NORDSON CORP

Nordson Corporation is an innovative precision technology company that engineers, manufactures and markets differentiated products and systems used for precision dispensing, applying and controlling of adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces and various medical products such as catheters, cannulas, medical balloons and medical tubing. The company serves a wide variety of consumer non-durable, consumer durable and technology end markets including packaging, electronics, medical, appliances, energy, transportation, precision agriculture, building and construction, and general product assembly and finishing. Products are marketed through a network of direct operations in more than 35 countries, and approximately 67 percent of revenues were generated outside the United States in 2025. As of October 31, 2025, the company had approximately 8,000 employees worldwide. Principal manufacturing facilities are located in the United States, the People’s Republic of China, Bulgaria, Germany, Ireland, Israel, Italy, Mexico, the Netherlands and the United Kingdom.

Nordson operates in a competitive global marketplace and competes with many large, well-established and highly competitive manufacturers and service providers. The company maintains a leadership position in its business segments by delivering high-quality, innovative products and technologies, as well as global service and technical support. Its worldwide network of direct sales and technical resources is cited as a competitive advantage. No single customer accounted for ten percent or more of sales in 2025. The company's global portfolio includes more than 2,100 granted and pending patents and more than 1,000 trademarks, though management believes competitive advantage is also largely attributable to the technical, marketing, and sales competence of employees rather than any individual patent or trademark.

Nordson generates revenue by engineering, manufacturing and marketing differentiated products and systems used to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, medical components, and other fluids, to test and inspect for quality, and to treat and cure surfaces. Equipment ranges from single-use components to manual, stand-alone units for low-volume operations to microprocessor-based automated systems for high-speed, high-volume production lines. Products are marketed globally primarily through a direct sales force and qualified distributors and sales representatives. The company creates value for customers by developing solutions that increase uptime, enable faster line speeds, and reduce consumption of materials. Revenue generally results from short-term, fixed-price contracts and is primarily recognized as of a point in time when the product is shipped or at a later point when control of the product transfers to the customer.

The Industrial Precision Solutions segment delivered sales of $1,331,792 ¹ in 2025, representing 47.7 percent of total sales, compared to $1,398,912 ² in 2024. This segment delivers proprietary dispensing and material processing technology to diverse end markets including consumer durables, non-durables, industrial, agriculture, and automotive markets. Product lines include Industrial Coatings, Nonwovens, Packaging, Polymer Processing, Precision Agriculture, and Product Assembly. Segment EBITDA for IPS was $493,873 ³ in 2025, or 37.1 percent of sales, compared to $520,769 ⁴ in 2024. The Medical and Fluid Solutions segment reported sales of $835,385 ⁵ in 2025, or 29.9 percent of total sales, compared to $695,452 ⁶ in 2024. This segment includes components and device solutions for medical, life science, high-tech industrial, and other diverse end markets, with product lines including Engineered Fluid Solutions, Medical Interventional Solutions, Medical Fluid Components, and Surgical Solutions. Segment EBITDA for MFS was $311,684 ⁷ in 2025, or 37.3 percent of sales, compared to $256,553 ⁸ in 2024.

The Advanced Technology Solutions segment reported sales of $624,510 ⁹ in 2025, or 22.4 percent of total sales, compared to $595,557 ¹⁰ in 2024. This segment integrates proprietary product technologies into progressive stages of a customer’s production processes, such as surface treatment, precisely controlled dispensing of material, and pre- and post-dispense test and inspection to ensure quality, predominantly serving customers in the semiconductor and electronics end markets. Product lines include Electronics Dispense Systems and Test and Inspection. Segment EBITDA for ATS was $146,589 ¹¹ in 2025, or 23.5 percent of sales, compared to $129,181 ¹² in 2024.

On August 21, 2024, the company completed the acquisition of Atrion for $789,996 ¹³, net of cash acquired, which operates within the Medical and Fluid Solutions segment. On August 24, 2023, the company completed the acquisition of the ARAG Group for approximately €957,000 ¹⁴, net of the repayment of approximately €30,300 ¹⁵ of debt of the acquired companies, which operates as a division of the Industrial Precision Solutions segment. On November 3, 2022, the company acquired CyberOptics Corporation for an aggregate purchase price of $377,843 ¹⁶, net of cash of approximately $40,890 ¹⁷, reported in the Advanced Technology Solutions segment. On September 2, 2025, the company completed the sale of select product lines in the medical contract manufacturing business within the Medical and Fluid Solutions segment, recording a loss on sale of $5,857 ¹⁸. In the third quarter of 2025, the company also announced the planned closure of its remaining medical contract manufacturing facility and recognized a charge of $6,688 ¹⁹. During 2025, the company repurchased treasury shares for $306,367 ²⁰. On August 20, 2025, the company announced that its board of directors authorized the repurchase of up to an additional $500,000 ²¹ of the company's common shares. As of October 31, 2025, approximately $724,233 ²² remained available for share repurchases under existing authorizations. Dividends declared per common share were $3.16 ²³ in 2025.

Total sales for 2025 were $2,791,687 ²⁴, a 3.8 percent increase from $2,689,921 ²⁵ in 2024. Gross margin was 55.2 percent ²⁶ in 2025, unchanged from 55.2 percent ²⁷ in 2024. Operating profit was $711,725 ²⁸ in 2025, compared to $674,001 ²⁹ in 2024. Net income was $484,474 ³⁰ in 2025, or $8.51 ³¹ per diluted share, compared to net income of $467,284 ³², or $8.11 ³³ per diluted share, in 2024. Net cash provided by operating activities was $719,175 ³⁴ in 2025, compared to $556,193 ³⁵ in 2024.

