Financial Data and Key Metrics Changes - Nordson's Q2 fiscal 2025 sales were $683 million, up 5% from $651 million in Q2 fiscal 2024, driven by an 8% increase from the Atrion acquisition, offset by a 2% organic sales decrease and less than 1% unfavorable currency translation [10][11] - Gross profit was $374 million, maintaining a consistent 55% of sales, with EBITDA adjusted for restructuring and integration costs at $217 million or 32% of sales, a 7% increase year over year [10][11] - Net income totaled $112 million or $1.97 per share on a GAAP basis, with adjusted earnings per share at $2.42, slightly above guidance and a 3% increase from the prior year [11][12] Business Line Data and Key Metrics Changes - Industrial Precision Solutions sales decreased 8% to $319 million, with an EBITDA of $114 million or 36% of sales, a 12% decrease year over year [12][13] - Medical and Fluid Solutions sales increased 20% to $203 million, driven by the Atrion acquisition, with EBITDA at $77 million or 38% of sales, a 22% increase from the prior year [14][16] - Advanced Technology Solutions sales rose 18% to $161 million, with EBITDA of $40 million or 25% of sales, a 43% increase year over year [16][17] Market Data and Key Metrics Changes - The company experienced solid order entry and backlog growth, particularly in semiconductor and electronic applications, with a 5% increase in backlog since the last quarter [5][22] - Destocking trends in the medical interventional product lines are expected to lessen as the year progresses, with positive order entry momentum noted [16][60] Company Strategy and Development Direction - Nordson is focusing on divesting select product lines within its medical contract manufacturing business to concentrate on higher value growth opportunities, which is expected to be accretive to margins post-sale [8][39] - The company is executing a balanced capital deployment strategy, including share repurchases totaling $85 million and $44 million in dividends, while maintaining a debt leverage ratio of 2.4 times [7][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in managing current tariff levels without material impact on results, while monitoring potential effects on end market demand due to trade uncertainties [20][90] - The outlook for Q3 fiscal 2025 sales is projected to be between $710 million and $750 million, with adjusted earnings forecasted at $2.55 to $2.75 per diluted share [25][26] Other Important Information - The Atrion integration is performing above expectations, contributing positively to sales and margins [6][10] - The company is investing in organic growth, including expanding manufacturing capacity in India and transitioning to a new facility in South Carolina [23][24] Q&A Session Summary Question: Trends for the rest of the year and major verticals - Management noted solid order entry in the ATS business, driven by investments in computing power, and positive trends in MFS and IPS segments, with automotive remaining a headwind [31][35] Question: Size of the contract manufacturing divestiture - The divestiture represents roughly 4% of year-to-date sales in the medical segment, expected to be accretive to margins post-sale [39][40] Question: Consistency of growth in ATS - ATS is inherently lumpy, but management sees strong order entry patterns and expects growth to contribute positively to organic growth [48][52] Question: Destocking in interventional medicine - Destocking is reducing, with expectations for gradual recovery to normal demand growth rates, supported by strong pipeline projects [56][60] Question: Margin performance in ATS - Margin performance is expected to be different due to higher innovation investments, but structural changes have improved the margin profile [64][66] Question: Outlook for European machine builders - Positive customer conversations indicate potential for organic growth in the adhesive dispense business in the back half of the year [114][116]