Back to top

Image: Bigstock

Nordson's Q2 Earnings & Revenues Surpass Estimates, Increase Y/Y

Read MoreHide Full Article

Nordson Corporation’s (NDSN - Free Report) second-quarter fiscal 2025 (ended April 30, 2025) adjusted earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $2.36. The bottom line increased 3% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Quarterly Results of NDSN

Nordson’s revenues were $682.9 million, up 5% from the year-ago fiscal quarter’s number, driven by strength in the Advanced Technology Solutions segment and contributions from acquired assets. Revenues beat the consensus estimate of $674 million.

Organic sales declined 2.4% year over year due to softness in the polymer processing and industrial coatings product lines. Acquisitions had a positive impact of 7.8% while foreign currency translation had a negative impact of 0.4%. The company’s backlog increased about 5% on a sequential basis.

Nordson Corporation Price, Consensus and EPS Surprise

Nordson Corporation Price, Consensus and EPS Surprise

Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation Quote

On a regional basis, revenues from the Asia Pacific region were $218 million, up 25.2% year over year. Revenues generated from Europe decreased 5.3% to $172.5 million, while the metric in the Americas decreased 0.7% to $292.5 million.

Nordson reports revenues under three segments. The segments are Industrial Precision Solutions, Medical and Fluid Solutions and Advanced Technology Solutions. A brief snapshot of the segmental sales is provided below:

Revenues from Industrial Precision Solutions amounted to $318.8 million, down 7.6% from the year-ago fiscal quarter’s level. The segment contributed 46.7% to NDSN’s top line in the quarter.

Organic sales decreased 6.9% from the year-ago fiscal quarter’s level, while foreign currency translation had a negative impact of 0.7%.

Revenues from Medical and Fluid Solutions amounted to $202.8 million, up 20% from the year-ago fiscal quarter’s level. The segment contributed 29.7% to NDSN’s top line.

Organic sales decreased 10% from the year-ago fiscal quarter’s level. Acquisitions boosted sales by 30% while foreign currency translation had no impact.

Advanced Technology Solutions’ sales were $161.3 million, up 18% from the year-ago fiscal quarter’s figure. The metric represented 23.6% of Nordson’s revenues in the period.

Organic sales increased 18.1% from the year-ago fiscal quarter’s level. Foreign currency translation had a negative impact of 0.1%.

Nordson’s Margin Profile

Nordson’s cost of sales increased 8.5% from the year-ago fiscal quarter’s level to $309 million. Gross profit was $373.9 million, up 2.2% from the year-ago fiscal quarter’s level. The gross margin decreased 150 basis points (bps) to 54.7%.

Selling and administrative expenses increased 4% year over year to $205.2 million. Adjusted EBITDA was $217.2 million (up 6.8% year over year), the margin being 32%. Operating income was $168.8 million, flat year over year. Operating margin of 24.7% decreased 120 bps from the year-ago period.

Net interest expenses totaled $26 million, reflecting a 39.8% increase from the year-ago fiscal quarter’s level.

Nordson’s Balance Sheet & Cash Flow

At the time of exiting the second quarter of fiscal 2025, Nordson’s cash and cash equivalents were $130.2 million compared with $116 million recorded at the end of fiscal 2024. Long-term debt was $2.12 billion compared with $2.10 billion recorded at the end of fiscal 2024.

In the first six months of fiscal 2025, NDSN generated net cash of $278.3 million from operating activities, down 5.7% from the last fiscal year period’s tally. Capital invested in purchasing property, plant and equipment totaled $37.4 million, up 70.8% from the year-ago fiscal period.

NDSN’s Dividends/Share Buyback

In the first six months of fiscal 2025, Nordson paid out dividends of $88.9 million, up 14.3% from $77.8 million in the previous fiscal year period.

Treasury purchase shares amounted to $146.3 million, up from $7.9 million in the year-ago period.

NDSN’s Outlook

For the third quarter of fiscal 2025 (ending July 2025), it projects sales to be in the range of $710-$750 million, with adjusted earnings of $2.55-$2.75 per share.

NDSN’s Zacks Rank and Key Picks

The company currently carries a Zacks Rank #3 (Hold). 

AptarGroup, Inc. (ATR - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 5.4%.

The Gorman-Rupp Company (GRC - Free Report) currently carries a Zacks Rank #2 (Buy). GRC delivered a trailing four-quarter average earnings surprise of 2.4%. In the past 60 days, the Zacks Consensus Estimate for Gorman-Rupp’s 2025 earnings has increased 0.5%.

Broadwind Energy (BWEN - Free Report) currently carries a Zacks Rank of 2. BWEN delivered a trailing four-quarter average earnings surprise of 61.1%. In the past 60 days, the consensus estimate for Broadwind Energy’s 2025 earnings has increased 14.3%.

Published in