Nordson Reports Q2 Fiscal 2025 Results and Q3 Guidance

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Nordson Corporation reported results for the fiscal second quarter ended April 30, 2025. Sales were $683 million compared to the prior year’s second quarter sales of $651 million. The second quarter 2025 sales included a favorable acquisition impact of 8%, offset by an organic sales decrease of 2% and unfavorable currency translation of less than 1%.

Net income was $112 million, or $1.97 of earnings per diluted share, compared to prior year’s second quarter net income of $118 million, or $2.05 of earnings per diluted share. Excluding restructuring costs and acquisition related amortization, second quarter adjusted net income was $138 million versus prior year adjusted net income of $135 million. Second quarter adjusted earnings per diluted share were $2.42, a 3% increase from the prior year adjusted earnings per diluted share of $2.34.

EBITDA in the second quarter was $217 million, or 32% of sales, an increase of 7% compared to prior year EBITDA of $203 million, or 31% of sales.

Commenting on the Company’s fiscal 2025 second quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, “We started the second quarter with increasing momentum in order entry, and our results outperformed the mid-point of our sales and earnings guidance. This was driven by strength in our electronics systems sales and steady growth in nonwovens systems, precision agriculture and medical fluid components. Also, our Atrion acquisition continues to perform above expectations. As expected, this growth was partially offset by year-over-year weakness in industrial systems sales, which improved sequentially compared to the first quarter. Operational excellence drove strong profit performance of 32% EBITDA despite the uncertain geopolitical environment. We also maintained our sound balance sheet and bought back $85 million in shares during this dynamic quarter.”

Second Quarter Segment Results

Industrial Precision Solutions sales of $319 million decreased 8% from the prior year, inclusive of an organic sales decrease of 7% and unfavorable currency translation of 1%. The organic sales decrease was driven by weaker systems demand in polymer processing and industrial coatings product lines, partially offset by growth in nonwovens, precision agriculture and packaging product lines. Operating profit was $96 million, a decrease of $20 million from the prior year, reflecting the impact of lower volume. EBITDA in the quarter was $114 million, or 36% of sales, compared to prior year second quarter EBITDA of $128 million, or 37% of sales.

Medical and Fluid Solutions sales of $203 million increased 20% compared to the prior year second quarter, inclusive of an acquisition impact of 30%, partially offset by an organic sales decrease of 10%. The organic sales decline reflects targeted program rationalization in medical contract manufacturing and ongoing destocking in selected interventional product lines. Operating profit was $57 million, an increase of $8 million from the prior year, reflecting contribution from the Atrion acquisition and solid operational execution from the organic business. EBITDA in the quarter was $77 million, or 38% of sales, up 22% versus the prior year second quarter EBITDA of $63 million, or 37% of sales.

Advanced Technology Solutions sales of $161 million increased 18% organically compared to the prior year second quarter. The organic sales increase compared to prior year was driven by broad-based demand in semi-conductor and electronics end markets. Operating profit was $32 million, an increase of $11 million due to the organic sales increase and the benefits of strategic cost and manufacturing optimization actions. EBITDA in the quarter was $40 million, or 25% of sales, up 43% from the prior year second quarter EBITDA of $28 million, or 20% of sales.

Outlook

Order entry remained strong during the quarter resulting in healthy backlog, up approximately 5% from the prior quarter. Based on current visibility and order entry trends, the Company expects third quarter fiscal 2025 sales to be in the range of $710 to $750 million. Third quarter adjusted earnings are forecasted to be in the range of $2.55 to $2.75 per diluted share.

Reflecting on the outlook and current macroeconomic environment, Nagarajan said, “Order entry and backlog support a third quarter performance that is in line with the full-year guidance we set at the beginning of our fiscal year. Our product portfolio is focused on differentiated products. Our decentralized and close-to-the-customer business model empowers our businesses to be responsive to customer needs. This includes the benefits of an in-region, for-region manufacturing strategy that will lead to growth with existing customers. Nordson has continuously demonstrated the ability to deliver best-in-class profitability in varying market scenarios, while remaining invested in the long-term growth priorities of the Company.”