Nordson (NDSN) Q3 2024 earnings summary

Executive summary

• Third quarter sales reached $662 million, up 2% year-over-year, driven by acquisitions, with organic sales down 1% and currency headwinds impacting results.

• Net income was $117 million ($2.04 per diluted share), down 8% year-over-year, with adjusted EPS at $2.41, a 6% decrease but above guidance midpoint.

• EBITDA for the quarter was $208 million (31% of sales), flat year-over-year, with improved gross margins offset by higher SG&A and interest expenses.

• Closed the Atrion Medical acquisition in August 2024, expanding the medical segment and addressable market by over $600 million, funded by a new term loan and cash.

• Free cash flow was $143 million for the quarter, representing over 120% of net income, supporting balanced capital deployment.

Financial highlights

• Quarterly sales were $662 million, up 2% year-over-year, with 4% growth from acquisitions and a 1% organic sales decline.

• Gross margin for the quarter was 55.8%, up from 55.5% year-over-year, reflecting favorable product mix.

• Adjusted EPS was $2.41, down from $2.55 last year; GAAP EPS was $2.04, down 8%.

• Free cash flow conversion was over 120% of net income.

• Net income for the quarter was $117 million.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $2.665–$2.705 billion, reflecting the Atrion acquisition.

• Full-year adjusted EPS guidance is $9.45–$9.65, unchanged at midpoint, with Atrion expected to be slightly dilutive in Q4.

• Backlog entering Q4 is approximately $650 million, concentrated in systems businesses.

• Management expects liquidity needs to be met through operations and available borrowing capacity.