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1. Company Snapshot

1.a. Company Description

Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide.It operates through two segments, Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS).The IPS segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems used in packaged goods industries; components and systems used in the thermoplastic melt stream; and product assembly systems for use in paper and paperboard converting applications, and manufacturing roll goods, as well as for the assembly of plastic, metal, and wood products.


It also offers automated and manual dispensing products and systems to apply adhesive and sealant materials; dispensing and curing systems to coat and cure containers; systems to apply liquid paints and coatings to consumer and industrial products; and systems to apply powder paints and coatings to metal, plastic, and wood products, as well as ultraviolet equipment for use in curing and drying operations for specialty coatings, semiconductor materials, and paints.The ATS segment provides automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; precision manual and semi-automated dispensers, minimally invasive interventional delivery devices, plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons, and catheters; and bond testing and automated optical, acoustic microscopy, and x-ray inspection systems for use in semiconductor and printed circuit board industries.The company markets its products through direct sales force, as well as distributors and sales representatives.


Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio.

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1.b. Last Insights on NDSN

Nordson's recent performance was driven by strong Q3 earnings, fueled by acquisitions, including Atrion, and robust demand in the Asia-Pacific region. The company's Medical Fluid Solutions and Advanced Technology segments exhibited significant growth. A strategic portfolio realignment aimed at emphasizing differentiated technology and proprietary medical components also contributed positively. Furthermore, Nordson increased its dividend by 5% to 82 cents, marking 62 consecutive years of dividend growth, demonstrating its strong cash flow and commitment to shareholder value.

1.c. Company Highlights

2. Nordson Corporation Delivers Record Performance in Fiscal 2025

Nordson Corporation reported a 1% year-over-year increase in fourth quarter 2025 sales to $752 million, with organic sales decreasing by 1%. Despite this, the company achieved a record EBITDA of $256 million, expanding its EBITDA margin to 34%. Adjusted earnings per share grew 9% to $3.03, beating analyst estimates of $2.93. For the full fiscal year 2025, Nordson achieved record sales of $2.8 billion, up 4% from the previous year, and record adjusted earnings per share of $10.24. The company's EBITDA reached $900 million, achieving the 2025 Ascend Strategy goal. Nordson's strong performance was driven by its operational excellence and competitive advantages, which enabled it to maintain average gross margins of 55% and generate free cash flow of $661 million.

Publication Date: Dec -20

📋 Highlights
  • Q4 Sales & Margin Growth: Sales rose 1% to $752M, with EBITDA hitting record $256M (34% margin), up from previous levels.
  • FY2025 Records: Achieved $2.8B sales (+4% YoY) and $10.24 adjusted EPS, exceeding guidance, alongside $900M EBITDA (32% margin).
  • Cash Flow Strength: Generated $661M free cash flow in FY2025, converting 136% of net income, with $194M in Q4 alone (128% conversion).
  • 2026 Guidance: Forecasts 3.5% sales growth midpoint and 9% adjusted EPS growth, with Q1 2026 sales targeted at $630–$670M.
  • Segment Dynamics: Semi (50% revenue) driven by AI/data centers, while medical saw strong Q4 but expects margins to stabilize in upper 30s.

Segment Performance and Outlook

In the ATS segment, Nordson's semi business is driven by AI applications, cloud computing, and data center growth, accounting for 50% of revenues. The company expects margins to remain robust, with IPS and ATS in line with historical performance. The medical side had a strong quarter, but margins are expected to normalize to the upper 30s. In IPS, polymer processing weakness is masking stable growth in other parts of the business, but the company expects improvement in 2026. Precision agriculture is expected to grow double digits, driving hot melt adhesives businesses.

Guidance and Expectations for Fiscal 2026

Nordson expects fiscal 2026 sales to be 1% to 6% above fiscal 2025 sales, with a midpoint of 3.5%, and adjusted earnings growth of 6% to 12% per diluted share, with a midpoint of 9%. The company guides for a range of potential outcomes, planning for both upside and downside. A strong start to the year is expected, with a favorable comp in Q1. The guidance range contemplates potential risks, but no downside indicators are seen currently. With a P/E Ratio of 27.82 and an EV/EBITDA of 17.78, the market is pricing in a certain level of growth and profitability.

Cash Flow and Dividend Considerations

Nordson generated record cash flow of $194 million in Q4 2025, with a conversion rate to net income of 128%. For the full year, the company generated free cash flow of $661 million, with a conversion rate of 136% of net income. The company's strong free cash flow conversion is driven by working capital improvements, which it expects to sustain with further opportunities ahead. With a Free Cash Flow Yield of 4.93% and a Dividend Yield of 1.66%, Nordson appears to offer an attractive return profile.

