Nordson Corporation

What they do

Nordson designs and manufactures differentiated products and systems for precision dispensing, applying and controlling adhesives, coatings, polymers, sealants, biomaterials and other fluids, plus products for quality testing and inspection, surface treatment and curing, and medical products such as catheters, cannulas, medical balloons and medical tubing. It sells through direct operations in more than 35 countries, with principal manufacturing in the United States, China, Germany, Ireland, India, Israel, Italy, Mexico, the Netherlands and the United Kingdom, and had approximately 8,200 employees as of July 31, 2026. End markets include packaging, electronics, medical, appliances, energy, transportation, precision agriculture, building and construction, and general product assembly and finishing.

Revenue drivers

• Industrial Precision Solutions (IPS) — Largest segment at 44.9% of third quarter fiscal 2026 sales ($367.2M), covering dispensing and coating applications in packaging, industrial coatings, polymer processing and nonwovens; segment EBITDA was $130M, or 35% of sales.
• Medical and Fluid Solutions (MFS) — Second-largest segment at 28.2% of third quarter fiscal 2026 sales ($230.5M), serving medical and engineered fluid solutions; segment EBITDA was a record $88M, or 38% of sales.
• Advanced Technology Solutions (ATS) — Fastest-growing segment at 26.9% of third quarter fiscal 2026 sales ($219.9M), covering electronics dispense and test and inspection; segment EBITDA was a record $66M, or 30% of sales.

Recent performance

Third quarter fiscal 2026 sales were a record $817.7M, up 10.3% from $741.5M a year earlier, with organic growth of 12% offset by the net impact of a prior-year divestiture and a second-quarter acquisition. Net income rose 21.5% to $152.8M, and diluted EPS was a record $2.73 versus $2.22; adjusted diluted EPS was a record $3.25, up 19%. Gross margin improved to 55.5% from 54.8%, operating profit rose 18.8% to $223.1M, and EBITDA reached a record $262M, or 32% of sales. For the nine months ended July 31, 2026, sales were $2,228.0M (up 9.2%) and net income was $403.5M (up 21.2%).

Strategy

Management is executing the Ascend strategy launched in 2021, built on three pillars: the NBS Next data-based segmentation growth framework, an Owner Mindset division-led organizational structure, and the Winning Teams talent strategy. The company pursues organic growth through new products, customer service, emerging geographies and applying existing technology to new applications, supplemented by acquisitions of differentiated precision technology businesses in attractive end markets. Capital deployment priorities include investing in the business, strengthening the balance sheet and returning capital to shareholders; Nordson increased its full-year guidance in the August 2026 release. Management cites record quarterly sales in all three segments and best-in-class margin performance under the strategy.

Risks

• End-market cyclicality — Sales depend on markets such as electronics, polymer processing, agriculture and metal finishing that have historically been cyclical and sensitive to supply and demand swings and general economic conditions.
• Geographic and geopolitical exposure — Approximately 67% of 2025 revenue was generated outside the United States, so conflicts in Europe and the Middle East, trade tensions with U.S. trading partners, or regional slowdowns can negatively affect results.
• Acquisition and divestiture execution — Growth relies partly on acquiring differentiated precision technology businesses, which requires estimating fair values of assets and liabilities, including future revenue growth rates, EBITDA margins, discount rates and customer attrition rates.
• Goodwill impairment — Goodwill is tested annually at the reporting unit level using discounted cash flow and market approaches; no impairment was recorded in 2025, but the valuation depends on assumptions such as WACC rates of 8.5% to 10.0% by reporting unit.

Outlook

Management is increasing full-year fiscal 2026 guidance, expecting sales of $3,035M to $3,075M and adjusted earnings of $11.80 to $12.00 per diluted share. Nordson enters the fourth quarter with backlog up 35% versus the prior year and expects the strong sales of the first nine months to continue, putting it on track to exceed $3 billion in annual revenue. The company attributes this outlook to backlog and order entry momentum and above-market organic growth in key end markets.