NORDSON Posts 12% Revenue Jumps in Quarter Motley fool

North (Ndsn -1.83%)“Precision technology Company specializing in expenditure and application equipment for adhesives, coatings and industrial materials announced its results in the third quarter of August 20, 2025. The key news is that GAAP revenues even exceeded the GAAP. GAAP returned $ 741.5 million. $ 2.73, which reached a 12.1% of GAAP revenue growth and a 13% increase in non -GAAP revenue on the share of the company. a finer basic demand.

Source: Estimates of analysts provided by Factst. Expectations of management based on management, as stated in earnings reports in the fourth quarter of 2025.

Business overview and focus area

Nordson develops and manufactures devices and systems that accurately use glue, coatings, sealants, biomaterials and other materials. Its offers are a wide range of industries, including electronics, medical, packaging and general production. About two -thirds of her income come from international customers, reflecting the global reach of the year.

Nordson’s Business’s heart is its ability to provide innovative, high -precision technology and at the same time address the needs specific to the customer and throughout the industry. The company focuses on the introduction of new products, expands to high growth industries such as medical devices, and the use of acquisitions to add a scale. The key factors of success include technical innovation, global sales and support infrastructure, strong reputation for customer service and culture that appreciates the development of employees and operational discipline.

The highlight of the quarter: financial and operating performance

In the quarter, net sales increased by 12.1% compared to the previous year and reached $ 741.5 million (GAAP), while EPS without GAAP increases by 13% year -on -year. Both GAAP returned and modified EPS (non-GAAP) was in the instructions filed after the previous quarter. Organic growth, which relieves the effects of obtaining and currency for measurement of basic power, remained modest to 2% overall. Most of the increasing increments came from the integration of the acquired companies and currencies, including the recent Atrion Health Platform.

According to the segment, industrial precise solutions, which include equipment for the expenditure and processing of adhesives and polymers, the apartment published a slightly higher sales of GAAP (by 1%), but the segment issued a 2% organic decline. Management allocated this to the persistence of weak demand in the polymer processing system, partially compensated by profits in other kaitors. The EBITDA margin remains stable at 37%.

The Medical and Fluid Solutions segment showed the fastest sales growth and increased by 32% year -on -year to $ 219 million (GAAP), which was mainly driven by the acquisition of Atrion. The organic performance in this segment was flat, but when the trade in the production of contracts with a wondering contract was improved to 4% organic growth. Management recorded: “Our new employees again expected expectations and contributed to the results of sales and earnings.” The modified operating profit in this segment has also improved, helped the efficacy and high contribution from new product lines such as fluid controls for medical devices. EBITDA margins spread to 38%.

The Advanced Technology Solutions segment, which provides electronics issuing equipment for use, such as semiconductor packaging, increased sales by 17%. Note that its organic growth was Misaire 15%, the highest in society. Strong demand from electronics and end markets of semiconductors caused this performance, led to the EBITDA segment margin up to 24% of 21% a year ago. Management has attributed product innovation, especially in its Wafersense sensor portfolio for electronics production as a key driver.

Geographically, Asia Pacific showed the strongest sales profits, by 23.1% year -on -year with 17.4% organic increase. This performance reflected the robust demand in the electronics markets and technological products. America and Europe have brought more modest growth, most of the profits in America were caused by recent acquisitions and currency changes. European organic growth was negative, compensated by the positive effects of currency and recent agreements.

The free cash flow reached $ 226.4 million, which is 58% from Q3 FY2024. The conversion of free cash flows reached 180% net planting (non-GAAP), which indicates strong capital efficiency. The Council approved a new Repa Program of $ 500 million shares and Nordson returned $ 218 million to shareholders through a return of shares in nine months of Q3 FY2025 and the dividend payments were $ 133 million in the first nine months of FY2025.

The gross margin, which measures part of the return after the direct cost of producing goods, slipped to 54.8 %, one percentage point from a year ago. According to the management, sales, general and administrative costs increased slightly.

A quarter included progress in integration after fusion with atrion, incremental demand in medical fluid products and continuing power in electronics. Nev backlogs of the order gradually decreased by 5%, which described the management as a supportive achievement of year -round objectives for the FY2025, provided that the planned sale in the production shop in the field of medical contract in the found quarter. The inventory amortization (an accounting item that can disrupt earnings after the acquisition) was zero, as in the Q3 FY2024.

Look forward: Instructions and tracking points

Management has updated its outlook for the reminder of the fiscal year 2025. The management now expects that year -round sale to be slightly monitored under the center of its original range of FY2025 instructions, while the year -round modified profit per share slightly monitors above the center. This grade has a gentle shift towards security and maintains confidence in permanent profitability.

Investors should monitor whether slow organic growth in major industrial companies -especially industrial industrial solution, which has seen a reduction of 2% organic sales -can improve and how the upcoming sales of the medical contract can affect future results. The sequential decline in the pending number of approximately 5% supports the achievement of the original year -round instructions of the company and earnings of the company, provided that in the found quarter, provided that the ongoing difference between the production of contracts is underway. Free cash flow and continue operational efficiency are positive watches, but in the coming periods they donate basic trends in the area of ​​sales.

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