[Fiscal 2025 Third Quarter Performance Overview](index=1&type=section&id=Fiscal%202025%20Third%20Quarter%20Performance%20Overview) Nordson reported strong Q3 FY2025 results with significant sales and adjusted EPS growth, driven by strategic acquisitions and effective market response [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Nordson reported strong Q3 FY2025 financial results, with double-digit sales and adjusted EPS growth and robust cash generation Q3 FY2025 Key Financial Metrics | Metric | Q3 FY2025 | Q3 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Sales | $742 million | $662 million | +12.1% | | Net Income | $126 million | $117 million | +7.7% | | Adjusted Net Income | $155 million | $138 million | +12.3% | | Diluted EPS | $2.22 | $2.04 | +8.8% | | Adjusted Diluted EPS | $2.73 | $2.41 | +13.3% | | EBITDA | $239 million | $208 million | +14.9% | - The company achieved a strong free cash flow conversion rate of **180%** of net income during the quarter[7](index=7&type=chunk) - The Board of Directors has approved a new share repurchase authorization of **$500 million**[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributed strong performance to effective market response, significant organic growth in ATS, and successful Atrion acquisition - The Advanced Technology Solutions segment was a key growth driver, delivering **15%** organic sales growth[4](index=4&type=chunk) - The Atrion acquisition, in its final full quarter of its first year, again exceeded expectations and contributed positively to both sales and earnings[4](index=4&type=chunk) - Strong cash flow conversion of **180%** enabled the company to reduce debt, repurchase shares, and return dividends to shareholders[4](index=4&type=chunk) [Segment Performance Analysis](index=1&type=section&id=Segment%20Performance%20Analysis) Analysis of sales and profitability across Industrial Precision, Medical and Fluid, and Advanced Technology Solutions segments [Industrial Precision Solutions (IPS)](index=1&type=section&id=Industrial%20Precision%20Solutions%20(IPS)) IPS sales increased slightly by 1% due to favorable currency, offsetting organic decline, with stable EBITDA margin at 37% IPS Q3 FY2025 Performance | Metric | Q3 FY2025 | Q3 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Sales | $351 million | $349 million | +1% | | Organic Sales Change | -2% | N/A | N/A | | Operating Profit | $117 million | $115 million | +1.7% | | EBITDA | $130 million | $131 million | -0.8% | | EBITDA Margin | 37% | 37% | 0 bps | [Medical and Fluid Solutions (MFS)](index=1&type=section&id=Medical%20and%20Fluid%20Solutions%20(MFS)) MFS sales surged 32% driven by the Atrion acquisition, with organic growth of 4% and an expanded EBITDA margin of 38% MFS Q3 FY2025 Performance | Metric | Q3 FY2025 | Q3 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Sales | $219 million | $167 million | +32% | | Acquisition Impact | +31% | N/A | N/A | | Organic Sales (ex-divestiture) | +4% | N/A | N/A | | EBITDA | $83 million | $62 million | +34% | | EBITDA Margin | 38% | 37% | +100 bps | - Adjusted operating profit, excluding acquisition costs and divestiture charges, increased by **$17 million** from the prior year, reflecting increased leverage and contributions from the Atrion acquisition[6](index=6&type=chunk) [Advanced Technology Solutions (ATS)](index=1&type=section&id=Advanced%20Technology%20Solutions%20(ATS)) ATS achieved outstanding results with 17% sales growth, 15% organic growth, and a significant EBITDA margin expansion to 24% ATS Q3 FY2025 Performance | Metric | Q3 FY2025 | Q3 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Sales | $171 million | $146 million | +17% | | Organic Sales Growth | +15% | N/A | N/A | | Operating Profit | $37 million | $26 million | +42.3% | | EBITDA | $42 million | $31 million | +35% | | EBITDA Margin | 24% | 21% | +300 bps | [Financial Outlook](index=3&type=section&id=Financial%20Outlook) Nordson provides its full-year fiscal guidance, affirming original expectations with slight adjustments for sales and adjusted EPS [Full Year Guidance](index=3&type=section&id=Full%20Year%20Guidance) Nordson affirmed full-year guidance, expecting sales slightly below and adjusted EPS slightly above the midpoint, pending divestiture - The company's backlog is down approximately **5%** sequentially after a strong third quarter[10](index=10&type=chunk) - Full-year sales are now tracking slightly below the midpoint of the original guidance[10](index=10&type=chunk) - Full-year adjusted earnings per share are now tracking slightly above the midpoint of the original guidance[10](index=10&type=chunk) - The CEO expressed confidence in the company's ability to deliver solid growth and profitability, citing the NBS Next strategy, a diverse product portfolio, and a close-to-customer business model[11](index=11&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents Nordson's consolidated statements of income, balance sheets, and cash flows for the reported periods [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Q3 FY2025 sales grew to $741.5 million, with increased gross and operating profit, and net income of $125.8 million Q3 Statement of Income