Nordson Corporation (NDSN) is an Ohio-based precision technology and industrial engineering company. Valued at a market cap of $15.2 billion, it designs, manufactures, and markets highly specialized equipment and systems used to dispense, apply, control, and inspect adhesives, coatings, sealants, biomaterials, polymers, and other fluids across a broad range of end markets, including packaging, electronics, medical, transportation, energy, and consumer products. The company is scheduled to announce its fi ...

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Core Viewpoint - Investors in the Manufacturing - General Industrial sector should consider Mueller Water Products (MWA) and Nordson (NDSN) for potential value opportunities [1] Group 1: Company Rankings and Outlook - Both MWA and NDSN currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook supported by favorable analyst estimate revisions [3] - The Zacks Rank system emphasizes companies with improving earnings forecasts, which is a key interest for value investors [2] Group 2: Valuation Metrics - MWA has a forward P/E ratio of 17.90, while NDSN has a higher forward P/E of 23.35, suggesting MWA may be more attractively priced [5] - MWA's PEG ratio is 1.19, indicating a better valuation relative to its expected EPS growth compared to NDSN's PEG ratio of 1.80 [5] - MWA's P/B ratio stands at 4.02, compared to NDSN's P/B of 4.82, further supporting MWA's stronger valuation metrics [6] Group 3: Value Grades - MWA has received a Value grade of B, while NDSN has a Value grade of D, indicating that MWA is currently viewed as the superior value option [6][7]

Core Viewpoint - Nordson's recent earnings report shows a mixed performance with adjusted earnings surpassing estimates while revenues fell short, indicating potential challenges ahead for the company [2][3]. Quarterly Results - Adjusted earnings for Q4 fiscal 2025 were $3.03 per share, exceeding the Zacks Consensus Estimate of $2.93, marking a 9% year-over-year increase [2]. - Total revenues reached $751.8 million, a 1% increase from the previous year, but missed the consensus estimate of $769 million [3]. - Organic sales declined by 1.1% year-over-year, while acquisitions contributed positively by 0.6% and foreign currency translation had a favorable impact of 1.5% [3]. Segment Performance - Revenues from the Asia Pacific region were $225.5 million, down 4.4% year-over-year [4]. - European revenues increased by 5.4% to $195.3 million, and revenues in the Americas rose by 2.4% to $331 million [4]. - Industrial Precision Solutions generated $361.7 million, down 1.5% year-over-year, contributing 48% to total revenues [4]. - Medical and Fluid Solutions revenues were $219.5 million, up 9.6% year-over-year, with organic sales increasing by 7.4% [5]. - Advanced Technology Solutions reported $170.6 million, down 3.6% year-over-year, with organic sales decreasing by 4.9% [6]. Margin Profile - Cost of sales decreased by 3.9% to $328.4 million, resulting in a gross profit of $423.5 million, up 5.1% year-over-year, and a gross margin increase of 220 basis points to 56.3% [7]. - Selling and administrative expenses fell by 7% to $208.9 million, while adjusted EBITDA rose by 6.1% to $255.7 million, with a margin of 34% [8]. - Operating income increased by 19.8% to $214.3 million, with an operating margin of 28.5%, up 450 basis points from the previous year [8]. Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q4 fiscal 2025 were $108.4 million, down from $116 million at the end of fiscal 2024 [9]. - Long-term debt decreased to $1.68 billion from $2.10 billion at the end of fiscal 2024 [9]. - Net cash generated from operating activities was $719.2 million, up 29.3% year-over-year, while capital expenditures totaled $58.1 million, down 9.8% [10]. Dividends/Share Buyback - Dividends paid in fiscal 2025 amounted to $179.1 million, an 11% increase from $161.4 million in the previous year [11]. - Share buybacks totaled $306.4 million, significantly up from $33.3 million in the prior year [11]. Outlook - For fiscal 2026, Nordson projects sales between $2.83 billion and $2.95 billion, with adjusted earnings expected to be between $10.80 and $11.50 per share [12]. - For Q1 fiscal 2026, sales are anticipated to be in the range of $630 million to $670 million, with adjusted earnings of $2.25 to $2.45 per share [12]. - Estimates for the stock have been trending upward, leading to a Zacks Rank of 2 (Buy), indicating expectations for above-average returns in the coming months [15].

Nordson Corporation (NASDAQ:NDSN) is included among the 14 Best Dividend Growth Stocks to Buy and Hold in 2026. Analysts Turn More Bullish on Nordson (NDSN) After Strong Q4 Results On December 15, Vertical Research upgraded Nordson Corporation (NASDAQ:NDSN) to Buy from Hold and set a $270 price target. A few days earlier, on December 12, DA Davidson raised its price target on Nordson to $290 from $285 and kept a Buy rating after the company delivered a Q4 earnings beat. The firm pointed to improving ope ...

