Here are 1-2 brief analogies for Novanta (NOVT):

• Intel for highly specialized industrial and medical technology components.
• A Carl Zeiss for precision industrial and medical optics and motion control.

• Precision Motion Components: Provides highly precise electromechanical components and subsystems, including servo drives, motors, and air-bearing stages for critical industrial and medical applications.
• Photonics Products: Offers a range of laser products (CO2, ultrafast), optical components, and vision systems used in industrial processing, medical, and scientific fields.
• Medical & Robotic Solutions: Develops advanced components and robotic systems specifically for medical devices, surgical automation, and laboratory applications.

Novanta (NOVT) primarily sells its advanced technology solutions to other companies, specifically Original Equipment Manufacturers (OEMs) across a diverse range of industries. The company's customer base is highly fragmented, with no single customer accounting for 10% or more of its consolidated revenue in recent fiscal years, as stated in its SEC filings.

Given the absence of individually named major customers representing a significant portion of revenue, Novanta's customer base can be described by the following categories of companies that integrate Novanta's products into their own offerings:

• Medical & Life Sciences OEMs: This category includes companies that design and manufacture a wide array of medical devices, diagnostic equipment, surgical systems, patient monitoring solutions, laboratory automation, and biotechnology instruments. These OEMs integrate Novanta's precision motion, vision, and laser products into their sophisticated healthcare technologies.
• Advanced Industrial OEMs: This category comprises companies manufacturing high-precision industrial equipment. These OEMs operate in sectors such as industrial automation, robotics, machine tools, material processing (e.g., laser cutting, welding, marking), quality inspection, and specialized manufacturing machinery. They utilize Novanta's components and subsystems to enhance the performance and capabilities of their industrial products.

Novanta's business model is focused on providing critical components and subsystems to these OEMs rather than selling finished products directly to end-users or individuals.

Matthijs Glastra, Chair & Chief Executive Officer

Matthijs Glastra has served as Chair and Chief Executive Officer of Novanta Inc. since May 2021, and as Chief Executive Officer since September 2016. He joined Novanta in 2012 as Group President and was appointed Chief Operating Officer in 2015. Prior to Novanta, he spent 18 years at Philips, holding various leadership roles including Chief Executive Officer of Philips Entertainment Lighting and Chief Operating Officer of Philips Lumileds. He also served as Director of Corporate Strategy at Philips. He has experience leading and growing global technology businesses in advanced manufacturing and medical end-markets. Mr. Glastra also serves on the Board of Directors of IDEX Corporation.

Robert Buckley, Chief Financial Officer

Robert Buckley has been the Chief Financial Officer of Novanta Inc. since 2011. He has over two decades of experience in finance, corporate development, and investor relations. Before joining Novanta, he served as Chief Financial Officer and Vice President of PerkinElmer's Environmental Health business from 2008 to 2011, and Chief Financial Officer of PerkinElmer's Asian operations from 2005 to 2008. He also held various financial management roles at PerkinElmer and management positions at Georgeson & Co Inc and Honeywell International Inc.

John Burke, Chief Accounting Officer

John Burke has been the Chief Accounting Officer of Novanta Inc. since August 2024. Previously, he held positions at Novanta as Vice President of Global Accounting (2021-2024), Vice President of Accounting (2017-2021), and Assistant Corporate Controller (2011-2017). His prior experience includes working as the Manager of Technical Accounting and Reporting at MilliporeSigma and as an audit manager at PricewaterhouseCoopers LLP.

Sarah Betadam, Chief Information Officer; Chief Information Security Officer

Sarah Betadam has served as Chief Information Officer and Chief Information Security Officer of Novanta Inc. since 2021. Before this, she was the Senior Vice President of Global IT from 2020 to 2021 and Vice President of Business Applications from 2019 to 2020 at Novanta. Earlier in her career, she was the Director and Head of IT, Portfolio, and Program Management at Splunk Inc.

Chuck Ravetto, Co-Chief Operating Officer - Automation Enabling Technologies

Chuck Ravetto has been the Co-Chief Operating Officer of Novanta Inc. since 2022. He has held various executive and leadership roles in high-tech industrial and healthcare businesses, encompassing both hardware and software. His previous roles include Senior Vice President of Esko in Belgium and leading the KaVo Kerr dental business. He began his career at Videojet in engineering and product management leadership roles.

