Nordson Corp. Delivers Mixed Quarter, Beats on Profit but Misses on Sales
Precision technology company Nordson Corp. (NASDAQ:NDSN) reported financial results for its fiscal fourth quarter and full year ended October 31, 2025. The report presented a nuanced picture, with earnings surpassing analyst expectations while revenue fell short. The market's initial reaction appears cautiously optimistic, with the stock trading higher in after-hours activity following the release.
Earnings and Revenue Versus Estimates
Nordson's performance against Wall Street's forecasts was split. The company's adjusted earnings per share (EPS) of $3.03 for the quarter exceeded the consensus estimate of $2.99. This represents a 9% increase from the $2.78 adjusted EPS reported in the same period last year.
However, the top-line result did not meet expectations. Fourth-quarter sales of $752 million were approximately 1% higher than the prior year's $744 million but fell short of the analyst estimate of roughly $777 million. The sales growth was supported by a 2% tailwind from favorable currency translation and a 1% contribution from acquisitions, but was offset by a 1% organic sales decline and the impact of a divestiture.
Key quarterly figures versus estimates:
- Reported Revenue: $752 million
- Estimated Revenue: ~$777 million
- Reported Adjusted EPS: $3.03
- Estimated Adjusted EPS: $2.99
Market Reaction and Price Action
Following the earnings announcement, Nordson's shares saw a positive move in after-market trading, indicating investor focus may be leaning toward the earnings beat and the company's margin performance. This uptick suggests the market is interpreting the profit strength as outweighing the revenue miss. Prior to the report, the stock had shown minimal movement over the past month, reflecting a wait-and-see approach from investors ahead of the earnings release.
Fiscal 2025 Full-Year Summary and Segment Performance
For the full fiscal year 2025, Nordson achieved record sales of $2.8 billion, a 4% increase over the prior year. Full-year adjusted EPS also reached a record at $10.24, a 5% year-over-year increase. The company highlighted a record EBITDA of $900 million and record free cash flow of $661 million.
A review of the quarter by business segment reveals divergent trends:
- Medical and Fluid Solutions: This was the standout segment, with sales increasing 10% year-over-year to $220 million, driven by 7% organic growth across all product lines. EBITDA margin expanded significantly to 40% of sales.
- Industrial Precision Solutions: Sales decreased 2% to $362 million, primarily due to weakness in polymer processing systems. Notably, EBITDA in this segment increased 1% despite the lower sales volume, demonstrating cost control.
- Advanced Technology Solutions: Sales declined 4% to $171 million, as strength in electronics dispense systems was offset by fewer deliveries of test and inspection systems.
Forward Outlook and Guidance
Management provided guidance for the upcoming fiscal year 2026, which offers a point of comparison with existing analyst projections. The company's sales forecast for fiscal 2026 is in the range of $2.83 billion to $2.95 billion. The midpoint of this range is slightly below the current analyst consensus estimate of approximately $2.98 billion.
For the first quarter of fiscal 2026, Nordson expects sales between $630 million and $670 million, with adjusted EPS between $2.25 and $2.45. The sales guidance midpoint of $650 million is slightly below the analyst estimate of about $671 million for Q1.
President and CEO Sundaram Nagarajan expressed optimism, stating, "As several of our end markets begin to inflect, we are entering the fiscal year optimistic to deliver solid growth in 2026."
Conclusion
Nordson concluded a record fiscal 2025 with a quarter that highlighted its ability to expand profitability even amid mixed sales performance. The earnings beat and strong cash flow generation are clear positives. While the revenue miss and a forward sales outlook that trails analyst estimates may give some investors pause, the company's robust margin profile and solid backlog position provide a foundation for the new fiscal year. The immediate market reaction suggests a favorable view of the company's bottom-line discipline and strategic execution.
For a detailed look at Nordson's historical earnings and future estimates, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
