Nordson (NDSN) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 sales of $741M, up 8% year-over-year, with all segments contributing to organic growth and favorable currency impact.

• Order backlog increased 18% versus prior year, reflecting strong demand and order entry momentum.

• Record Q2 EBITDA of $235M (32% of sales) and adjusted EPS of $2.86, up 18% year-over-year.

• Free cash flow of $170M, with conversion over 100% of net income, supporting shareholder returns and reinvestment.

• Strategic acquisition of CapstanAG expands precision agriculture portfolio in North America, valued at 9x adjusted EBITDA.

Financial highlights

• Organic sales growth of 7% year-over-year, with a 3% favorable currency impact and a 1% net negative from divestitures and acquisitions.

• Adjusted operating profit rose 11% to $199M (27% of sales); EBITDA margin steady at 32%.

• Net income for the quarter was $117M, up from $112M in the prior year; adjusted EPS reached $2.86, up from $2.42 last year.

• Gross margin remained strong at 54.5% for the quarter, nearly flat year-over-year.

• Free cash flow conversion was robust at 113% year-to-date.

Outlook and guidance

• Q3 sales expected at $760M–$790M; adjusted EPS forecasted at $2.95–$3.15.

• Full-year sales guidance raised to $2.93B–$3.01B; adjusted EPS to $11.30–$11.80.

• Fiscal 2026 sales growth forecast raised to 5–8%; adjusted EPS growth expected at 10–15%, up 13% at midpoint.

• Full-year adjusted tax rate now expected at 18–19%, slightly better than prior guidance.

• Management expects ongoing momentum supported by strong backlog and order entry.