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Novanta (NOVT) investor relations material
Novanta Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 revenue reached $248 million, up 1.4% year-over-year, driven by acquisitions and favorable currency, though organic revenue declined 3.8–4%.
Adjusted EPS was $0.87, up 2% year-over-year and 14% sequentially, while GAAP diluted EPS fell to $0.30 from $0.53 due to higher SG&A, restructuring, and R&D expenses.
Bookings increased 17% year-over-year, with design win activity up 50% year-to-date and a book-to-bill ratio of 1.03.
New product revenue grew nearly 60% year-over-year, with strong performance in advanced surgery and robotics/automation; medical markets accounted for 53% of year-to-date revenue.
Acquisition of Keonn Technologies contributed $8.4 million to Q3 revenue and $13.7 million to nine-month revenue.
Financial highlights
Adjusted gross profit was $115 million (46.5% margin), up 30 bps year-over-year; GAAP gross margin was 44.8%.
Adjusted EBITDA was $58 million (23% margin), up 2% year-over-year and 11% sequentially.
Operating cash flow was $8–8.5 million, impacted by higher inventory, tax payments, and restructuring/acquisition costs.
Net debt increased to $368 million, with gross leverage at 2.2x and net leverage at 1.7x.
$14–21.1 million in stock repurchases in Q3; $20–21.1 million year-to-date; board authorized an additional $200 million for buybacks.
Outlook and guidance
Q4 2025 GAAP revenue expected at $253–$257 million (3% organic, 6–8% reported growth year-over-year).
Full-year 2025 GAAP revenue expected at $975–$979 million; adjusted EPS: $3.24–$3.30; adjusted EBITDA: $222–$225 million.
Q4 adjusted EPS guidance: $0.87–$0.93; adjusted EBITDA: $62–$65 million.
2026 baseline outlook: mid-single-digit organic growth, with advanced surgery and robotics/automation as key drivers.
Management expects to complete the 2025 restructuring program by end of 2026, with total charges around $20 million.
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