Latest news with #SundaramNagarajan
Yahoo
22-07-2025
- Business
- Yahoo
Spotting Winners: Nordson (NASDAQ:NDSN) And Professional Tools and Equipment Stocks In Q1
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how professional tools and equipment stocks fared in Q1, starting with Nordson (NASDAQ:NDSN). Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 10 professional tools and equipment stocks we track reported a mixed Q1. As a group, revenues missed analysts' consensus estimates by 3.2% while next quarter's revenue guidance was 1.1% above. Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results. Nordson (NASDAQ:NDSN) Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings. Nordson reported revenues of $682.9 million, up 5% year on year. This print exceeded analysts' expectations by 1.1%. Overall, it was a satisfactory quarter for the company with EPS guidance for next quarter topping analysts' expectations but organic revenue in line with analysts' estimates. Commenting on the Company's fiscal 2025 second quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, 'We started the second quarter with increasing momentum in order entry, and our results outperformed the mid-point of our sales and earnings guidance. This was driven by strength in our electronics systems sales and steady growth in nonwovens systems, precision agriculture and medical fluid components. Also, our Atrion acquisition continues to perform above expectations. As expected, this growth was partially offset by year-over-year weakness in industrial systems sales, which improved sequentially compared to the first quarter. Operational excellence drove strong profit performance of 32% EBITDA despite the uncertain geopolitical environment. We also maintained our sound balance sheet and bought back $85 million in shares during this dynamic quarter.' Nordson scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 9.5% since reporting and currently trades at $214.30. Is now the time to buy Nordson? Access our full analysis of the earnings results here, it's free. Best Q1: ESAB (NYSE:ESAB) Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries. ESAB reported revenues of $678.1 million, down 1.7% year on year, outperforming analysts' expectations by 2.2%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' adjusted operating income estimates. The market seems happy with the results as the stock is up 6.6% since reporting. It currently trades at $128.04. Is now the time to buy ESAB? Access our full analysis of the earnings results here, it's free. Weakest Q1: Hyster-Yale Materials Handling (NYSE:HY) Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors. Hyster-Yale Materials Handling reported revenues of $910.4 million, down 13.8% year on year, falling short of analysts' expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts' EBITDA estimates and a miss of analysts' EPS estimates. Hyster-Yale Materials Handling delivered the slowest revenue growth in the group. Interestingly, the stock is up 2.3% since the results and currently trades at $41.45. Read our full analysis of Hyster-Yale Materials Handling's results here. Stanley Black & Decker (NYSE:SWK) With an iconic 'STANLEY' logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry. Stanley Black & Decker reported revenues of $3.74 billion, down 3.2% year on year. This number topped analysts' expectations by 1.7%. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts' EPS estimates but a miss of analysts' adjusted operating income estimates. The stock is up 13.4% since reporting and currently trades at $69.36. Read our full, actionable report on Stanley Black & Decker here, it's free. Kennametal (NYSE:KMT) Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors. Kennametal reported revenues of $486.4 million, down 5.7% year on year. This print was in line with analysts' expectations. It was a very strong quarter as it also produced a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Kennametal scored the highest full-year guidance raise among its peers. The stock is up 23.7% since reporting and currently trades at $24.51. Read our full, actionable report on Kennametal here, it's free. Market Update Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
30-05-2025
- Business
- Yahoo
NDSN Q1 Earnings Call: Revenue Misses Amid Segment Shifts, Guidance Raised for Next Quarter
