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NDSN's Q2 Earnings Beat Estimates on Broad Organic Growth
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Key Takeaways
NDSN beat Q2 estimates as adjusted earnings rose 18% and revenues increased 8% year over year.
Nordson raised fiscal 2026 sales and earnings guidance after broad organic sales growth.
NDSN saw sales growth across regions and segments, with operating margin up 190 bps.
Nordson Corporation’s (NDSN - Free Report) second-quarter fiscal 2026 (ended April 30, 2026) adjusted earnings of $2.86 per share surpassed the Zacks Consensus Estimate of $2.82. The bottom line increased 18% year over year.
Quarterly Results of NDSN
Nordson’s revenues were $741 million, up 8% from the year-ago fiscal quarter’s number, driven by a 7% organic sales increase across all segments and a favorable currency translation impact of 3%. Revenues surpassed the consensus estimate of $725 million.
While organic sales increased 7% year over year, the net impact from divested sales and the CapstanAG acquisition was unfavorable by 1%. Foreign currency translation had a favorable impact of 3%.
On a regional basis, revenues from the Asia Pacific region were $238.1 million, up 9.2% year over year. Revenues generated from Europe increased 12.7% to $194.5 million, while the metric in the Americas increased 5.4% to $308.3 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 $350.5 million, up 9.9% from the year-ago fiscal quarter’s level. Organic sales increased 5.0% from the year-ago fiscal quarter’s level, while acquisitions/divestitures contributed 0.8% and foreign currency translation had a positive impact of 4.1%.
Revenues from Medical and Fluid Solutions amounted to $212.9 million, up 5.0% from the year-ago fiscal quarter’s level. Organic sales increased 7.8% from the year-ago fiscal quarter’s level. Acquisitions/divestitures decreased sales by 3.9% while foreign currency translation had a positive impact of 1.1%.
Advanced Technology Solutions’ sales were $177.5 million, up 10.1% from the year-ago fiscal quarter’s figure. Organic sales increased 8.5% from the year-ago fiscal quarter’s level, while foreign currency translation had a positive impact of 1.6%.
Nordson Corporation Price, Consensus and EPS Surprise
Nordson’s cost of sales increased 9.0% from the year-ago fiscal quarter’s level to $336.8 million. Gross profit was $404.1 million, up 8.1% from the year-ago fiscal quarter’s level. The gross margin decreased 20 basis points (bps) to 54.5%.
Selling and administrative expenses increased 0.8% year over year to $206.9 million. EBITDA was $235.2 million (up 8% year over year), the margin being 32%. Operating profit was $197.2 million, up 16.9% year over year. Operating margin of 26.6% was up 190 bps from the year-ago quarter.
Net interest expenses totaled $21.6 million, reflecting a 17.1% decrease from the year-ago fiscal quarter’s level.
Nordson’s Balance Sheet & Cash Flow
At the time of exiting the second quarter of fiscal 2026, Nordson’s cash and cash equivalents were $102.0 million compared with $108.4 million recorded at the end of fiscal 2025. Long-term debt was $1.84 billion compared with $1.68 billion recorded at the end of fiscal 2025.
In the first six months of fiscal 2026, NDSN generated net cash of $321.1 million from operating activities, up 15.4% from the last fiscal year period’s tally. Capital invested in purchasing property, plant and equipment totaled $27.7 million, down 26% from the year-ago fiscal period.
NDSN’s Dividends/Share Buyback
In the first three months of fiscal 2026, Nordson paid out dividends of $45.8 million, up 2.7% from $44.6 million in the previous fiscal year period.
Treasury purchase shares amounted to $86 million, up from $43.1 million in the year-ago period.
In the first six months of fiscal 2026, Nordson paid out dividends of $91.6 million, up 3.0% from $88.9 million in the previous fiscal year period.
Treasury purchase shares amounted to $129.3 million, down 11.6% from $146.3 million in the year-ago period.
NDSN’s Outlook
For fiscal 2026 (ending October 2026), NDSN has increased its guidance. The company now projects sales to be in the range of $2.93-$3.01 billion compared with $2.86-$2.98 billion expected earlier. Nordson expects adjusted earnings of $11.30-$11.80 per share compared with $11.00-$11.60 anticipated before.
