Core Insights - Nordson Corporation (NDSN) is facing rising costs and expenses, with a 14.5% year-over-year increase in cost of sales during Q3 of fiscal 2025, and SG&A expenses growing by 2.3% year over year [1][8] - Despite these rising costs, NDSN's EBITDA margin improved by 70 basis points to 32% due to increased sales in electronic processing and optical sensors, as well as the Advanced Technology Solutions segment [2][8] - The company reported total revenues of $742 million for the quarter, reflecting a 12% year-over-year increase, driven by strong demand across multiple product lines [2][8] Financial Performance - NDSN's cost of sales increased to 45.2% of total revenues, up 100 basis points from the previous year [1] - The company has a forward price-to-earnings ratio of 20.95X, which is above the industry average of 20.54X, and carries a Value Score of D [9] - The Zacks Consensus Estimate for NDSN's fiscal 2025 earnings has increased by 0.7% over the past 60 days [10] Market Trends - Positive trends for NDSN include strong customer demand in nonwovens, precision agriculture, packaging, and consumer non-durable product lines, which are expected to support long-term growth [3] - The company is focusing on operational excellence and disciplined portfolio management to enhance margin performance in the future [3] Peer Comparison - Among peers, Applied Industrial Technologies, Inc. (AIT) faced a 5.7% year-over-year increase in cost of sales, with a slight decrease in gross margin [4] - Flowserve Corporation's (FLS) cost of sales decreased by 1.2% year over year, while its gross margin increased by 260 basis points [5]