Highlights (in thousands) | Account | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :--- | :--- | :--- | | Sales | $741,509 | $661,604 | | Gross Profit | $406,517 | $369,001 | | Operating Profit | $187,767 | $167,058 | | Net Income | $125,784 | $117,327 | | Diluted EPS | $2.22 | $2.04 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of July 31, 2025, total assets were $6.01 billion, with increased cash, reduced long-term debt, and assets held for sale Balance Sheet Highlights (in thousands) | Account | July 31, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $147,788 | $115,952 | | Total current assets | $1,326,848 | $1,275,032 | | Total assets | $6,009,713 | $6,000,966 | | Long-term debt | $1,785,745 | $2,101,197 | | Total shareholders' equity | $2,981,785 | $2,932,192 | [Consolidated Statement of Cash Flows](index=6&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Nine-month operating cash flow increased to $516.3 million, with significant cash used for share repurchases and debt repayments Nine-Month Cash Flow Highlights (in thousands) | Account | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $516,264 | $459,812 | | Net cash used in investing activities | ($44,730) | ($34,890) | | Net cash used in financing activities | ($444,530) | ($370,612) | | Net change in cash | $31,836 | $49,645 | - Share repurchases increased significantly year-over-year, with **$218.2 million** spent on treasury shares in the first nine months of FY2025 compared to **$34.1 million** in the prior year period[21](index=21&type=chunk) [Supplemental Financial Data](index=7&type=section&id=Supplemental%20Financial%20Data) This section provides additional financial details, including sales by segment and region, and reconciliations of non-GAAP measures [Sales by Segment and Geographic Region](index=7&type=section&id=Sales%20by%20Segment%20and%20Geographic%20Region) Q3 sales grew 12.1% across all regions, led by Asia Pacific, with MFS and ATS showing strong segment growth Q3 FY2025 Sales Variance vs. Q3 FY2024 | Category | Total Variance | Organic | Acquisitions | Currency | | :--- | :--- | :--- | :--- | :--- | | **By Segment** | | | | | | Industrial Precision Solutions | +0.5% | -2.0% | 0.0% | +2.5% | | Medical and Fluid Solutions | +31.6% | -0.4% | +31.0% | +1.0% | | Advanced Technology Solutions | +17.4% | +14.6% | 0.0% | +2.8% | | **By Region** | | | | | | Americas | +9.6% | -3.2% | +13.0% | -0.2% | | Europe | +4.0% | -6.1% | +4.8% | +5.3% | | Asia Pacific | +23.1% | +17.4% | +2.9% | +2.8% | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Detailed reconciliations of non-GAAP measures like EBITDA, Adjusted Net Income, EPS, and Free Cash Flow are provided for clarity [Net Income to EBITDA Reconciliation](index=8&type=section&id=Net%20Income%20to%20EBITDA%20Reconciliation) Reconciliation of GAAP net income to non-GAAP EBITDA, detailing adjustments for taxes, interest, depreciation, and other items Q3 EBITDA Reconciliation (in thousands) | Account | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Net Income | $125,784 | $117,327 | | Add: Income Taxes | $33,340 | $32,107 | | Add: Interest Expense - net | $25,698 | $17,776 | | Add: Depreciation & Amortization | $37,847 | $33,382 | | Add: Divestiture Charges | $12,211 | $0 | | Other Adjustments | $3,631 | $7,544 | | **EBITDA (non-GAAP)** | **$238,511** | **$208,136** | [Segment EBITDA Reconciliation](index=9&type=section&id=Segment%20EBITDA%20Reconciliation) This table presents the EBITDA and corresponding margins for each operating segment for the third quarter Q3 EBITDA by Segment (in thousands) | Segment | EBITDA Q3 FY2025 | Margin | EBITDA Q3 FY2024 | Margin | | :--- | :--- | :--- | :--- | :--- | | Industrial Precision Solutions | $130,130 | 37% | $130,606 | 37% | | Medical and Fluid Solutions | $83,153 | 38% | $61,927 | 37% | | Advanced Technology Solutions | $41,546 | 24% | $30,873 | 21% | | **Total EBITDA** | **$238,511** | **32%** | **$208,136** | **31%** | [Adjusted Net Income and EPS Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) This reconciliation details adjustments from GAAP net income and diluted EPS to their non-GAAP adjusted counterparts Q3 Adjusted Net Income & EPS Reconciliation | Metric | GAAP As Reported | Adjustments (net of tax) | Non-GAAP Adjusted | | :--- | :--- | :--- | :--- | | Net Income | $125.8 M | $29.1 M | $154.9 M | | Diluted EPS | $2.22 | $0.51 | $2.73 | - Total pre-tax adjustments for the quarter were **$33.0 million**, primarily consisting of **$20.1 million** in acquisition amortization and **$12.2 million** in divestiture-related charges[31](index=31&type=chunk) [Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow%20Reconciliation) This section reconciles net cash provided by operating activities to free cash flow and calculates the conversion rate Q3 Free Cash Flow (in thousands) | Metric | Q3 FY2025 | | :--- | :--- | | Net cash provided by operating activities (YTD) | $516,264 | | Less: Additions to property, plant and equipment (YTD) | ($49,002) | | **Free Cash Flow (YTD)** | **$467,262** | | **Free Cash Flow (QTD)** | **$226,409** | | Net Income (QTD) | $125,784 | | **Free Cash Flow Conversion (QTD)** | **180%** |

