Nordson(US:NDSN)2025-05-29 13:48Financial Performance - Sales reached $683 million, a 5% increase year-over-year, exceeding the midpoint of guidance[7, 15] - Adjusted EPS increased by 3%, driven by operational excellence despite geopolitical uncertainty[7, 15] - EBITDA increased by 7% to $217 million due to higher sales volume and improved SG&A leverage[15, 17] - The company reported a strong EBITDA margin of 32%, slightly above the prior year[17] Segment Performance - Industrial Precision Solutions (IPS) sales decreased by 8% to $319 million, with a 7% organic decrease[23] - Medical and Fluid Solutions (MFS) sales increased by 20% to $203 million, including 30% growth from the Atrion acquisition, but organic sales decreased by 10%[29] - Advanced Technology Solutions (ATS) sales increased by 18% to $161 million, with an 18% organic increase[35] Portfolio and Strategy - The company signed an agreement to divest certain contract manufacturing product lines within the medical interventional solutions business, expected to close in early 4Q fiscal 2025[11] - The company is prioritizing above-market growth in proprietary medical components, focusing on the remaining ~$800 million medical and fluid solutions product lines[9, 11] Balance Sheet and Cash Flow - Cash totaled $130 million, with a net debt leverage ratio of 24x based on trailing 12-month EBITDA[42] - Free cash flow was $103 million, representing a 92% conversion rate of net income[42] Capital Deployment and Outlook - The company executed share repurchases of $85 million and dividend payments of $44 million[42] - The company anticipates 3Q 2025 sales between $710 million and $750 million, with adjusted EPS between $255 and $275[50] - Backlog increased by approximately 5% from the prior quarter, indicating solid order entry moving into 3Q[48, 53]