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Nordson Corporation’s NDSN first-quarter fiscal 2025 (ended Jan. 31, 2025) adjusted earnings of $2.06 per share missed the Zacks Consensus Estimate of $2.08. The bottom line decreased 6.8% year over year.
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Quarterly Results of NDSN
Nordson’s revenues were $615.4 million, down 2.8% from the year-ago fiscal quarter’s number, driven by weakness in the Industrial Precision Solutions and Advanced Technology Solutions segments. Revenues missed the consensus estimate of $636 million.
Organic sales declined 9.4% year over year due to softness in the polymer processing and precision agriculture product lines. Acquisitions had a positive impact of 8.4% while foreign currency translation had a negative impact of 8.4%. Exiting the fiscal year, the company’s backlog totaled $670 million.
On a regional basis, revenues from the Asia Pacific region were $179.8 million, flat year over year. Revenues generated from Europe decreased 6.4% to $167.8 million while the metric in the Americas decreased 2.3% to $267.8 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 $300 million, down 11% from the year-ago fiscal quarter’s level. The segment contributed 48.8% to NDSN’s top line in the quarter.
Organic sales decreased 8% from the year-ago fiscal quarter’s level while foreign currency translation had a negative impact of 2.6%.
Revenues from Medical and Fluid Solutions amounted to $193.6 million, up 21.4% from the year-ago fiscal quarter’s level. The segment contributed 31.5% to NDSN’s top line.
Organic sales decreased 11.2% from the year-ago fiscal quarter’s level. Acquisitions boosted sales by 33.4% while foreign currency translation had a negative impact of 0.8%.
Advanced Technology Solutions’ sales were $121.4 million, up 4.7% from the year-ago fiscal quarter’s figure. The metric represented 19.7% of Nordson’s revenues in the period.
Organic sales decreased 9.6% from the year-ago fiscal quarter’s level. Foreign currency translation had a negative impact of 1.1%.
Nordson Corporation Price and EPS Surprise
Nordson Corporation price-eps-surprise | Nordson Corporation Quote
Nordson’s Margin Profile
Nordson’s cost of sales decreased 1.8% from the year-ago fiscal quarter’s level to $279.5 million. Gross profit was $335.9 million, down 3.6% from the year-ago fiscal quarter’s level. The gross margin decreased 400 basis points (bps) to 54.6%.
Selling and administrative expenses increased 3.2% year over year to $194.9 million. Adjusted EBITDA was $188.1 million, the margin being 30.6%. Operating income was $140.9 million, down 11.6% year over year. Operating margin of 22.9% decreased 230 bps from the year-ago period.
Net interest expenses totaled $25.6 million, reflecting a 25.6% increase from the year-ago fiscal quarter’s level.