The Ascend strategy, launched in 2021, is designed to deliver top tier revenue growth with leading margins and returns, driven by three interconnected pillars: the NBS Next growth framework, Owner Mindset division-led organizational structure, and Winning Teams talent strategy. The NBS Next growth framework uses data-based segmentation to identify the greatest opportunities for profitable growth and ensure resources are invested in those areas. Organic growth is driven by continually introducing new products and technology, providing high levels of customer service and support, capturing rapidly expanding opportunities in emerging geographies, and leveraging existing technology into new applications. Additional growth comes through the acquisition of companies that have differentiated precision technology-based product portfolios, serve attractive high-growth end-markets applications, and have a customer-centric business model. The primary goals of the acquisition strategy are to complement current capabilities, diversify the business into attractive end markets, and expand the scope of precision solutions offered to customers.

The company's growth strategy includes expansion into new markets and enhancement of its position in existing markets throughout the world through acquisitions. The company intends to continue to seek additional acquisition opportunities both to expand into new markets and to enhance its position in existing markets. The company also focuses on capturing rapidly expanding opportunities in emerging geographies and leveraging existing technology into new applications. The company continues to invest in the development and marketing of new or enhanced products, with research and development costs of $68,239 ³⁶ in 2025.

Gross margins were unchanged at 55.2 percent ³⁷ in 2025 compared to 2024. The increase in selling and administrative expenses was primarily driven by the full-year impact of the Atrion acquisition, partially offset by lower non-recurring acquisition costs. The company engages in initiatives aimed to increase productivity, efficiencies and cash flow and to reduce costs. Segment EBITDA for IPS decreased 10 basis points due to lower organic sales. Segment EBITDA for MFS increased 40 basis points due to favorable mix from lower organic sales related to the divested contract manufacturing business and controlled spending. Segment EBITDA for ATS increased 180 basis points driven by strong incrementals on organic sales and lower selling and administrative expenses.

The company continues to see a stabilization of the global supply chain, improved lead times, and lower inflation risk. Logistics flows have improved, and global forwarding rates have returned closer to pre-pandemic levels, except for Asia-origin shipments, which continue to be more volatile. The company continues to see moderate rate increases on parcel and domestic trucking activity. The company enhanced its risk mitigation and sourcing efforts because of the COVID-19 pandemic and geopolitical tensions. The company's principal manufacturing facilities are located in the United States, the People’s Republic of China, Bulgaria, Germany, Ireland, Israel, Italy, Mexico, the Netherlands and the United Kingdom.

Research and development costs were $68,239 ³⁸ in 2025. Additions to property, plant and equipment were $58,060 ³⁹ in 2025. Dividends declared per common share were $3.16 ⁴⁰ in 2025. As of October 31, 2025, approximately $724,233 ⁴¹ remained available for share repurchases under existing share repurchase authorizations. The repurchase program will be funded using cash from operations and proceeds from borrowings under credit facilities and does not have an expiration date.

The company faces headwinds from changes in U.S. or international economic conditions, including declines in the industries it serves. In 2025, approximately 33 percent of revenue was generated in the United States, while approximately 67 percent was generated outside the United States. Conflicts in Europe and the Middle East have negatively impacted the global economy and created significant volatility and disruption of financial markets. The company's largest markets include consumer non-durable, industrial, medical, electronics, consumer durable and automotive, and a slowdown in any of these specific end markets could directly affect revenue stream and profitability. The company is also exposed to significant movements in foreign currency exchange rates, particularly with respect to the euro, the yen, the pound sterling and the Chinese yuan.

The company faces constraints from changes in U.S. trade policy, including uncertainty surrounding changes in tariffs, trade agreements or other trade restrictions imposed by the U.S. or other governments. The current U.S. presidential administration has imposed and significantly increased tariffs on foreign imports into the United States, particularly from Canada, China and Mexico, and in response, many foreign countries have implemented or increased tariffs on imports into their countries. Changes to trade policies, tariffs, and other import/export regulations of the U.S. and other nations could change how the company transacts business, who it trades with, affect its relationships with customers and suppliers, and negatively impact its sales, margins and profitability.

The company faces material risks from changes in U.S. trade policy, including tariffs on foreign imports into the United States particularly from Canada, China and Mexico, which could change how the company transacts business and negatively impact sales, margins and profitability. Approximately 67 percent of revenue was generated outside the United States in 2025, exposing the company to significant movements in foreign currency exchange rates, particularly with respect to the euro, the yen, the pound sterling and the Chinese yuan. The company's growth strategy depends on acquisitions, and the company cannot assure it will be able to successfully identify suitable acquisition opportunities, negotiate appropriate terms, or integrate acquired businesses successfully. The company's total assets reflect substantial intangible assets, primarily goodwill of $3,304,685 ⁴² as of October 31, 2025, and if future operating performance at one or more business units were to fall significantly below current levels, the company could incur a non-cash charge for goodwill impairment. The company is subject to risks from increased information technology threats and cybersecurity incidents, and while it has experienced cybersecurity incidents, it does not believe any have had a material adverse effect on the company.

Management's message emphasizes the Ascend strategy, launched in 2021, which is designed to deliver top tier revenue growth with leading margins and returns, driven by three interconnected pillars: the NBS Next growth framework, Owner Mindset division-led organizational structure, and Winning Teams talent strategy. Management states that the company focuses on long-term growth and returns, and when short-term swings occur, the company does not intend to alter its foundational objectives in efforts to mitigate the impact of temporary occurrences. The company's strategy for long-term growth is based on solving customers’ needs globally. Management highlights that the company is well-positioned to manage liquidity needs that arise from working capital requirements, capital expenditures, contributions related to pension and postretirement obligations, principal and interest payments on outstanding debt, dividends, and share repurchases. The company believes it has the ability to generate and obtain adequate amounts of cash to meet its long-term needs for cash.