 million, compared to $61.6 million in the prior year. The year-over-year decrease in operating cash flow was primarily driven by the Company’s strategy to regionalize manufacturing, which resulted in temporary increases in net working capital. These regionalized manufacturing initiatives are expected to be largely completed by the end of the second quarter of 2026.


Full Year


For the full year 2025, Novanta generated GAAP revenue of $980.6 million, an increase of $31.4 million or 3.3%, compared to prior year. The Company’s acquisition activities resulted in a net increase in revenue of $21.8 million or 2.3%. Year-over-year changes in foreign currency exchange rates favorably impacted our revenue by $14.6 million or 1.5%. Organic Revenue Growth, which excludes the net impact of acquisitions and changes in foreign currency exchange rates, was a decrease of 0.5% (see “Organic Revenue Growth” in Reconciliation of GAAP to Non-GAAP Financial Measures below).


For the full year 2025, GAAP operating income was $94.0 million, compared to $110.6 million in the prior year. GAAP net income was $53.8 million, compared to $64.1 million in the prior year. GAAP diluted EPS was $1.47, compared to $1.77 in the prior year.


Adjusted Diluted EPS increased 6.8% to $3.29, compared to $3.08 in the prior year. Adjusted EBITDA increased 5.3% to $221.0 million, compared to $209.8 million in the prior year.


Operating cash flow was $64.1 million, compared to $158.5 million in the prior year. The year-over-year decrease in operating cash flow was primarily driven by the Company’s strategy to regionalize manufacturing to mitigate the effects of trade costs and disruptions on our customers when purchasing Novanta’s products, which resulted in temporary increases in net working capital.


The Company finished the year with approximately $251 million of total debt and $381 million of total cash. Net Debt, as defined in the non-GAAP reconciliation below, was ($121) million.


Financial Guidance


"In 2026, we expect to drive mid-single-digit organic growth with sequential quarterly improvements in bookings and revenue across all of our businesses, the benefit from new product launches, and strong commercial execution in our target markets,” said Matthijs Glastra. “We also plan to improve margins and cash flows through the Novanta Growth System and by successfully completing our regional manufacturing strategy, which should also lower costs for customers and improve resilience to trade disruptions. Finally, with enhanced financial flexibility, and now with the largest acquisition pipeline in the company's history, we expect to meaningfully deploy capital through acquisitions to create significant shareholder value."


For the full year 2026, the Company expects GAAP revenue to be in the range of $1,030 million to $1,050 million. The Company expects Adjusted EBITDA to be in the range of $245 million to $250 million and Adjusted Diluted EPS to be in the range of $3.50 to $3.65. The Company expects Operating cash flow to be in the range of $145 million to $185 million. The Company’s guidance assumes no significant changes in foreign exchange rates.


For the first quarter of 2026, the Company expects GAAP revenue to be in the range of $250 million to $255 million. The Company expects Adjusted EBITDA to be in the range of $56 million to $58 million and Adjusted Diluted EPS to be in the range of $0.75 to $0.80. The Company’s guidance assumes no significant changes in foreign exchange rates.


Novanta provides earnings guidance on a non-GAAP basis and does not provide earnings guidance on a GAAP basis, with the exception of GAAP revenue guidance. A reconciliation of the Company’s forward-looking Adjusted EBITDA and Adjusted Diluted EPS guidance to the most directly comparable GAAP financial measures is not provided because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including acquisitions and related expenses; impact of purchase price allocations for recently completed acquisitions; future changes in the fair value of contingent considerations; future restructuring expenses; foreign exchange gains/(losses); significant discrete income tax expenses (benefits); benefits or expenses associated with the completion of tax audits; divestitures and related expenses; gains and losses from sale of real estate assets; costs related to product line closures; intangible asset impairment charges and related asset write-offs; and other charges reflected in the Company’s reconciliation of historical non-GAAP financial measures, the amounts of which, based on past experience, could be material. For additional information regarding Novanta’s non-GAAP financial measures, see “Use of Non-GAAP Financial Measures” below.


Conference Call Information


The Company will host a conference call on Tuesday, February 24, 2026 at 8:00 a.m. ET to discuss these results and to provide a business update. To access the call, please dial (888) 346-3959 prior to the scheduled conference call time. Alternatively, the conference call can be accessed online via a live webcast on the Events & Presentations page of the Investors section of the Company’s website at www.novanta.com.


A replay of the audio webcast will be available approximately three hours after the conclusion of the call in the Investor Relations section of the Company’s website at www.novanta.com. The replay will remain available until Monday, April 27, 2026.


Use of Non-GAAP Financial Measures


The non-GAAP financial measures used in this press release are Organic Revenue Growth, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Income Before Income Taxes, Adjusted Income Tax Provision/(Benefit) and Effective Tax Rate, Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Free Cash Flow as a Percentage of Net Income, and Net Debt.


The Company believes that these non-GAAP financial measures provide useful and supplementary information to investors regarding the operating performance of the Company. It is management’s belief that these non-GAAP financial measures would be particularly useful to investors because of the significant changes that have occurred outside of the Company’s day-to-day business in accordance with the execution of the Company’s strategy. This strategy includes streamlining the Company’s existing operations through site and functional consolidations, strategic divestitures and product line closures, expanding the Company’s business through significant internal investments, and broadening the Company’s product and service offerings through acquisitions of innovative and complementary technologies and solutions. The financial impact of certain elements of these activities, particularly acquisitions, divestitures, and site and functional restructurings, is often large relative to the Company’s overall financial performance and can adversely affect the comparability of its operating results and investors’ ability to analyze the business from period to period.


