Novanta Inc. reported a total revenue of $949.2 million for the fiscal year ending December 31, 2024, marking a 7.7% increase from $881.7 million in 2023. This growth was primarily driven by the acquisition of Motion Solutions, which contributed $82.4 million to revenue. However, the company experienced a decline in demand in both its advanced industrial and medical end markets, which partially offset the gains from the acquisition. Operating income remained relatively flat at $110.6 million, compared to $110.5 million in the previous year, as increased gross profit was counterbalanced by higher selling, general, and administrative expenses.
The company underwent significant strategic developments, including the completion of the Motion Solutions acquisition on January 2, 2024, for $192 million in cash. This acquisition is expected to enhance Novanta's product portfolio and expand its presence in the medical solutions segment. Additionally, Novanta restructured its financial reporting into two segments: Automation Enabling Technologies and Medical Solutions, which reflects a shift in its operational focus. The Medical Solutions segment saw a notable revenue increase of 19.9% to $458.6 million, driven by advanced surgery products and the Motion Solutions acquisition.
Operationally, Novanta's workforce comprised approximately 3,000 employees as of December 31, 2024, with a significant presence in Europe (50%) and the U.S. (41%). The company reported a backlog of $445.5 million, down from $473.1 million in 2023, indicating a potential decrease in future revenue. The Automation Enabling Technologies segment generated $490.6 million in revenue, a slight decline of 1.7% from the previous year, primarily due to reduced demand in advanced industrial markets.
The filing also highlighted challenges posed by macroeconomic conditions, including inflation, supply chain disruptions, and geopolitical tensions, which could impact future performance. Novanta anticipates continued improvements in supply chain efficiency and talent acquisition but remains cautious about the overall economic environment. The company plans to focus on expanding its product offerings and enhancing customer relationships to drive growth in both medical and advanced industrial markets.
Looking ahead, Novanta expects to leverage its recent acquisitions and operational restructuring to achieve sustainable growth. The company aims to increase its medical sales as a percentage of total revenue and enhance its market position through strategic investments in product development and customer engagement. Despite the challenges, Novanta's management remains optimistic about its ability to navigate the evolving market landscape and deliver value to shareholders.
About NOVANTA INC
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