Financial Data and Key Metrics - Q4 2024 sales were $744 million, up 4% YoY, driven by 6% growth from acquisitions and 1% favorable currency translation, offset by a 3% decline in organic sales [12] - Adjusted operating profit was $205 million, up 30 bps YoY, with gross margin improving by 110 bps due to factory efficiency gains and a higher mix of parts revenue [14] - Q4 EBITDA increased 6% YoY to a record $241 million, representing 32% of sales, 200 bps above the long-term profitability target [15] - Full-year 2024 sales reached a record $2.7 billion, up 2% YoY, with EBITDA increasing 4% to $849 million, or 32% of sales [24][25] Business Segment Performance Industrial Precision Solutions (IPS) - Q4 sales decreased 3% YoY to $392 million, with organic sales down 5% due to tough YoY comparisons in industrial coatings and polymer processing [19] - EBITDA for the quarter was $143 million, or 37% of sales, reflecting consistent operational performance despite lower sales [19] Medical and Fluid Solutions (MFS) - Q4 sales increased 19% YoY to $200 million, primarily driven by the Atrion acquisition, offset by a 3% decline in organic sales [20] - EBITDA for the quarter was $72 million, or 36% of sales, up 17% YoY, with margins slightly lower due to the inclusion of Atrion [21] Advanced Technology Solutions (ATS) - Q4 sales increased 5% YoY to $152 million, with organic sales up 4%, driven by improvements in test and inspection product lines [22] - EBITDA for the quarter was $41 million, or 27% of sales, up from 24% in the prior year, reflecting improved operational efficiency [23] Market and Strategic Insights - The company's Ascend strategy, launched in 2021, has driven record sales and EBITDA growth, with a focus on innovation, geographic diversification, and recurring revenue [9][10] - The Atrion acquisition expanded the company's addressable market in medical fluid components by over 50%, with strong contributions expected in fiscal 2025 and beyond [33] - The NBS Next growth framework has improved operational efficiency, with ATS achieving 27% EBITDA margins despite being in a downcycle [35][36] Management Commentary on Market Conditions - Management expects muted large capital investments in the near term, particularly in polymer processing and recycling, due to reduced customer backlog and cautious spending [38][39] - Medical device customers are being cautious with inventory purchases, impacting the interventional solutions product line, which represents 47% of MFS sales [40] - The electronics and semiconductor markets are showing signs of stabilization, but a significant ramp in capital spending is not expected in the near term [42] Guidance and Outlook - Full-year 2025 sales are expected to grow 2% to 7% YoY, with adjusted EPS growth forecasted to be neutral to 8% [43] - Q1 2025 sales are projected to be in the range of $615 million to $655 million, with adjusted EPS between $1.95 and $2.15 [45] - The company anticipates a negative 1.5% impact from foreign exchange rates and no significant recovery in electronics or agricultural end markets [44] Q&A Session Highlights Growth Expectations - Management expects flat organic growth for the year, with growth primarily driven by the Atrion acquisition and modest improvements in ATS [55][88] - The company remains cautious about near-term demand, particularly in large system businesses and interventional medical solutions [51][52] Backlog and Order Trends - Backlog at the end of fiscal 2024 was $580 million, with Atrion contributing $35 million [61] - Order patterns in ATS support a return to nominal growth, but significant capital spending is not expected in the near term [58][80] Margin and Cost Efficiency - Factory efficiency gains and cost-cutting measures, including restructuring, are expected to drive incremental margin improvements in fiscal 2025 [100] - Atrion's EBITDA margins are in the upper 20% range, with further improvements expected as integration progresses [72][104] Market Recovery and Geopolitical Impact - Management is not calling for a significant recovery in key markets, with uncertainty around geopolitical issues and customer hesitancy impacting near-term outlooks [66][111] - The company remains well-positioned to navigate a dynamic environment, leveraging its strong operating model and competitive advantages [85][86]

