Nordson Corporation Reports Fourth Quarter and Fiscal Year 2024 Results

Fourth Quarter:

• Sales were $744 million, a 4% increase over prior year
• Earnings per diluted share were $2.12
• Adjusted earnings per diluted share were $2.78
• Atrion Medical acquisition integration progressing well

Full Year:

• Record sales of $2.7 billion, reflecting 2% growth over last year’s record sales
• Earnings per diluted share were $8.11
• EBITDA was a record $849 million, up 4% over prior year and 32% of sales
• Adjusted earnings per diluted share were $9.73

Fiscal 2025 Guidance:

• Fiscal 2025 forecasted sales range between $2,750 to $2,870 million and adjusted earnings in the range of $9.70 to $10.50

WESTLAKE, Ohio--(BUSINESS WIRE)-- Nordson Corporation (Nasdaq: NDSN) today reported results for the fiscal fourth quarter ended October 31, 2024. Sales were $744 million, a 4% increase compared to the prior year’s fourth quarter sales of $719 million. The increase in fourth quarter 2024 sales included the favorable 6% impact of acquisitions and favorable currency translation of 1%, offset by an organic sales decrease of 3%.

Net income was $122 million, or earnings per diluted share of $2.12, compared to prior year’s fourth quarter net income of $128 million, or earnings per diluted share of $2.22. Adjusted net income was $160 million, an increase from prior year adjusted net income of $156 million. Fourth quarter 2024 adjusted earnings per diluted share were $2.78 compared to prior year adjusted earnings per diluted share of $2.71.

EBITDA in the fourth quarter was $241 million, or 32% of sales, an increase of 4% compared to prior year EBITDA of $227 million, also at 32% of sales.

Commenting on the Company’s fiscal 2024 fourth quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, “I appreciate our team’s focus and commitment to our customers, which delivered results above our fourth quarter guidance expectations. Our Advanced Technology Solutions segment delivered year-over-year fourth quarter sales growth, as electronics demand continued to steadily improve at fiscal year-end. During the down electronics cycle, our ATS team holistically implemented the NBS Next growth framework, making them responsive to the needs of our customers while also delivering a strong incremental operating performance. Our industrial product lines performed well against record comparisons from prior year. I’m also pleased with the early integration of our Atrion Medical acquisition, which contributed positively to the quarter.”

Fourth Quarter Segment Results

Industrial Precision Solutions sales of $392 million decreased 3% compared to the prior year fourth quarter, driven by a 5% organic sales decrease, a favorable acquisition impact of 1%, and a favorable currency impact of 1%. The organic sales decrease, following record organic sales in prior year fourth quarter, was driven by our industrial coatings, polymer processing and precision agriculture product lines, partially offset by double-digit growth in nonwovens product lines. Operating profit was $126 million in the quarter, or 32% of sales, a decrease of 4% compared to the prior year operating profit. The decrease in operating profit was driven by lower sales. EBITDA in the quarter was $143 million, or 37% of sales, a 3% decrease from the prior year fourth quarter EBITDA of $148 million, which also was 37% of sales.

Medical and Fluid Solutions sales of $200 million increased 19% compared to the prior year fourth quarter, driven primarily by the acquisition of Atrion, which offset an organic sales decrease of 3% and a favorable currency impact of 1%. The organic sales decrease was driven by softness in medical interventional solutions product lines, partially offset by modest growth in our medical fluid components and fluid solutions product lines. Operating profit totaled $44 million in the quarter, or 22% of sales, a decrease of 8% compared to the prior year operating profit. EBITDA in the quarter was $72 million, or 36% of sales, an increase versus the prior year fourth quarter EBITDA of $62 million, or 37% of sales.