Manufacturing company Nordson (NASDAQ:NDSN) missed Wall Street's revenue expectations in Q1 CY2025 as sales rose 5% year on year to $682.9 million. Its non-GAAP EPS of $2.42 per share was 2.6% above analysts' consensus estimates. Is now the time to buy NDSN? Find out in our full research report (it's free). Revenue: $682.9 million (5% year-on-year growth) Adjusted EPS: $2.42 vs analyst estimates of $2.36 (2.6% beat) Revenue Guidance for Q2 CY2025 is $730 million at the midpoint, above analyst estimates of $713.5 million Adjusted EPS guidance for Q2 CY2025 is $2.65 at the midpoint, above analyst estimates of $2.58 Adjusted EBITDA Margin: 31.8% Organic Revenue fell 2.4% year on year (-3.7% in the same quarter last year) Market Capitalization: $11.14 billion Nordson's first quarter results reflected a mix of acquisition-driven growth and ongoing challenges in select legacy segments. CEO Sundaram Nagarajan highlighted that momentum in Advanced Technology Systems, particularly from semiconductor and electronics customers, and the solid performance of the recently acquired Atrion business helped offset organic revenue declines elsewhere. Management also pointed to continued softness in industrial system sales, especially within industrial coatings and polymer processing, citing weaker end-market demand compared to last year. The company's operational focus and cost discipline supported margin expansion, with Nagarajan noting that the integration of Atrion was exceeding expectations and contributing positively to both sales and profitability. Looking ahead, Nordson's guidance for the next quarter is underpinned by sustained demand in electronics and semiconductor markets, an improving outlook for medical fluid components, and incremental benefits from restructuring actions. Nagarajan emphasized, 'We are seeing positive order entry momentum in electronics, precision agriculture, and select medical product lines,' suggesting this will drive sequential improvement. Management expects the effects of destocking in medical interventional products to continue fading, while recent divestitures are anticipated to sharpen the company's focus on higher-margin offerings. However, CFO Daniel Hopgood cautioned that ongoing trade policy uncertainties and automotive market headwinds could still impact customer investment decisions, indicating the outlook remains sensitive to external factors. Management attributed the quarter's performance to strong contributions from recent acquisitions and targeted restructuring, even as some core segments continued to face demand headwinds. Atrion acquisition outperformance: The Atrion medical components business delivered higher-than-anticipated sales and margin contribution, with CEO Nagarajan noting 'customer adoption of Atrion's differentiated products' and successful operational integration exceeding initial projections. Advanced Technology momentum: Demand in the Advanced Technology Systems (ATS) segment was fueled by investments in next-generation computing, AI, and cloud infrastructure, with over half of ATS revenue now tied to semiconductor and high-performance computing. Management credited strong order entry, particularly from Asian customers, as a key driver. Industrial segment softness persists: The Industrial Precision Solutions (IPS) business saw continued weakness, mostly in industrial coatings and polymer processing tied to automotive end markets. However, the precision agriculture (ARAG) and nonwovens systems lines posted double-digit growth, partially offsetting declines. Medical segment portfolio reshaping: The announced divestiture of select medical contract manufacturing product lines is expected to increase the medical segment's focus on proprietary components, improve margin profile by an estimated 100 basis points, and free resources for core growth areas. Operational cost actions: Targeted restructuring across underperforming businesses and the completion of major facility transitions are anticipated to yield over $50 million in annual savings by 2026, supporting margin resilience despite mixed demand. Management's outlook centers on continued demand in electronics and medical components, as well as incremental margin benefits from portfolio optimization and restructuring. Electronics and semiconductor growth: Ongoing investment in semiconductor manufacturing, AI-related computing, and cloud infrastructure is expected to sustain strong order trends in the ATS segment. Management sees Asian markets as the primary near-term growth engine, with North American opportunities still to come. Medical segment recovery and focus: The medical segment's organic growth is expected to recover as destocking abates and the segment pivots toward higher-value, proprietary components following the contract manufacturing divestiture. Atrion's product pipeline and integration are anticipated to further boost segment performance. Restructuring and external risks: Cost structure improvements from recent restructuring and facility consolidation are projected to protect margins. However, management remains watchful of macroeconomic uncertainty, including trade policy changes and persistent automotive sector weakness, which could affect customer investments and order timing. In the coming quarters, the StockStory team will be closely monitoring (1) the trajectory of order entry in Advanced Technology Systems—especially semiconductor and electronics demand, (2) the pace of recovery in medical components as destocking trends unwind, and (3) the impact of portfolio reshaping on segment margins and overall profitability. Execution on restructuring savings and resilience to external market shifts will also be key to tracking Nordson's progress. Nordson currently trades at a forward P/E ratio of 20.1×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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.
