Nordson NASDAQ: NDSN reported record fiscal third-quarter sales, profit and adjusted earnings per share, as broad-based organic growth across its three operating segments and accelerating order activity lifted backlog 35% from a year earlier.
For the quarter, the company posted sales of $818 million, up 10% from $742 million in the prior-year period. Organic sales increased 12%, while currency translation was effectively neutral. The results included a modest contribution from the CapstanAG acquisition, partly offset by the prior divestiture of Nordson’s medical contract manufacturing business.
Adjusted operating profit rose 13% to a record $226 million, or 28% of sales. EBITDA increased 10% to a record $262 million, representing 32% of sales. Adjusted earnings per share reached a record $3.25, up 19% from $2.73 a year earlier and $0.10 above the high end of the company’s guidance range.
GAAP net income totaled $153 million, or $2.73 per share. Chief Financial Officer Dan Hopgood said GAAP results included a $15 million non-cash mark-to-market charge related to minority investments, as well as acquisition-related amortization and costs. The company’s adjusted effective tax rate was 18.3%, and management said it expects a full-year tax rate near 18%.
Backlog and Cash Flow Strengthen Outlook
President and Chief Executive Officer Sundaram Nagarajan said the company’s momentum from the first half continued in the third quarter. Through the first nine months of fiscal 2026, Nordson increased revenue 9% and adjusted EPS 18% year over year.
“Order entry momentum continued to accelerate,” Nagarajan said, with backlog up 35% year over year. Backlog growth was broad-based across the company, with particular strength in the Advanced Technology Solutions and Medical and Fluid Solutions segments.
Hopgood said the majority of Nordson’s backlog typically converts to revenue within about six months, with roughly 80% expected to turn during that period. While the company is now taking some orders for 2027, he said it has not seen an elongation in customer lead times or a material change in ordering patterns. In fact, management said company lead times have generally decreased over time as delivery performance has improved.
Free cash flow was $237 million in the quarter, equal to a 144% conversion rate of net income excluding the non-cash valuation loss. Nordson ended the quarter with $113 million in cash and approximately $1.6 billion in net debt. Its leverage ratio declined to 1.7 times.
During the first nine months, the company paid $137 million in dividends, repurchased $159 million of shares, and invested $40 million in capital projects. Management said its balance sheet provides flexibility for shareholder returns, organic investment and acquisitions.
All Three Segments Contribute to Organic Growth
- Industrial Precision Solutions: Sales rose 5% to $367 million, including 3% organic growth. Demand was supported by packaging, industrial coatings applications and a continuing recovery in plastics processing. EBITDA was $130 million, or 35% of sales, matching the prior-year margin.
- Medical and Fluid Solutions: Sales increased 5% to a quarterly record of $231 million. Organic growth was about 11%, but reported growth was reduced by approximately 6 percentage points because of the medical contract manufacturing divestiture. EBITDA increased 6% to a record $88 million, or 38% of sales.
- Advanced Technology Solutions: Sales climbed 28% to a record $220 million, with organic sales up 31%. Growth occurred in both electronics dispensing and Test & Inspection product lines, reflecting semiconductor strength and broader electronics demand. EBITDA rose 58% to $66 million, lifting the segment’s EBITDA margin to a record 30%.
Management characterized Industrial Precision Solutions as performing in line with its longer-term growth objectives, while Medical and Fluid Solutions and Advanced Technology Solutions drove the acceleration in the company’s outlook. Hopgood said medical component demand has normalized, with several product lines returning to stable growth, while fluid solutions demand has been broad-based across medical and electronics applications.
In Advanced Technology Solutions, Nagarajan said dispensing demand has been ahead of the cycle, while Test & Inspection businesses have also reached an “inflection point,” including the company’s X-ray and optical operations. He said Nordson sees continued strength in order entry, customer discussions and its pipeline across dispensing and inspection.
Guidance Raised on Sustained Order Strength
Nordson raised its fiscal 2026 outlook, citing backlog, order entry and end-market momentum. The company now expects full-year sales of $3.035 billion to $3.075 billion and adjusted diluted EPS of $11.80 to $12.00.
The updated outlook assumes foreign exchange rates remain at current levels, resulting in a neutral currency impact in the fourth quarter. Management said the guidance places Nordson at the high end of its previously communicated average growth algorithm.
Nagarajan said more than half of Nordson’s portfolio is now exposed to growth end markets, including semiconductor, electronics and medical markets, while about 60% generates recurring revenue through aftermarket parts, consumables and services. He added that the company expects Advanced Technology Solutions to build from its current peak at a rate more consistent with its longer-term mid-single-digit growth target next year.
Management also reiterated that acquisitions remain an important part of Nordson’s growth strategy. Nagarajan said the company is evaluating opportunities in medical and fluid solutions, Test & Inspection, and bolt-on assets that can expand existing businesses, while maintaining strategic and financial discipline.
About Nordson (NASDAQ:NDSN)
Nordson Corporation designs, manufactures and markets precision dispensing equipment and systems that apply adhesives, coatings, sealants and polymers in a broad range of industrial and medical applications. The company's portfolio spans fluid systems, curing and surface preparation technologies, vacuum and thermal management products, and advanced test and inspection solutions. Nordson's offerings serve critical manufacturing processes by delivering exacting dispensing accuracy and process control to ensure consistent product performance and high production throughput.
Nordson operates through multiple segments that cater to diverse markets including electronics, packaging, medical, energy, automotive and general industrial sectors.
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