The Company’s Adjusted EBITDA, Organic Revenue Growth and Adjusted Gross Profit Margin are used by management to evaluate operating performance, communicate financial results to the Board of Directors, benchmark results against historical performance and the performance of peers, and evaluate investment opportunities, including acquisitions and divestitures. In addition, Adjusted EBITDA, Organic Revenue Growth and Adjusted Gross Profit Margin are used to determine bonus payments for senior management and employees. The Company has also used in the past, and may use in the future, Adjusted Diluted EPS and Adjusted EBITDA as performance targets for certain performance-based restricted stock units. Accordingly, the Company believes that these non-GAAP financial measures provide greater transparency and insight into management’s method of analysis.


Non-GAAP financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on the Company’s reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company’s financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.


Safe Harbor and Forward-Looking Information


Certain statements in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as “expect,” “intend,” “anticipate,” “estimate,” “believe,” “future,” “target,” “could,” “should,” “may,” “plan,” “aim,” and other similar expressions. These forward-looking statements include, but are not limited to, the statements of Mr. Glastra in this press release; statements regarding anticipated financial performance and financial position, including our financial outlook for the full year 2026 and first quarter of 2026; expectations for our customers and for our end markets; expectations for our strategy and business model; expectations for new product launches and commercial activities; expectations with respect to productivity enhancements, expectations for margin and cash flow performance; expectations for our site regionalization strategy; expectations for capital deployment to acquisitions or other investment options; and other statements that are not historical facts.


These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various important factors, including, but not limited to, the following: economic and political conditions and the effects of these conditions on our customers’ businesses, capital expenditures and level of business activities; our dependence upon our ability to respond to fluctuations in product demand; our ability to continuously innovate, to introduce new products in a timely manner, and to manage transitions to new product innovations effectively; customer order timing and other similar factors; disruptions or breaches in security of our or our third-party providers’ information technology systems; risks associated with our operations in foreign countries; our increased use of outsourcing in foreign countries; risks associated with increased outsourcing of components manufacturing; our exposure to increased tariffs, trade restrictions or taxes on our products; our ability to contain or reduce costs; violations of our intellectual property rights and our ability to protect our intellectual property against infringement by third parties; risk of losing our competitive advantage; our failure to successfully integrate recent and future acquisitions into our business; our ability to attract and retain key personnel; our restructuring and realignment activities; product defects or problems integrating our products with other vendors’ products; disruptions in the supply of certain key components and other goods from our suppliers; our failure to accurately forecast component and raw material requirements leading to additional costs and significant delays in shipments; production difficulties and product delivery delays or disruptions; our exposure to extensive medical device regulations, which may impede or hinder the approval, certification or sale of our products and, in some cases, may ultimately result in an inability to obtain approval or certification of certain products or may result in the recall or seizure of previously approved or certified products; potential penalties for violating foreign and U.S. federal and state healthcare laws and regulations; impact of healthcare industry cost containment and healthcare reform measures; changes in governmental regulations related to our business or products; actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards, and other requirements; our failure to implement new information technology systems successfully; changes in foreign currency rates; our failure to realize the full value of our intangible assets; our reliance on original equipment manufacturer customers; the loss of sales, or significant reduction in orders from, any major customers; increasing scrutiny and changing expectations from investors, customers, governments and other stakeholders and third parties with respect to corporate sustainability policies and practices; the effects of climate change and related regulatory responses; our exposure to the credit risk of some of our customers and in weakened markets; being subject to U.S. federal income taxation even though we are a non-U.S. corporation; changes in tax laws and fluctuations in our effective tax rates; any need for additional capital to adequately respond to business challenges or opportunities and repay or refinance our existing indebtedness, which may not be available on acceptable terms or at all; our existing indebtedness limiting our ability to engage in certain activities; volatility in the market price for our common shares; and our failure to maintain appropriate internal controls in the future.


Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company’s operating results and financial condition are discussed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated by our subsequent filings with the Securities and Exchange Commission. Such statements are based on the Company’s beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to publicly update or revise any such forward-looking statements as a result of developments occurring after the date of this document except as required by law.


About Novanta


Novanta is a leading global supplier of core technology solutions that give medical, life science, and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges. This enables Novanta to engineer proprietary technology solutions that deliver extreme precision and performance, tailored to our customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation, the Novanta Growth System, and our customers’ success. Novanta’s common shares are quoted on Nasdaq under the ticker symbol “NOVT.”


More information about Novanta is available on the Company’s website at www.novanta.com. For additional information, please contact Novanta Investor Relations at (781) 266-5137 or InvestorRelations@novanta.com.




NOVANTA INC.




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




(In thousands of U.S. dollars or shares, except per share amounts)




(Unaudited)












 



 






Three Months Ended

December 31,






 






 






Year Ended December 31,






 








 






2025






 






 






2024






 






 






2025






 






 






2024






 








Revenue






$






258,349






 






 






$






238,060






 






 






$






980,600






 






 






$






949,245






 








Cost of revenue






 






145,086






 






 






 






129,835






 






 






 






545,316






 






 






 






527,700






 








Gross profit






 






113,263






 






 






 






108,225






 






 






 






435,284






 






 






 






421,545






 








Operating expenses:






 






 






 






 






 






 






 






 






 






 






 








Research and development and engineering






 






22,867






 






 






 






25,285






 






 






 






95,484






 






 






 






95,515






 








Selling, general and administrative






 






51,582






 






 






 






43,301






 






 






 






195,659






 






 






 






175,943






 








Amortization of purchased intangible assets






 






8,124






 






 






 






6,548






 






 






 






27,477






 






 






 






25,794






 








Restructuring, and acquisition related costs






 






5,858






 






 






 






6,384






 






 






 






22,652






 






 






 






13,709






 








Total operating expenses






 






88,431






 






 






 






81,518






 






 






 






341,272






 






 






 






310,961






 








Operating income






 






24,832






 






 






 






26,707






 






 






 






94,012






 






 






 






110,584






 








Interest income (expense), net






 






(3,999






)






 






 






(6,890






)






 






 






(21,472






)






 






 






(31,489






)








Foreign exchange transaction gains (losses), net






 






908






 






 






 






1,200






 






 






 






(2,190






)






 






 






413






 








Other income (expense), net






 






(64






)






 






 






(222






)






 






 






(708






)






 






 






(442






)








Income before income taxes






 






21,677






 






 






 






20,795






 






 






 






69,642






 






 






 






79,066






 








Income tax provision






 






4,206






 






 






 






4,331






 






 






 






15,813






 






 






 






14,979






 








Net income






$






17,471






 






 






$






16,464






 






 






$






53,829






 






 






$






64,087






 








 






 






 






 






 






 






 






 






 






 






 






 








Earnings per common share:






 






 






 






 






 






 






 






 






 






 






 








Basic






$






0.46






 






 






$






0.46






 






 






$






1.47






 






 






$






1.78






 








Diluted






$






0.45






 






 






$






0.46






 






 






$






1.47






 






 






$






1.77






 








 






 






 






 






 






 






 






 






 






 






 






 








Weighted average common shares outstanding—basic






 






38,237






 






 






 






35,980






 






 






 






36,589






 






 






 






35,950






 








Weighted average common shares outstanding—diluted






 






38,681






 






 






 






36,148






 






 






 






36,702






 






 






 






36,124






 









NOVANTA INC.




CONDENSED CONSOLIDATED BALANCE SHEETS




(In thousands of U.S. dollars)




(Unaudited)












 



 






December 31,






 






 






December 31,






 








 






2025






 






 






2024






 








ASSETS






 






 






 






 






 








Current Assets






 






 






 






 






 








Cash and cash equivalents






$






380,871






 






 






$






113,989






 








Accounts receivable, net






 






184,880






 






 






 






151,026






 








Inventories






 






188,284






 






 






 






144,606






 








Prepaid expenses and other current assets






 






28,566






 






 






 






24,027






 








Total current assets






 






782,601






 






 






 






433,648






 








Property, plant and equipment, net






 






118,491






 






 






 






113,135






 








Operating lease assets






 






41,697






 






 






 






42,908






 








Intangible assets, net






 






180,776






 






 






 






185,844






 








Goodwill






 






647,348






 






 






 






584,098






 








Other assets






 






36,193






 






 






 






28,878






 








Total assets






$






1,807,106






 






 






$






1,388,511






 








LIABILITIES AND STOCKHOLDERS’ EQUITY






 






 






 






 






 








Current Liabilities






 






 






 






 






 








Current portion of long-term debt






$






38,291






 






 






$






4,691






 








Accounts payable






 






94,865






 






 






 






76,890






 








Accrued expenses and other current liabilities






 






79,211






 






 






 






86,210






 








Total current liabilities






 






212,367






 






 






 






167,791






 








Long-term debt






 






212,538






 






 






 






411,949






 








Operating lease liabilities






 






38,873






 






 






 






40,548






 








Other long-term liabilities






 






29,041






 






 






 






22,525






 








Total liabilities






 






492,819






 






 






 






642,813






 








Stockholders’ Equity:






 






 






 






 






 








Total stockholders’ equity






 






1,314,287






 






 






 






745,698






 








Total liabilities and stockholders’ equity






$






1,807,106






 






 






$






1,388,511






 









NOVANTA INC.




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




(In thousands of U.S. dollars)




(Unaudited)












 



 






Three Months Ended

December 31,






 






 






Year Ended December 31,






 








 






2025






 






 






2024






 






 






2025






 






 






2024






 








Cash flows from operating activities:






 






 






 






 






 






 






 






 






 






 






 








Net income






$






17,471






 






 






$






16,464






 






 






$






53,829






 






 






$






64,087






 








Adjustments to reconcile net income to net cash provided by operating activities:






 






 






 






 






 






 






 






 






 






 






 








Depreciation and amortization






 






17,077






 






 






 






14,363






 






 






 






61,932






 






 






 






55,563






 








Share-based compensation






 






8,242






 






 






 






4,635






 






 






 






29,538






 






 






 






23,307






 








Deferred income taxes






 






(2,409






)






 






 






(4,001






)






 






 






(8,853






)






 






 






(15,909






)








Other non-cash items






 






2,359






 






 






 






1,171






 






 






 






2,743






 






 






 






12,546






 








Changes in assets and liabilities which provided/(used) cash, excluding effects from business acquisitions:






 






 






 






 






 






 






 






 






 






 






 








Accounts receivable






 






(14,846






)






 






 






9,894






 






 






 






(27,272






)






 






 






(6,193






)








Inventories






 






(8,789






)






 






 






4,365






 






 






 






(36,101






)






 






 






4,781






 








Other operating assets and liabilities






 






(10,300






)






 






 






14,671






 






 






 






(11,760






)






 






 






20,330






 








Net cash provided by operating activities






 






8,805






 






 






 






61,562






 






 






 






64,056






 






 






 






158,512






 








Cash flows from investing activities:






 






 






 






 






 






 






 






 






 






 






 








Acquisition of businesses, net of cash acquired and working capital adjustments






 






—






 






 






 






—






 