Yahoo
28-05-2025
- Business
- Yahoo
Nordson's (NASDAQ:NDSN) Q1 Sales Beat Estimates, Provides Encouraging Quarterly Revenue Guidance
Manufacturing company Nordson (NASDAQ:NDSN) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 5% year on year to $682.9 million. Guidance for next quarter's revenue was optimistic at $730 million at the midpoint, 2.3% above analysts' estimates. Its non-GAAP profit of $2.42 per share was 2.6% above analysts' consensus estimates. Is now the time to buy Nordson? Find out in our full research report. Revenue: $682.9 million vs analyst estimates of $675.7 million (5% year-on-year growth, 1.1% beat) Adjusted EPS: $2.42 vs analyst estimates of $2.36 (2.6% beat) Adjusted EBITDA: $217.2 million vs analyst estimates of $214 million (31.8% margin, 1.5% beat) Revenue Guidance for Q2 CY2025 is $730 million at the midpoint, above analyst estimates of $713.5 million Adjusted EPS guidance for Q2 CY2025 is $2.65 at the midpoint Operating Margin: 24.7%, down from 25.9% in the same quarter last year Free Cash Flow Margin: 15.1%, down from 16.6% in the same quarter last year Organic Revenue fell 2.4% year on year (-3.7% in the same quarter last year) Market Capitalization: $11.27 billion Commenting on the Company's fiscal 2025 second quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, 'We started the second quarter with increasing momentum in order entry, and our results outperformed the mid-point of our sales and earnings guidance. This was driven by strength in our electronics systems sales and steady growth in nonwovens systems, precision agriculture and medical fluid components. Also, our Atrion acquisition continues to perform above expectations. As expected, this growth was partially offset by year-over-year weakness in industrial systems sales, which improved sequentially compared to the first quarter. Operational excellence drove strong profit performance of 32% EBITDA despite the uncertain geopolitical environment. We also maintained our sound balance sheet and bought back $85 million in shares during this dynamic quarter.' Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Nordson's 4.5% annualized revenue growth over the last five years was tepid. This fell short of our benchmark for the industrials sector and is a poor baseline for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Nordson's recent performance shows its demand has slowed as its annualized revenue growth of 1.9% over the last two years was below its five-year trend. Nordson also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Nordson's organic revenue averaged 3.7% year-on-year declines. Because this number is lower than its normal revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. This quarter, Nordson reported modest year-on-year revenue growth of 5% but beat Wall Street's estimates by 1.1%. Company management is currently guiding for a 10.3% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 5.6% over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below average for the sector. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Nordson has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 24.7%. This result isn't surprising as its high gross margin gives it a favorable starting point. Analyzing the trend in its profitability, Nordson's operating margin rose by 5 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Nordson generated an operating profit margin of 24.7%, down 1.2 percentage points year on year. Since Nordson's gross margin decreased more than its operating margin, we can assume its recent inefficiencies were driven more by weaker leverage on its cost of sales rather than increased marketing, R&D, and administrative overhead expenses. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Nordson's EPS grew at a decent 9.4% compounded annual growth rate over the last five years, higher than its 4.