Advanced Technology Solutions sales of $152 million increased 5% compared to the prior year fourth quarter, driven by an organic sales increase of 4% and a favorable currency impact of 1%. The organic sales increase was driven by double-digit growth in select test and inspection product lines and modest growth in our electronics processing product lines. Operating profit totaled $33 million in the quarter, or 22% of sales, an increase of 6% compared to the prior year operating profit due to higher sales and improved profit margins. EBITDA in the quarter was $41 million, or 27% of sales, an increase from the prior year fourth quarter EBITDA of $35 million, or 24% of sales.

Fiscal 2024 Full Year Results

Sales for the fiscal year ended October 31, 2024, were a record $2.7 billion, an increase of 2% compared to the prior year. This sales growth was driven by a favorable acquisition impact of 5%, partially offset by a 3% decrease in organic volume.

Net income was $467 million, or earnings per diluted share of $8.11, compared to prior year’s net income of $487 million, or earnings per diluted share of $8.46. Adjusted net income was $561 million, a decrease from prior year adjusted net income of $567 million. Adjusted earnings per diluted share were $9.73 compared to prior year adjusted earnings per diluted share of $9.85.

EBITDA was $849 million, or 32% of sales, compared to prior year EBITDA of $819 million, or 31% of sales. Free cash flow for the full-year was $492 million, which was a conversion rate of 105% of net income.

Reflecting on fiscal 2024, Mr. Nagarajan continued, “In 2021, we launched our Ascend strategy with the milestone of achieving $3 billion in annual sales and greater than 30% EBITDA margins by 2025. The strategy is delivering results and has ample runway to accelerate. Our diversified portfolio, built on our leadership in niche end markets with differentiated products, is delivering balanced results in the ever-changing macro environment. Our acquisition strategy is generating growth, and I am pleased with the integration and deployment of the NBS Next growth framework. We also continued to generate strong free cash flow in the year, allowing us to consistently reinvest in the business while returning cash to our shareholders.”

Outlook

Following four consecutive years of record-setting performance, we enter fiscal 2025 with approximately $580 million in backlog.

Based on the combination of order entry, backlog, current exchange rates and anticipated end market expectations, we anticipate delivering sales in the range of $2,750 to $2,870 million in fiscal 2025. Full year fiscal 2025 adjusted earnings are forecasted in the range of $9.70 to $10.50 per diluted share.

First quarter fiscal 2025 sales are forecasted in the range of $615 to $655 million with adjusted earnings in the range of $1.95 to $2.15 per diluted share.

Commenting on fiscal 2025 guidance, Nagarajan said, “Considering the evolving global macro-environment, we are entering 2025 with a conservative viewpoint. The fiscal first quarter is seasonally Nordson’s weakest quarter due to the holiday and calendar year-end slowdowns and cautious customer spending. While we remain confident about the long-term growth drivers of our end markets, we are being prudent about our expectations for end market recovery timing, particularly for our electronics and agricultural product lines. Even in uncertain times, our team delivers operational excellence and strong cash flow due to our close-to-the-customer business model, diversified niche end markets, differentiated products and the NBS Next growth framework.”

Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on Thursday, December 12, 2024 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 lara.mahoney@nordson.com.

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 STATEMENT OF INCOME (Unaudited) (Dollars in thousands except for per-share amounts)
	Three Months Ended								Twelve Months Ended
	October 31, 2024				October 31, 2023				October 31, 2024				October 31, 2023
Sales	$	744,482			$	719,313			$	2,689,921			$	2,628,632
Cost of sales		341,658				335,220				1,203,792				1,203,227
Gross profit		402,824				384,093				1,486,129				1,425,405
Gross margin %		54.1	%			53.4	%			55.2	%			54.2	%
Selling & administrative expenses		223,932				199,054				812,128				752,644
Operating profit		178,892				185,039				674,001				672,761
Interest expense - net		(27,282	)			(25,921	)			(84,011	)			(56,825	)
Other income (expense) - net		(3,538	)			1,462				(4,509	)			(597	)
Income before income taxes		148,072				160,580				585,481				615,339
Income taxes		25,904				32,802				118,197				127,846
Net Income	$	122,168			$	127,778			$	467,284			$	487,493
Weighted-average common shares outstanding:
Basic		57,188				57,020				57,176				57,090
Diluted		57,603				57,552				57,616				57,631
Earnings per share:
Basic earnings	$	2.14			$	2.24			$	8.17			$	8.54
Diluted earnings	$	2.12			$	2.22			$	8.11			$	8.46

