Novanta Inc. Delivers Solid Q4 Performance Amidst Challenging Market Conditions
Novanta Inc., a leading provider of innovative technologies and solutions for diverse industries, has reported a solid fourth-quarter performance despite navigating a challenging market environment. In its recent conference call, the company's management highlighted several key achievements and outlooks for 2025.
The company's revenue for the fourth quarter reached $238 million, marking a 3% organic growth year-over-year and a 13% reported revenue growth. Bookings grew significantly by 54% year-over-year and 5% sequentially, driven by major OEM customers confirming their 2025 new product launches. Adjusted gross margins were 47%, with core businesses expanding margins by 125 basis points.
Novaanta's Chief Executive Officer, Matthijs Glastra, expressed pride in the company's team for managing to deliver these results amidst a volatile environment. He emphasized that the company's business model is diversified across high-growth medical, life science, and advanced industrial markets, demonstrating resilience under various economic scenarios.
The company also highlighted its proprietary products and technologies as well-positioned in medical and advanced industrial applications with long-term secular tailwinds such as precision manufacturing, robotics, and automation. Glastra attributed the company's performance to its winning growth strategy focused on where it plays and how it wins, combined with the strength of its portfolio and the deployment of the Novanta Growth System.
For the full year 2024, Novaanta reported $949 million in revenue, with 8% reported revenue growth and a 2% organic decline. Adjusted gross margins were 47%, with core businesses expanding margins by roughly 120 basis points year-over-year. Adjusted EBITDA grew 7% to $210 million, and operating cash flow reached a record $159 million, up 32%.
Looking ahead to 2025, Novaanta remains optimistic despite market uncertainties. The company's sales to healthcare markets continue to thrive, driven by strong patient procedure growth and hospital spending, which is expected to result in high single-digit growth in its Medical business.