Core Insights - Nordson Corporation (NDSN) is experiencing strong growth in its Medical and Fluid Solutions segment, with organic sales increasing by 7.4% year over year in Q4 of fiscal 2025 [1][7] - The company has a positive outlook for fiscal 2026, projecting overall sales between $2.83 billion and $2.95 billion, indicating a year-over-year increase of 3.6% at the midpoint [3] Segment Performance - The Medical and Fluid Solutions segment's EBITDA margin improved by 40 basis points year over year in fiscal 2025, driven by organic sales growth, optimization of the manufacturing footprint, and strategic cost reduction initiatives [2][7] - The acquisition of Atrion Corp. in August 2024 has expanded Nordson's medical offerings in infusion and cardiovascular therapies, contributing to the segment's performance [2][7] Market Position and Valuation - Nordson's shares have increased by 6.8% over the past three months, outperforming the industry growth of 4.3% [6] - The company is currently trading at a forward price-to-earnings ratio of 21.51X, which is below the industry average of 21.84X [8] - The Zacks Consensus Estimate for NDSN's fiscal 2026 earnings has risen by 2.3% over the past 60 days [9]

Core Insights - Nordson Corporation (NDSN) is positioned to benefit from its operational excellence, diversified business structure, and strategic acquisitions, focusing on growth opportunities to strengthen its market position [1] Business Performance - The company is experiencing a strong recovery in its Medical and Fluid Solutions segment, with organic sales increasing by 7.4% year over year in the fourth quarter of fiscal 2025 [2][8] - Demand for medical interventional products and fluid components is driving performance in the Medical segment, while the Advanced Technology Solutions segment benefits from healthy demand in electronic processing and optical sensors [3] Acquisition Impact - Nordson's acquisition of Atrion Corp in August 2024 has expanded its medical offerings, contributing to a 6% increase in total revenues for fiscal 2025 [4] Stock Performance - Over the past year, NDSN shares have increased by 14.8%, outperforming the industry growth of 7.3% [6] Shareholder Returns - The company is committed to enhancing shareholder value, having paid out $179.1 million in dividends (up 11% year over year) and repurchased $306.4 million in treasury shares in fiscal 2025 [6][9] - In August 2025, Nordson raised its dividend by 5% to 82 cents per share [9] Earnings Estimates - The Zacks Consensus Estimate for Nordson's fiscal 2026 earnings has risen from $10.94 to $11.19, with four upward revisions and no downward revisions [9]