 






 






(64,291






)






 






 






(191,200






)








Purchases of property, plant and equipment






 






(3,672






)






 






 






(2,249






)






 






 






(15,627






)






 






 






(17,162






)








Other investing activities






 






59






 






 






 






173






 






 






 






5,596






 






 






 






173






 








Net cash used in investing activities






 






(3,613






)






 






 






(2,076






)






 






 






(74,322






)






 






 






(208,189






)








Cash flows from financing activities:






 






 






 






 






 






 






 






 






 






 






 








Borrowings under revolving credit facilities






 






10,000






 






 






 






—






 






 






 






82,805






 






 






 






198,000






 








Proceeds from issuance of equity component of tangible equity units, net of issuance costs






 






614,390






 






 






 






—






 






 






 






614,390






 






 






 






—






 








Repayments under term loan and revolving credit facilities






 






(316,520






)






 






 






(35,083






)






 






 






(365,725






)






 






 






(131,066






)








Repurchases of common shares






 






(19,065






)






 






 






—






 






 






 






(39,278






)






 






 






—






 








Other financing activities






 






(1,156






)






 






 






(533






)






 






 






(15,862






)






 






 






(9,991






)








Net cash provided by (used in) financing activities






 






287,649






 






 






 






(35,616






)






 






 






276,330






 






 






 






56,943






 








Effect of exchange rates on cash and cash equivalents






 






(1,191






)






 






 






(2,571






)






 






 






818






 






 






 






1,672






 








Increase (decrease) in cash and cash equivalents






 






291,650






 






 






 






21,299






 






 






 






266,882






 






 






 






8,938






 








Cash and cash equivalents, beginning of period






 






89,221






 






 






 






92,690






 






 






 






113,989






 






 






 






105,051






 








Cash and cash equivalents, end of period






$






380,871






 






 






$






113,989






 






 






$






380,871






 






 






$






113,989






 









NOVANTA INC.




Revenue by Reportable Segment




(In thousands of U.S. dollars)




(Unaudited)




NOVANTA INC.












 



 






Three Months Ended

December 31,






 






 






Year Ended December 31,






 








 






2025






 






 






2024






 






 






2025






 






 






2024






 








Revenue






 






 






 






 






 






 






 






 






 






 






 








Automation Enabling Technologies






$






130,680






 






 






$






127,798






 






 






$






500,835






 






 






$






490,620






 








Medical Solutions






 






127,669






 






 






 






110,262






 






 






 






479,765






 






 






 






458,625






 








Total






$






258,349






 






 






$






238,060






 






 






$






980,600






 






 






$






949,245






 









Reconciliation of GAAP to Non-GAAP Financial Measures




(In thousands of U.S. dollars)




(Unaudited)







 






Adjusted Gross Profit and Adjusted Gross Profit Margin by Reportable Segment (Non-GAAP):












 



 






Three Months Ended

December 31,






 






 






Year Ended December 31,






 








 






2025






 






 






2024






 






 






2025






 






 






2024






 








Automation Enabling Technologies






 






 






 






 






 






 






 






 






 






 






 








Gross Profit (GAAP)






$






62,702






 






 






$






63,916






 






 






$






239,506






 






 






$






234,975






 








Gross Profit Margin (GAAP)






 






48.0






%






 






 






50.0






%






 






 






47.8






%






 






 






47.9






%








Amortization of intangible assets






 






1,406






 






 






 






1,569






 






 






 






5,568






 






 






 






6,281






 








Adjusted Gross Profit (Non-GAAP)






$






64,108






 






 






$






65,485






 






 






$






245,074






 






 






$






241,256






 








Adjusted Gross Profit Margin (Non-GAAP)






 






49.1






%






 






 






51.2






%






 






 






48.9






%






 






 






49.2






%








 






 






 






 






 






 






 






 






 






 






 






 








Medical Solutions






 






 






 






 






 






 






 






 






 






 






 








Gross Profit (GAAP)






$






51,528






 






 






$






44,970






 






 






$






199,701






 






 






$






189,957






 








Gross Profit Margin (GAAP)






 






40.4






%






 






 






40.8






%






 






 






41.6






%






 






 






41.4






%








Amortization of intangible assets






 






2,837






 






 






 






2,119






 






 






 






10,708






 






 






 






8,492






 








Acquisition fair value adjustments






 






—






 






 






 






—






 






 






 






—






 






 






 






2,777






 








Inventory related charges associated with a product line closure






 






—






 






 






 






—






 






 






 






65






 






 






 






2,493






 








Adjusted Gross Profit (Non-GAAP)






$






54,365






 






 






$






47,089






 






 






$






210,474






 






 






$






203,719






 








Adjusted Gross Profit Margin (Non-GAAP)






 






42.6






%






 






 






42.7






%






 






 






43.9






%






 






 






44.4






%








 






 






 






 






 






 






 






 






 






 






 






 








Unallocated






 






 






 






 






 






 






 






 






 






 






 








Gross Profit (GAAP)






$






(967






)






 






$






(661






)






 






$






(3,923






)






 






$






(3,387






)








Adjusted Gross Profit (Non-GAAP)






$






(967






)






 






$






(661






)






 






$






(3,923






)






 






$






(3,387






)








 






 






 






 






 






 






 






 






 






 






 






 








Novanta Inc.