Strategic Focus and M&A

Nordson remains focused on delivering growth through its NBS Next plan, with EBITDA margins increasing from 27% to 32%. The company is also actively pursuing M&A opportunities, with a focus on adding highly differentiated businesses that are additive to growth. With a strong balance sheet and cash flow generation, Nordson is well-positioned to pursue its strategic goals while returning cash to shareholders. Analysts estimate next year's revenue growth at 3.7%, which is in line with the company's guidance.

3. NewsRoom

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ProShare Advisors LLC Trims Stock Position in Nordson Corporation $NDSN

Feb -09

Source: defenseworld.net

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Nuance Investments LLC Sells 22,630 Shares of Nordson Corporation $NDSN

Feb -09

Source: defenseworld.net

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Are Industrial Products Stocks Lagging Nordson (NDSN) This Year?

Feb -06

Source: zacks.com

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Principal Financial Group Inc. Has $56.05 Million Position in Nordson Corporation $NDSN

Feb -05

Source: defenseworld.net

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Are You Looking for a Top Momentum Pick? Why Nordson (NDSN) is a Great Choice

Feb -04

Source: zacks.com

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4 Industrial Stocks to Buy on Steady Rebound in Manufacturing Activity

Feb -03

Source: zacks.com

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Nordson Corporation $NDSN Shares Sold by Bank of New York Mellon Corp

Feb -02

Source: defenseworld.net

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Nordson Corporation Announces Earnings Release and Webcast for First Quarter Fiscal Year 2026

Jan -29

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.73%)

6. Segments

Industrial Precision Solutions

Expected Growth: 2.5%

Nordson Corporation's Industrial Precision Solutions segment growth of 2.5% is driven by increasing demand for precision dispensing and conformal coating solutions in the electronics and industrial manufacturing industries, as well as the company's strategic acquisitions and investments in emerging technologies such as 3D printing and robotics.

Medical and Fluid Solutions

Expected Growth: 2.8%

Nordson Corporation's Medical and Fluid Solutions segment growth of 2.8% is driven by increasing demand for precision dispensing and fluid management solutions in the medical device and biopharmaceutical industries, as well as growth in the industrial manufacturing sector.

Advanced Technology Solutions

Expected Growth: 3.2%

Nordson's Advanced Technology Solutions segment growth of 3.2% is driven by increasing demand for precision dispensing and conformal coating solutions in the electronics industry, as well as growing adoption of industrial automation and robotics. Additionally, the segment benefits from Nordson's strong brand reputation, innovative product offerings, and strategic acquisitions.

7. Detailed Products

Adhesive Dispensing Systems

Nordson's adhesive dispensing systems provide precise and consistent application of adhesives, sealants, and lubricants in various industries such as automotive, aerospace, and consumer goods.

Coating Systems

Nordson's coating systems provide precise and consistent application of coatings, paints, and inks in various industries such as automotive, aerospace, and industrial manufacturing.

Industrial Coating Systems

Nordson's industrial coating systems provide precise and consistent application of coatings, paints, and inks in various industries such as industrial manufacturing, energy, and construction.

Plasma Treatment Systems

Nordson's plasma treatment systems provide surface modification and cleaning solutions for various industries such as medical, aerospace, and industrial manufacturing.

Precision Dispensing Systems

Nordson's precision dispensing systems provide precise and consistent application of adhesives, sealants, and lubricants in various industries such as automotive, aerospace, and consumer goods.

UV Curing Systems

Nordson's UV curing systems provide high-intensity ultraviolet light for curing inks, coatings, and adhesives in various industries such as printing, packaging, and industrial manufacturing.

X-ray Inspection Systems

Nordson's X-ray inspection systems provide non-destructive testing and inspection solutions for various industries such as aerospace, automotive, and industrial manufacturing.

8. Nordson Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Nordson Corporation operates in a niche market with specialized products, reducing the threat of substitutes. However, the company's products are not entirely unique, and some customers may find alternative solutions.

Bargaining Power Of Customers

Nordson Corporation's customers are diverse and fragmented, reducing their bargaining power. The company's products are often critical to its customers' operations, making it difficult for customers to negotiate prices or switch suppliers.

Bargaining Power Of Suppliers

Nordson Corporation relies on a few key suppliers for critical components, giving them some bargaining power. However, the company's size and diversified supply chain mitigate this risk.

Threat Of New Entrants

The barriers to entry in Nordson Corporation's markets are relatively high, including significant capital expenditures and technical expertise. This reduces the threat of new entrants.

Intensity Of Rivalry

Nordson Corporation operates in a competitive market with several established players, leading to a high intensity of rivalry. The company must continually innovate and improve its products to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.07%
Debt Cost 4.13%
Equity Weight 59.93%
Equity Cost 8.95%
WACC 7.02%
Leverage 66.86%

11. Quality Control: Nordson Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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ITT

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Nordson

A-Score: 5.1/10

Value: 2.5

Growth: 5.8

Quality: 7.1

Yield: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

291.26$

Current Price

291.26$

Potential

-0.00%

Expected Cash-Flows