Core Viewpoint - Nordson Corporation (NDSN) is a precision technology and industrial engineering company with a market cap of $15.2 billion, specializing in equipment and systems for dispensing and applying various fluids across multiple industries [1] Financial Performance - Analysts expect NDSN to report a profit of $2.36 per share for fiscal Q1 2026, reflecting a 14.6% increase from $2.06 per share in the same quarter last year [2] - For fiscal 2025, the expected profit is $10.19 per share, a 9.3% decrease from $10.24 per share in fiscal 2024, with further growth projected to $12.11 per share in fiscal 2027, an 8.2% year-over-year increase [3] Stock Performance - NDSN shares have increased by 27.2% over the past 52 weeks, outperforming the S&P 500 Index's 16.9% return and the Industrial Select Sector SPDR Fund's 21.9% increase during the same period [4] Recent Developments - On December 10, NDSN shares rose 1.2% following the release of its fiscal 2025 fourth-quarter results, which showed a 1% year-over-year sales increase to $752 million and adjusted earnings per share of $3.03, up approximately 9% year-over-year [5] - The company enters fiscal 2026 with a backlog of about $600 million, a 5% increase from the previous year, and projects full-year sales between $2.83 billion and $2.95 billion, with adjusted earnings of $10.80 to $11.50 per share [6] - For the first quarter of fiscal 2026, NDSN expects sales of $630 million to $670 million and adjusted EPS of $2.25 to $2.45, with management confident in growth supported by improving end markets and its Ascend Strategy [6]

Financial Performance Highlights - Fourth quarter sales reached $752 million, a 1% increase year-over-year, inclusive of divestiture[7] - Adjusted EPS for the fourth quarter was $3.03, a 9% increase year-over-year, hitting the high-end of guidance[7] - Fiscal year 2025 saw record sales of $2.8 billion, a 4% increase year-over-year[9] - Adjusted EPS for fiscal year 2025 increased by 5% year-over-year, exceeding the midpoint of earnings targets[9] - Record EBITDA of $900 million was achieved in fiscal year 2025[9, 35] Cash Flow and Capital Allocation - Record fourth quarter Free Cash Flow (FCF) of $194 million, resulting in a strong FCF conversion of 128%[7] - Fiscal year 2025 free cash flow reached $661 million, with a conversion rate of 136%[9, 42] - Approximately $300 million was allocated to share repurchases in fiscal year 2025[9] Segment Performance - Medical and Fluid Solutions (MFS) sales increased by 10% in the fourth quarter, reaching $220 million[22] - Industrial Precision Solutions (IPS) sales were $362 million, a decrease of 2%[17] - Advanced Technology Solutions (ATS) sales were $171 million, a decrease of 4%[28] Future Outlook - Fiscal year 2026 sales are projected to grow by 1% to 6%[53] - Adjusted earnings are expected to grow by 6% to 12% in fiscal year 2026[53]

Core Insights - Nordson Corporation reported a 1% increase in fourth quarter sales for fiscal year 2025, reaching $752 million compared to $744 million in the previous year, influenced by favorable currency translation and acquisition impacts, but offset by a divestiture and organic sales decrease [1][2][4] - The company achieved a record net income of $152 million for the fourth quarter, translating to earnings per diluted share of $2.69, up from $122 million and $2.12 in the prior year [2][9] - Adjusted net income for the fourth quarter was $171 million, a 6.9% increase from $160 million in the previous year, with adjusted earnings per diluted share rising 9% to $3.03 [2][26] Financial Performance - EBITDA for the fourth quarter was $256 million, representing 34% of sales, an increase of 6% from $241 million or 32% of sales in the prior year [3][10] - For the full fiscal year 2025, total sales reached a record $2.8 billion, a 4% increase from the previous year, driven by a favorable acquisition impact of 6% despite a 3% decrease in organic volume [8][9] - Full-year EBITDA was $900 million, maintaining a margin of 32%, consistent with the previous year [10] Segment Performance - Industrial Precision Solutions sales decreased by 2% to $362 million, impacted by a 4% organic sales decline, while EBITDA remained stable at $137 million [5][17] - Medical and Fluid Solutions saw a 10% increase in sales to $220 million, with organic sales growth of 7% and EBITDA rising to $88 million, a margin increase of 380 basis points [6][18] - Advanced Technology Solutions experienced a 4% sales decline to $171 million, with EBITDA decreasing to $43 million, reflecting a margin drop [7][19] Outlook - The company enters fiscal 2026 with a backlog of approximately $600 million, a 5% increase from the prior year [12] - Sales for fiscal 2026 are projected to be between $2.83 billion and $2.95 billion, with adjusted earnings forecasted in the range of $10.80 to $11.50 per diluted share [13][14] - Management expressed optimism for solid growth in 2026, supported by the implementation of the Ascend Strategy and a focus on shareholder value through strategic capital deployment [14]