NORDSON CORPORATION
CONSOLIDATED BALANCE SHEET (Unaudited) (Dollars in thousands)
	October 31, 2024			October 31, 2023
Cash and cash equivalents	$	115,952		$	115,679
Receivables - net		594,663			590,886
Inventories - net		476,935			454,775
Other current assets		87,482			67,970
Total current assets		1,275,032			1,229,310
Property, plant & equipment - net		544,607			392,846
Goodwill		3,280,819			2,784,201
Other assets		900,508			845,413
	$	6,000,966		$	5,251,770
Notes payable and debt due within one year	$	103,928		$	115,662
Accounts payable and accrued liabilities		424,549			466,427
Total current liabilities		528,477			582,089
Long-term debt		2,101,197			1,621,394
Other liabilities		439,100			450,227
Total shareholders' equity		2,932,192			2,598,060
	$	6,000,966		$	5,251,770

NORDSON CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (Dollars in thousands)
	Twelve Months Ended
	October 31, 2024				October 31, 2023
Cash flows from operating activities:
Net Income	$	467,284			$	487,493
Depreciation and amortization		136,175				111,898
Other non-cash items		5,883				16,105
Changes in operating assets and liabilities and other		(53,149	)			25,786
Net cash provided by operating activities		556,193				641,282
Cash flows from investing activities:
Additions to property, plant and equipment		(64,410	)			(34,583	)
Acquisitions of businesses, net of cash acquired		(789,996	)			(1,422,780	)
Other - net		10,008				20,484
Net cash used in investing activities		(844,398	)			(1,436,879	)
Cash flows from financing activities:
Issuance (repayment) of long-term debt		464,353				976,043
Repayment of finance lease obligations		(6,148	)			(6,840	)
Dividends paid		(161,438	)			(150,356	)
Issuance of common shares		31,067				21,373
Purchase of treasury shares		(33,339	)			(89,708	)
Net cash provided by financing activities		294,495				750,512
Effect of exchange rate change on cash		(6,017	)			(2,693	)
Net change in cash and cash equivalents		273				(47,778	)
Cash and cash equivalents:
Beginning of period		115,679				163,457
End of period	$	115,952			$	115,679

NORDSON CORPORATION
SALES BY GEOGRAPHIC SEGMENT (Unaudited) (Dollars in thousands)
	Three Months Ended						Sales Variance
	October 31, 2024			October 31, 2023			Organic			Acquisitions			Currency			Total
SALES BY SEGMENT
Industrial precision solutions	$	392,150		$	405,436		(5.5	)%		1.2	%		1.0	%		(3.3	)%
Medical and fluid solutions		200,223			168,632		(3.2	)%		21.4	%		0.5	%		18.7	%
Advanced technology solutions		152,109			145,245		3.9	%		—	%		0.8	%		4.7	%
Total sales	$	744,482		$	719,313		(3.0	)%		5.7	%		0.8	%		3.5	%
SALES BY GEOGRAPHIC REGION
Americas		323,170			315,635		(6.0	)%		8.9	%		(0.5	)%		2.4	%
Europe		185,350			184,297		(6.6	)%		4.6	%		2.6	%		0.6	%
Asia Pacific		235,962			219,381		4.2	%		2.0	%		1.4	%		7.6	%
Total sales	$	744,482		$	719,313		(3.0	)%		5.7	%		0.8	%		3.5	%
	Twelve Months Ended						Sales Variance
	October 31, 2024			October 31, 2023			Organic			Acquisitions			Currency			Total
SALES BY SEGMENT
Industrial precision solutions	$	1,484,249		$	1,391,046		0.1	%		6.6	%		—	%		6.7	%
Medical and fluid solutions		695,452			660,316		(0.2	)%		5.4	%		0.1	%		5.3	%
Advanced technology solutions		510,220			577,270		(11.4	)%		—	%		(0.2	)%		(11.6	)%
Total sales	$	2,689,921		$	2,628,632		(2.5	)%		4.8	%		—	%		2.3	%
SALES BY GEOGRAPHIC REGION
Americas		1,178,626			1,149,760		(1.9	)%		4.3	%		0.1	%		2.5	%
Europe		726,100			682,676		(5.1	)%		10.2	%		1.3	%		6.4	%
Asia Pacific		785,195			796,196		(1.0	)%		1.0	%		(1.4	)%		(1.4	)%
Total sales	$	2,689,921		$	2,628,632		(2.5	)%		4.8	%		—	%		2.3	%

