Nordson Corporation Reports Second Quarter Fiscal 2025 Results and Third Quarter Guidance
Second Quarter Highlights:
- Sales were $683 million, an increase of 5% year-over-year
- Earnings per diluted share were $1.97
- Adjusted earnings per diluted share were $2.42
- Backlog grew approximately 5% during the quarter
Nordson Corporation (NASDAQ:NDSN) today 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."
Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on Thursday, May 29, 2025, at 8:30 a.m. eastern time, which can be accessed at https://investors.nordson.com. Information about Nordson's investor relations and shareholder services is available from Lara Mahoney, vice president, investor relations and corporate communications at (440) 204-9985 or [email protected].
The Company's definition of adjusted earnings excludes restructuring costs and acquisition related amortization for both current and historical periods. It is not possible for the Company to identify the amount or significance of future adjustments associated with acquisition and integration costs, restructuring costs, acquisition-related amortization, certain non-operating or income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance to a comparable GAAP range.
Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," "outlook," "guidance," "continue," "target," or the negative of these terms or comparable terminology. These statements reflect management's current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, U.S. and international economic conditions; financial and market conditions; currency exchange rates and devaluations; possible acquisitions, including the Company's ability to successfully integrate acquisitions; the Company's ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements; the effects of changes in tax law; and the possible effects of events beyond our control, such as political unrest, including the conflict between Russia and Ukraine, acts of terror, natural disasters and pandemics, including the recent coronavirus (COVID-19) pandemic and the other factors discussed in Item 1A (Risk Factors) in the Company's most recently filed Annual Report on Form 10-K and in its Forms 10-Q filed with the Securities and Exchange Commission, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement in this press release.
Nordson Corporation is an innovative precision technology company that leverages a scalable growth framework through an entrepreneurial, division-led organization to deliver top tier growth with leading margins and returns. The Company's direct sales model and applications expertise serves global customers through a wide variety of critical applications. Its diverse end market exposure includes consumer non-durable, medical, electronics and industrial end markets. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in over 35 countries. Visit Nordson on the web at www.nordson.com, linkedin/Nordson, or www.facebook.com/nordson.
NORDSON CORPORATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||||||||||
(Dollars in thousands except for per-share amounts) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
April 30, 2025 |
|
April 30, 2024 |
|
April 30, 2025 |
|
April 30, 2024 |
||||||||
Sales |
$ |
682,938 |