Core Insights - Nordson reported revenue of $744.48 million for the quarter ended October 2024, marking a year-over-year increase of 3.5% and exceeding the Zacks Consensus Estimate by 1.52% [1] - The company's EPS for the same period was $2.78, up from $2.46 a year ago, representing a surprise of 7.34% over the consensus estimate of $2.59 [1] Revenue Performance - Net Sales in Industrial Precision Solutions were $392.15 million, which is a decrease of 3.3% compared to the year-ago quarter and below the average estimate of $407.64 million [3] - Net Sales in Advanced Technology Solutions reached $152.11 million, reflecting a year-over-year increase of 4.7% and surpassing the average estimate of $135.17 million [3] - Net Sales in Medical and Fluid Solutions amounted to $200.22 million, an 18.7% increase year-over-year, exceeding the average estimate of $197.55 million [3] Operating Profit Analysis - Operating profit in Advanced Technology Solutions was $33.46 million, exceeding the average estimate of $25.76 million [3] - Operating profit in Medical and Fluid Solutions was $44.26 million, which fell short of the average estimate of $50.14 million [3] - Operating profit in Industrial Precision Solutions was $126.25 million, below the average estimate of $136.06 million [3] - Corporate operating loss was reported at -$25.09 million, worse than the average estimate of -$18.62 million [3] Stock Performance - Over the past month, Nordson's shares have returned -1.8%, contrasting with the Zacks S&P 500 composite's increase of 0.8% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

分组1 - Nordson reported quarterly earnings of $2.78 per share, exceeding the Zacks Consensus Estimate of $2.59 per share, and up from $2.46 per share a year ago, representing an earnings surprise of 7.34% [1] - The company achieved revenues of $744.48 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 1.52%, and an increase from $719.31 million year-over-year [2] - Over the last four quarters, Nordson has consistently surpassed consensus EPS estimates four times and revenue estimates three times [2] 分组2 - The current consensus EPS estimate for the upcoming quarter is $2.27 on revenues of $686.5 million, and for the current fiscal year, it is $10.35 on revenues of $2.93 billion [8] - The Zacks Industry Rank for Manufacturing - General Industrial is currently in the bottom 46% of over 250 Zacks industries, indicating potential challenges for stock performance [9] - The estimate revisions trend for Nordson is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [7]

Sales Performance - Fourth quarter sales were $744 million, a 4% increase from $719 million in the prior year[2] - Full year sales reached a record $2.7 billion, reflecting a 2% growth over last year's record sales of $2.628 billion[10] - The Advanced Technology Solutions segment saw a 5% increase in sales to $152 million, driven by a 4% organic sales increase[9] - The Medical and Fluid Solutions segment reported a 19% increase in sales to $200 million, primarily due to the Atrion acquisition[7] - The Industrial Precision Solutions segment experienced a 3% decrease in sales to $392 million, driven by a 5% organic sales decrease[6] - The Industrial Precision Solutions segment reported sales of $1,484,249 thousand for the twelve months ended October 31, 2024, a 6.7% increase from $1,391,046 thousand in 2023[32] - The Medical and Fluid Solutions segment saw a 5.3% increase in sales to $695,452 thousand for the twelve months ended October 31, 2024, compared to $660,316 thousand in the previous year[32] - Total sales for the three months ended October 31, 2024, were $744,482 thousand, representing a 3.5% increase compared to $719,313 thousand for the same period in 2023[32] - The industrial precision solutions segment reported sales of $392,150 thousand for the three months ended October 31, 2024, a decrease of 3.3% from $405,436 thousand in the same period last year[38] - Medical and fluid solutions segment sales increased to $200,223 thousand, up 18.7% from $168,632 thousand in the prior year[38] - Advanced technology solutions segment sales were $152,109 thousand, a 4.0% increase from $145,245 thousand in the same period last year[38] Earnings and Profitability - Adjusted earnings per diluted share for the fourth quarter were $2.78, up from $2.71 in the prior year[3] - Full year adjusted earnings per diluted share were $9.73, compared to $9.85 in the prior year[11] - Operating profit for the three months ended October 31, 2024, was $178,892 thousand, down 3.1% from $185,039 thousand in the prior year[38] - Adjusted net income for the three months ended October 31, 2024, was $160,239 thousand, compared to $156,025 thousand for the same period in 2023, reflecting a 1.4% increase[42] - Diluted earnings per share for the three months ended October 31, 2024, were $2.12, a decrease from $2.22 in the same period last year[42] Cash Flow and Financial Position - Cash flows from operating activities for the twelve months ended October 31, 2024, totaled $556,193 thousand, a decrease of 13.3% from $641,282 thousand in 2023[29] - The company’s cash and cash equivalents at the end of the period were $115,952 thousand, slightly up from $115,679 thousand at the beginning of the period[29] - Free cash flow for the year to date as of October 31, 2024, was $491,783 thousand, compared to $416,026 thousand for the same period in 2023, indicating a 18.1% increase[45] EBITDA and Backlog - EBITDA for the fourth quarter was $241 million, representing 32% of sales, a 4% increase from $227 million in the prior year[4] - EBITDA for the twelve months ended October 31, 2024, was $849,168 thousand, an increase from $818,974 thousand in the previous year, reflecting a growth of 3.7%[35] - EBITDA for the three months ended October 31, 2024, was $241,096 thousand, representing a 6.1% increase from $227,100 thousand in the prior year[38] - The company has approximately $580 million in backlog entering fiscal 2025[14] Assets and Liabilities - The company reported a total current assets increase to $1,275,032 thousand as of October 31, 2024, compared to $1,229,310 thousand in 2023, marking a growth of 3.7%[26] - Long-term debt increased to $2,101,197 thousand as of October 31, 2024, up from $1,621,394 thousand in the previous year, indicating a rise of 29.5%[26] - The company’s total shareholders' equity increased to $2,932,192 thousand as of October 31, 2024, compared to $2,598,060 thousand in 2023, representing a growth of 12.8%[26]

