Novanta (NOVT) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 revenue with 9% reported growth (8.5% YoY to $258.3M), 2% organic growth, and 4% sequential growth; full-year revenue reached $980.6M, the highest ever.

• Bookings surged 25% YoY in Q4 and 14% for the full year, with every business unit posting double-digit bookings growth and a book-to-bill ratio of 1.11x at year-end.

• New product revenue grew over 60% for the year and 80% in Q4, exceeding targets and reflecting successful innovation and commercial execution.

• Adjusted EBITDA grew 17% YoY in Q4 to $60.7M; Adjusted Diluted EPS up 20% in Q4 to $0.91 and 7% for the full year to $3.29.

• The Keonn acquisition outperformed expectations, contributing $9M incremental revenue in Q4.

Financial highlights

• Q4 non-GAAP adjusted gross profit: $118M (45.5% margin), down 150 bps YoY; full-year adjusted gross profit: $452M (46% margin).

• Q4 Adjusted EBITDA: $61M (23.5% margin), up 17% YoY; full-year Adjusted EBITDA: $221M (22.5% margin), up 5.3% YoY.

• Q4 non-GAAP adjusted EPS: $0.91, up 20% YoY; full-year adjusted EPS: $3.29, up 7% YoY.

• Q4 operating cash flow: $9M (vs. $62M prior year); full-year: $64M, impacted by inventory builds and AR timing.

• Ended Q4 with $381M cash, $251M total debt, net debt position of negative $121M, net leverage ratio -0.5x.

• Repurchased $19M in stock in Q4, $40M for the year.

Outlook and guidance

• 2026 GAAP revenue expected at $1.03B–$1.05B (4–6% organic growth); Q1 organic growth +1% to +3%, accelerating to +5% to +7% in Q2 and similar in H2.

• 2026 adjusted gross margin target: ~47% (100 bps expansion); Adjusted EBITDA: $245M–$250M (24% margin, low double-digit growth).

• 2026 adjusted EPS guidance: $3.50–$3.65 (up to 11% YoY), including $0.22–$0.24 dilution from equity raise and $0.14 from one-time equity grant.

• 2026 operating cash flow guidance: $145M–$185M, more than double 2025.

• Q1 2026 revenue: $250M–$255M (+1% to +3% organic, +7% to +9% reported); Adjusted EPS: $0.75–$0.80 (+8% YoY).