|
|
$ |
650,642 |
|
|
$ |
1,298,358 |
|
|
$ |
1,283,835 |
|
Cost of sales |
|
309,034 |
|
|
|
284,765 |
|
|
|
588,558 |
|
|
|
569,531 |
|
Gross profit |
|
373,904 |
|
|
|
365,877 |
|
|
|
709,800 |
|
|
|
714,304 |
|
Gross margin % |
|
54.7 |
% |
|
|
56.2 |
% |
|
|
54.7 |
% |
|
|
55.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Selling & administrative expenses |
|
205,154 |
|
|
|
197,261 |
|
|
|
400,103 |
|
|
|
386,253 |
|
Operating profit |
|
168,750 |
|
|
|
168,616 |
|
|
|
309,697 |
|
|
|
328,051 |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense - net |
|
(26,019 |
) |
|
|
(18,555 |
) |
|
|
(51,637 |
) |
|
|
(38,953 |
) |
Other expense - net |
|
(3,961 |
) |
|
|
(785 |
) |
|
|
(2,435 |
) |
|
|
(1,123 |
) |
Income before income taxes |
|
138,770 |
|
|
|
149,276 |
|
|
|
255,625 |
|
|
|
287,975 |
|
|
|
|
|
|
|
|
|
||||||||
Income taxes |
|
26,366 |
|
|
|
31,059 |
|
|
|
48,569 |
|
|
|
60,186 |
|
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
112,404 |
|
|
$ |
118,217 |
|
|
$ |
207,056 |
|
|
$ |
227,789 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
56,785 |
|
|
|
57,222 |
|
|
|
56,960 |
|
|
|
57,142 |
|
Diluted |
|
57,038 |
|
|
|
57,681 |
|
|
|
57,265 |
|
|
|
57,617 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic earnings |
$ |
1.98 |
|
|
$ |
2.07 |
|
|
$ |
3.64 |
|
|
$ |
3.99 |
|
Diluted earnings |
$ |
1.97 |
|
|
$ |
2.05 |
|
|
$ |
3.62 |
|
|
$ |
3.95 |
|
NORDSON CORPORATION |
|||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||
(Dollars in thousands) |
|||||
|
April 30, 2025 |
|
October 31, 2024 |
||
Cash and cash equivalents |
$ |
130,157 |
|
$ |
115,952 |
Receivables - net |
|
624,057 |
|
|
594,663 |
Inventories - net |
|
473,740 |
|
|
476,935 |
Other current assets |
|
95,568 |
|
|
87,482 |
Total current assets |
|
1,323,522 |
|
|
1,275,032 |
|
|
|
|
||
Property, plant and equipment - net |
|
546,352 |
|
|
544,607 |
Goodwill |
|
3,310,661 |
|
|
3,280,819 |
Other assets |
|
881,503 |
|
|
900,508 |
|
$ |
6,062,038 |
|
$ |
6,000,966 |
|
|
|
|
||
Notes payable and debt due within one year |
$ |
94,794 |
|
$ |
103,928 |
Accounts payable and accrued liabilities |
|
421,846 |
|
|
424,549 |
Total current liabilities |
|
516,640 |
|
|
528,477 |
|
|
|
|
||
Long-term debt |
|
2,118,739 |
|
|
2,101,197 |
Other liabilities |
|
466,355 |
|
|
439,100 |
Total shareholders' equity |
|
2,960,304 |
|
|
2,932,192 |
|
$ |
6,062,038 |
|
$ |
6,000,966 |
|
|
|
|
||
NORDSON CORPORATION |
|||||||
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) |
|||||||
(Dollars in thousands) |
|||||||
|
Six Months Ended |
||||||
|
April 30, 2025 |
|
April 30, 2024 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
207,056 |
|
|
$ |
227,789 |
|
Depreciation and amortization |
|
74,608 |
|
|
|
66,264 |
|
Other non-cash items |
|
7,021 |
|
|
|
10,281 |
|
Changes in operating assets and liabilities and other |
|
(10,393 |
) |
|
|
(9,370 |
) |
Net cash provided by operating activities |
|
278,292 |
|
|
|
294,964 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Additions to property, plant and equipment |
|
(37,439 |
) |
|
|
(21,907 |
) |
Other - net |
|
10,339 |
|
|
|
6,730 |
|
Net cash used in investing activities |
|
(27,100 |
) |
|
|
(15,177 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Net repayment of long-term debt |