 






 






 






 






 






 






 






 






 






 






 








Gross Profit (GAAP)






$






113,263






 






 






$






108,225






 






 






$






435,284






 






 






$






421,545






 








Gross Profit Margin (GAAP)






 






43.8






%






 






 






45.5






%






 






 






44.4






%






 






 






44.4






%








Amortization of intangible assets






 






4,243






 






 






 






3,688






 






 






 






16,276






 






 






 






14,773






 








Acquisition fair value adjustments






 






—






 






 






 






—






 






 






 






—






 






 






 






2,777






 








Inventory related charges associated with a product line closure






 






—






 






 






 






—






 






 






 






65






 






 






 






2,493






 








Adjusted Gross Profit (Non-GAAP)






$






117,506






 






 






$






111,913






 






 






$






451,625






 






 






$






441,588






 








Adjusted Gross Profit Margin (Non-GAAP)






 






45.5






%






 






 






47.0






%






 






 






46.1






%






 






 






46.5






%









NOVANTA INC.




Reconciliation of GAAP to Non-GAAP Financial Measures




(Amounts in thousands except per share amounts)




(Unaudited)









 



Adjusted Operating Income and Adjusted Diluted EPS (Non-GAAP):









 



 






Three Months Ended December 31, 2025






 








 






Operating Income






 






 






Operating Margin






 






 






Income Before Income Taxes






 






 






Income Tax Provision






 






 






Effective Tax Rate






 






 






Net Income






 






 






Diluted EPS






 








GAAP results






$






24,832






 






 






 






9.6






%






 






$






21,677






 






 






$






4,206






 






 






 






19.4






%






 






$






17,471






 






 






$






0.45






 








Non-GAAP Adjustments:






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Amortization of intangible assets






 






12,367






 






 






 






4.8






%






 






 






12,367






 






 






 






 






 






 






 






 






 






 






 






 






 








Restructuring costs






 






3,705






 






 






 






1.4






%






 






 






3,705






 






 






 






 






 






 






 






 






 






 






 






 






 








Acquisition related costs






 






2,153






 






 






 






0.8






%






 






 






2,153






 






 






 






 






 






 






 






 






 






 






 






 






 








Planning and design phase of the financial and operation system implementation






 






2,392






 






 






 






0.9






%






 






 






2,392






 






 






 






 






 






 






 






 






 






 






 






 






 








Costs incurred for insurance recovery claim






 






2,854






 






 






 






1.1






%






 






 






2,854






 






 






 






 






 






 






 






 






 






 






 






 






 








Foreign exchange transaction (gains) losses, net






 






 






 






 






 






 






 






(908






)






 






 






 






 






 






 






 






 






 






 






 






 








Tax effect of non-GAAP adjustments






 






 






 






 






 






 






 






 






 






 






5,173






 






 






 






 






 






 






 






 






 






 








Non-GAAP tax adjustments






 






 






 






 






 






 






 






 






 






 






(314






)






 






 






 






 






 






 






 






 






 








Total non-GAAP adjustments






 






23,471






 






 






 






9.1






%






 






 






22,563






 






 






 






4,859






 






 






 






 






 






 






17,704






 






 






 






0.46






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjusted results (Non-GAAP)






$






48,303






 






 






 






18.7






%






 






$






44,240






 






 






$






9,065






 






 






 






20.5






%






 






$






35,175






 






 






$






0.91






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Weighted average shares outstanding - Diluted






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






38,681






 









NOVANTA INC.




Reconciliation of GAAP to Non-GAAP Financial Measures




(Amounts in thousands except per share amounts)




(Unaudited)









 



Adjusted Operating Income and Adjusted Diluted EPS (Non-GAAP):









 



 






Three Months Ended December 31, 2024






 








 






Operating Income






 






 






Operating Margin






 






 






Income Before Income Taxes






 






 






Income Tax Provision






 






 






Effective Tax Rate






 






 






Net Income






 






 






Diluted EPS






 








GAAP results






$






26,707






 






 






 






11.2






%






 






$






20,795






 






 






$






4,331






 






 






 






20.8






%






 






$






16,464






 






 






$






0.46






 








Non-GAAP Adjustments:






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Amortization of intangible assets






 






10,236






 






 






 






4.3






%






 






 






10,236






 






 






 






 






 






 






 






 






 






 






 






 






 








Restructuring costs






 






5,495






 






 






 






2.3






%






 






 






5,495






 






 






 






 






 






 






 






 






 






 






 






 






 








Acquisition related costs






 






889






 






 






 






0.4






%






 






 






889






 






 






 






 






 






 






 






 






 






 






 






 






 








Foreign exchange transaction (gains) losses, net






 






 






 






 






 






 






 






(1,200






)






 






 






 






 






 






 






 






 






 






 






 






 








Tax effect of non-GAAP adjustments






 






 






 






 






 






 






 






 






 






 






5,388






 






 






 






 






 






 






 






 






 






 








Non-GAAP tax adjustments






 






 






 






 






 






 






 






 






 






 






(1,047






)






 






 






 






 






 






 






 






 






 








Total non-GAAP adjustments






 






16,620






 






 






 






7.0






%






 






 






15,420






 






 






 






4,341






 






 






 






 






 






 






11,079






 






 






 






0.30






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjusted results (Non-GAAP)






$






43,327






 






 






 






18.2






%






 






$






36,215






 






 






$






8,672






 






 






 






23.9






%






 






$






27,543






 






 






$






0.76






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Weighted average shares outstanding - Diluted






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






36,148






 









NOVANTA INC.