Group 1: Company Performance - Nordson Corporation (NDSN) is experiencing growth in the Industrial Precision Solutions segment, driven by strong demand for packaging and nonwoven product lines [1] - The company expects to generate sales between $2.665 billion and $2.705 billion in fiscal 2024, indicating a year-over-year growth of 2.1% at the midpoint [1] - The acquisition of Atrion Corporation's businesses will enhance Nordson's medical offerings in infusion and cardiovascular therapies [2] - The ARAG Group acquisition has expanded Nordson's capabilities in precision dispensing technology, contributing to a 4% revenue increase in the third quarter of fiscal 2024 [3] Group 2: Shareholder Returns - Nordson has prioritized shareholder returns through dividend payouts and share repurchases, paying out $116.8 million in dividends and repurchasing $34.1 million in shares in the first three quarters of fiscal 2024 [4] - In August 2024, the company increased its dividend by 15% to 78 cents per share [4] Group 3: Segment Challenges - The Advanced Technology Solutions and Medical and Fluid Solutions segments are facing challenges, with the Advanced Technology Solutions segment declining by 10.9% in the fiscal third quarter [7] - The Medical and Fluid Solutions segment's revenues decreased by 2.4% year over year in the fiscal third quarter due to reduced demand for interventional solutions and fluid components [7] Group 4: Cost Concerns - The company is facing rising costs, with a 1.5% year-over-year increase in the cost of sales and a 2.4% increase in selling and administrative expenses in the fiscal third quarter, attributed to high acquisition costs [8] Group 5: Stock Performance - Over the past three months, NDSN shares have gained 10%, compared to the industry's growth of 15.4% [6]

Core Viewpoint - Nordson (NDSN) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - For the fiscal year ending October 2024, Nordson is expected to earn $9.55 per share, reflecting a 5.8% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Nordson has risen by 0.3%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, suggesting superior potential for market-beating returns [9][10]. - The upgrade of Nordson to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong likelihood of price appreciation in the near term [10].

Group 1: Company Performance and Growth - Nordson Corporation (NDSN) is experiencing solid momentum in the Industrial Precision Solutions segment, driven by the popularity of its packaging and nonwoven product lines [1] - The company expects sales for fiscal 2024 to be in the range of $2.665-$2.705 billion, indicating a year-over-year growth of 2.1% at the midpoint [1] - The acquisition of Atrion Corporation in August 2024 will enhance NDSN's medical offerings in infusion and cardiovascular therapies [2] - The ARAG Group acquisition in August 2023 has expanded NDSN's capabilities in precision dispensing technology, contributing to a 4% revenue boost in the third quarter of fiscal 2024 [3] Group 2: Shareholder Returns - NDSN is committed to rewarding shareholders, having paid out dividends of $116.8 million in the first nine months of fiscal 2024, a 4.8% increase year over year [4] - The company repurchased shares worth $34.1 million during the same period and increased its dividend by 15% to 78 cents per share in August 2024, marking the 61st consecutive year of dividend increases [4] Group 3: Market Challenges - The Advanced Technology Solutions segment is facing challenges due to lower demand for electronics processing and x-ray and test product lines [6] - The Medical and Fluid Solutions segment is also experiencing soft demand for interventional solutions and fluid components [6] - Rising costs and expenses are a concern, with cost of sales increasing by 1.5% year over year and selling and administrative expenses rising by 2.4% in the fiscal third quarter [7]