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Nordson's earnings quality to better understand the drivers of its performance. As we mentioned earlier, Nordson's operating margin declined this quarter but expanded by 5 percentage points over the last five years. Its share count also shrank by 2.1%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Nordson, EPS didn't budge over the last two years, a regression from its five-year trend. We hope it can revert to earnings growth in the coming years. In Q1, Nordson reported EPS at $2.42, up from $2.34 in the same quarter last year. This print beat analysts' estimates by 2.6%. Over the next 12 months, Wall Street expects Nordson's full-year EPS of $9.67 to grow 7.5%. It was encouraging to see Nordson's revenue and EPS guidance for next quarter beat analysts' expectations. We were also glad this quarter's EPS and EBITDA exceeded Wall Street's estimates. We note that revenue also beat, but we take it lightly as revenue was in line. Regardless, this print had some key positives. The stock traded up 2.2% to $200 immediately after reporting. Should you buy the stock or not? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
28-05-2025
- Business
- Yahoo
Nordson Corporation Reports Second Quarter Fiscal 2025 Results and Third Quarter Guidance
Second Quarter Highlights: Sales were $683 million, an increase of 5% year-over-year Earnings per diluted share were $1.97 Adjusted earnings per diluted share were $2.42 Backlog grew approximately 5% during the quarter WESTLAKE, Ohio, May 28, 2025--(BUSINESS WIRE)--Nordson Corporation (Nasdaq: NDSN) today reported results for the fiscal second quarter ended April 30, 2025. Sales were $683 million compared to the prior year's second quarter sales of $651 million. The second quarter 2025 sales included a favorable acquisition impact of 8%, offset by an organic sales decrease of 2% and unfavorable currency translation of less than 1%. Net income was $112 million, or $1.97 of earnings per diluted share, compared to prior year's second quarter net income of $118 million, or $2.05 of earnings per diluted share. Excluding restructuring costs and acquisition related amortization, second quarter adjusted net income was $138 million versus prior year adjusted net income of $135 million. Second quarter adjusted earnings per diluted share were $2.42, a 3% increase from the prior year adjusted earnings per diluted share of $2.34. EBITDA in the second quarter was $217 million, or 32% of sales, an increase of 7% compared to prior year EBITDA of $203 million, or 31% of sales. Commenting on the Company's fiscal 2025 second quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, "We started the second quarter with increasing momentum in order entry, and our results outperformed the mid-point of our sales and earnings guidance. This was driven by strength in our electronics systems sales and steady growth in nonwovens systems, precision agriculture and medical fluid components. Also, our Atrion acquisition continues to perform above expectations. As expected, this growth was partially offset by year-over-year weakness in industrial systems sales, which improved sequentially compared to the first quarter. Operational excellence drove strong profit performance of 32% EBITDA despite the uncertain geopolitical environment. We also maintained our sound balance sheet and bought back $85 million in shares during this dynamic quarter." Second Quarter Segment Results Industrial Precision Solutions sales of $319 million decreased 8% from the prior year, inclusive of an organic sales decrease of 7% and unfavorable currency translation of 1%. The organic sales decrease was driven by weaker systems demand in polymer processing and industrial coatings product lines, partially offset by growth in nonwovens, precision agriculture and packaging product lines. Operating profit was $96 million, a decrease of $20 million from the prior year, reflecting the impact of lower volume. EBITDA in the quarter was $114 million, or 36% of sales, compared to