Reconciliation of GAAP to Non-GAAP Financial Measures




(Amounts in thousands except per share amounts)




(Unaudited)









 



Adjusted Operating Income and Adjusted Diluted EPS (Non-GAAP):









 



 






Year Ended December 31, 2025






 








 






Operating Income






 






 






Operating Margin






 






 






Income Before Income Taxes






 






 






Income Tax Provision






 






 






Effective Tax Rate






 






 






Net Income






 






 






Diluted EPS






 








GAAP results






$






94,012






 






 






 






9.6






%






 






$






69,642






 






 






$






15,813






 






 






 






22.7






%






 






$






53,829






 






 






$






1.47






 








Non-GAAP Adjustments:






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Amortization of intangible assets






 






43,753






 






 






 






4.5






%






 






 






43,753






 






 






 






 






 






 






 






 






 






 






 






 






 








Restructuring costs






 






16,124






 






 






 






1.6






%






 






 






16,124






 






 






 






 






 






 






 






 






 






 






 






 






 








Acquisition related costs






 






6,528






 






 






 






0.7






%






 






 






6,528






 






 






 






 






 






 






 






 






 






 






 






 






 








Planning and design phase of the financial and operation system implementation






 






7,604






 






 






 






0.8






%






 






 






7,604






 






 






 






 






 






 






 






 






 






 






 






 






 








Costs incurred for insurance recovery claim






 






6,220






 






 






 






0.6






%






 






 






6,220






 






 






 






 






 






 






 






 






 






 






 






 






 








Officers transition costs






 






1,137






 






 






 






0.1






%






 






 






1,137






 






 






 






 






 






 






 






 






 






 






 






 






 








Inventory related charges associated with a product line closure






 






65






 






 






 






0.0






%






 






 






65






 






 






 






 






 






 






 






 






 






 






 






 






 








Write-off of unamortized deferred financing costs






 






 






 






 






 






 






 






426






 






 






 






 






 






 






 






 






 






 






 






 






 








Foreign exchange transaction (gains) losses, net






 






 






 






 






 






 






 






2,190






 






 






 






 






 






 






 






 






 






 






 






 






 








Tax effect of non-GAAP adjustments






 






 






 






 






 






 






 






 






 






 






16,966






 






 






 






 






 






 






 






 






 






 








Non-GAAP tax adjustments






 






 






 






 






 






 






 






 






 






 






—






 






 






 






 






 






 






 






 






 






 








Total non-GAAP adjustments






 






81,431






 






 






 






8.3






%






 






 






84,047






 






 






 






16,966






 






 






 






 






 






 






67,081






 






 






 






1.82






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjusted results (Non-GAAP)






$






175,443






 






 






 






17.9






%






 






$






153,689






 






 






$






32,779






 






 






 






21.3






%






 






$






120,910






 






 






$






3.29






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Weighted average shares outstanding - Diluted






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






36,702






 









NOVANTA INC.




Reconciliation of GAAP to Non-GAAP Financial Measures




(Amounts in thousands except per share amounts)




(Unaudited)










 



Adjusted Operating Income and Adjusted Diluted EPS (Non-GAAP):









 



 






Year Ended December 31, 2024






 








 






Operating Income






 






 






Operating Margin






 






 






Income Before Income Taxes






 






 






Income Tax Provision






 






 






Effective Tax Rate






 






 






Net Income






 






 






Diluted EPS






 








GAAP results






$






110,584






 






 






 






11.6






%






 






$






79,066






 






 






$






14,979






 






 






 






18.9






%






 






$






64,087






 






 






$






1.77






 








Non-GAAP Adjustments:






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Amortization of intangible assets






 






40,567






 






 






 






4.3






%






 






 






40,567






 






 






 






 






 






 






 






 






 






 






 






 






 








Restructuring costs






 






10,486






 






 






 






1.1






%






 






 






10,486






 






 






 






 






 






 






 






 






 






 






 






 






 








Acquisition related costs






 






3,223






 






 






 






0.3






%






 






 






3,223






 






 






 






 






 






 






 






 






 






 






 






 






 








Acquisition inventory fair value adjustments






 






2,777






 






 






 






0.3






%






 






 






2,777






 






 






 






 






 






 






 






 






 






 






 






 






 








Inventory related charges associated with a product line closure






 






2,493






 






 






 






0.3






%






 






 






2,493






 






 






 






 






 






 






 






 






 






 






 






 






 








Officers transition costs






 






1,411






 






 






 






0.1






%






 






 






1,411






 






 






 






 






 






 






 






 






 






 






 






 






 








Foreign exchange transaction (gains) losses, net






 






 






 






 






 






 






 






(413






)






 






 






 






 






 






 






 






 






 






 






 






 








Tax effect of non-GAAP adjustments






 






 






 






 






 






 






 






 






 






 






14,480






 






 






 






 






 






 






 






 






 






 








Non-GAAP tax adjustments






 






 






 






 






 






 






 






 






 






 






(1,139






)






 






 






 






 






 






 






 






 






 








Total non-GAAP adjustments






 






60,957






 






 






 






6.5






%






 






 






60,544






 






 






 






13,341






 






 






 






 






 






 






47,203






 






 






 






1.31






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjusted results (Non-GAAP)






$






171,541






 






 






 






18.1






%






 






$






139,610






 






 






$






28,320






 






 






 






20.3






%






 






$






111,290






 






 






$






3.08






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Weighted average shares outstanding - Diluted






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






36,124






 









NOVANTA INC.




