Nordson Corporation (NDSN) Q4 2025 Earnings Call Transcript
Sales (Q4 2025) $752 million, up 1% compared to the prior year's fourth quarter sales of $744 million. Organic sales decreased 1%, with growth in the Medical segment offset by softness in Industrial and Advanced Technology systems product lines. Currency translation had a positive impact of 2%.
Adjusted Earnings Per Share (Q4 2025) $3.03, a 9% increase over the prior year. This reflects strong operational performance and improved portfolio mix due to the divestiture of the medical contract manufacturing business.
EBITDA (Q4 2025) $256 million, up 6% year-over-year, representing 34% of sales. This is a 160 basis point improvement over the prior year, driven by operational performance, portfolio mix improvement, and restructuring actions.
Cash Flow (Q4 2025) $194 million, a record with a conversion rate to net income of 128%. This enabled share repurchases, dividend payments, and debt reduction.
Sales (Fiscal Year 2025) $2.8 billion, up 4% from last year. Organic sales were down 3%, but acquisition and divestiture activity added a net 6% to sales. Currency provided a modest benefit.
Adjusted Earnings Per Share (Fiscal Year 2025) $10.24, up 5% from the prior year, exceeding the midpoint of initial full-year guidance.
Gross Margins (Fiscal Year 2025) Maintained at 55%, demonstrating value and differentiation despite an evolving tariff environment.
EBITDA (Fiscal Year 2025) $900 million, up 6%, achieving the 2025 Ascend Strategy goal. This reflects a full-year incremental EBITDA margin of 49%.
Free Cash Flow (Fiscal Year 2025) $661 million, a record with a cash conversion rate of 136% on net income. This enabled $300 million in share repurchases, $179 million in dividends, and $224 million in net debt reduction.
Industrial Precision Solutions Sales (Q4 2025) $362 million, down 2% compared to the prior year. Organic sales decreased 4%, with currency providing a 2% favorable impact. Declines in polymer processing and industrial coating systems were offset by growth in precision agriculture and packaging product lines.
Medical and Fluid Solutions Sales (Q4 2025) $220 million, up 10% compared to the prior year. Organic sales increased 7%, driven by broad-based demand. EBITDA was $88 million, or 40% of sales, up 21% year-over-year.
Advanced Technology Solutions Sales (Q4 2025) $171 million, down 4% compared to the prior year. Organic sales decreased 5%, with a small positive currency benefit. Weakness in x-ray systems demand overshadowed growth in electronic dispense product lines.
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Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
Nordson Corporation Announces Q1 FY2026 Earnings Release Date
- Earnings Release Schedule: Nordson Corporation will release its Q1 FY2026 earnings on February 18, 2026, after market close, reflecting its commitment to financial transparency and investor engagement.
- Webcast Timing: The company will host its quarterly webcast on February 19, 2026, at 8:30 AM ET, allowing investors to access the latest financial information and engage in real-time discussions.
- Replay Access: For investors unable to participate live, Nordson provides a replay link for the earnings webcast, ensuring that all stakeholders can access critical information and enhancing investor relations.
- Company Background: Founded in 1954 and headquartered in Westlake, Ohio, Nordson operates in over 35 countries, focusing on precision technology and diverse markets, showcasing its robust global operational capabilities.
Nordson Corp. Analyzes Dividend History and Options Trading Dynamics
- Dividend Expectation Analysis: Nordson Corp.'s recent dividend history suggests a potential continuation of a 1.4% annualized yield, reflecting the impact of profitability fluctuations on dividend payments, prompting investors to monitor earnings changes to assess future sustainability.
- Options Trading Dynamics: On Monday, the put volume among S&P 500 components reached 958,732 contracts, while call volume hit 2.08M, resulting in a put:call ratio of 0.46, indicating a preference for call options among investors, which may signal optimism regarding Nordson's stock price increase.
- Volatility Calculation: The trailing twelve-month volatility for Nordson Corp. stands at 27%, and with the current stock price at $243.48, investors can leverage this data to evaluate the risk-reward profile of selling covered calls at the $270 strike for June 2026.
- Options Market Trends: The current call option trading volume significantly exceeds the long-term median put:call ratio of 0.65, indicating a bullish market sentiment where investors are more inclined to choose call contracts, potentially influencing Nordson's stock price trajectory.
BNP Paribas Exane Raises Nordson Price Target to $242 from $224, Keeps Neutral Rating
- Company Overview: Nordson (NDSN) has received an average rating of overweight from analysts.
- Price Target: The mean price target for Nordson is set at $269.62.