NORDSON CORPORATION
RECONCILIATION OF NON-GAAP MEASURES - NET INCOME TO EBITDA (Unaudited) (Dollars in thousands)
	Three Months Ended					Twelve Months Ended
	October 31, 2024		October 31, 2023			October 31, 2024		October 31, 2023
Net income	122,168		127,778			467,284		487,493
Income taxes	25,904		32,802			118,197		127,846
Interest expense - net	27,282		25,921			84,011		56,825
Other expense - net	3,538		(1,462	)		4,509		597
Depreciation and amortization	36,528		31,261			136,175		111,898
Inventory step-up amortization (1)	4,759		4,556			7,703		8,862
Severance and other (1)	12,717		—			17,332		5,487
Acquisition-related costs (1)	8,200		6,244			13,957		19,966
EBITDA (non-GAAP) (2)	241,096		227,100			849,168		818,974

(1)	Represents severance 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 severance, 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														Twelve Months Ended
	October 31, 2024							October 31, 2023							October 31, 2024							October 31, 2023
SALES BY SEGMENT
Industrial precision solutions	$	392,150						$	405,436						$	1,484,249						$	1,391,046
Medical and fluid solutions		200,223							168,632							695,452							660,316
Advanced technology solutions		152,109							145,245							510,220							577,270
Total sales	$	744,482						$	719,313						$	2,689,921						$	2,628,632
OPERATING PROFIT
Industrial precision solutions	$	126,254						$	131,450						$	470,559						$	460,889
Medical and fluid solutions		44,264							48,041							187,731							189,367
Advanced technology solutions		33,464							31,526							94,231							101,662
Corporate		(25,090	)						(25,978	)						(78,520	)						(79,157	)
Total operating profit	$	178,892						$	185,039						$	674,001						$	672,761
OPERATING PROFIT ADJUSTMENTS (1)
Industrial precision solutions	$	2,899						$	4,658						$	8,976						$	4,658
Medical and fluid solutions		10,761							—							10,761							1,479
Advanced technology solutions		3,816							—							5,895							14,304
Corporate		8,200							6,142							13,360							13,874
Total adjustments	$	25,676						$	10,800						$	38,992						$	34,315
DEPRECIATION & AMORTIZATION
Industrial precision solutions	$	14,035						$	12,062						$	56,856						$	33,228
Medical and fluid solutions		17,239							13,547							58,061							54,988
Advanced technology solutions		3,340							3,529							13,433							15,185
Corporate		1,914							2,123							7,825							8,497
Total depreciation & amortization	$	36,528						$	31,261						$	136,175						$	111,898
EBITDA (NON-GAAP) (2)
Industrial precision solutions	$	143,188			37	%		$	148,170			37	%		$	536,391			36	%		$	498,775			36	%
Medical and fluid solutions		72,264			36	%			61,588			37	%			256,553			37	%			245,834			37	%
Advanced technology solutions		40,620			27	%			35,055			24	%			113,559			22	%			131,151			23	%
Corporate		(14,976	)						(17,713	)						(57,335	)						(56,786	)
Total EBITDA	$	241,096			32	%		$	227,100			32	%		$	849,168			32	%		$	818,974			31	%

