Nordson (NDSN) Q4 2024 earnings summary

Executive summary

• Achieved record sales of $2.7 billion and record EBITDA of $849 million (32% of sales) for fiscal 2024, driven by the Ascend Strategy, NBS Next Growth Framework, and successful integration of Atrion, despite challenging macro conditions.

• Demonstrated strong cash flow generation and consistent performance, with free cash flow of $492 million and a 105% conversion rate.

• Growth was supported by acquisitions, notably Atrion, and a high mix of recurring revenue, now at 57% of total sales.

• Entered fiscal 2025 with a $580 million backlog and a conservative outlook due to macroeconomic uncertainties.

Financial highlights

• Q4 sales were $744 million, up 4% year-over-year, with Q4 EBITDA at $241 million (32% of sales), up 6% year-over-year.

• Full-year adjusted EPS was $9.73, down 1% from prior year due to higher interest costs from acquisitions; GAAP EPS was $8.11, down 4%.

• Q4 adjusted EPS was $2.78, up 3% year-over-year; GAAP EPS was $2.12, down 5%.

• Free cash flow for the year was $492 million, with a 105% conversion rate on net income.

• Q4 gross margin improved by 110 basis points year-over-year to 54.1%; full-year gross margin was 55.2%.

Outlook and guidance

• Fiscal 2025 sales expected to grow 2%-7% over 2024, with adjusted EPS guidance of $9.70–$10.50 (flat to up 8%).

• Q1 2025 sales forecasted at $615–$655 million, with adjusted EPS of $1.95–$2.15.

• Guidance assumes a -1.5% FX impact, no significant recovery in electronics/agriculture, and 6% growth from Atrion.

• Effective tax rate expected at 19%-21%, capex at $50-$60 million, and interest expense at $90-$100 million.

• Long-term (2025–2029) targets: 6–8% annual revenue growth, 10–12% adjusted EPS growth.