|
(5,800 |
) |
|
|
(204,372 |
) |
Repayment of finance lease obligations |
|
(2,627 |
) |
|
|
(2,881 |
) |
Dividends paid |
|
(88,937 |
) |
|
|
(77,796 |
) |
Issuance of common shares |
|
2,803 |
|
|
|
27,219 |
|
Purchase of treasury shares |
|
(146,252 |
) |
|
|
(7,927 |
) |
Net cash used in financing activities |
|
(240,813 |
) |
|
|
(265,757 |
) |
|
|
|
|
||||
Effect of exchange rate change on cash: |
|
3,826 |
|
|
|
(4,263 |
) |
Net change in cash and cash equivalents |
|
14,205 |
|
|
|
9,767 |
|
|
|
|
|
||||
Cash and cash equivalents: |
|
|
|
||||
Beginning of period |
|
115,952 |
|
|
|
115,679 |
|
End of period |
$ |
130,157 |
|
|
$ |
125,446 |
|
|
|
|
|
||||
NORDSON CORPORATION |
|||||||||||||||||
SALES BY GEOGRAPHIC SEGMENT (Unaudited) |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
|
|
|
|
||||||||||||||
|
Three Months Ended |
|
Sales Variance |
||||||||||||||
|
April 30, 2025 |
|
April 30, 2024 |
|
Organic |
|
Acquisitions |
|
Currency |
|
Total |
||||||
SALES BY SEGMENT |
|||||||||||||||||
Industrial Precision Solutions |
$ |
318,847 |
|
$ |
344,978 |
|
(6.9 |
)% |
|
— |
% |
|
(0.7 |
)% |
|
(7.6 |
)% |
Medical and Fluid Solutions |
|
202,809 |
|
|
168,966 |
|
(10.0 |
)% |
|
30.0 |
% |
|
— |
% |
|
20.0 |
% |
Advanced Technology Solutions |
|
161,282 |
|
|
136,698 |
|
18.1 |
% |
|
— |
% |
|
(0.1 |
)% |
|
18.0 |
% |
Total sales |
$ |
682,938 |
|
$ |
650,642 |
|
(2.4 |
)% |
|
7.8 |
% |
|
(0.4 |
)% |
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
SALES BY GEOGRAPHIC REGION |
|||||||||||||||||
Americas |
$ |
292,463 |
|
$ |
294,428 |
|
(12.2 |
)% |
|
12.4 |
% |
|
(0.9 |
)% |
|
(0.7 |
)% |
Europe |
|
172,496 |
|
|
182,070 |
|
(10.7 |
)% |
|
4.7 |
% |
|
0.7 |
% |
|
(5.3 |
)% |
Asia Pacific |
|
217,979 |
|
|
174,144 |
|
22.6 |
% |
|
3.2 |
% |
|
(0.6 |
)% |
|
25.2 |
% |
Total sales |
$ |
682,938 |
|
$ |
650,642 |
|
(2.4 |
)% |
|
7.8 |
% |
|
(0.4 |
)% |
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended |
|
Sales Variance |
||||||||||||||
|
April 30, 2025 |
|
April 30, 2024 |
|
Organic |
|
Acquisitions |
|
Currency |
|
Total |
||||||
SALES BY SEGMENT |
|||||||||||||||||
Industrial Precision Solutions |
$ |
619,295 |
|
$ |
682,720 |
|
(7.6 |
)% |
|
— |
% |
|
(1.7 |
)% |
|
(9.3 |
)% |
Medical and Fluid Solutions |
|
396,418 |
|
|
328,492 |
|
(10.6 |
)% |
|
31.7 |
% |
|
(0.4 |
)% |
|
20.7 |
% |
Advanced Technology Solutions |
|
282,645 |
|
|
272,623 |
|
4.3 |
% |
|
— |
% |
|
(0.6 |
)% |
|
3.7 |
% |
Total sales |
$ |
1,298,358 |
|
$ |
1,283,835 |
|
(5.8 |
)% |
|
8.1 |
% |
|
(1.2 |
)% |
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
SALES BY GEOGRAPHIC REGION |
|||||||||||||||||
Americas |
$ |
560,300 |
|
$ |
568,440 |
|
(13.4 |
)% |
|
13.0 |
% |
|
(1.0 |
)% |
|
(1.4 |
)% |
Europe |
|
340,259 |
|
|
361,380 |
|
(10.0 |
)% |
|
5.2 |
% |
|
(1.0 |
)% |
|
(5.8 |
)% |
Asia Pacific |
|
397,799 |
|
|
354,015 |
|
10.7 |
% |
|
3.2 |
% |
|
(1.5 |
)% |
|
12.4 |
% |
Total sales |
$ |
1,298,358 |
|
$ |
1,283,835 |
|
(5.8 |
)% |
|
8.1 |
% |
|
(1.2 |
)% |
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NORDSON CORPORATION |
|||||||||||
RECONCILIATION OF NON-GAAP MEASURES - NET INCOME TO EBITDA (Unaudited) |
|||||||||||
(Dollars in thousands) |
|||||||||||
|
|
|
|
