Strength in Medical & Fluid Solutions Unit Drives Nordson: Can It Sustain?

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]