Mar 28

Novanta Q1 2025 Earnings Report

Novanta reported financial results for the first quarter of 2025, showing a slight increase in revenue and net income compared to the same period in the previous year.

Key Takeaways

Novanta's first quarter 2025 results met or exceeded expectations, with GAAP revenue increasing 1% to $233.4 million and GAAP Net Income increasing 45% to $21.2 million. Adjusted EBITDA also saw a slight increase.

GAAP Revenue for Q1 2025 was $233.4 million, a 1.1% increase from Q1 2024.

GAAP Net Income increased by 45% to $21.2 million in Q1 2025.

Adjusted EBITDA increased by 1% to $50.0 million in Q1 2025.

GAAP Diluted EPS was $0.59 and Adjusted EPS was $0.74 for Q1 2025.

Total Revenue
$233M
Previous year: $231M
+1.1%
EPS
$0.74
Previous year: $0.74
+0.0%
Adjusted EBITDA
$50M
Previous year: $49.7M
+0.6%
Adjusted Gross Profit
$108M
Previous year: $107M
+1.0%
Adjusted Gross Profit Margin
46.2%
Previous year: 46.3%
-0.2%
Gross Profit
$104M
Previous year: $100M
+3.9%
Cash and Equivalents
$106M
Previous year: $93.5M
+13.4%
Free Cash Flow
$32.9M
Previous year: $26.4M
+24.7%
Total Assets
$1.39B
Previous year: $1.41B
-1.8%

Novanta

Novanta

Novanta Revenue by Segment

Forward Guidance

For the second quarter of 2025, Novanta expects GAAP revenue between $230 million and $240 million, Adjusted Gross Profit Margin of 45.5% to 46.5%, Adjusted EBITDA between $50 million and $55 million, and Adjusted Diluted EPS between $0.68 and $0.78.

Positive Outlook

  • Confidence in ability to adapt to challenges and maintain strong execution.
  • Focus on near-term execution, including launching new breakthrough products.
  • Investing in and advancing growth strategy in markets with long-term secular growth trends.
  • Utilizing the Novanta Growth System emphasizing innovation and operational excellence.
  • Reiterating Full Year 2025 Adjusted EBITDA guidance.

Challenges Ahead

  • Limited visibility due to rapid trade policy changes.
  • Heightened uncertainty caused by global trade disruptions.
  • Near-term revenue predictions challenging beyond the second quarter.
  • Potential purchasing deferrals by customers due to reciprocal tariffs.
  • Expectation to implement proactive cost containment actions to offset challenges.

Revenue & Expenses

Visualization of income flow from segment revenue to net income