||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
April 30, 2025 |
|
April 30, 2024 |
|
April 30, 2025 |
|
April 30, 2024 |
||||
Net income |
$ |
112,404 |
|
$ |
118,217 |
|
$ |
207,056 |
|
$ |
227,789 |
Income taxes |
|
26,366 |
|
|
31,059 |
|
|
48,569 |
|
|
60,186 |
Interest expense - net |
|
26,019 |
|
|
18,555 |
|
|
51,637 |
|
|
38,953 |
Other (income) expense - net |
|
3,961 |
|
|
785 |
|
|
2,435 |
|
|
1,123 |
Depreciation and amortization |
|
37,578 |
|
|
32,720 |
|
|
74,608 |
|
|
66,264 |
Inventory step-up amortization (1) |
|
— |
|
|
— |
|
|
3,135 |
|
|
2,944 |
Severance and other (1) |
|
10,313 |
|
|
2,078 |
|
|
16,274 |
|
|
2,078 |
Acquisition-related costs (1) |
|
513 |
|
|
— |
|
|
1,543 |
|
|
597 |
EBITDA (non-GAAP) (2) |
$ |
217,154 |
|
$ |
203,414 |
|
$ |
405,257 |
|
$ |
399,934 |
(1) |
Represents cost reduction actions as well as fees and non-cash inventory charges associated with acquisitions. |
(2) |
EBITDA is a non-GAAP measure used by management to evaluate the Company's ongoing operations. EBITDA is defined as operating profit plus certain adjustments, such as cost reduction actions, fees and non-cash inventory charges associated with acquisitions, plus depreciation and amortization. |
NORDSON CORPORATION |
|||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES - EBITDA (Unaudited) |
|||||||||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||
|
April 30, 2025 |
|
April 30, 2024 |
|
April 30, 2025 |
|
April 30, 2024 |
||||||||||||||||||||
SALES BY SEGMENT |
|||||||||||||||||||||||||||
Industrial Precision Solutions |
$ |
318,847 |
|
|
|
|
$ |
344,978 |
|
|
|
|
$ |
619,295 |
|
|
|
|
$ |
682,720 |
|
|
|
||||
Medical and Fluid Solutions |
|
202,809 |
|
|
|
|
|
168,966 |
|
|
|
|
|
396,418 |
|
|
|
|
|
328,492 |
|
|
|
||||
Advanced Technology Solutions |
|
161,282 |
|
|
|
|
|
136,698 |
|
|
|
|
|
282,645 |
|
|
|
|
|
272,623 |
|
|
|
||||
Total sales |
$ |
682,938 |
|
|
|
|
$ |
650,642 |
|
|
|
|
$ |
1,298,358 |
|
|
|
|
$ |
1,283,835 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OPERATING PROFIT |
|||||||||||||||||||||||||||
Industrial Precision Solutions |
$ |
95,722 |
|
|
|
|
$ |
115,922 |
|
|
|
|
$ |
191,434 |
|
|
|
|
$ |
225,020 |
|
|
|
||||
Medical and Fluid Solutions |
|
56,805 |
|
|
|
|
|
48,993 |
|
|
|
|
|
97,741 |
|
|
|
|
|
95,093 |
|
|
|
||||
Advanced Technology Solutions |
|
31,558 |
|
|
|
|
|
20,693 |
|
|
|
|
|
49,681 |
|
|
|
|
|
38,997 |
|
|
|
||||
Corporate |
|
(15,335 |
) |
|
|
|
|
(16,992 |
) |
|
|
|
|
(29,159 |
) |
|
|
|
|
(31,059 |
) |
|
|
||||
Total operating profit |
$ |
168,750 |
|
|
|
|
$ |
168,616 |
|
|
|
|
$ |
309,697 |
|
|
|
|
$ |
328,051 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OPERATING PROFIT ADJUSTMENTS (1) |
|||||||||||||||||||||||||||
Industrial Precision Solutions |
$ |
5,212 |
|
|
|
|
$ |
— |
|
|
|
|
$ |
9,823 |
|
|
|
|
$ |
3,541 |
|
|
|
||||
Medical and Fluid Solutions |
|
1,366 |
|
|
|
|
|
— |
|
|
|
|
|
6,621 |
|
|
|
|
|
— |
|
|
|
||||
Advanced Technology Solutions |
|
3,288 |
|
|
|
|
|
2,078 |
|
|
|
|
|
3,288 |
|
|
|
|
|
2,078 |
|
|
|
||||
Corporate |
|
960 |
|
|
|
|
|
— |
|
|
|
|
|
1,220 |
|
|
|
|
|
— |
|
|
|
||||
Total adjustments |
$ |
10,826 |
|
|
|
|
$ |
2,078 |
|
|
|
|
$ |
20,952 |
|
|
|
|
$ |
5,619 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
