Nordson (NDSN) Q3 2024 earnings summary

Executive summary

• Third quarter sales reached $662 million, up 2% year-over-year, driven by acquisitions and strong industrial performance, though organic sales declined 1% due to softness in electronics and medical segments.

• Adjusted EPS was $2.41, $0.08 above guidance midpoint but down 6% year-over-year, reflecting lower margins and higher interest expense.

• Net income was $117 million ($2.04 per diluted share), down from $128 million ($2.22) year-over-year.

• Closed the Atrion Medical acquisition, expanding the medical fluid components portfolio and addressable market by over $600 million, with recurring revenue streams and exposure to higher-growth medical end markets.

• EBITDA remained flat at $208 million (31% of sales), with improved gross margins offset by higher expenses.

Financial highlights

• Sales of $662 million increased 2% year-over-year, with 4% growth from acquisitions and 1% organic sales decline.

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

• Adjusted EBITDA was $208 million or 31% of sales, flat year-over-year.

• Free cash flow was $143 million, representing 122% of net income.

• Net income was $117 million or $2.04 per share; adjusted EPS was $2.41, down from $2.55 last year.

Outlook and guidance

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

• Full-year adjusted EPS guidance remains at $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.

• Market outlook notes steady demand in industrials, stabilization in biopharma, and sequential growth in electronics.

• Neutral FX impact assumed; ARAG acquisitive growth anniversaries in Q4.