Nordson's Earnings Surpass Estimates in Q4, Revenues Miss

Core Insights - Nordson Corporation's 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 [1] - Revenues for the quarter were $751.8 million, a 1% increase from the previous year, but below the consensus estimate of $769 million [2][9] - The company reported improved margins, with gross profit rising 5.1% year over year and gross margin increasing by 220 basis points to 56.3% [6][9] Quarterly Results of NDSN - Revenue breakdown showed a 4.4% decline in the Asia Pacific region to $225.5 million, while Europe saw a 5.4% increase to $195.3 million, and the Americas grew by 2.4% to $331 million [3] - Industrial Precision Solutions generated $361.7 million, down 1.5% year over year, contributing 48% to total revenues [3] - Medical and Fluid Solutions revenues were $219.5 million, up 9.6% year over year, with organic sales increasing by 7.4% [4] - Advanced Technology Solutions reported $170.6 million, down 3.6% year over year, with organic sales decreasing by 4.9% [5] Margin Profile - Cost of sales decreased by 3.9% to $328.4 million, leading to a gross profit of $423.5 million [6] - Selling and administrative expenses fell by 7% to $208.9 million, while adjusted EBITDA rose 6.1% to $255.7 million, with an operating margin of 28.5% [7] Balance Sheet & Cash Flow - At the end of Q4 fiscal 2025, cash and cash equivalents were $108.4 million, down from $116 million at the end of fiscal 2024, while long-term debt decreased to $1.68 billion from $2.10 billion [10] - The company generated net cash of $719.2 million from operating activities, a 29.3% increase year over year [11] Dividends/Share Buyback - Nordson paid out $179.1 million in dividends, an 11% increase from the previous year, and repurchased shares worth $306.4 million, significantly up from $33.3 million [12] 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 [13]