Nordson Corporation’s NDSN fourth-quarter fiscal 2024 (ended Sept. 30, 2024) adjusted earnings of $2.78 per share surpassed the Zacks Consensus Estimate of $2.59. The bottom line increased 2.6% year over year.

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Quarterly Results of NDSN

Nordson’s revenues were $744.5 million, up 4% from the year-ago fiscal quarter’s number, driven by solid momentum in the Medical and Fluid Solutions segment. Revenues beat the consensus estimate of $733 million.

Organic sales declined 3% year over year due to softness in the polymer processing and precision agriculture product lines. Acquisitions had a positive impact of 6% while foreign currency translation had a positive impact of 1%. Exiting the fiscal year, the company’s backlog totaled $580 million.

Nordson Corporation Price, Consensus and EPS Surprise

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On a regional basis, revenues from the Asia Pacific region increased 7.5% year over year to $236 million. Revenues generated from Europe increased 0.6% to $185.4 million, while the metric in the Americas increased 2.4% to $323.2 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 $392.2 million, down 3.3% from the year-ago fiscal quarter’s level. The segment contributed 52.7% to NDSN’s top line in the quarter.

Organic sales decreased 5.5% from the year-ago fiscal quarter’s level. Acquisitions boosted sales by 1.2% while foreign currency translation had a positive impact of 1%.

Revenues from Medical and Fluid Solutions amounted to $200.2 million, up 18.7% from the year-ago fiscal quarter’s level. The segment contributed 26.9% to NDSN’s top line.

Organic sales decreased 3.2% from the year-ago fiscal quarter’s level. Acquisitions boosted sales by 21.4% while foreign currency translation had a positive impact of 0.5%.

Advanced Technology Solutions’ sales were $152.1 million, up 4.7% from the year-ago fiscal quarter’s figure. The metric represented 20.4% of Nordson’s revenues in the period.

Organic sales increased 3.9% from the year-ago fiscal quarter’s level. Foreign currency translation had a positive impact of 0.8%.

Margin Profile

Nordson’s cost of sales increased 1.9% from the year-ago fiscal quarter’s level to $341.7 million. Gross profit was $402.8 million, up 4.9% from the year-ago fiscal quarter’s level. The gross margin increased 70 basis points (bps) to 54.1%.

Selling and administrative expenses increased 12.5% year over year to $223.9 million. Adjusted EBITDA was $241.1 million, the margin being 32.4%. Operating income was $178.9 million, down 3.2% year on year. Operating margin of 24% decreased 170 bps from the year-ago period.

Net interest expenses totaled $27.3 million, reflecting a 5.4% increase from the year-ago fiscal quarter’s level.