For third-quarter fiscal 2026 (ending July 2026), it expects to generate sales in the band of $760-$790 million, with adjusted earnings of $2.95-$3.15 per share.
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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NDSN's Q2 Earnings Beat Estimates on Broad Organic Growth
Key Takeaways
Nordson Corporation’s (NDSN - Free Report) second-quarter fiscal 2026 (ended April 30, 2026) adjusted earnings of $2.86 per share surpassed the Zacks Consensus Estimate of $2.82. The bottom line increased 18% year over year.
Quarterly Results of NDSN
Nordson’s revenues were $741 million, up 8% from the year-ago fiscal quarter’s number, driven by a 7% organic sales increase across all segments and a favorable currency translation impact of 3%. Revenues surpassed the consensus estimate of $725 million.
While organic sales increased 7% year over year, the net impact from divested sales and the CapstanAG acquisition was unfavorable by 1%. Foreign currency translation had a favorable impact of 3%.
On a regional basis, revenues from the Asia Pacific region were $238.1 million, up 9.2% year over year. Revenues generated from Europe increased 12.7% to $194.5 million, while the metric in the Americas increased 5.4% to $308.3 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 $350.5 million, up 9.9% from the year-ago fiscal quarter’s level. Organic sales increased 5.0% from the year-ago fiscal quarter’s level, while acquisitions/divestitures contributed 0.8% and foreign currency translation had a positive impact of 4.1%.
Revenues from Medical and Fluid Solutions amounted to $212.9 million, up 5.0% from the year-ago fiscal quarter’s level. Organic sales increased 7.8% from the year-ago fiscal quarter’s level. Acquisitions/divestitures decreased sales by 3.9% while foreign currency translation had a positive impact of 1.1%.
Advanced Technology Solutions’ sales were $177.5 million, up 10.1% from the year-ago fiscal quarter’s figure. Organic sales increased 8.5% from the year-ago fiscal quarter’s level, while foreign currency translation had a positive impact of 1.6%.
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 increased 9.0% from the year-ago fiscal quarter’s level to $336.8 million. Gross profit was $404.1 million, up 8.1% from the year-ago fiscal quarter’s level. The gross margin decreased 20 basis points (bps) to 54.5%.
Selling and administrative expenses increased 0.8% year over year to $206.9 million. EBITDA was $235.2 million (up 8% year over year), the margin being 32%. Operating profit was $197.2 million, up 16.9% year over year. Operating margin of 26.6% was up 190 bps from the year-ago quarter.
Net interest expenses totaled $21.6 million, reflecting a 17.1% decrease from the year-ago fiscal quarter’s level.
Nordson’s Balance Sheet & Cash Flow
At the time of exiting the second quarter of fiscal 2026, Nordson’s cash and cash equivalents were $102.0 million compared with $108.4 million recorded at the end of fiscal 2025. Long-term debt was $1.84 billion compared with $1.68 billion recorded at the end of fiscal 2025.
In the first six months of fiscal 2026, NDSN generated net cash of $321.1 million from operating activities, up 15.4% from the last fiscal year period’s tally. Capital invested in purchasing property, plant and equipment totaled $27.7 million, down 26% from the year-ago fiscal period.
NDSN’s Dividends/Share Buyback
In the first three months of fiscal 2026, Nordson paid out dividends of $45.8 million, up 2.7% from $44.6 million in the previous fiscal year period.
Treasury purchase shares amounted to $86 million, up from $43.1 million in the year-ago period.
In the first six months of fiscal 2026, Nordson paid out dividends of $91.6 million, up 3.0% from $88.9 million in the previous fiscal year period.
Treasury purchase shares amounted to $129.3 million, down 11.6% from $146.3 million in the year-ago period.
NDSN’s Outlook
For fiscal 2026 (ending October 2026), NDSN has increased its guidance. The company now projects sales to be in the range of $2.93-$3.01 billion compared with $2.86-$2.98 billion expected earlier. Nordson expects adjusted earnings of $11.30-$11.80 per share compared with $11.00-$11.60 anticipated before.
For third-quarter fiscal 2026 (ending July 2026), it expects to generate sales in the band of $760-$790 million, with adjusted earnings of $2.95-$3.15 per share.
NDSN Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.