DEPRECIATION & AMORTIZATION |
|||||||||||||||||||||||||||
Industrial Precision Solutions |
$ |
12,614 |
|
|
|
|
$ |
12,437 |
|
|
|
|
$ |
25,067 |
|
|
|
|
$ |
25,357 |
|
|
|
||||
Medical and Fluid Solutions |
|
18,367 |
|
|
|
|
|
13,564 |
|
|
|
|
|
36,508 |
|
|
|
|
|
27,269 |
|
|
|
||||
Advanced Technology Solutions |
|
4,670 |
|
|
|
|
|
4,767 |
|
|
|
|
|
9,318 |
|
|
|
|
|
9,668 |
|
|
|
||||
Corporate |
|
1,927 |
|
|
|
|
|
1,952 |
|
|
|
|
|
3,715 |
|
|
|
|
|
3,970 |
|
|
|
||||
Total depreciation & amortization |
$ |
37,578 |
|
|
|
|
$ |
32,720 |
|
|
|
|
$ |
74,608 |
|
|
|
|
$ |
66,264 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA (NON-GAAP) (2) |
|||||||||||||||||||||||||||
Industrial Precision Solutions |
$ |
113,548 |
|
|
36 |
% |
|
$ |
128,359 |
|
|
37 |
% |
|
$ |
226,324 |
|
|
37 |
% |
|
$ |
253,918 |
|
|
37 |
% |
Medical and Fluid Solutions |
|
76,538 |
|
|
38 |
% |
|
|
62,557 |
|
|
37 |
% |
|
|
140,870 |
|
|
36 |
% |
|
|
122,362 |
|
|
37 |
% |
Advanced Technology Solutions |
|
39,516 |
|
|
25 |
% |
|
|
27,538 |
|
|
20 |
% |
|
|
62,287 |
|
|
22 |
% |
|
|
50,743 |
|
|
19 |
% |
Corporate |
|
(12,448 |
) |
|
|
|
|
(15,040 |
) |
|
|
|
|
(24,224 |
) |
|
|
|
|
(27,089 |
) |
|
|
||||
Total EBITDA |
$ |
217,154 |
|
|
32 |
% |
|
$ |
203,414 |
|
|
31 |
% |
|
$ |
405,257 |
|
|
31 |
% |
|
$ |
399,934 |
|
|
31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) |
Represents cost reduction actions as well as fees and non-cash inventory charges associated with acquisitions. |
(2) |
EBITDA is a non-GAAP measure used by management to evaluate the Company's ongoing operations. EBITDA is defined as operating profit plus certain adjustments, such as cost reduction actions, fees and non-cash inventory charges associated with acquisitions, plus depreciation and amortization. |
NORDSON CORPORATION |
|||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED NET INCOME AND EARNINGS PER SHARE (Unaudited) |
|||||||||||||||
(Dollars in thousands) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
April 30, 2025 |
|
April 30, 2024 |
|
April 30, 2025 |
|
April 30, 2024 |
||||||||
GAAP AS REPORTED |
|||||||||||||||
Operating profit |
$ |
168,750 |
|
|
$ |
168,616 |
|
|
$ |
309,697 |
|
|
$ |
328,051 |
|
Other / interest expense - net |
|
(29,980 |
) |
|
|
(19,340 |
) |
|
|
(54,072 |
) |
|
|
(40,076 |
) |
Net income |
|
112,404 |
|
|
|
118,217 |
|
|
|
207,056 |
|
|
|
227,789 |
|
Diluted earnings per share |
$ |
1.97 |
|
|
$ |
2.05 |
|
|
$ |
3.62 |
|
|
$ |
3.95 |
|
|
|
|
|
|
|
|
|
||||||||
Shares outstanding - diluted |
|
57,038 |
|
|
|
57,681 |
|
|
|
57,265 |
|
|
|
57,617 |
|
|
|
|
|
|
|
|
|
||||||||
OPERATING PROFIT ADJUSTMENTS |
|||||||||||||||
Inventory step-up amortization |
$ |
— |
|
|
$ |
— |
|
|
$ |
3,135 |
|
|
$ |
2,944 |
|
Acquisition costs |
|
513 |
|
|
|
— |
|
|
|
1,543 |
|
|
|
597 |
|
Severance and other |
|
10,313 |
|
|
|
2,078 |
|
|
|
16,274 |
|
|
|
2,078 |
|
|
|
|
|
|
|
|
|
||||||||
ACQUISITION AMORTIZATION OF INTANGIBLES |
$ |
19,696 |
|
|
$ |
18,823 |
|
|
|
39,007 |
|
|
|
38,210 |
|
|
|
|
|
|
|
|
|
||||||||
NON-OPERATING EXPENSE ADJUSTMENTS |
|||||||||||||||
Entity liquidation |
$ |
988 |
|
|
$ |
— |
|
|
$ |
988 |
|
|
$ |
— |
|
Total adjustments |
$ |
31,510 |
|
|
$ |
20,901 |
|
|
$ |
60,947 |
|
|
$ |
