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Nordson: 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.

NDSN

USD 240.38

0.86%

A-Score: 4.7/10

Publication date: December 11, 2025

Full Report

Author: Analystock.ai

📋 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.

Nordson's A-Score