Reconciliation of GAAP to Non-GAAP Financial Measures




(In thousands of U.S. dollars)




(Unaudited)












 



Adjusted EBITDA (Non-GAAP):












 



 






Three Months Ended

December 31,






 






 






Year Ended December 31,






 








 






2025






 






 






2024






 






 






2025






 






 






2024






 








Net Income (GAAP)






$






17,471






 






 






$






16,464






 






 






$






53,829






 






 






$






64,087






 








Net Income Margin






 






6.8






%






 






 






6.9






%






 






 






5.5






%






 






 






6.8






%








Interest (income) expense, net






 






3,999






 






 






 






6,890






 






 






 






21,472






 






 






 






31,489






 








Income tax provision






 






4,206






 






 






 






4,331






 






 






 






15,813






 






 






 






14,979






 








Depreciation and amortization






 






17,077






 






 






 






14,363






 






 






 






61,932






 






 






 






55,563






 








Share-based compensation






 






8,242






 






 






 






4,635






 






 






 






29,538






 






 






 






23,307






 








Restructuring and acquisition related costs






 






5,302






 






 






 






6,376






 






 






 






20,442






 






 






 






13,714






 








Acquisition inventory fair value adjustment






 






—






 






 






 






—






 






 






 






—






 






 






 






2,777






 








Planning and design phase of the financial and operation system implementation






 






2,392






 






 






 






—






 






 






 






7,604






 






 






 






—






 








Costs incurred for insurance recovery claim






 






2,854






 






 






 






—






 






 






 






6,220






 






 






 






—






 








Inventory related charges associated with a product line closure






 






—






 






 






 






—






 






 






 






65






 






 






 






2,493






 








Officers transition costs






 






—






 






 






 






—






 






 






 






1,137






 






 






 






1,411






 








Other non-operating income (expense), net






 






(844






)






 






 






(978






)






 






 






2,898






 






 






 






29






 








Adjusted EBITDA (Non-GAAP)






$






60,699






 






 






$






52,081






 






 






$






220,950






 






 






$






209,849






 








Adjusted EBITDA Margin (Non-GAAP)






 






23.5






%






 






 






21.9






%






 






 






22.5






%






 






 






22.1






%









Organic Revenue Growth (Non-GAAP):












 



 






Three Months Ended

December 31, 2025

Compared to

Three Months Ended

December 31, 2024






 






Year Ended

December 31, 2025

Compared to

Year Ended

December 31, 2024








Reported Revenue Growth/(Decline) (GAAP)






 






8.5






%






 






 






3.3






%








Less: Change attributable to acquisitions






 






3.4






%






 






 






2.3






%








Plus: Change due to foreign currency






 






(2.9






)%






 






 






(1.5






)%








Organic Revenue Growth/(Decline) (Non-GAAP)






 






2.2






%






 






 






(0.5






)%







Net Debt (Non-GAAP):




 






December 31,






 






 






December 31,






 








 






2025






 






 






2024






 








Total Debt (GAAP)






$






250,829






 






 






$






416,640






 








Plus: Deferred financing costs






 






8,726






 






 






 






2,519






 








Gross Debt






 






259,555






 






 






 






419,159






 








Less: Cash and cash equivalents






 






(380,871






)






 






 






(113,989






)








Net Debt (Non-GAAP)






$






(121,316






)






 






$






305,170






 









Free Cash Flow (Non-GAAP):












 



 






Three Months Ended

December 31,






 






 






Year Ended December 31,






 








 






2025






 






 






2024






 






 






2025






 






 






2024






 








Cash Provided by Operating Activities (GAAP)






$






8,805






 






 






$






61,562






 






 






$






64,056






 






 






$






158,512






 








Less: Purchases of property, plant and equipment






 






(3,672






)






 






 






(2,249






)






 






 






(15,627






)






 






 






(17,162






)








Plus: Proceeds from sale of property, plant and equipment






 






59






 






 






 






173






 






 






 






5,596






 






 






 






173






 








Free Cash Flow (Non-GAAP)






$






5,192






 






 






$






59,486






 






 






$






54,025






 






 






$






141,523






 








Net Income (GAAP)






$






17,471






 






 






$






16,464






 






 






$






53,829






 






 






$






64,087






 








Net Cash Provided by Operating Activities as a Percentage of Net Income






 






50






%






 






 






374






%






 






 






119






%






 






 






247






%








Free Cash Flow as a Percentage of Net Income






 






30






%






 






 






361






%






 






 






100






%






 






 






221






%







Non-GAAP Financial Measures


The following provides additional explanations for non-GAAP financial measures used by the Company, including explanations for certain non-GAAP adjustments that may not be present in the quarterly disclosures included in the current earnings release but have been used by the Company in the two most recent fiscal years. See the tables above for the calculations of the non-GAAP financial measures used in this earnings release.


Organic Revenue Growth


The Company defines the term “organic revenue” as revenue excluding the impact from business acquisitions, divestitures, product line discontinuations, and the effect of foreign currency translation. The Company uses the related term “organic revenue growth” to refer to the financial performance metric of comparing current period organic revenue with the reported revenue of the corresponding period in the prior year. The Company believes that this non-GAAP financial measure, when taken together with our GAAP financial measures, allows the Company and its investors to better measure the Company’s performance and evaluate long-term performance trends. Organic revenue growth also facilitates easier comparisons of the Company’s performance with prior and future periods and relative comparisons to its peers. The Company excludes the effect of foreign currency translation from these measures because foreign currency translation is subject to volatility and can obscure underlying business trends. The Company excludes the effect of acquisitions and divestitures because these activities can vary dramatically between reporting periods and between the Company and its peers, which the Company believes makes comparisons of long-term performance trends difficult for management and investors. Organic Revenue Growth is also used as a performance metric to determine bonus payments for senior management and employees.


