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Jun 27, 2025
Novanta Q2 2025 Earnings Report
Novanta's Q2 2025 earnings report showed a 2% increase in GAAP revenue to $241 million, with adjusted EPS of $0.76 and adjusted EBITDA of $52 million, while GAAP net income and diluted EPS decreased.
Key Takeaways
Novanta delivered solid second quarter financial results, meeting or exceeding expectations in revenue, margins, and profitability despite a challenging macroeconomic environment. The company achieved 10% growth in bookings and a book-to-bill ratio of 1.02, driven by mid-teens revenue growth in Advanced Surgery and Robotics & Automation businesses. New product introductions are on track to meet the $50 million sales target for the year.
GAAP Revenue increased by 2% to $241 million in Q2 2025 compared to the prior year.
Adjusted Diluted EPS was $0.76, exceeding the prior year's $0.73.
Adjusted EBITDA reached $52.2 million, up from $51.1 million in Q2 2024.
Organic Revenue Growth was (2.1)% for the quarter, impacted by acquisitions and foreign currency fluctuations.
Revenue by Segment
Forward Guidance
Novanta expects sequential revenue and profit growth in the coming quarters, driven by innovation, robust customer demand in secular growth markets, and operational discipline. The company updated its full-year 2025 financial guidance and provided guidance for the third quarter of 2025.
Positive Outlook
- Full year 2025 GAAP revenue expected between $970 million and $985 million.
- Full year 2025 Adjusted EBITDA expected between $225 million and $230 million.
- Full year 2025 Adjusted Diluted EPS expected between $3.22 and $3.36.
- Third quarter 2025 GAAP revenue expected between $244 million and $247 million.
- Third quarter 2025 Adjusted EBITDA expected between $57 million and $60 million.
Challenges Ahead
- Guidance assumes no significant changes in foreign exchange rates, which could impact results.
- Reconciliation of forward-looking non-GAAP guidance to GAAP is not provided due to inherent difficulties in forecasting certain material amounts.
- Potential for future expenses similar to current non-GAAP adjustments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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