Financial Data and Key Metrics Changes - Sales for Q4 2025 were $752 million, up 1% from $744 million in Q4 2024. Adjusted earnings per share increased by 9% to $3.03, exceeding the midpoint of guidance [10][12][5] - Full year sales reached a record $2.8 billion, a 4% increase year-over-year, with adjusted diluted earnings per share of $10.24, also up 5% from the previous year [18][19][8] - EBITDA for Q4 was $256 million, representing a 34% margin, and for the full year, EBITDA was $900 million, or 32% of sales, marking a 6% increase year-over-year [11][19][5] Business Segment Data and Key Metrics Changes - Industrial Precision Solutions (IPS) sales decreased by 2% to $362 million in Q4, with organic sales down nearly 4%. EBITDA for IPS was $137 million, or 38% of sales [14][11] - Medical and Fluid Solutions sales increased by 10% to $220 million, with organic sales up 7%. EBITDA for this segment was $88 million, or 40% of sales, reflecting a 380 basis point improvement [15][16] - Advanced Technology Solutions (ATS) sales decreased by 4% to $171 million, with EBITDA at $43 million, or 25% of sales, down from 27% the previous year [17][11] Market Data and Key Metrics Changes - The company reported a 5% increase in backlog year-over-year, with approximately $600 million in backlog entering fiscal 2026 [27][85] - The company noted stabilization in demand for automotive and polymer processing markets, with expectations for nominal growth in these areas [25][65] Company Strategy and Development Direction - The Ascend strategy, launched five years ago, has been pivotal in achieving record sales and EBITDA, with a focus on operational excellence and strategic M&A [7][19] - The company aims for average annual revenue growth of 6%-8% and adjusted EPS growth of 10%-12% from 2025 to 2029 [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges and highlighted strong demand in semiconductor applications, particularly for AI and cloud computing [26][23] - The company anticipates a strong start to fiscal 2026, with guidance for sales growth of 1%-6% above fiscal 2025 levels [27][29] Other Important Information - The company generated record free cash flow of $661 million, with a cash conversion rate of 136% of net income, allowing for share repurchases and dividend increases [21][22] - The company reduced net debt by approximately $224 million, ending the year with a leverage ratio of 2.1x [20][22] Q&A Session Summary Question: Insights on ATS segment and semiconductor applications - Management noted that strength remains in semiconductor applications for AI and cloud computing, with automotive stabilizing but lower growth compared to semiconductors [33][34] Question: Margin trajectory for 2026 - Management indicated that margins in IPS and ATS are expected to be sustainable, while the medical segment may stabilize in the upper 30% range [34][35] Question: Polymer processing outlook - Management expects improvement in polymer processing order entry and backlog, indicating that the segment has troughed [39][40] Question: X-ray inspection business performance - Management highlighted that while X-ray inspection has exposure to semiconductors, it also faces challenges from automotive sectors, but new product launches are anticipated to drive growth [50][52] Question: M&A strategy and stock buyback - Management confirmed a healthy M&A pipeline while balancing share repurchases, emphasizing the importance of strategic and financial discipline [54][56] Question: Guidance rationale and market conditions - Management explained that guidance reflects a range of potential outcomes, planning for both upside and downside scenarios while feeling optimistic about the start of the year [61][62]

Financial Data and Key Metrics Changes - Sales for Q4 2025 were $752 million, up 1% from $744 million in Q4 2024, with organic sales decreasing by 1% [10] - Full year sales reached a record $2.8 billion, an increase of 4% year-over-year, with adjusted earnings per share growing 9% to $3.03 in Q4 [5][18] - EBITDA for Q4 was $256 million, representing a 34% margin, and full year EBITDA was $900 million, or 32% of sales [5][19] Business Line Data and Key Metrics Changes - Industrial Precision Solutions (IPS) sales decreased 2% to $362 million, with organic sales down nearly 4% [14] - Medical and Fluid Solutions sales increased 10% to $220 million, with organic sales up 7% [15] - Advanced Technology Solutions (ATS) sales decreased 4% to $171 million, with organic sales down approximately 5% [17] Market Data and Key Metrics Changes - The company reported a 5% increase in backlog year-over-year, with approximately $600 million in backlog entering fiscal 2026 [27] - Currency translation positively impacted sales by 2% in Q4 2025 [10] Company Strategy and Development Direction - The Ascend strategy has been pivotal in achieving record sales and EBITDA, with a focus on operational excellence and strategic M&A [7][19] - The company aims for average annual revenue growth of 6%-8% and adjusted EPS growth of 10%-12% from 2025 to 2029 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges and highlighted strong demand in core markets, particularly in medical and semiconductor applications [25][26] - The company anticipates returning to normal growth rates in IPS and mid-single digit organic growth in medical [25][26] Other Important Information - The company generated record cash flow of $194 million in Q4, with a cash conversion rate of 128% [5] - Share repurchases totaled approximately $300 million, and dividends were increased for the 62nd consecutive year [9][22] Q&A Session Summary Question: Insights on ATS segment and semiconductor applications - Management noted that strength remains in semiconductor applications, particularly for AI and cloud computing, while automotive demand is stabilizing [33] Question: Margin trajectory for 2026 - Management indicated that margins in IPS and ATS are expected to be sustainable, while medical margins may stabilize in the upper 30% range [34] Question: Polymer processing outlook - Management expects improvement in polymer processing order entry and backlog, indicating that the segment has troughed [40] Question: X-ray inspection business performance - Management highlighted that X-ray inspection has solid exposure to both semiconductor and automotive markets, with new product launches expected to drive growth [50] Question: M&A strategy and stock buyback - Management confirmed a robust M&A pipeline while balancing share repurchases, emphasizing the importance of strategic and financial discipline [54][56] Question: Guidance rationale and market sensitivity - Management explained that guidance reflects a range of potential outcomes, planning for both upside and downside scenarios [62]