Core Viewpoint - Nordson reported a mixed performance in its third-quarter fiscal 2024 earnings, with adjusted earnings per share surpassing estimates but a year-over-year decline in net income and organic sales [2][3][12]. Financial Performance - Adjusted earnings for Q3 fiscal 2024 were $2.41 per share, exceeding the Zacks Consensus Estimate of $2.33, but down 6% year-over-year [2]. - Revenues reached $661.6 million, a 2% increase from the previous year, driven by the Industrial Precision Solutions segment, and surpassed the Zacks Consensus Estimate of $655 million [3]. - Organic sales declined by 1% year-over-year, attributed to softness in electronics and medical product lines, while acquisitions contributed positively by 4% and foreign currency translation negatively impacted by 1% [3]. Segment Performance - Revenues from the Industrial Precision Solutions segment were $370.6 million, up 9.6% year-over-year, contributing 56% to total revenues [4]. - Medical and Fluid Solutions revenues were $166.7 million, down 2.4% year-over-year, contributing 25.2% to total revenues [5]. - Advanced Technology Solutions sales were $124.3 million, down 10.9% year-over-year, representing 18.8% of total revenues [6]. Margin and Expenses - Cost of sales increased by 1.5% to $292.6 million, with gross profit rising 2.4% to $369 million, resulting in a gross margin of 55.8%, an increase of 30 basis points [7]. - Selling and administrative expenses rose 6.7% to $201.9 million, while operating income decreased by 2.3% to $167.1 million, leading to an operating margin of 25.3%, down 110 basis points [8]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of Q3 were $165.3 million, up from $115.7 million at the end of Q4 fiscal 2023, while long-term debt decreased to $1.4 billion from $1.6 billion [9]. - Net cash generated from operating activities in the first nine months of fiscal 2024 was $459.8 million, down 3.8% year-over-year, with capital expenditures increasing by 81% to $43.8 million [10]. Dividends and Share Buyback - Dividends paid in the first nine months of fiscal 2024 totaled $116.8 million, a 4.8% increase from the previous year, while treasury share purchases amounted to $34.1 million, down from $78.2 million [11]. Outlook - For fiscal 2024, Nordson anticipates adjusted earnings in the range of $9.45-$9.65 per share and sales between $2.665-$2.705 billion, both revised upward from previous estimates [12].

Core Viewpoint - Nordson Corporation (NDSN) is positioned for growth due to strong performance across its business segments and strategic acquisitions, making it an attractive investment option for shareholders [1]. Business Strength - The Industrial Precision Solutions segment is experiencing strong momentum, driven by increasing demand for nonwoven products in industrial and consumer non-durable markets, as well as a growing need for packaged goods in food, beverage, personal care, and cosmetics sectors [4]. Expansion Efforts - Nordson's acquisition strategy is enhancing its capabilities, with recent acquisitions contributing to revenue growth. In Q3 of fiscal 2024, acquired assets increased total revenues by 4%. The acquisition of Atrion Corporation in August 2024 will expand Nordson's medical offerings in infusion and cardiovascular therapies, expected to yield significant operational synergies [5][6]. - The acquisition of ARAG Group in August 2023 enhanced Nordson's precision dispensing technology, allowing entry into the precision agriculture market. Additionally, the acquisition of CyberOptics Corporation in November 2022 expanded its semiconductor test and inspection capabilities [6]. Shareholder Rewards - Nordson is committed to increasing shareholder value through dividends and share repurchases. In the first nine months of fiscal 2024, the company paid out $116.8 million in dividends, a 4.8% increase year-over-year, and repurchased shares worth $34.1 million. In August 2024, the dividend was raised by 15% to 78 cents per share, marking the 61st consecutive year of dividend increases [7]. - The board authorized an additional $500 million for share repurchases in September 2022, with approximately $0.52 million remaining from the total $1.5 million authorized as of the end of the fiscal third quarter [8].