prior year second quarter EBITDA of $128 million, or 37% of sales. Medical and Fluid Solutions sales of $203 million increased 20% compared to the prior year second quarter, inclusive of an acquisition impact of 30%, partially offset by an organic sales decrease of 10%. The organic sales decline reflects targeted program rationalization in medical contract manufacturing and ongoing destocking in selected interventional product lines. Operating profit was $57 million, an increase of $8 million from the prior year, reflecting contribution from the Atrion acquisition and solid operational execution from the organic business. EBITDA in the quarter was $77 million, or 38% of sales, up 22% versus the prior year second quarter EBITDA of $63 million, or 37% of sales. Advanced Technology Solutions sales of $161 million increased 18% organically compared to the prior year second quarter. The organic sales increase compared to prior year was driven by broad-based demand in semi-conductor and electronics end markets. Operating profit was $32 million, an increase of $11 million due to the organic sales increase and the benefits of strategic cost and manufacturing optimization actions. EBITDA in the quarter was $40 million, or 25% of sales, up 43% from the prior year second quarter EBITDA of $28 million, or 20% of sales. Outlook Order entry remained strong during the quarter resulting in healthy backlog, up approximately 5% from the prior quarter. Based on current visibility and order entry trends, the Company expects third quarter fiscal 2025 sales to be in the range of $710 to $750 million. Third quarter adjusted earnings are forecasted to be in the range of $2.55 to $2.75 per diluted share. Reflecting on the outlook and current macroeconomic environment, Nagarajan said, "Order entry and backlog support a third quarter performance that is in line with the full-year guidance we set at the beginning of our fiscal year. Our product portfolio is focused on differentiated products. Our decentralized and close-to-the-customer business model empowers our businesses to be responsive to customer needs. This includes the benefits of an in-region, for-region manufacturing strategy that will lead to growth with existing customers. Nordson has continuously demonstrated the ability to deliver best-in-class profitability in varying market scenarios, while remaining invested in the long-term growth priorities of the Company." Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on Thursday, May 29, 2025, at 8:30 a.m. eastern time, which can be accessed at Information about Nordson's investor relations and shareholder services is available from Lara Mahoney, vice president, investor relations and corporate communications at (440) 204-9985 or The Company's definition of adjusted earnings excludes restructuring costs and acquisition related amortization for both current and historical periods. It is not possible for the Company to identify the amount or significance of future adjustments associated with acquisition and integration costs, restructuring costs, acquisition-related amortization, certain non-operating or income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance to a comparable GAAP range. Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," "outlook," "guidance," "continue," "target," or the negative of these terms or comparable terminology. These statements reflect management's current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, U.S. and international economic conditions; financial and market conditions; currency exchange rates and devaluations; possible acquisitions, including the Company's ability to successfully integrate acquisitions; the Company's ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements; the effects of changes in tax law; and the possible effects of events beyond our control, such as political unrest, including the conflict between Russia and Ukraine, acts of terror, natural disasters and