Novanta Q4 Earnings Call Highlights

Novanta (NASDAQ:NOVT) executives said the institution returned to integrated maturation and delivered double-digit nett maturation successful the 4th fourth of 2025, supported by a crisp summation successful bookings and accelerating contributions from caller products. On the company’s net call, absorption besides outlined a 2026 outlook calling for mid-single-digit integrated gross growth, borderline enlargement arsenic manufacturing transfers are completed, and a rebound successful currency generation.

Chair and CEO Matthijs Glastra said Novanta posted grounds fourth-quarter gross with 9% reported growth, 2% integrated growth, and 4% sequential growth. Bookings accrued 25% year-over-year and 12% sequentially, producing a 1.11 book-to-bill. Glastra emphasized that each concern delivered double-digit bookings maturation and a affirmative book-to-bill successful the aforesaid 4th for the archetypal clip since 2022.

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For the afloat year, Novanta reported $981 cardinal successful revenue, which absorption called the company’s biggest twelvemonth ever. Full-year bookings grew 14%, with a 1.01 book-to-bill.

Management pointed to important maturation successful caller products. Glastra said new merchandise gross grew much than 60% for the afloat year, including more than 80% maturation successful the 4th quarter, which helium said exceeded expectations and reflected the company’s investments successful commercialized excellence and innovation.

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CFO Robert Buckley added that fourth-quarter caller merchandise income maturation lifted the company’s vitality scale to 24% of sales, portion the full-year vitality scale was 22%. Buckley besides said full-year company-wide plan wins were up much than 20% versus the anterior year.

By extremity market, Buckley said aesculapian represented 53% of full sales successful some the 4th and the afloat year, with precocious concern astatine 47%. He besides noted aesculapian consumables were 15% of full-year sales and grew astatine a “strong double-digit rate,” which helium attributed to a precocious attachment complaint for next-generation insufflator launches.

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While absorption highlighted beardown gross and net growth, Glastra said fourth-quarter margins and currency travel came successful beneath expectations acceptable connected the third-quarter telephone owed to a deliberate operational choice. As the 4th progressed, Novanta prioritized lawsuit deliveries implicit the gait of determination manufacturing transfers, which led to impermanent dual moving costs and elevated inventory.