Latest news with #NordsonCorp
Yahoo
30-05-2025
- Business
- Yahoo
Nordson Corp (NDSN) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market Challenges
Revenue: $683 million, up 5% from the prior year. Gross Profit: $374 million, representing 55% of sales. EBITDA Margin: 32% of sales, with EBITDA at $217 million. Net Income: $112 million or $1.97 per share on a GAAP basis. Adjusted Earnings Per Share: $2.42, a 3% increase from the prior year. Debt Leverage Ratio: 2.4 times, within the targeted range. Free Cash Flow: $103 million, with a 92% conversion rate on net income. Share Repurchases: $85 million during the quarter. Dividends Paid: $44 million. Industrial Precision Solutions Sales: $319 million, decreased 8% year-over-year. Medical and Fluid Solutions Sales: $203 million, increased 20% year-over-year. Advanced Technology Solutions Sales: $161 million, increased 18% year-over-year. Third Quarter Sales Guidance: $710 million to $750 million. Third Quarter Adjusted Earnings Guidance: $2.55 to $2.75 per diluted share. Warning! GuruFocus has detected 3 Warning Sign with NDSN. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nordson Corp (NASDAQ:NDSN) reported a 5% increase in second-quarter sales, reaching $683 million, driven by an 8% increase from the Atrion acquisition. The company achieved strong EBITDA margins of 32%, attributed to operational excellence and contributions from the Atrion acquisition. Nordson Corp (NASDAQ:NDSN) experienced solid growth in advanced technology systems, nonwoven systems, and medical fluid components. The Atrion integration is progressing well, with results exceeding valuation model expectations. Nordson Corp (NASDAQ:NDSN) maintained a strong balance sheet, with a leverage ratio of 2.4 times and significant share repurchases totaling $85 million during the quarter. Nordson Corp (NASDAQ:NDSN) faced year-over-year weakness in select industrial system sales due to lower overall market demand. The company experienced a double-digit decline in medical interventional product lines, partly due to ongoing destocking trends. Net interest expense increased by $7 million compared to the prior year, driven by higher debt levels from the Atrion acquisition. The Industrial Precision Solutions segment saw an 8% decrease in sales, impacted by weaker system sales in industrial coatings and polymer processing. Nordson Corp (NASDAQ:NDSN) is cautious about potential impacts on end market demand due to ongoing geopolitical and trade policy uncertainties. Q: Can you discuss the trends you see for the rest of the year, particularly in major verticals like ATS and interventional destocking? A: Sundaram Nagarajan, President and CEO, explained that ATS is experiencing solid order entry due to investments in computing, AI, and semiconductors. The Medical and Fluid Solutions segment is seeing growth from Atrion and fluid components, with destocking trends lessening. Industrial Precision Solutions is facing headwinds in automotive but shows momentum in powder coating and niche applications. Q: Regarding the contract manufacturing divestiture, can you size the revenue and discuss if there are more divestitures planned? A: Sundaram Nagarajan stated that the divestiture is part of their strategy to focus on high-growth areas. Daniel Hopgood, CFO, added that the divested business represents about 4% of year-to-date sales in the medical segment and will be accretive to margins. No further divestitures are currently planned. Q: ATS has been volatile. Can we expect more consistent growth, and where are you seeing order improvements? A: Sundaram Nagarajan noted that ATS is inherently lumpy due to customer investment cycles. However, they are seeing strong order entry, particularly from Asian customers, and expect the business to contribute significantly to organic growth. Q: How do you view margin performance in ATS given its volatility? A: Sundaram Nagarajan highlighted that ATS margins are different due to higher innovation investments. Daniel Hopgood added that structural changes have improved the margin profile, ensuring better performance peak-to-peak and trough-to-trough. Q: Can you elaborate on the impact of tariffs and how you're managing them? A: Daniel Hopgood explained that tariffs are manageable with no material impact in Q2. Their in-region, for-region strategy mitigates exposure, with only 10-15% of sales affected by tariffs. The main concern is the potential impact on end market demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Forbes
29-05-2025
- Business
- Forbes
Seven Practical Tips For Manufacturers Amid Tariff Uncertainty
For manufacturers, tariff uncertainty isn't a policy debate—it's a disruptor with very real consequences that are throwing a wrench into both short- and long-term strategies. But manufacturers can't afford to freeze in place. No one knows exactly what tomorrow holds when it comes to tariff rates across geographies and products, but one thing seems certain: in one form or another, tariffs are here to stay as the current administration takes a protectionist approach to global trade. So, what can manufacturers do until the tariff rates (and turmoil) settle? I spoke to Stephen Lovass, former executive vice president at precision technology manufacturer Nordson Corp., to get his take on how companies can stay ahead of the curve. 'Bottom line, there are options, but it's complex,' Lovass says. 'You need to communicate heavily with your customers and remain agile as the rates continue to be in flux.' Here are seven things we identified to navigate tariffs and ongoing trade uncertainty. The long-term tariff landscape remains murky—but waiting it out isn't a strategy. The manufacturers that act now, even amid uncertainty, will be far better positioned when the dust settles. Taking action today could mean securing more flexible contracts, diversifying suppliers, or simply building better relationships with customers that will pay off in the long run. There's no one-size-fits-all playbook, but there are plenty of smart and proactive moves that can make a real impact. 'There's challenge and opportunity here,' Lovass says. 'So, it's about knowing which side of the coin you're on and seeing how you can get on the right side.'
San Francisco Chronicle
28-05-2025
- Business
- San Francisco Chronicle
Nordson: Fiscal Q2 Earnings Snapshot
WESTLAKE, Ohio (AP) — WESTLAKE, Ohio (AP) — Nordson Corp. (NDSN) on Wednesday reported fiscal second-quarter net income of $112.4 million. The Westlake, Ohio-based company said it had net income of $1.97 per share. Earnings, adjusted for one-time gains and costs, came to $2.42 per share. The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $2.36 per share. The maker of adhesives and industrial coatings posted revenue of $682.9 million in the period, also surpassing Street forecasts. Four analysts surveyed by Zacks expected $673.6 million. For the current quarter ending in July, Nordson expects its per-share earnings to range from $2.55 to $2.75. The company said it expects revenue in the range of $710 million to $750 million for the fiscal third quarter. _____
