Nordson Corporation Reports Record Fourth Quarter and Full Fiscal Year 2025 Performance
Nordson Corporation has released its financial results for the fourth quarter and full fiscal year ended October 31, 2025, highlighting a year of resilience, margin expansion, strong cash generation, and disciplined capital allocation. Despite mixed macroeconomic conditions and the impact of a significant divestiture, the company delivered record-breaking full-year performance and a solid finish to the final quarter.
Fourth Quarter 2025: Steady Growth Amid Portfolio Shift
For the fiscal fourth quarter, Nordson posted sales of $752 million, reflecting a modest 1% increase over the prior year’s fourth-quarter revenue of $744 million. While organic sales declined 1%, the overall increase was driven by favorable currency translation (+2%) and acquisition contributions (+1%), partially offset by the sale of the medical contract manufacturing business, which closed on September 2, 2025. Even with this portfolio adjustment, the company sustained top-line stability.
Net income rose sharply to $152 million, compared to $122 million in the same quarter last year. This translated to earnings of $2.69 per diluted share, up from $2.12 per diluted share a year ago. On an adjusted basis, net income reached $171 million, up from $160 million in the prior year’s quarter, and adjusted earnings per diluted share increased 9%, rising from $2.78 to $3.03.
Profitability also strengthened, with fourth-quarter EBITDA climbing to $256 million, representing 34% of sales, compared to $241 million or 32% of sales in the previous year’s fourth quarter. This reflects not only cost discipline but also favorable mix and operating leverage across the business.
CEO Commentary: A Strong Finish and Strategic Progress
Sundaram Nagarajan, Nordson’s President and Chief Executive Officer, praised the organization’s execution during the final quarter of the year. He emphasized that results came in at the high end of the company’s guidance, highlighting the team’s operational focus and commitment to customers.
“We had a strong operational finish to fiscal 2025, and I want to thank our teams for delivering value to our customers and shareholders,” Nagarajan said. He noted that despite the headwind created by the divestiture, the company maintained momentum, delivered a 9% increase in adjusted EPS, and continued strengthening its margins.
Nagarajan also highlighted two standout achievements in the quarter:
- Record EBITDA margin, demonstrating the company’s pricing discipline and operational efficiency.
- Free cash flow conversion of 128%, fueling Nordson’s balanced capital allocation strategy.
This combination allowed Nordson to continue repurchasing shares, paying dividends, and reducing debt while investing in capabilities to support long-term growth.
Fourth Quarter Segment Performance
Nordson’s diversified segment portfolio produced a mix of results, influenced by varying end-market conditions and product demand patterns.
Industrial Precision Solutions (IPS)
Fourth-quarter IPS sales were $362 million, a 2% decrease from the prior year. Organic sales declined 4%, driven primarily by continued double-digit softness in polymer processing systems, a trend consistent with what Nordson observed earlier in the year. This decline was partially offset by a 2% favorable currency impact.
Despite lower volume, IPS delivered strong profitability. Segment EBITDA reached $137 million, or 38% of sales, a slight increase from $136 million in the prior-year quarter. The ability to maintain and slightly grow EBITDA in the face of declining sales showcases the segment’s resilient cost structure and pricing strategy.
Medical and Fluid Solutions (MFS)
The MFS segment was a standout performer in the fourth quarter. Sales rose to $220 million, a 10% year-over-year increase. Organic sales grew 7% across all product lines, reflecting robust demand within the medical and fluid management markets. Additional contributions came from the Atrion acquisition, which added 2% growth net of the divested medical contract manufacturing units, and currency provided another 1% tailwind.
Profitability improved significantly. The segment posted EBITDA of $88 million, representing 40% of sales, a sizable improvement from the prior year’s $72 million, or 36%. The 380-basis-point increase underscores effective integration of acquired assets and strong operational execution.
Advanced Technology Solutions (ATS)
ATS revenue for the quarter was $171 million, a 4% decline from the prior year. Organic sales decreased 5%, driven by weaker demand for test and inspection systems, particularly x-ray equipment. These declines were partially offset by sustained strength in electronics dispensing systems. A 1% favorable currency impact also helped narrow the sales decline.
Segment EBITDA was $43 million, representing 25% of sales, down from $48 million and a margin of 27% in the prior year. The decrease reflected lower sales volume and less favorable product mix.
Full Fiscal Year 2025 Results: A Record Year Despite Market Challenges
Across the full fiscal year, Nordson delivered strong top-line and bottom-line performance.
Annual Sales and Earnings Growth
For fiscal 2025, Nordson generated record sales of $2.8 billion, a 4% increase from fiscal 2024. The improvement was largely driven by a 6% net acquisition benefit, mainly from the company’s acquisition of Atrion earlier in the year. Offsetting this was a 3% decline in organic sales, reflecting softer global demand in certain industrial markets.
Full-year net income totaled $484 million, or $8.51 per diluted share, compared to $467 million and $8.11 per diluted share in the prior year. Adjusted net income was $583 million, up from $561 million in fiscal 2024. Adjusted earnings per diluted share reached a new high of $10.24, representing a 5% increase over last year’s $9.73.
EBITDA and Cash Flow Strength
EBITDA for the year was $900 million, representing 32% of sales, consistent with last year’s margin profile but higher in absolute terms than the prior year’s $849 million.
Free cash flow was particularly strong at $661 million, the highest in Nordson’s history, reflecting a remarkably high 136% conversion rate. This cash generation provided the company with resources to strengthen the balance sheet, fund acquisitions, support dividends, and repurchase shares.
CEO Reflections: Execution, Strategy, and Positioning for Growth
Nagarajan emphasized that fiscal 2025 results aligned closely with expectations set at the beginning of the year, an achievement he described as particularly noteworthy given the economic uncertainty. He credited Nordson’s NBS Next growth framework, a system designed to drive innovation and scalable processes, as a key contributor.
He also highlighted:
- Achievement of the 2025 Ascend strategy goal of reaching $900 million in EBITDA
- Maintenance of 55% gross margins, despite shifts in tariff structures
- Ongoing improvements in portfolio quality
- Strengthening of the balance sheet for future growth
“Nordson’s winning team delivered strong results… ending the year well positioned for growth,” Nagarajan said.
Source link: https://www.nordson.com/
