Document

WESTLAKE, Ohio--(BUSINESS WIRE)--May 28, 2025--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.

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.”

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.

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 https://investors.nordson.com. 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 lara.mahoney@nordson.com.

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 www.nordson.com, linkedin/Nordson, or www.facebook.com/nordson.


	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


	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


	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


	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	%


	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


	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%


	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


	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

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.