It has been about a month since the last earnings report for Nordson (NDSN). Shares have added about 8.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nordson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Nordson's Earnings Surpass Estimates in Q4, Revenues Miss
Nordson’s fourth-quarter fiscal 2025 (ended Oct. 31, 2025) adjusted earnings of $3.03 per share surpassed the Zacks Consensus Estimate of $2.93. The bottom line increased 9% year over year.
Quarterly Results
Nordson’s revenues were $751.8 million, up 1% from the year-ago fiscal quarter’s number, driven by strength in the Medical and Fluid Solutions segment and contributions from acquired assets. However, revenues missed the consensus estimate of $769 million.
While organic sales fell 1.1% year over year, acquisitions had a positive impact of 0.6% on sales. Foreign currency translation had a favorable impact of 1.5%.
On a regional basis, revenues from the Asia Pacific region were $225.5 million, down 4.4% year over year. Revenues generated from Europe increased 5.4% to $195.3 million, while the metric in the Americas increased 2.4% to $331 million.
Nordson reports revenues under three segments. The segments are Industrial Precision Solutions, Medical and Fluid Solutions and Advanced Technology Solutions. A brief snapshot of the segmental sales is provided below:
Revenues from Industrial Precision Solutions amounted to $361.7 million, down 1.5% from the year-ago fiscal quarter’s level. The segment contributed 48% to Nordson’s top line in the quarter.
Organic sales decreased 3.5% from the year-ago fiscal quarter’s level, while foreign currency translation had a positive impact of 2%.
Revenues from Medical and Fluid Solutions amounted to $219.5 million, up 9.6% from the year-ago fiscal quarter’s level. The segment contributed 29.2% to Nordson’s top line.
Organic sales increased 7.4% from the year-ago fiscal quarter’s level. Acquisitions boosted sales by 1.6% while foreign currency translation had a positive impact of 0.6%.
Advanced Technology Solutions’ sales were $170.6 million, down 3.6% from the year-ago fiscal quarter’s figure. The metric represented 22.8% of Nordson’s revenues in the period.
Organic sales decreased 4.9% from the year-ago fiscal quarter’s level. Foreign currency translation had a positive impact of 1.3%.
Nordson’s Margin Profile
Nordson’s cost of sales decreased 3.9% from the year-ago fiscal quarter’s level to $328.4 million. Gross profit was $423.5 million, up 5.1% from the year-ago fiscal quarter’s level. The gross margin increased 220 basis points (bps) to 56.3%.
Selling and administrative expenses decreased 7% year over year to $208.9 million. Adjusted EBITDA was $255.7 million (up 6.1% year over year), the margin being 34%. Operating income was $214.3 million, up 19.8% year over year. Operating margin of 28.5% was up 450 basis points from the year-ago quarter.
Net interest expenses totaled $23.8 million, reflecting a 12.8% decrease from the year-ago fiscal quarter’s level.
Nordson’s Balance Sheet & Cash Flow
At the time of exiting the fourth quarter of fiscal 2025, Nordson’s cash and cash equivalents were $108.4 million compared with $116 million recorded at the end of fiscal 2024. Long-term debt was $1.68 billion compared with $2.10 billion recorded at the end of fiscal 2024.
In fiscal 2025, Nordson generated net cash of $719.2 million from operating activities, up 29.3% from the last fiscal year period’s tally. Capital invested in purchasing property, plant and equipment totaled $58.1 million, down 9.8% from the year-ago fiscal period.
Dividends/Share Buyback
In fiscal 2025, Nordson paid out dividends of $179.1 million, up 11% from $161.4 million in the previous fiscal year period. Treasury purchase shares amounted to $306.4 million, up from $33.3 million in the year-ago period.
Outlook
For fiscal 2026 (ending October 2026), it projects sales to be in the range of $2.83-$2.95 billion, with adjusted earnings of $10.80-$11.50 per share.
For first-quarter fiscal 2026 (ending January 2026), it expects to generate sales in the band of $630-$670 million, with adjusted earnings of $2.25-$2.45 per share.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, Nordson has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Nordson has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Nordson Corporation (NDSN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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