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

Nordson Corporation Reports Fourth Quarter and Fiscal Year 2024 Results

Lara Mahoney
Vice President,
Investor Relations & Corporate Communications
440.204.9985
Lara.Mahoney@nordson.com

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.