(1)	Represents severance 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 severance, 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								Twelve Months Ended
	October 31, 2024				October 31, 2023				October 31, 2024				October 31, 2023
GAAP AS REPORTED
Operating profit	$	178,892			$	185,039			$	674,001			$	672,761
Other / interest expense - net		(30,820	)			(24,459	)			(88,520	)			(57,422	)
Net income		122,168				127,778				467,284				487,493
Diluted earnings per share	$	2.12			$	2.22			$	8.11			$	8.46
Shares outstanding - diluted		57,603				57,552				57,616				57,631
OPERATING PROFIT ADJUSTMENTS
Inventory step-up amortization	$	4,759			$	4,556			$	7,703			$	8,862
Severance and other		12,717				—				17,332				5,487
Acquisition costs		8,200				6,244				13,957				19,966
ACQUISITION AMORTIZATION OF INTANGIBLES	$	19,560			$	17,880			$	76,972			$	59,719
INTEREST		908				6,817				908				6,817
Total adjustments	$	46,144			$	35,497			$	116,872			$	100,851
Adjustments net of tax	$	38,071			$	28,247			$	93,278			$	79,898
EPS effect of adjustments and other discrete tax items	$	0.66			$	0.49			$	1.62			$	1.39
NON-GAAP MEASURES-ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE
Adjusted net income (1)	$	160,239			$	156,025			$	560,562			$	567,391
Adjusted earnings per share (2)	$	2.78			$	2.71			$	9.73			$	9.85

(1)	Adjusted net income is a non-GAAP measure defined as net income plus tax effected adjustments and other discrete tax items.
(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
	October 31, 2024				July 31, 2024				April 30, 2024				January 31, 2024
Net cash provided by operating activities	$	556,193			$	459,812			$	294,964			$	172,356
Additions to property, plant and equipment		(64,410	)			(43,786	)			(21,907	)			(7,530	)
Free Cash Flow - Year to Date (1)		491,783				416,026				273,057				164,826
Free Cash Flow - Quarter to Date (2)		75,757				142,969				108,231				164,826
Net Income - Year to Date	$	467,284
Free Cash Flow Conversion (3)		105	%
	Year to Date
	October 31, 2023				July 31, 2023				April 30, 2023				January 31, 2023
Net cash provided by operating activities	$	641,282			$	478,072			$	287,905			$	123,337
Additions to property, plant and equipment		(34,583	)			(24,244	)			(15,349	)			(9,302	)
Free Cash Flow (1)		606,699				453,828				272,556				114,035
Free Cash Flow - Quarter to Date (2)		152,871				181,272				158,521				114,035

(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 - Quarter to Date is a non-GAAP measure used by management to evaluate the Company's ongoing operations and is equal to Free Cash Flow - Year to Date less prior period Free Cash Flow - Year to Date.
(3)	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/20241211087016/en/

Lara Mahoney

Vice President,

Investor Relations & Corporate Communications

440.204.9985

Lara.Mahoney@nordson.com

Source: Nordson Corporation

FAQ

What was Nordson's (NDSN) revenue growth in Q4 2024?

Nordson reported Q4 2024 sales of $744 million, representing a 4% increase compared to $719 million in the prior year's quarter.

What is Nordson's (NDSN) sales guidance for fiscal 2025?

Nordson forecasts fiscal 2025 sales to range between $2,750 to $2,870 million.

How much was Nordson's (NDSN) EBITDA margin in fiscal 2024?

Nordson's EBITDA was $849 million in fiscal 2024, representing 32% of sales.

What was Nordson's (NDSN) organic sales performance in Q4 2024?

Nordson experienced a 3% decrease in organic sales during Q4 2024.

What is Nordson's (NDSN) earnings guidance for fiscal 2025?

Nordson expects adjusted earnings per diluted share to be between $9.70 to $10.50 for fiscal 2025.