Core Insights - Nordson Corporation is set to release its third-quarter financial results on August 20, with analysts expecting earnings of $2.64 per share, an increase from $2.41 per share in the same period last year [1] - The company is projected to report quarterly revenue of $723.57 million, up from $661.60 million a year earlier [1] Stock Performance - Nordson shares increased by 1.6%, closing at $217.50 [2] Analyst Ratings - Keybanc analyst Jeffrey Hammond maintained an Overweight rating and raised the price target from $230 to $250 [7] - Oppenheimer analyst Christopher Glynn upgraded the stock from Perform to Outperform with a price target of $260 [7] - Baird analyst Michael Halloran maintained a Neutral rating and increased the price target from $241 to $245 [7] - Loop Capital analyst Chris Dankert upgraded the stock from Hold to Buy, raising the price target from $255 to $280 [7] - Seaport Global analyst Walt Liptak upgraded the stock from Neutral to Buy with a price target of $250 [7]

Core Viewpoint - Analysts forecast that Nordson (NDSN) will report quarterly earnings of $2.61 per share, reflecting an 8.3% year-over-year increase, with revenues expected to reach $721 million, a 9% increase compared to the previous year [1]. Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions to the stock, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock performance [2]. Key Metrics Analysis - The average prediction for 'Net Sales- Industrial Precision Solutions' is $337.46 million, indicating a year-over-year decline of 8.9% [4]. - 'Net Sales- Advanced Technology Solutions' is estimated to reach $164.46 million, reflecting a year-over-year increase of 32.3% [4]. - 'Net Sales- Medical and Fluid Solutions' is projected at $214.82 million, showing a year-over-year increase of 28.8% [5]. - 'Operating profit (loss)- Advanced Technology Solutions' is forecasted to be $38.05 million, up from $22.95 million in the same quarter last year [5]. - 'Operating profit (loss)- Medical and Fluid Solutions' is expected to reach $60.76 million, compared to $48.37 million a year ago [6]. - 'Operating profit (loss)- Industrial Precision Solutions' is projected at $112.06 million, down from $118.11 million in the previous year [6]. Stock Performance - Nordson shares have changed by -0.1% in the past month, contrasting with a +3.3% increase in the Zacks S&P 500 composite, indicating that the stock is expected to mirror overall market performance in the near future [6].

Core Insights - The article compares Gorman-Rupp (GRC) and Nordson (NDSN) to determine which stock is more attractive to value investors [1] Valuation Metrics - GRC has a forward P/E ratio of 20.26, while NDSN has a forward P/E of 22.02 [5] - GRC's PEG ratio is 1.56, compared to NDSN's PEG ratio of 1.69, indicating GRC's expected earnings growth is more favorable [5] - GRC's P/B ratio is 2.73, while NDSN's P/B ratio is 4.2, suggesting GRC is more undervalued relative to its book value [6] Analyst Outlook - GRC currently holds a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to NDSN's Zacks Rank of 3 (Hold) [3] - GRC's solid earnings outlook and favorable valuation metrics position it as the superior value option compared to NDSN [7]

Company Overview - Nordson is a global provider of precision dispensing and processing equipment, focusing on specialized, high-margin applications in industrial and technology-driven sectors [4] - The company serves diverse end markets, including medical, electronics, consumer non-durable, and industrials, with nearly 60% of its sales coming from outside the United States [8] - Nordson generates revenue through the sale of proprietary equipment, systems, and related components, as well as aftermarket parts and services, emphasizing automation and precision solutions [7] Financial Performance - As of July 8, 2025, Nordson's market capitalization is $12.51 billion, with a revenue of $2.70 billion and a net income of $447 million [2] - The company has a dividend yield of 1.41% and has increased its dividend payout annually for 61 consecutive years, with a 15% increase last year [5] - Nordson expects to grow its annual revenue by 6% to 8% and adjusted earnings per share by 10% to 12% between 2025 and 2029, anticipating nearly $4 billion in operating cash flows during this period [9] Investment Insights - Confluence Investment Management LLC increased its stake in Nordson by acquiring 182,305 additional shares, raising its total holding to 336,090 shares, with a reported position value increase of $41 million [1] - Nordson stock closed at $221.50 on July 8, 2025, with a one-year share price change of -2.29%, underperforming the S&P 500 by 14.1 percentage points [6] - The stock trades 16.3% below its 52-week high, with a forward P/E of 22.1 and an EV/EBITDA ratio of 18.1 [6]

