Nordson (NDSN) Q1 2025 earnings summary

Executive summary

• First quarter 2025 sales were $615 million, down 2.8% year-over-year, at the low end of guidance, with soft demand in electronics and industrial markets, partially offset by the Atrion acquisition and growth in consumer non-durables.

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

• Operational performance remained strong, with high gross, operating, and EBITDA margins, and robust free cash flow conversion, supported by cost management and innovation.

• The Atrion acquisition contributed 8% to sales growth, expanded the Medical and Fluid Solutions segment, and integration is progressing well.

• Strong cash flow enabled balanced capital deployment, including share repurchases and dividends.

Financial highlights

• Sales were $615 million, down 2.8% year-over-year; organic sales declined 9%, Atrion acquisition added 8%, FX was a 2% headwind.

• Gross margin was 54.6%, operating profit margin 26%, and EBITDA margin 31%.

• Adjusted EPS was $2.06, down 7% from $2.21 last year; GAAP EPS was $1.65, down 14% year-over-year.

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

• Cash and cash equivalents increased to $130.4 million at quarter end.

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 a slow start and macro/geopolitical headwinds.

• No change to full-year EPS guidance; confidence in meeting profit targets through cost management and operational discipline.

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

• Liquidity expected to remain strong, with sufficient cash and borrowing capacity for future needs.