Did Novanta beat or miss consensus estimates last quarter?

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What guidance did Novanta's management provide for the next earnings period?

What does Novanta do and what are its main business segments?

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What were the key takeaways from Novanta's earnings call?

- **Q3 Beat**: $248M revenue (+1% YoY), 60% YoY new product growth, and 17% YoY bookings highlight strong execution.
- **Advanced Surgery Growth**: 17% YoY, with $50M incremental revenue in 2025 and $4B end market by 2030.
- **Robotics Momentum**: $1B addressable market by 2030, with warehouse automation deployments starting in 2026.
- **2026 Guidance**: Mid-single-digit organic growth, driven by new products and regional manufacturing resilience.
- **Share Buybacks**: $200M authorized, with $20M repurchased YTD.

**【CEO Summary Section】**
- Exceeded Q3 expectations with revenue of $248M (+1% YoY reported, -4% organic), driven by new products and commercial investments. New product revenue grew 60% YoY, bookings +17% YoY, and design wins +50% YoY.
- Advanced Surgery business (+17% YoY) is a key growth driver, with $50M incremental new product revenue in 2025 and a $4B end market opportunity by 2030.
- Robotics and Automation segment sees strong demand for warehouse automation and physical AI applications, with a $1B addressable market by 2030.
- Targeting mid-single-digit organic growth in 2026, supported by regional manufacturing initiatives and new product launches.

**【CFO Financial Commentary】**
- Q3 non-GAAP adjusted gross profit: $115M (46.5% margin), up 30bps YoY. Adjusted EBITDA: $58M (23% margin), +11% sequentially.
- Repurchased $20M in shares YTD, with $200M authorized for future buybacks. Full-year 2025 revenue guidance: $975M-$979M, EPS: $3.24-$3.30.
- Q4 2025 revenue expected $253M-$257M (+6%-8% YoY), driven by Advanced Surgery (+15% reported) and sequential improvement in Precision Medicine.
- Margins expected to stabilize at 46%, with regional manufacturing costs fully mitigated.

**【Q&A Highlights】**
- **Warehouse Automation**: Major e-commerce customer deployment begins in 2026, with significant revenue potential in 2027-2028.
- **Humanoid Robotics**: Early-stage design wins, with focus on force/torque sensors and embedded safety systems. Revenue contribution expected to grow post-2026.
- **Regional Manufacturing**: 22 facilities consolidated into regional hubs, with China and UK production already operational. Expected to offset tariffs and improve margins.
- **Precision Medicine**: Sequential growth (+3% QoQ) but challenges remain; multiomics adoption seen as long-term opportunity.
- **2026 Outlook**: Mid-single-digit organic growth driven by Advanced Surgery (+11% YoY) and Robotics/Automation, with cautious optimism on Precision Medicine.

Novanta Inc. (NOVT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NOVT

NOVT fundamentals

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