Nordson(NDSN)2025-05-29 18:06Sales Performance - Consolidated sales for the three months ended April 30, 2025, were $682,938 thousand, representing a 5.0% increase from $650,642 thousand in the same period of 2024[106]. - For the six months ended April 30, 2025, consolidated sales reached $1,298,358 thousand, a 1.1% increase compared to $1,283,835 thousand in the prior year[106]. - The IPS segment experienced a 6.9% organic sales decrease in the three months ended April 30, 2025, primarily due to weaker demand in polymer processing and industrial coatings[108]. - The MFS segment saw a 10.0% organic sales decrease in the three months ended April 30, 2025, attributed to targeted program rationalization and ongoing destocking[108]. - The ATS segment reported an 18.1% organic sales increase in the three months ended April 30, 2025, driven by strong demand in semiconductor and electronics markets[108]. - The Americas region accounted for 42.8% of total sales in the three months ended April 30, 2025, down from 45.3% in the prior year[110]. - The Asia Pacific region saw a 22.6% organic sales increase in the three months ended April 30, 2025, contributing to a total sales growth of 25.2% in that region[110]. - If transactions for the three months ended April 30, 2025, were translated at 2024 exchange rates, estimated sales would have been approximately $4,000 higher[120]. Profitability - The gross margin for the three months ended April 30, 2025, was 54.7%, down from 56.2% in the same period of 2024, reflecting a 1.5% decrease[106]. - Net income for the three months ended April 30, 2025, was $112,404 thousand, a decrease of 4.9% from $118,217 thousand in the prior year[106]. - Operating profit for the three months ended April 30, 2025, was $168,750 thousand, a slight increase of 0.1% from $168,616 thousand in the same period of 2024[111]. - Net income for the six months ended April 30, 2025, was $207,056, or $3.62 per diluted share, reflecting a 9.1% decrease in net income and an 8.4% decrease in diluted earnings per share compared to the same period in 2024[119]. - Net income for the three months ended April 30, 2025, was $112,404, or $1.97 per diluted share, representing a 4.9% decrease in net income and a 3.9% decrease in diluted earnings per share compared to the same period in 2024[118]. Cash Flow and Liquidity - Cash and cash equivalents increased by $14,205 during the six months ended April 30, 2025, with approximately 78% held at various foreign subsidiaries[123]. - Net cash provided by operating activities for the six months ended April 30, 2025, was $278,292, a decrease from $294,964 in the same period of 2024[123]. - The company is well-positioned to manage liquidity needs, with cash on hand of $130,157 and available borrowings totaling $806,477 as of April 30, 2025[125]. - The company has a $1,150,000 unsecured multi-currency credit facility, with $280,000 outstanding on the term loan facility and $243,000 on the revolving credit facility as of April 30, 2025[124]. Taxation - The effective tax rate for the three and six months ended April 30, 2025, was 19.0%, lower than the U.S. tax rate of 21%, primarily due to foreign-derived intangible income deductions[117]. Capital Expenditures - Additions to property, plant, and equipment for the six months ended April 30, 2025, were $37,439, driven by productivity and growth projects, including a new manufacturing facility[123]. Interest Expense - Interest expense for the three months ended April 30, 2025, was $26,572, an increase from $20,109 in the same period of 2024, primarily due to higher average debt levels from acquisitions[114].