Financial Data and Key Metrics Changes - Nordson reported sales of $742 million for the third quarter, a 12% increase from $662 million in the prior year [11] - Adjusted earnings per share increased by 13% to $2.73, exceeding the midpoint of guidance [14] - EBITDA rose by 15% to $239 million, representing 32% of sales [12][14] - Free cash flow reached a record $226 million, with a cash flow conversion rate of 180% of net income [9][19] Business Segment Data and Key Metrics Changes - Industrial Precision Solutions (IPS) sales were $351 million, up 1% year-over-year, with organic sales down 2% [14][15] - Medical and Fluid Solutions sales increased by 32% to $219 million, driven by the Atrion acquisition [15][16] - Advanced Technology Solutions (ATS) sales rose 17% to $171 million, with a 15% organic sales increase [18] Market Data and Key Metrics Changes - IPS segment showed strong order entry in packaging and nonwoven markets, with precision agriculture demand improving in Europe and South America [22][42] - Medical segment returning to growth, with high single-digit growth in medical fluid components [23][44] - ATS segment experienced strong demand in electronics dispense products, particularly in Asia Pacific [18][24] Company Strategy and Development Direction - Nordson's strategy focuses on operational excellence, innovation, and a balanced capital allocation approach [21][30] - The company is committed to divesting the medical contract manufacturing business to concentrate on higher-value proprietary medical components [29][30] - The NBS Next framework is emphasized for driving organic growth and competitive advantage [21][26] Management's Comments on Operating Environment and Future Outlook - Management noted mixed market conditions but expressed confidence in capitalizing on profitable growth opportunities [20][31] - The company expects to be slightly below the midpoint of full-year sales guidance, with earnings anticipated to be slightly better than the midpoint [31][78] - Ongoing geopolitical and trade uncertainties are acknowledged, but the company remains focused on delivering results [80] Other Important Information - Nordson's net debt was approximately $2 billion, with a leverage ratio improved to 2.2 times EBITDA [19][30] - The board approved a new share repurchase authorization of $500 million, bringing the total remaining authorization to approximately $800 million [30] Q&A Session Summary Question: Can you provide insights on order momentum across businesses, particularly ATS? - Management indicated stable demand across all businesses, with ATS showing good order stability despite some lumpiness [38][39][42] Question: Are there signs of pull-forward in the semiconductor complex? - Management stated there is no direct evidence of customers pulling orders forward, but demand remains stable across electronics dispense products [60][62] Question: How do you view the M&A funnel and share repurchase authorization? - Management confirmed a healthy M&A pipeline but emphasized a disciplined approach to acquisitions, with share repurchase reflecting a balanced capital allocation strategy [68][70] Question: Can you elaborate on the divestiture charges? - The divestiture charge of approximately $12.2 million is related to writing the business to estimated fair value and includes small restructuring charges [82] Question: What is the outlook for organic sales in Q4? - Management expects organic sales to be flat to slightly down year-over-year in Q4, driven by tough comps in certain segments [106][108]

Company Overview - Nordson's revenue in 2024 was $2.7 billion, with an EBITDA margin of 32%[5] - The company has a diversified geographic footprint, with 44% of sales in the Americas, 27% in Europe, and 29% in Asia Pacific[10] - Nordson has a diversified product portfolio with over 2,100 global patents held[7] Sales and Revenue - Systems account for 42% of FY2024 sales, while parts and consumables make up 58%[9] - Industrial Precision Solutions (IPS) generated $1.4 million in fiscal 2024 revenue with 37% EBITDA[24] - Medical Fluid Solutions (MFS) generated $696 million in fiscal 2024 revenue with 37% EBITDA[34] - Advanced Technology Solutions (ATS) generated $596 million in fiscal 2024 revenue with 22% EBITDA[39] Financial Performance and Targets - The company targets average annual revenue growth of 6-8% and adjusted EPS growth of 10-12% from 2025-2029[51] - Nordson anticipates generating approximately $4.1 billion in operating cash flows through 2029[65] - The company reported sales of $742 million for 3Q 2025, a 12% increase, with EBITDA of $239 million, up 15%[73] - 3Q25 free cash flow was $226 million, representing a conversion rate of 180% of net income[79]

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]