Novanta authorizes $200 million share repurchase program

Published 18/09/2025, 13:06
Novanta authorizes $200 million share repurchase program

BOSTON - Novanta Inc. (NASDAQ:NOVT), a medical technology company with a market capitalization of $4.06 billion, announced Thursday that its Board of Directors has authorized an additional $200 million for repurchasing the company’s outstanding common shares, bringing the total available capacity to $231 million when combined with $31 million remaining from its 2020 authorization. According to InvestingPro data, the company has demonstrated strong financial health with liquid assets exceeding short-term obligations.

The medical and advanced technology equipment manufacturer’s share repurchase program has no time limit and may be suspended or discontinued at any time, according to a company press release. Purchases may be made through various methods including accelerated share purchase agreements, open market transactions, or privately negotiated deals.

"The Board’s action reflects continued confidence in the Company’s financial strength, the execution of our growth strategy, and our ability to maximize shareholder value," said Robert Buckley, Chief Financial Officer of Novanta. The company’s financial metrics support this confidence, with annual revenue reaching $956.88 million and a healthy current ratio of 2.54. InvestingPro analysis reveals 8 additional key insights about Novanta’s financial health and growth potential.

The company stated that all share repurchases will be funded from cash on hand and future cash flows. Any repurchased shares will be available for use in connection with Novanta’s stock plans and for other corporate purposes.

Novanta indicated it intends to continue making investments to fund long-term organic growth initiatives while prioritizing acquisition opportunities. The timing and amount of any transactions will depend on factors including market conditions, share price, and cash availability.

The company supplies core technology solutions to medical, life science, and advanced industrial original equipment manufacturers. Novanta’s products focus on precision medicine, precision manufacturing, robotics and automation, and advanced surgery applications. While the stock has seen a 26% decline year-to-date, InvestingPro’s Fair Value analysis suggests the stock is currently trading near its fair value. Detailed insights and comprehensive analysis are available in InvestingPro’s exclusive research report, part of its coverage of over 1,400 US equities.

In other recent news, Novanta Inc. reported its second-quarter 2025 earnings, which exceeded analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $0.76, surpassing the forecasted $0.73. This earnings beat highlights a positive performance for the quarter, despite concerns raised during the earnings call. The company’s earnings report reflects its ability to deliver results above market projections. Analysts had anticipated a slightly lower EPS, making the actual results noteworthy for investors. These developments come amid broader market trends and potential challenges discussed by the company. The recent earnings announcement is crucial for stakeholders looking to assess Novanta’s financial health and performance.

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