Nordson Corporation Reports Strong Fiscal Third Quarter 2025 Results, Raises Full-Year Guidance
Nordson Corporation (Nasdaq: NDSN), a global leader in precision technology solutions, announced its financial results for the fiscal third quarter ended July 31, 2025, highlighting revenue growth, margin expansion, and strong contributions from recent acquisitions. The company also provided an update to its full-year guidance, signaling confidence in continued operational execution.
Overall Financial Performance
For the third quarter of fiscal 2025, Nordson reported sales of $742 million, an increase from $662 million in the same period of fiscal 2024. This 12% rise was supported by several factors, including an 8% favorable acquisition impact, a 2% organic sales increase, and a 2% positive impact from currency translation.
Net income for the period stood at $126 million, translating to $2.22 in earnings per diluted share, compared to $117 million or $2.04 per diluted share in the prior-year quarter. On an adjusted basis, excluding charges related to the exit of the company’s medical contract manufacturing business and acquisition-related amortization costs, net income was $155 million, versus $138 million a year earlier. Adjusted earnings per diluted share rose to $2.73, representing a 13% year-over-year increase.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $239 million, or 32% of sales, compared with $208 million and 31% of sales in the prior-year period. This improvement represented a 15% increase, underscoring the company’s strong profitability and operating leverage.
CEO Commentary
Nordson President and Chief Executive Officer Sundaram Nagarajan praised the company’s ability to perform under evolving market conditions.
“The Nordson team responded effectively to dynamic demand conditions in key end markets and delivered on its promises, realizing solid year-over-year organic growth in the quarter,” said Nagarajan. “In particular, the Advanced Technology Solutions segment delivered 15% organic sales growth. Operational excellence drove strong profit performance, increasing adjusted earnings per share by 13% and EBITDA by 15%.”
Nagarajan further emphasized the success of the Atrion acquisition, which completed its first full fiscal year of integration. “Our new employees again exceeded expectations and contributed to both sales and earnings results. This quarter, we also maintained a strong balance sheet, delivering cash flow conversion of 180% of net income. These strong cash flows enabled us to reduce debt, repurchase shares, and return dividends to shareholders, while continuing to invest in the business for long-term growth.”
Segment Results
Industrial Precision Solutions (IPS):
The IPS segment posted $351 million in sales, a 1% increase over the prior year. Results reflected a 2% decline in organic sales due to weaker demand in polymer processing systems, offset by growth in other product lines and a 3% favorable currency impact. Operating profit improved slightly to $117 million, up $2 million from the prior year. EBITDA was $130 million, consistent with last year’s level, representing 37% of sales.
Medical and Fluid Solutions (MFS):
The MFS segment delivered strong performance, with sales of $219 million, up 32% year-over-year. Growth was primarily acquisition-driven, contributing 31%, with an additional 1% from currency translation. Organic sales were flat when including the divested medical contract manufacturing business, but excluding this pending divestiture, organic growth was 4%, led by strength in medical fluid components and broader fluid solutions. Operating profit rose to $53 million, a $4 million improvement. On an adjusted basis—excluding acquisition costs and divestiture charges—operating profit was $65 million, reflecting strong leverage from higher sales and contributions from Atrion. Segment EBITDA climbed to $83 million, or 38% of sales, compared to $62 million or 37% of sales a year ago, marking a robust 34% increase.
Advanced Technology Solutions (ATS):
ATS recorded sales of $171 million, an increase of 17% compared with the prior year. Organic sales rose by 15%, supported by strong demand for electronics dispense product lines, while favorable currency effects added 3%. Operating profit grew by $11 million to $37 million, driven by higher sales conversion. EBITDA was $42 million, or 24% of sales, representing a 35% increase from the prior-year EBITDA of $31 million, or 21% of sales.
Balance Sheet and Capital Allocation
Nordson highlighted its continued financial discipline and shareholder returns. The company achieved cash flow conversion of 180% of net income, enabling it to reduce outstanding debt, repurchase shares, and maintain a consistent dividend policy. Management reiterated its commitment to reinvesting in innovation and operational efficiency, alongside pursuing strategic acquisitions that complement its growth portfolio.