Core Insights - The article discusses the journey to financial independence through disciplined living and strategic investing [2] - It emphasizes the importance of dividend growth investing and identifying undervalued high-quality stocks [2] Group 1: Financial Independence Journey - The individual transitioned from being financially unstable at age 27 to achieving financial freedom by age 33 [2] - The approach involved living below means and making intelligent investment decisions [2] Group 2: Investment Strategies - Focus on dividend growth investing as a primary strategy for generating income [2] - Highlighting the significance of high-yield situations and long-term investment opportunities [2]

Core Insights - The industrials sector has been a top performer in 2025, with the Industrial Select Sector SPDR Fund (XLI) returning nearly 9% year-to-date, significantly outperforming the S&P 500 [1] - The Trump administration's focus on boosting domestic manufacturing is contributing to a positive outlook for industrial companies [1] Company Summaries Nordson Corporation (NASDAQ: NDSN) - Nordson's stock has a 12-month price forecast of $253.17, indicating a potential upside of 19.24% from the current price of $212.31 [3][6] - The company reported adjusted earnings per share of $2.42, exceeding analyst expectations by $0.06, with revenue increasing by 5% year-over-year to $683 million [4] - Nordson's strong performance is supported by a 5% growth in backlog and positive forecasts for the third quarter, with expected adjusted EPS between $2.55 and $2.75 [5] VSE Corporation (NASDAQ: VSEC) - VSE's stock forecast suggests a 12-month price target of $125.17, reflecting a downside of 4.72% from the current price of $131.37 [8] - The company has transitioned to focus solely on aviation, recently acquiring Turbine Weld Industries to enhance its maintenance, repair, and overhaul services [9][10] - VSE's shares have surged 40% year-to-date, driven by strategic repositioning in the high-demand aviation sector [8] Cimpress plc (NASDAQ: CMPR) - Cimpress has a 12-month stock price forecast of $62.50, indicating a potential upside of 40.29% from the current price of $44.55 [12] - The company is shifting towards "elevated products" such as apparel and packaging, which aligns with recent sales growth trends [13] - Despite a nearly 38% decline year-to-date, Cimpress has seen a 9% increase in the last month, suggesting potential recovery [12]

Company Performance - Life360 (LIF) has gained approximately 48.1% year-to-date, significantly outperforming the average return of -3.7% for the Industrial Products sector [4] - Life360 holds a Zacks Rank of 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a 11.6% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Another outperforming stock in the Industrial Products sector is Nordson (NDSN), which has returned 1.4% year-to-date and holds a Zacks Rank of 2 (Buy) [4][5] Industry Context - The Industrial Products sector consists of 190 individual stocks and currently ranks 13 among 16 sector groups according to Zacks [2] - Life360 is part of the Security and Safety Services industry, which includes 17 stocks and ranks 84 in the Zacks Industry Rank, with an average gain of 3.5% year-to-date [5] - In contrast, Nordson belongs to the Manufacturing - General Industrial industry, which has 38 stocks and ranks 145, with a year-to-date decline of -2.7% [6]

Core Insights - Nordson's stock has seen a nearly 10% increase following strong quarterly results that pleased investors [1] Financial Performance - In Q2 of fiscal 2025, Nordson reported total sales of $683 million, up from $651 million in Q2 of fiscal 2024, exceeding analyst expectations of slightly under $673 million [2] - The company achieved a non-GAAP adjusted income of $138 million, or $2.42 per share, a slight increase from $135 million in the same period last year, also surpassing the average analyst projection of $2.36 [4] Factors Contributing to Performance - Management attributed the improved results to robust sales in key divisions such as electronic systems and precision agriculture, along with a 5% rise in order backlog [5] Future Guidance - For the current third quarter, Nordson estimates earnings between $710 million to $750 million, with adjusted earnings projected at $2.55 to $2.75 per share, while analysts expect a top line of just over $724 million and adjusted profitability of $2.63 per share [6] Overall Assessment - The company is demonstrating steady performance across key divisions, with growing fundamentals and consistent cash flow to support its increasing dividend, indicating a reliable investment opportunity [7]

Core Insights - Nordson Corporation is identified as a high-quality company with the potential to outperform the market over the long term due to its competitive advantage and defensibility [1]. Company Analysis - The analysis emphasizes a focus on companies in Europe and North America, without restrictions on market capitalization, ranging from large cap to small cap [1]. - The author has a strong academic background in sociology, which informs the analysis of organizational and economic factors affecting companies [1].