pandemics, including the recent coronavirus (COVID-19) pandemic and the other factors discussed in Item 1A (Risk Factors) in the Company's most recently filed Annual Report on Form 10-K and in its Forms 10-Q filed with the Securities and Exchange Commission, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement in this press release. Nordson Corporation is an innovative precision technology company that leverages a scalable growth framework through an entrepreneurial, division-led organization to deliver top tier growth with leading margins and returns. The Company's direct sales model and applications expertise serves global customers through a wide variety of critical applications. Its diverse end market exposure includes consumer non-durable, medical, electronics and industrial end markets. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in over 35 countries. Visit Nordson on the web at linkedin/Nordson, or NORDSON CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands except for per-share amounts) Three Months Ended Six Months Ended April 30, 2025 April 30, 2024 April 30, 2025 April 30, 2024 Sales $ 682,938 $ 650,642 $ 1,298,358 $ 1,283,835 Cost of sales 309,034 284,765 588,558 569,531 Gross profit 373,904 365,877 709,800 714,304 Gross margin % 54.7 % 56.2 % 54.7 % 55.6 % Selling & administrative expenses 205,154 197,261 400,103 386,253 Operating profit 168,750 168,616 309,697 328,051 Interest expense - net (26,019 ) (18,555 ) (51,637 ) (38,953 ) Other expense - net (3,961 ) (785 ) (2,435 ) (1,123 ) Income before income taxes 138,770 149,276 255,625 287,975 Income taxes 26,366 31,059 48,569 60,186 Net income $ 112,404 $ 118,217 $ 207,056 $ 227,789 Weighted-average common shares outstanding: Basic 56,785 57,222 56,960 57,142 Diluted 57,038 57,681 57,265 57,617 Earnings per share: Basic earnings $ 1.98 $ 2.07 $ 3.64 $ 3.99 Diluted earnings $ 1.97 $ 2.05 $ 3.62 $ 3.95 NORDSON CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) April 30, 2025 October 31, 2024 Cash and cash equivalents $ 130,157 $ 115,952 Receivables - net 624,057 594,663 Inventories - net 473,740 476,935 Other current assets 95,568 87,482 Total current assets 1,323,522 1,275,032 Property, plant and equipment - net 546,352 544,607 Goodwill 3,310,661 3,280,819 Other assets 881,503 900,508 $ 6,062,038 $ 6,000,966 Notes payable and debt due within one year $ 94,794 $ 103,928 Accounts payable and accrued liabilities 421,846 424,549 Total current liabilities 516,640 528,477 Long-term debt 2,118,739 2,101,197 Other liabilities 466,355 439,100 Total shareholders' equity 2,960,304 2,932,192 $ 6,062,038 $ 6,000,966 NORDSON CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (Dollars in thousands) Six Months Ended April 30, 2025 April 30, 2024 Cash flows from operating activities: Net income $ 207,056 $ 227,789 Depreciation and amortization 74,608 66,264 Other non-cash items 7,021 10,281 Changes in operating assets and liabilities and other (10,393 ) (9,370 ) Net cash provided by operating activities 278,292 294,964 Cash flows from investing activities: Additions to property, plant and equipment (37,439 ) (21,907 ) Other - net 10,339 6,730 Net cash used in investing activities (27,100 ) (15,177 ) Cash flows from financing activities: Net repayment of long-term debt (5,800 ) (204,372 ) Repayment of finance lease obligations (2,627 ) (2,881 ) Dividends paid (88,937 ) (77,796 ) Issuance of common shares 2,803 27,219 Purchase of treasury shares (146,252 ) (7,927 ) Net cash used in financing activities (240,813 ) (265,757 ) Effect of exchange rate change on cash: 3,826 (4,263 ) Net change in cash and cash equivalents 14,205 9,767 Cash and cash equivalents: Beginning of period 115,952 115,679 End of period $ 130,157 $ 125,446 NORDSON CORPORATION SALES BY GEOGRAPHIC SEGMENT (Unaudited) (Dollars in thousands) Three Months Ended Sales Variance April 30, 2025 April 30, 2024 Organic Acquisitions Currency Total SALES BY SEGMENT Industrial Precision Solutions $ 318,847 $ 344,978 (6.9 )% — % (0.7 )% (7.6 )% Medical and Fluid Solutions 202,809 168,966 (10.0 )% 30.0 % — % 20.0 % Advanced Technology Solutions 161,282 136,698 18.1 % — % (0.1 )% 18.0 % Total sales $ 682,938 $ 650,642 (2.4 )% 7.8 % (0.4 )% 5.0 % SALES BY GEOGRAPHIC REGION Americas $ 292,463 $ 294,428 (12.2 )% 12.4 % (0.9 )% (0.7 )% Europe 172,496 182,070 (10.7 )% 4.7 % 0.7 % (5.3 )% Asia Pacific 217,979 174,144 22.6 % 3.2 % (0.6 )% 25.2 % Total sales $ 682,938 $ 650,642 (2.4 )% 7.8 % (0.4 )% 5.0 % Six Months Ended Sales Variance April 30, 2025 April 30, 2024 Organic Acquisitions Currency Total SALES BY SEGMENT Industrial Precision Solutions $ 619,295 $ 682,720 (7.6 )% — % (1.7 )% (9.3 )% Medical and Fluid Solutions 396,418 328,492 (10.6 )% 31.7 % (0.4 )% 20.7 % Advanced Technology Solutions 282,645 272,623 4.3 % — % (0.6 )% 3.7 % Total sales $ 1,298,358 $ 1,283,835 (5.8 )% 8.1 % (1.2 )% 1.1 % SALES BY GEOGRAPHIC REGION Americas $ 560,300 $ 568,440 (13.4 )% 13.0 % (1.0 )% (1.4 )% Europe 340,259 361,380 (10.0 )% 5.2 % (1.0 )% (5.8 )% Asia Pacific 397,799 354,015 10.7 % 3.2 % (1.5 )% 12.4 % Total sales $ 1,298,358 $ 1,283,835 (5.8 )% 8.1 % (1.2 )% 1.1 % NORDSON CORPORATION RECONCILIATION OF NON-GAAP MEASURES - NET INCOME TO EBITDA (Unaudited) (Dollars in thousands) Three Months Ended Six Months Ended April 30, 2025 April 30, 2024 April 30, 2025 April 30, 2024 Net income $ 112,404 $ 118,217 $ 207,056 $ 227,789 Income taxes 26,366 31,059 48,569 60,186 Interest expense - net 26,019 18,555 51,637 38,953 Other (income) expense - net 3,961 785 2,435 1,123 Depreciation and amortization 37,578 32,720 74,608 66,264 Inventory step-up amortization (1) — — 3,135 2,944 Severance and other (1) 10,313 2,078 16,274 ... 2,078 Acquisition-related costs (1) 513 — 1,543 597 EBITDA (non-GAAP) (2) $ 217,154 $ 203,414 $ 405,257 $ 399,934 (1) Represents cost reduction actions as well as fees and non-cash inventory charges associated with acquisitions. (2) EBITDA is a non-GAAP measure used by management to evaluate the Company's ongoing operations. EBITDA is defined as operating profit plus certain adjustments, such as cost reduction actions, fees and non-cash inventory charges associated with acquisitions, plus depreciation and amortization. NORDSON CORPORATION RECONCILIATION OF NON-GAAP MEASURES - EBITDA (Unaudited) (Dollars in thousands) Three Months Ended Six Months Ended April 30, 2025 April 30, 2024 April 30, 2025 April 30, 2024 SALES BY SEGMENT Industrial Precision Solutions $ 318,847 $ 344,978 $ 619,295 $ 682,720 Medical and Fluid Solutions 202,809 168,966 396,418 328,492 Advanced Technology Solutions 161,282 136,698 282,645 272,623 Total sales $ 682,938 $ 650,642 $ 1,298,358 $ 1,283,835 OPERATING PROFIT Industrial Precision Solutions $ 95,722 $ 115,922 $ 191,434 $ 225,020 Medical and Fluid Solutions 56,805 48,993 97,741 95,093 Advanced Technology Solutions 31,558 20,693 49,681 38,997 Corporate (15,335 ) (16,992 ) (29,159 ) (31,059 ) Total operating profit $ 168,750 $ 168,616 $ 309,697 $ 328,051 OPERATING PROFIT ADJUSTMENTS (1) Industrial Precision Solutions $ 5,212 $ — $ 9,823 $ 3,541 Medical and Fluid Solutions 1,366 — 6,621 — Advanced Technology Solutions 3,288 2,078 3,288 2,078 Corporate 960 — 1,220 — Total adjustments $ 10,826 $ 2,078 $ 20,952 $ 5,619 DEPRECIATION & AMORTIZATION Industrial Precision Solutions $ 12,614 $ 12,437 $ 25,067 $ 25,357 Medical and Fluid Solutions 18,367 13,564 36,508 27,269 Advanced Technology Solutions 4,670 4,767 9,318 9,668 Corporate 1,927 1,952 3,715 3,970 Total depreciation & amortization $ 37,578 $ 32,720 $ 74,608 $ 66,264 EBITDA (NON-GAAP) (2) Industrial Precision Solutions $ 113,548 36 % $ 128,359 37 % $ 226,324 37 % $ 253,918 37 % Medical and Fluid Solutions 76,538 38 % 62,557 37 % 140,870 36 % 122,362 37 % Advanced Technology Solutions 39,516 25 % 27,538 20 % 62,287 22 % 50,743 19 % Corporate (12,448 ) (15,040 ) (24,224 ) (27,089 ) Total EBITDA $ 217,154 32 % $ 203,414 31 % $ 405,257 