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Nordson's Earnings Surpass Estimates in Q4, Revenues Miss

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Key Takeaways

  • Nordson posted higher Q4 earnings while revenues inched up but missed consensus expectations.
  • Medical and Fluid Solutions drove growth as Industrial Precision and Advanced Technology softened.
  • Margins improved sharply, and NDSN issued fiscal 2026 sales and earnings guidance.

Nordson Corporation’s (NDSN - Free Report) fourth-quarter fiscal 2025 (ended Oct. 31, 2025) adjusted earnings of $3.03 per share surpassed the Zacks Consensus Estimate of $2.93. The bottom line increased 9% year over year.

Quarterly Results of NDSN

Nordson’s revenues were $751.8 million, up 1% from the year-ago fiscal quarter’s number, driven by strength in the Medical and Fluid Solutions segment and contributions from acquired assets. However, revenues missed the consensus estimate of $769 million.

While organic sales fell 1.1% year over year, acquisitions had a positive impact of 0.6% on sales. Foreign currency translation had a favorable impact of 1.5%.

On a regional basis, revenues from the Asia Pacific region were $225.5 million, down 4.4% year over year. Revenues generated from Europe increased 5.4% to $195.3 million, while the metric in the Americas increased 2.4% to $331 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 $361.7 million, down 1.5% from the year-ago fiscal quarter’s level. The segment contributed 48% to NDSN’s top line in the quarter.

Organic sales decreased 3.5% from the year-ago fiscal quarter’s level, while foreign currency translation had a positive impact of 2%.

Revenues from Medical and Fluid Solutions amounted to $219.5 million, up 9.6% from the year-ago fiscal quarter’s level. The segment contributed 29.2% to NDSN’s top line.

Organic sales increased 7.4% from the year-ago fiscal quarter’s level. Acquisitions boosted sales by 1.6% while foreign currency translation had a positive impact of 0.6%.

Advanced Technology Solutions’ sales were $170.6 million, down 3.6% from the year-ago fiscal quarter’s figure. The metric represented 22.8% of Nordson’s revenues in the period.

Organic sales decreased 4.9% from the year-ago fiscal quarter’s level. Foreign currency translation had a positive impact of 1.3%.

Nordson Corporation Price, Consensus and EPS Surprise

Nordson Corporation Price, Consensus and EPS Surprise

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

Nordson’s Margin Profile

Nordson’s cost of sales decreased 3.9% from the year-ago fiscal quarter’s level to $328.4 million. Gross profit was $423.5 million, up 5.1% from the year-ago fiscal quarter’s level. The gross margin increased 220 basis points (bps) to 56.3%.

Selling and administrative expenses decreased 7% year over year to $208.9 million. Adjusted EBITDA was $255.7 million (up 6.1% year over year), the margin being 34%. Operating income was $214.3 million, up 19.8% year over year. Operating margin of 28.5% was up 450 basis points from the year-ago quarter.

Net interest expenses totaled $23.8 million, reflecting a 12.8% decrease from the year-ago fiscal quarter’s level.

Nordson’s Balance Sheet & Cash Flow

At the time of exiting the fourth quarter of fiscal 2025, Nordson’s cash and cash equivalents were $108.4 million compared with $116 million recorded at the end of fiscal 2024. Long-term debt was $1.68 billion compared with $2.10 billion recorded at the end of fiscal 2024.

In fiscal 2025, NDSN generated net cash of $719.2 million from operating activities, up 29.3% from the last fiscal year period’s tally. Capital invested in purchasing property, plant and equipment totaled $58.1 million, down 9.8% from the year-ago fiscal period.

NDSN’s Dividends/Share Buyback

In fiscal 2025, Nordson paid out dividends of $179.1 million, up 11% from $161.4 million in the previous fiscal year period.
Treasury purchase shares amounted to $306.4 million, up from $33.3 million in the year-ago period.

NDSN’s Outlook

For fiscal 2026 (ending October 2026), it projects sales to be in the range of $2.83-$2.95 billion, with adjusted earnings of $10.80-$11.50 per share.

For first-quarter fiscal 2026 (ending January 2026), it expects to generate sales in the band of $630-$670 million, with adjusted earnings of $2.25-$2.45 per share.

Nordson’s Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks are discussed below:

Helios Technologies (HLIO - Free Report) currently sports a Zacks Rank of 1. HLIO has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 16.8%.  In the past 60 days, the Zacks Consensus Estimate for Helios’ 2025 earnings has increased by 2.5%.

Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank #2 (Buy). FLS’ earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 3%.

Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 6.2%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s 2025 earnings has increased by 3.9%.

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