DA Davidson Raises Nordson Price Target to $290 from $285, Reiterates Buy Rating
- Company Overview: Nordson (NDSN) has received an average rating of overweight from analysts.
- Price Target: The mean price target for Nordson is set at $269.62.
Nordson Reports Q4 Earnings Exceeding Expectations, But Revenues Fall Short
Fourth Quarter Performance: Nordson Corporation reported adjusted earnings of $3.03 per share for Q4 fiscal 2025, exceeding estimates and showing a 9% year-over-year increase, while revenues of $751.8 million fell short of expectations, rising only 1% from the previous year.
Segment Revenue Breakdown: The Medical and Fluid Solutions segment saw a 9.6% increase in revenue, while Industrial Precision Solutions and Advanced Technology Solutions experienced declines of 1.5% and 3.6%, respectively, highlighting mixed performance across different business areas.
Financial Metrics: Nordson's gross profit increased by 5.1% to $423.5 million, with a gross margin improvement of 220 basis points to 56.3%. The company also reduced selling and administrative expenses by 7% year-over-year.
Future Projections: For fiscal 2026, Nordson anticipates sales between $2.83 billion and $2.95 billion, with adjusted earnings projected at $10.80 to $11.50 per share, indicating a cautious but optimistic outlook for the upcoming year.
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
Nordson Corporation Announces Q1 FY2026 Earnings Release Date
- Earnings Release Schedule: Nordson Corporation will release its Q1 FY2026 earnings on February 18, 2026, after market close, reflecting its commitment to financial transparency and investor engagement.
- Webcast Timing: The company will host its quarterly webcast on February 19, 2026, at 8:30 AM ET, allowing investors to access the latest financial information and engage in real-time discussions.
- Replay Access: For investors unable to participate live, Nordson provides a replay link for the earnings webcast, ensuring that all stakeholders can access critical information and enhancing investor relations.
- Company Background: Founded in 1954 and headquartered in Westlake, Ohio, Nordson operates in over 35 countries, focusing on precision technology and diverse markets, showcasing its robust global operational capabilities.
Nordson Corp. Analyzes Dividend History and Options Trading Dynamics
- Dividend Expectation Analysis: Nordson Corp.'s recent dividend history suggests a potential continuation of a 1.4% annualized yield, reflecting the impact of profitability fluctuations on dividend payments, prompting investors to monitor earnings changes to assess future sustainability.
- Options Trading Dynamics: On Monday, the put volume among S&P 500 components reached 958,732 contracts, while call volume hit 2.08M, resulting in a put:call ratio of 0.46, indicating a preference for call options among investors, which may signal optimism regarding Nordson's stock price increase.
- Volatility Calculation: The trailing twelve-month volatility for Nordson Corp. stands at 27%, and with the current stock price at $243.48, investors can leverage this data to evaluate the risk-reward profile of selling covered calls at the $270 strike for June 2026.
- Options Market Trends: The current call option trading volume significantly exceeds the long-term median put:call ratio of 0.65, indicating a bullish market sentiment where investors are more inclined to choose call contracts, potentially influencing Nordson's stock price trajectory.
BNP Paribas Exane Raises Nordson Price Target to $242 from $224, Keeps Neutral Rating
- Company Overview: Nordson (NDSN) has received an average rating of overweight from analysts.
- Price Target: The mean price target for Nordson is set at $269.62.
DA Davidson Raises Nordson Price Target to $290 from $285, Reiterates Buy Rating
- Company Overview: Nordson (NDSN) has received an average rating of overweight from analysts.
- Price Target: The mean price target for Nordson is set at $269.62.
Nordson Reports Q4 Earnings Exceeding Expectations, But Revenues Fall Short
Fourth Quarter Performance: Nordson Corporation reported adjusted earnings of $3.03 per share for Q4 fiscal 2025, exceeding estimates and showing a 9% year-over-year increase, while revenues of $751.8 million fell short of expectations, rising only 1% from the previous year.
Segment Revenue Breakdown: The Medical and Fluid Solutions segment saw a 9.6% increase in revenue, while Industrial Precision Solutions and Advanced Technology Solutions experienced declines of 1.5% and 3.6%, respectively, highlighting mixed performance across different business areas.
Financial Metrics: Nordson's gross profit increased by 5.1% to $423.5 million, with a gross margin improvement of 220 basis points to 56.3%. The company also reduced selling and administrative expenses by 7% year-over-year.
Future Projections: For fiscal 2026, Nordson anticipates sales between $2.83 billion and $2.95 billion, with adjusted earnings projected at $10.80 to $11.50 per share, indicating a cautious but optimistic outlook for the upcoming year.