1. Failure to meet ambitious growth and profit margin forecasts amidst macroeconomic headwinds: Novanta's shares trade at a high valuation, demanding rapid earnings growth and margin improvement to justify its premium. There is a risk that profit margins or revenue expansion may not meet ambitious forecasts, particularly given the ongoing macroeconomic headwinds and a soft demand climate impacting segments like precision medicine, manufacturing, and robotics and automation, which have already seen a decline in organic sales.
2. Risks associated with restructuring activities and the integration of acquisitions: Novanta's strategy involves compounding growth through acquisitions, and the successful integration of these new businesses is critical for achieving projected growth and margin expansion. The company is also undergoing ongoing restructuring efforts, including manufacturing regionalization, which have led to significant one-time charges and may continue to pressure financial results and potentially offset expected operational gains.
3. Impact of global trade dynamics and persistent tariffs: Novanta is exposed to risks from global trade dynamics, including the potential for persistent higher tariffs. These tariffs pose a threat to margin expansion, and the company has also faced muted US export sales to China, adding another layer of risk to its international operations.

The clear emerging threat for Novanta (NOVT) is the accelerating competitive pressure from highly capable, lower-cost suppliers, particularly from China, across its core technology markets including photonics, machine vision, and precision motion components. These emerging competitors, often benefiting from significant state backing and domestic market advantages, are rapidly closing the technological gap with established Western players. This trend leads to intensified pricing pressure, particularly in industrial and volume applications, and threatens to erode market share for Novanta by offering increasingly sophisticated products at a lower cost, thereby altering the traditional competitive landscape and value proposition in key segments.

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Novanta Inc. (NOVT) is expected to drive future revenue growth over the next 2-3 years through a combination of strategic initiatives and market demand in its key sectors. The primary drivers include:

1. New Product Launches and Innovation: Novanta anticipates a significant increase in revenue from its robust pipeline of new product introductions. The company planned over 50 major new product launches in 2024, a 50% increase from 2023, with even more scheduled for 2025. These new offerings are expected to generate over $50 million in incremental revenue in 2025 and are considered Novanta's strongest new product lineup in a decade. The company's Vitality Index, which measures revenue from new products, is also projected to climb in 2025 as these products gain traction.
2. Strategic Acquisitions: Novanta is actively pursuing strategic acquisitions to expand its market presence and technology portfolio. The company has doubled its pipeline of potential acquisition targets, representing over $20 billion in potential revenue, and intends to close transactions in late 2024 and throughout 2025. Recent financial activities, such as a tangible equity units offering, are intended to provide flexibility for future acquisitions.
3. Growth in Medical and Advanced Industrial Sectors: Novanta operates in the medical and advanced industrial technology markets, where it expects sustained demand for its precision photonic and motion-control components. Specific areas like minimally invasive surgery and robotics for surgery demonstrated strong growth in 2024. The company foresees a broader recovery in the medical market in 2025, which is anticipated to contribute to overall revenue expansion.
4. Increased Design Wins: A key indicator of future revenue is the company's success in securing design wins with original equipment manufacturers (OEMs). Novanta reported double-digit growth in overall design wins in the first quarter of 2024 compared to the prior year, with a significant increase of over 40% in Q4 2024. This momentum in design wins is expected to support organic revenue growth in 2026.

Share Repurchases

• Novanta's Board of Directors authorized an additional $200 million for share repurchases on September 18, 2025.
• This authorization adds to the $31 million remaining from a 2020 Board authorization, bringing the total capacity for repurchases to $231 million.
• The share repurchase program does not have a time limit and can be suspended or discontinued at any time.

Share Issuance

• On November 7, 2025, Novanta priced a public offering of 11 million tangible equity units at $50.00 each, expecting to raise approximately $550 million in gross proceeds.
• Each tangible equity unit is comprised of a prepaid stock purchase contract and a senior amortizing note due in 2028.
• In April 2020, Novanta issued a special one-time restricted stock unit grant to employees (excluding certain officers) with a total fair value of $14.4 million.

Outbound Investments

• Acquisitions are Novanta's primary capital allocation priority, with over $1.1 billion deployed across 20 transactions in the last 10 years.
• In 2024, Novanta completed the acquisition of Motion Solutions.
• On August 11, 2022, Novanta acquired MPH Medical Devices S.R.O. for approximately €21.8 million ($22.4 million).

Capital Expenditures

• Capital expenditures were -$14.20 million in the last 12 months.
• Historical capital expenditures were $17.16 million in 2020, $19.96 million in 2021, $21.11 million in 2022, and $22.18 million in 2023.
• Capital expenditures have remained relatively stable, reflecting consistent investment in property, plant, and equipment.