Strength in Medical & Fluid Solutions Unit Drives Nordson: Can It Sustain?

Nordson Corporation NDSN is witnessing solid momentum in the Medical and Fluid Solutions segment, organic sales from which increased 7.4% year over year in the fourth quarter of fiscal 2025 (ended Oct. 31, 2025). Strength across the medical interventional product lines, owing to growing demand and a healthy pipeline of customer projects, is boosting the segment’s performance.

Increased demand for medical fluid components and fluid solutions product lines is also aiding the segment. In fiscal 2025, the segment’s EBITDA margin increased 40 basis points year over year due to solid organic sales growth, manufacturing footprint optimization and strategic cost reduction initiatives.
In August 2024, Nordson completed the acquisition of Atrion Corp. The inclusion of Atrion’s three major businesses — Halkey Roberts, Atrion Medical and Quest Medical — enabled the company to expand its medical offerings in the infusion and cardiovascular therapies market. The buyout was incorporated into Nordson's Medical and Fluid Solutions segment.

Driven by strength across most of its businesses and synergies from acquired assets, Nordson provided a bullish outlook for fiscal 2026 (ending October 2026). The company expects overall sales to be in the range of $2.83-$2.95 billion in fiscal 2026, implying an increase of 3.6% at the midpoint on a year-over-year basis.

Segment Snapshot of NDSN’s Peers

Strength in Danaher Corp.’s DHR bioprocessing business, driven by an increase in demand for consumables from large pharmaceutical customers, has been supporting the Biotechnology segment’s growth. Also, solid momentum in Danaher’s discovery and medical business, driven by an increase in demand for medical and lab filtration consumables, bodes well for the segment.

Roper Technologies, Inc. ROP is witnessing strength in its Technology enabled Products segment. The solid performance of the Neptune business, due to continued demand for ultrasonic meters and rising demand for cloud-based data and billing software solutions, is fostering the growth of the segment. Solid performance of the Verathon business, driven by strength across single-use BFlex & GlideScope offerings, also bodes well.

NDSN’s Price Performance, Valuation and Estimates

Shares of Nordson have gained 6.8% in the past three months compared with the industry’s growth of 4.3%.

From a valuation standpoint, NDSN is trading at a forward price-to-earnings ratio of 21.51X, below the industry’s average of 21.84X. Nordson carries a Value Score of D.

The Zacks Consensus Estimate for NDSN’s fiscal 2026 earnings has increased 2.3% over the past 60 days.

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.

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This article originally published on Zacks Investment Research (zacks.com).

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