US Market News
2月前
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
US Market News
5月前
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
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