Nordson (NDSN) Q1 2025 earnings summary

Executive summary

• First quarter 2025 sales were $615 million, down 2.8–3% year-over-year, at the low end of guidance due to soft demand in electronics and industrial markets and FX headwinds.

• Order entry rates accelerated, with backlog increasing by $85 million (15%) sequentially to $670 million, especially in electronics.

• Operational performance remained strong, with gross margin at 54.6–56%, operating profit margin at 22.9–26%, and EBITDA margin at 31%.

• Adjusted EPS was $2.06, slightly above guidance midpoint but down 7% year-over-year; GAAP EPS was $1.65.

• Atrion acquisition contributed positively, driving 8% sales growth and expanding the Medical and Fluid Solutions segment.

Financial highlights

• Sales of $615 million, down 2.8–3% from prior year; organic sales declined 9%, Atrion added 8%, FX was a 2% headwind.

• Gross margin was 54.6%, slightly down from 55.0% year-over-year.

• EBITDA was $188 million (31% of sales), down 4% year-over-year.

• Net income was $94.7–95 million ($1.65 per share), excluding $10 million in non-recurring costs and $19 million in amortization.

• Free cash flow was $137.7–138 million, converting at 146% of net income.

Outlook and guidance

• Q2 2025 sales expected between $650 million and $690 million; adjusted EPS between $2.30 and $2.50.

• Full-year sales expected at the lower end of prior guidance due to slow start and macro/geopolitical factors.

• No change to full-year EPS guidance; confidence in profit delivery even at lower sales.

• Management anticipates growth as end market demand improves and capital investment increases throughout 2025.