Nordson Corporation (NDSN) Announces Record Fourth Quarter And Fiscal Year 2025 Earnings Results

Nordson Corporation (NDSN) today announced its financial results for the recent quarter, revealing earnings that fell short of expectations. The company reported diluted earnings per share of $2.69, missing the consensus estimate of $2.93 by $0.24. Additionally, Nordson’s revenue for the quarter totaled $751.8 million, which also missed the forecasted revenue of $761 million by approximately $9.2 million.

Key Highlights:

• Fourth quarter sales of $752 million, a 1% increase from the previous year.
• Adjusted earnings per diluted share increased by 9% to $3.03.
• Full year sales reached a record $2.8 billion, up 4% year-over-year.
• Fiscal 2026 sales forecasted between $2,830 to $2,950 million, with adjusted earnings projected at $10.80 to $11.50 per diluted share.
• Record EBITDA margin and free cash flow conversion of 128%.

Summary: Nordson Corporation reported strong financial results for the fourth quarter and the full fiscal year 2025, with sales reaching $752 million, reflecting a 1% increase year-over-year. The company achieved adjusted earnings per diluted share of $3.03, marking a 9% growth compared to the previous year. CEO Sundaram Nagarajan emphasized the company’s operational strength, stating, “We had a strong operational finish to fiscal 2025… adjusted earnings per share increased 9% year-over-year.” The full year sales reached a record $2.8 billion, driven by robust performance in the Medical and Fluid Solutions segment.

Looking ahead, Nordson is optimistic about fiscal 2026, projecting sales between $2,830 million and $2,950 million, with adjusted earnings per diluted share expected to be in the range of $10.80 to $11.50. Nagarajan noted, “As several of our end markets begin to inflect, we are entering the fiscal year optimistic to deliver solid growth in 2026.” The company also reported a backlog of approximately $600 million, indicating strong demand and a positive outlook for future growth.

Nordson Corporation (NDSN) has experienced a mixed bag of price changes recently, with a slight decline of 0.95% over the past week, yet showing a modest recovery of 6.02% over the last three months. Despite this recent uptick, the stock has faced a year-over-year decline of 5.15%, raising questions about its long-term growth prospects. The company’s price-to-earnings ratio stands at 29.78, suggesting that investors are willing to pay a premium for its earnings, but this is tempered by a negative two-year compound annual growth rate (CAGR) of -4.25% in earnings per share. On a more positive note, Nordson has managed to achieve a revenue CAGR of 3.63%, indicating some resilience in its top-line performance. However, the free cash flow CAGR of -6.05% raises concerns about the company’s ability to generate cash effectively. With a return on invested capital of 10.68% and a net profit margin of 16.30%, Nordson demonstrates solid operational efficiency, but the volatility in its stock price and mixed financial metrics suggest that investors should proceed with caution. Overall, while there are glimmers of hope in revenue growth, the underlying fundamentals present a complex picture for Nordson Corporation.

Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through two segments, Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). The IPS segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems used in packaged goods industries; components and systems used in the thermoplastic melt stream; and product assembly systems for use in paper and paperboard converting applications, and manufacturing roll goods, as well as for the assembly of plastic, metal, and wood products. It also offers automated and manual dispensing products and systems to apply adhesive and sealant materials; dispensing and curing systems to coat and cure containers; systems to apply liquid paints and coatings to consumer and industrial products; and systems to apply powder paints and coatings to metal, plastic, and wood products, as well as ultraviolet equipment for use in curing and drying operations for specialty coatings, semiconductor materials, and paints. The ATS segment provides automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; precision manual and semi-automated dispensers, minimally invasive interventional delivery devices, plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons, and catheters; and bond testing and automated optical, acoustic microscopy, and x-ray inspection systems for use in semiconductor and printed circuit board industries. The company markets its products through direct sales force, as well as distributors and sales representatives. Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio.