Novanta Inc. reported its financial results for the third quarter of 2025, revealing a modest increase in revenue but a significant decline in profitability compared to the same period last year. The company generated total revenue of $247.8 million for the three months ended September 26, 2025, marking a 1.4% increase from $244.4 million in the prior year. For the nine months ended September 26, 2025, revenue reached $722.3 million, up 1.6% from $711.2 million in the same period last year. The growth was primarily driven by contributions from the recent acquisition of Keonn Technologies, which added $8.4 million to quarterly revenue.
Despite the revenue growth, Novanta's operating income fell sharply to $21.8 million for the third quarter, down 32.9% from $32.6 million a year earlier. This decline was attributed to increased selling, general, and administrative expenses, which rose by $7.1 million, as well as higher restructuring and acquisition-related costs. For the nine-month period, operating income decreased by 17.5% to $69.2 million, reflecting similar pressures from rising operational costs. Basic earnings per share for the third quarter were $0.30, down from $0.53 in the prior year, while diluted earnings per share also fell to $0.30 from $0.53.
In terms of strategic developments, Novanta completed the acquisition of Keonn Technologies on April 8, 2025, for approximately $75.1 million. This acquisition is expected to enhance Novanta's capabilities in RFID solutions within its Medical Solutions segment. The company also entered into a Fourth Amended and Restated Credit Agreement in June 2025, securing a credit facility of approximately $1 billion, which includes a revolving credit facility and term loans, aimed at supporting future growth and acquisitions.
Operationally, Novanta reported a total headcount of 1,500 employees as of September 26, 2025, reflecting a slight increase from the previous year. The company experienced a mixed performance across its segments, with the Automation Enabling Technologies segment reporting a revenue decline of 2.6% to $125.3 million, while the Medical Solutions segment saw a 5.9% increase to $122.5 million, bolstered by the acquisition and growth in advanced surgery products. The company also noted a favorable impact from foreign currency exchange rates, contributing an additional $4.4 million to revenue.
Looking ahead, Novanta remains focused on driving sustainable growth through strategic initiatives, including expanding its product offerings and enhancing operational efficiencies. The company anticipates that ongoing investments in research and development, along with the integration of Keonn, will position it well for future growth despite the current economic challenges and rising operational costs.
About NOVANTA INC
Novanta Inc. is a global provider of advanced technology solutions for medical and industrial OEMs. It designs and manufactures precision laser, motion control, imaging, and sensing components, serving markets like minimally invasive surgery, robotics, additive manufacturing, and life sciences. Its core value lies in proprietary innovations, high-performance products, and long-term customer relationships, supporting complex applications with a focus on quality, regulatory compliance, and technological leadership.
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