31 % $ 399,934 31 % (1) Represents cost reduction actions as well as fees and non-cash inventory charges associated with acquisitions. (2) EBITDA is a non-GAAP measure used by management to evaluate the Company's ongoing operations. EBITDA is defined as operating profit plus certain adjustments, such as cost reduction actions, fees and non-cash inventory charges associated with acquisitions, plus depreciation and amortization. NORDSON CORPORATION RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED NET INCOME AND EARNINGS PER SHARE (Unaudited) (Dollars in thousands) Three Months Ended Six Months Ended April 30, 2025 April 30, 2024 April 30, 2025 April 30, 2024 GAAP AS REPORTED Operating profit $ 168,750 $ 168,616 $ 309,697 $ 328,051 Other / interest expense - net (29,980 ) (19,340 ) (54,072 ) (40,076 ) Net income 112,404 118,217 207,056 227,789 Diluted earnings per share $ 1.97 $ 2.05 $ 3.62 $ 3.95 Shares outstanding - diluted 57,038 57,681 57,265 57,617 OPERATING PROFIT ADJUSTMENTS Inventory step-up amortization $ — $ — $ 3,135 $ 2,944 Acquisition costs 513 — 1,543 597 Severance and other 10,313 2,078 16,274 2,078 ACQUISITION AMORTIZATION OF INTANGIBLES $ 19,696 $ 18,823 39,007 38,210 NON-OPERATING EXPENSE ADJUSTMENTS Entity liquidation $ 988 $ — $ 988 $ — Total adjustments $ 31,510 $ 20,901 $ 60,947 $ 43,829 Adjustments net of tax $ 25,523 $ 16,556 $ 49,367 $ 34,669 Other discrete tax items $ — $ — $ — $ — EPS effect of adjustments and other discrete tax items $ 0.45 $ 0.29 $ 0.86 $ 0.60 NON-GAAP MEASURES-ADJUSTED OPERATING PROFIT, NET INCOME AND ADJUSTED EARNINGS PER SHARE Operating profit (1) $ 179,576 $ 170,694 $ 330,649 $ 333,670 Operating profit % of sales 26.3 % 26.2 % 25.5 % 26.0 % Net income (1) $ 137,927 $ 134,773 $ 256,423 $ 262,458 Diluted earnings per share (2) $ 2.42 $ 2.34 $ 4.48 $ 4.55 (1) Adjusted net income is a non-GAAP measure defined as net income plus tax effected adjustments and other discrete tax items. Refer to the "Reconciliation of Non-GAAP measures - EBITDA" table for definition of adjustments to operating income. (2) Adjusted earnings per share is a non-GAAP measure defined as GAAP EPS adjusted for tax effected adjustments and other discrete tax items. NORDSON CORPORATION RECONCILIATION OF NON-GAAP MEASURES - OPERATING CASH FLOW TO FREE CASH FLOW (Unaudited) (Dollars in thousands) Year to Date April 30, 2025 January 31, 2025 Net cash provided by operating activities 278,292 $ 159,122 Additions to property, plant and equipment (37,439 ) (21,399 ) Free Cash Flow - Year to Date (1) 240,853 137,723 Net Income - Year to Date $ 207,056 $ 94,652 Free Cash Flow Conversion (2) 116 % 146 % Year to Date April 30, 2024 January 31, 2024 Net cash provided by operating activities $ 294,964 $ 172,356 Additions to property, plant and equipment (21,907 ) (7,530 ) Free Cash Flow - Year to Date (1) 273,057 164,826 (1) Free Cash Flow - Year to Date is a non-GAAP measure used by management to evaluate the Company's ongoing operations and is defined as Net cash provided by operating activities minus Additions to property, plant and equipment. (2) Free Cash Flow Conversion - Year to Date is a non-GAAP measure used by management to evaluate the Company's ongoing operations and is defined as Free Cash Flow - Year to Date divided by Net Income - Year to Date. Management uses certain non-GAAP measures, such as adjusted net income, adjusted EPS and EBITDA, internally to make strategic decisions, forecast future results, and evaluate the Company's current performance. Given management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in the Company's core business across different time periods. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures to other companies' non-GAAP financial measures, even if they have similar names. Amounts may not add due to rounding. View source version on Contacts Lara MahoneyVice President, Investor Relations & Corporate Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
