Nordson (NDSN) Q4 2024 earnings summary

Executive summary

• Achieved record FY2024 sales of $2.7 billion and record EBITDA of $849 million (32% of sales), driven by the Ascend Strategy, NBS Next Growth Framework, and acquisitions, despite macroeconomic and supply chain challenges.

• Fourth quarter sales reached $744 million, up 4% year-over-year, with adjusted EPS of $2.78 and successful integration of the Atrion acquisition.

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

• Entered FY2025 with a $580 million backlog and a conservative outlook due to macroeconomic uncertainties.

• High recurring revenue (57% of total) and diversified end markets supported resilience.

Financial highlights

• Fiscal 2024 sales reached $2.7 billion, up 2% year-over-year, with acquisitions contributing 5% growth.

• Record EBITDA of $849 million, up 4% year-over-year, with EBITDA margin at 32%.

• Q4 adjusted operating profit was $205 million, with Q4 EBITDA at $241 million (32% of sales), up 6% year-over-year.

• FY2024 adjusted EPS was $9.73, down 1% year-over-year due to higher interest costs from acquisitions; GAAP EPS was $8.11.

• Free cash flow for the year was $492 million (105% conversion), with cash balances at $116 million and net debt at $2.1 billion (2.5x leverage).

Outlook and guidance

• FY2025 sales expected to grow 2%-7% over FY2024, with adjusted EPS guidance of $9.70–$10.50 (flat to up 8%).

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

• Q1 FY2025 sales forecasted at $615M–$655M, with adjusted EPS of $1.95–$2.15.

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

• Management remains cautious on end market recovery timing, especially in electronics and agriculture.