43,829 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments net of tax |
$ |
25,523 |
|
|
$ |
16,556 |
|
|
$ |
49,367 |
|
|
$ |
34,669 |
|
Other discrete tax items |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
EPS effect of adjustments and other discrete tax items |
$ |
0.45 |
|
|
$ |
0.29 |
|
|
$ |
0.86 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
||||||||
NON-GAAP MEASURES-ADJUSTED OPERATING PROFIT, NET INCOME AND ADJUSTED EARNINGS PER SHARE |
|||||||||||||||
Operating profit (1) |
$ |
179,576 |
|
|
$ |
170,694 |
|
|
$ |
330,649 |
|
|
$ |
333,670 |
|
Operating profit % of sales |
|
26.3 |
% |
|
|
26.2 |
% |
|
|
25.5 |
% |
|
|
26.0 |
% |
Net income (1) |
$ |
137,927 |
|
|
$ |
134,773 |
|
|
$ |
256,423 |
|
|
$ |
262,458 |
|
Diluted earnings per share (2) |
$ |
2.42 |
|
|
$ |
2.34 |
|
|
$ |
4.48 |
|
|
$ |
4.55 |
|
(1) |
Adjusted net income is a non-GAAP measure defined as net income plus tax effected adjustments and other discrete tax items. Refer to the "Reconciliation of Non-GAAP measures - EBITDA" table for definition of adjustments to operating income. |
(2) |
Adjusted earnings per share is a non-GAAP measure defined as GAAP EPS adjusted for tax effected adjustments and other discrete tax items. |
NORDSON CORPORATION |
|||||||
RECONCILIATION OF NON-GAAP MEASURES - OPERATING CASH FLOW TO FREE CASH FLOW (Unaudited) |
|||||||
(Dollars in thousands) |
|||||||
|
|
||||||
|
Year to Date |
||||||
|
April 30, 2025 |
|
January 31, 2025 |
||||
Net cash provided by operating activities |
|
278,292 |
|
|
$ |
159,122 |
|
Additions to property, plant and equipment |
|
(37,439 |
) |
|
|
(21,399 |
) |
Free Cash Flow - Year to Date (1) |
|
240,853 |
|
|
|
137,723 |
|
|
|
|
|
||||
Net Income - Year to Date |
$ |
207,056 |
|
|
$ |
94,652 |
|
Free Cash Flow Conversion (2) |
|
116 |
% |
|
|
146 |
% |
|
|
|
|
||||
|
Year to Date |
||||||
|
April 30, 2024 |
|
January 31, 2024 |
||||
Net cash provided by operating activities |
$ |
294,964 |
|
|
$ |
172,356 |
|
Additions to property, plant and equipment |
|
(21,907 |
) |
|
|
(7,530 |
) |
Free Cash Flow - Year to Date (1) |
|
273,057 |
|
|
|
164,826 |
|
(1) |
Free Cash Flow - Year to Date is a non-GAAP measure used by management to evaluate the Company's ongoing operations and is defined as Net cash provided by operating activities minus Additions to property, plant and equipment. |
(2) |
Free Cash Flow Conversion - Year to Date is a non-GAAP measure used by management to evaluate the Company's ongoing operations and is defined as Free Cash Flow - Year to Date divided by Net Income - Year to Date. |
Management uses certain non-GAAP measures, such as adjusted net income, adjusted EPS and EBITDA, internally to make strategic decisions, forecast future results, and evaluate the Company's current performance. Given management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in the Company's core business across different time periods. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures to other companies' non-GAAP financial measures, even if they have similar names. Amounts may not add due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250528158485/en/
Lara Mahoney
Vice President, Investor Relations & Corporate Communications
440.204.9985
[email protected]