Nordson (NDSN) Q4 2025 earnings summary

Executive summary

• Achieved record sales of $2.8 billion for fiscal 2025, up 4% year-over-year, with strong Q4 finish and record free cash flow conversion of 136% for the year, despite macroeconomic disruptions and a major divestiture.

• Adjusted EPS grew 9% in Q4 and 5% for the full year, reaching $10.24, exceeding initial guidance midpoints.

• Record EBITDA of $900 million for the year (32% of sales), meeting the Ascend Strategy goal.

• Successful integration of Atrion Medical and divestiture of contract manufacturing business strengthened the medical portfolio and contributed to sales and EPS growth.

• Strong capital allocation with share repurchases, dividend increases, and net debt reduction.

Financial highlights

• Q4 sales were $752 million, up 1% year-over-year; adjusted EPS $3.03, up 9% year-over-year.

• Full-year adjusted EPS $10.24, up 5%; EBITDA for Q4 was $256 million (34% margin), and for FY2025 was $900 million (32% margin), both up 6% year-over-year.

• Free cash flow for FY2025 was $661 million, a conversion rate of 136% of net income.

• Gross margin maintained at 55% for FY2025.

• Net income for the year was $484 million, with adjusted net income of $583 million.

Outlook and guidance

• Fiscal 2026 sales expected to grow 1%-6% over 2025, with a midpoint of 3.5% and guidance range of $2.83B–$2.95B.

• Adjusted EPS growth forecasted at 6%-12% for 2026, midpoint 9%, with guidance of $10.80–$11.50.

• Q1 2026 sales guidance: $630M-$670M; adjusted EPS: $2.25-$2.45.

• Estimated 2026 tax rate: 18.5%-19.5%; capex: $55M-$65M; interest expense: $85M-$95M.

• Backlog entering 2026 is approximately $600 million, up 5% year-over-year (excluding divested business backlog).