Adjusted Gross Profit and Adjusted Gross Profit Margin


The calculation of Adjusted Gross Profit and Adjusted Gross Profit Margin excludes amortization of acquired intangible assets, inventory fair value adjustments related to business acquisitions, and inventory related charges associated with product line closures because: (i) the amounts are non-cash; (ii) the Company cannot influence the timing and amount of future expense recognition; and (iii) excluding such expenses provides investors and management better visibility into the underlying trends and performance of our businesses. The Company also excludes inventory related charges associated with product line closures as these costs occurred outside of the Company’s day-to-day business for the reasons described above in the introductory paragraphs of the “Use of Non-GAAP Financial Measures.”


Adjusted Operating Income and Adjusted Operating Margin


The calculation of Adjusted Operating Income and Adjusted Operating Margin excludes amortization of acquired intangible assets, inventory fair value adjustments related to business acquisitions, and inventory related charges associated with product line closures for the reasons described above for Adjusted Gross Profit and Adjusted Gross Profit Margin. The Company also excludes restructuring costs, acquisition and related costs, discrete costs related to the planning and design phase of a Financial and Operation system implementation, charges related to an insurance recovery, and officer transition costs, as the significant charges have occurred outside of the Company’s day-to-day business for the reasons described above in the introductory paragraphs of the “Use of Non-GAAP Financial Measures.”


Adjusted Income Before Income Taxes


The calculation of Adjusted Income Before Income Taxes excludes amortization of acquired intangible assets, inventory fair value adjustments related to business acquisitions, inventory related charges associated with product line closures, restructuring, acquisition and related costs, discrete costs related to the planning and design phase of a Financial and Operation system implementation, charges related to an insurance recovery, and officer transition costs, for Adjusted Operating Income and Adjusted Operating Margin. The Company also excludes foreign exchange transaction gains (losses) as well as the write-off of costs related to our debt refinancing from the calculation of Adjusted Income Before Income Taxes as the Company cannot fully influence the timing and amount of foreign exchange transaction gains (losses).


Non-GAAP Income Tax Provision/(Benefit) and Effective Tax Rate


Non-GAAP Income Tax Provision/(Benefit) and Effective Tax Rate are calculated based on the Adjusted Income Before Income Taxes by jurisdiction, the applicable tax rates in effect for the respective jurisdictions and the income tax effect of non-GAAP adjustments discussed above. In addition, the Company excludes significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions not related to current year activity, tax audits, certain changes in tax laws, and acquisition related tax planning actions on the Company’s effective tax rate.


Adjusted Net Income


Because Income Before Income Taxes is included in determining Net Income, the calculation of Adjusted Net Income also excludes amortization of acquired intangible assets, inventory fair value adjustments related to business acquisitions, inventory related charges associated with product line closures, restructuring, acquisition and related costs, discrete costs related to the planning and design phase of a Financial and Operation system implementation, charges related to an insurance recovery, officer transition costs, write-off of costs related to our debt refinancing, and foreign exchange transaction gains (losses) for the reasons described above for Adjusted Income Before Income Taxes. In addition, the Company excludes (i) significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company’s effective tax rate; and (ii) the income tax effect of non-GAAP adjustments discussed above.


Adjusted Diluted EPS


Because Net Income is used in the calculation of Diluted EPS, Adjusted Diluted EPS excludes: (i) amortization of acquired intangible assets; (ii) inventory fair value adjustments related to business acquisitions; (iii) inventory related charges associated with product line closures; (iv) restructuring, acquisition and related costs; (v) discrete costs related to the planning and design phase of a Financial and Operation system implementation; (vi) officer transition costs; (vii) charges related to an insurance recovery; (viii) write-off of costs related to our debt refinancing (ix) foreign exchange transaction gains (losses); (x) significant discrete income tax expenses (benefits) related to releases of valuation allowances, uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company’s effective tax rate; and (xi) the income tax effect of non-GAAP adjustments for the reasons described above for Adjusted Net Income.


Adjusted EBITDA and Adjusted EBITDA Margin


The Company defines Adjusted EBITDA as income before deducting interest (income) expense, income tax provision (benefit), depreciation, amortization, non-cash share-based compensation, inventory fair value adjustments related to business acquisitions, inventory related charges associated with product line closures, restructuring, acquisition and related costs, discrete costs related to the planning and design phase of a Financial and Operation system implementation, charges related to an insurance recovery, officer transition costs, and other non-operating (income) expense items, including foreign exchange transaction (gains) losses, costs related to our debt refinancing and net periodic pension costs of the Company’s frozen U.K. defined benefit pension plan for the reasons described above in the introductory paragraphs of the “Use of Non-GAAP Financial Measures.”


Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of Revenue.


In evaluating Adjusted EBITDA and Adjusted EBITDA Margin, you should be aware that in the future the Company may incur expenses that are the same as, or similar to, some of the adjustments in this presentation.


Free Cash Flow and Free Cash Flow as a Percentage of Net Income


The Company defines Free Cash Flow as net cash provided by operating activities less cash paid for purchases of property, plant and equipment and plus cash proceeds from sales of property, plant and equipment. Free Cash Flow as a Percentage of Net Income is defined as Free Cash Flow divided by Net Income. Management believes these non-GAAP financial measures are important indicators of the Company’s liquidity as well as its ability to service its outstanding debt and to fund future growth.


Net Debt


The Company defines Net Debt as its total debt as reported on the consolidated balance sheet plus unamortized deferred financing costs and less its cash and cash equivalents as of the end of the period presented. Management uses Net Debt to monitor the Company’s outstanding debt obligations that could not be satisfied by its cash and cash equivalents on hand.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260223300264/en/
Novanta Inc.

Investor Relations Contact:

Ray Nash

(781) 266-5137


Original: Novanta Announces Financial Results for the Fourth Quarter and Full Year 2025