Financial Data and Key Metrics - Q3 2024 sales were $662 million, up 2% YoY, driven by a 4% increase from the ARAG acquisition, partially offset by a 1% organic sales decrease and unfavorable currency translation [7] - Adjusted EPS for the quarter was $2.41, $0.08 above the midpoint of guidance but a 6% decrease YoY [9] - Free cash flow was $143 million, representing a 122% conversion rate on net income [6] - EBITDA margin was 31.5%, slightly below the prior year by 50 basis points due to higher selling and administrative costs [8] Business Segment Performance Industrial Precision Solutions (IPS) - Sales increased 10% YoY to $371 million, driven by a 7% contribution from the ARAG acquisition and 4% organic growth [10] - EBITDA for the segment was $135 million, or 36% of sales, up 10% YoY [10] Medical and Fluid Solutions (MFS) - Sales decreased 2% YoY to $167 million due to lower demand in medical interventional solutions and fluid components [11] - EBITDA was $62 million, or 37% of sales, a 9% reduction YoY [11] Advanced Technology Solutions (ATS) - Sales decreased 11% YoY to $124 million, driven by a 10% organic volume decline and unfavorable currency translation [12] - EBITDA was $26 million, or 21% of sales, below the prior year [12] Market Data and Key Metrics - The IPS segment saw steady growth in industrial and consumer non-durable end markets, with nonwovens picking up in Q3 [15] - The ATS segment is expected to benefit from increasing demand for advanced chips, automotive electronics, and the CHIPS Act [17] - Medical device customers are being more cautious with inventory purchases, leading to lower demand in certain product lines [16] Company Strategy and Industry Competition - The company continues to focus on top customers and differentiated products, improving product mix and managing costs [6] - The acquisition of Atrion Medical expands the company's addressable market in medical fluid components by more than 50% [5] - The company is leveraging the NBS Next growth framework to drive operational efficiency and growth [5] Management Commentary on Operating Environment and Future Outlook - Management expects the ATS segment to return to growth in 2025, driven by sequential and YoY increases in order entry [17] - Full-year fiscal 2024 adjusted EPS is expected to be in the range of $9.45 to $9.65, unchanged at the midpoint despite the inclusion of Atrion [19] - The company remains confident in the long-term growth drivers of the medical and fluid solutions segment, including aging populations and increased healthcare spending [16] Other Important Information - The company announced its 61st year of increasing its annual dividend, reflecting a commitment to growing capital returns [14] - The Atrion acquisition was funded with a $500 million term loan, cash on hand, and borrowings on the revolver, increasing net debt to $2.2 billion and leverage ratio to 2.5x [13] Q&A Session Summary Question: Atrion's Margin Profile and Steps to Improve - Management believes Atrion's EBITDA margins can return to Nordson-like levels over time, addressing supply chain and operational issues [21] Question: Growth in Test and Inspection Products - Strong momentum in optical and acoustic product lines, driven by new products and the semiconductor manufacturing cycle [23] Question: Implied Guidance for Q4 and Organic Growth - The company expects steady performance in IPS, with modest order entry pickup in ATS and cautious inventory management in MFS [26] Question: Medical Interventional Solutions Normalization - Management sees conservative order patterns from medical device customers, with long-term growth drivers intact but near-term softness [31] Question: Atrion's Revenue and Margin Expectations - Atrion is expected to achieve mid-single-digit growth, with EBITDA margins returning to historical levels by 2026 [29] Question: M&A Strategy and Pipeline - The company remains committed to a balanced acquisition-led growth strategy, with a healthy pipeline and disciplined financial criteria [36] Question: Geographic Performance and Market Shifts - The US market remains strong, with Asia-Pacific recovering and Europe showing weaker organic growth [43] Question: Backlog and Systems Normalization - Backlog remains weighted to system businesses, with book-and-ship businesses returning to normal order entry patterns [45] Question: ARAG Margin Performance - ARAG is performing at Nordson-like EBITDA margins, with integration progressing well despite market weakness [47]