Financial Performance - Consolidated sales for the fiscal year ended October 31, 2025, were $2,791,687, reflecting a 3.8% increase from $2,689,921 in 2024[149] - Gross margin for 2025 was $1,539,784, with a gross margin percentage of 55.2%, unchanged from 2024[149] - Operating profit increased by 5.6% to $711,725 in 2025, compared to $674,001 in 2024[149] - Net income for 2025 was $484,474, a 3.7% increase from $467,284 in 2024[149] - Net income increased by 3.7% to $484,474, or $8.51 per diluted share, compared to $467,284, or $8.11 per diluted share, in 2024[161] Expenses and Taxation - Interest expense increased by 20.3% to $101,105 in 2025, up from $84,011 in 2024[149] - The effective income tax expense decreased by 4.2% to $113,174 in 2025, compared to $118,197 in 2024[149] - Interest expense rose by 17.1% to $104,156 in 2025, reflecting higher average debt levels due to acquisitions[159] - The effective tax rate decreased to 18.9% in 2025 from 20.2% in 2024, primarily due to a decline in federal valuation allowances[160] Segment Performance - Net sales for the Industrial Precision Solutions (IPS) segment decreased by 5.1% to $1,331,792, while Medical and Fluid Solutions (MFS) increased by 20.1% to $835,385, and Advanced Technology Solutions (ATS) grew by 4.9% to $624,510 for the twelve months ended October 31, 2025[150] - Segment EBITDA for IPS decreased to $493,873 (37.1% of sales), while MFS increased to $311,684 (37.3% of sales), and ATS rose to $146,589 (23.5% of sales) for the fiscal year ended October 31, 2025[155] Cash and Debt Management - Cash and cash equivalents decreased to $108,442 as of October 31, 2025, from $115,952 in 2024, with 71% held at foreign subsidiaries[162] - The company repurchased over $300 million in common shares during 2025, reduced outstanding debt by approximately $224 million, and paid $179 million in dividends[162] - The company has a $1,150,000 unsecured multi-currency credit facility, with $265,000 outstanding on the term loan and $135,000 on the revolving credit facility as of October 31, 2025[163] - Total available borrowings under loan agreements and unused bank lines of credit amounted to $935,151 million as of October 31, 2025[164] - The company believes it can generate adequate cash to meet long-term needs despite potential impacts from changes in trade policies and tariffs[164] Foreign Currency and Economic Risks - Significant revenues in 2025 were generated in currencies other than the U.S. dollar, exposing the company to foreign currency exchange rate fluctuations[60] - The company has taken steps to manage foreign currency exposure, including hedging transactions, but remains vulnerable to exchange rate volatility[61] - The company faces risks from political and economic instability in countries where it operates, which could adversely affect demand for its products[62] Operational and Compliance Risks - Cybersecurity threats and incidents pose risks to the company's systems and networks, potentially affecting business continuity and data integrity[68] - The company incurs significant ongoing operating costs to comply with evolving data protection laws, which may divert attention from growth initiatives[70] - Noncompliance with data protection laws could result in regulatory investigations, fines, and reputational damage, impacting revenues and operations[71] - The company faces risks related to disruptions in the supply of components and raw materials, which could adversely impact its financial condition and results of operations[72] - Natural or man-made disruptions, including armed conflict and pandemics, may significantly disrupt the company's operations and impact its relationships with customers and suppliers[73] Strategic and Regulatory Considerations - The introduction of artificial intelligence technologies may present new business, compliance, and reputational risks, potentially affecting the company's financial results[74] - Inadequate intellectual property protection could allow competitors to use the company's technologies, adversely affecting its competitive position and financial condition[75] - The company may incur substantial costs and liabilities related to environmental laws, which could negatively impact its financial condition and results of operations[82] - The company's growth strategy includes acquisitions, which may not be successfully executed or integrated, potentially affecting future earnings and cash flow[80] - Any impairment in the value of intangible assets, including goodwill, could negatively affect the company's operating results and total capitalization[83] - Changes in tax laws could materially affect the company's financial condition and profitability by increasing tax liabilities[84] - Compliance with evolving environmental regulations may lead to increased costs and negatively impact the company's competitive position[89] - Expectations regarding environmental, social, and governance considerations could expose the company to potential liabilities and increased costs[92] Capital Structure and Financing Risks - The company faces risks related to its capital structure, including potential inability to comply with restrictive covenants in debt agreements, which could impede growth and refinancing efforts[94] - The existing debt agreements impose limits on the company's ability to borrow, guarantee debts, or make acquisitions, potentially restricting financing activities[95] - Future operating performance will determine the company's ability to comply with debt covenants; failure to comply may lead to defaults and accelerated debt maturity[96] - The company may need to secure new financing to expand or refinance existing debt; access to capital will depend on various uncontrollable factors[97] - Changes in interest rates could negatively impact profitability, highlighting the importance of monitoring market risks[98] - The company maintains insurance for property and business interruption, but coverage may not fully protect against all risks, and premium costs may increase[98] - Natural disasters and catastrophic events pose risks to operations, potentially causing physical damage and disruptions in supply chains[100]

Core Insights - Nordson Corporation (NDSN) is a significant player in the specialty industrial machinery industry, with a market capitalization of $13.2 billion, focusing on products for dispensing and controlling various materials [1][2] - The company has a diversified product lineup and a global presence, operating in over 35 countries, which mitigates market risk and allows it to leverage global growth opportunities [2] Financial Performance - NDSN's stock has experienced a 6.4% decline from its 52-week high of $251.47, while gaining 5.5% over the past three months, outperforming the S&P 500 Index's 3.7% gains [3][4] - Over a six-month period, NDSN shares rose 8%, and 2.8% over the past 52 weeks, underperforming the S&P 500's gains of 12.9% and 12.8%, respectively [4] - For Q4, NDSN reported an adjusted EPS of $3.03, surpassing Wall Street's expectation of $2.93, with revenue of $751.8 million, reflecting a 1% year-over-year increase [5] Future Outlook - NDSN anticipates full-year adjusted EPS between $10.80 and $11.50, with revenue projected between $2.8 billion and $3 billion [5] - Analysts maintain a "Moderate Buy" consensus rating for NDSN, with a mean price target of $267.11, indicating a potential upside of 13.4% from current levels [6]

Core Insights - Nordson Corporation is a global leader in precision technology solutions, specializing in equipment for dispensing adhesives, coatings, sealants, and biomaterials [1] - D.A. Davidson has set a price target of $290 for Nordson's stock, indicating a potential upside of 23.29% from its current trading price of $235.21 [1][5] Financial Performance - For the fiscal fourth quarter ending October 31, 2025, Nordson reported sales of $752 million, reflecting a 1% increase from $744 million in the previous year [2][5] - The sales growth was supported by a favorable currency translation of 2% and a 1% contribution from acquisitions, although it was partially offset by a divestiture in the medical contract manufacturing segment and a 1% decrease in organic sales [2] Stock Performance - The current stock price of Nordson is $234.35, showing a slight decrease of approximately 0.03% from the previous trading session [3] - Over the past year, the stock has experienced significant volatility, reaching a high of $251.47 and a low of $165.03, with a market capitalization of approximately $13.17 billion [4]