Nordson Corporation

05/21/2026 | Press release | Distributed by Public on 05/21/2026 08:07

Quarterly Report for Quarter Ending April 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain significant factors affecting our financial condition and results of operations for the periods included in the accompanying condensed consolidated financial statements. Throughout this Quarterly Report on Form 10-Q, components may not sum to totals due to rounding.
Overview
Nordson is an innovative precision technology company that leverages a scalable growth framework expected to deliver top tier growth with leading margins and returns. We engineer, manufacture and market differentiated products and systems used for precision dispensing, applying and controlling of adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces and various medical products such as: catheters, cannulas, medical balloons and medical tubing. These products are supported with extensive application expertise and direct global sales and service. We serve a wide variety of consumer non-durable, consumer durable and technology end markets including packaging, electronics, medical, appliances, energy, transportation, precision agriculture, building and construction, and general product assembly and finishing.
Our strategy for long-term growth is based on solving customers' needs globally. We were incorporated in the State of Ohio in 1954 and are headquartered in Westlake, Ohio. Our products are marketed through a network of direct operations in more than 35 countries.
As of April 30, 2026, we had approximately 8,200 employees worldwide. We have principal manufacturing operations and sources of supply in the United States, the People's Republic of China, Germany, Ireland, India, Israel, Italy, Mexico, the Netherlands and the United Kingdom.
Critical Accounting Policies and Estimates
A comprehensive discussion of the Company's critical accounting policies and management estimates and significant accounting policies followed in the preparation of the financial statements is included in Item 7 of our Annual Report on Form 10-K for the year ended October 31, 2025 (the "2025 Form 10-K"). There have been no significant changes in critical accounting policies, management estimates or accounting policies followed since the year ended October 31, 2025.
Results of Operations
Below is a detailed comparison of our results of operations for the six months ended April 30, 2026 and April 30, 2025.
As used throughout this Quarterly Report on Form 10-Q, geographic regions include the Americas (United States, Canada, Mexico and Central and South America), Asia Pacific and Europe.
Consolidated Financial Results
Consolidated financial results for the three months ended April 30, 2026 and April 30, 2025 were as follows:
Three Months Ended
(In thousands except for per-share amounts) April 30, 2026 April 30, 2025 Change
Sales $ 740,847 $ 682,938 8.5 %
Cost of sales 336,770 309,034 9.0 %
Gross margin 404,077 373,904 8.1 %
Gross margin % 54.5 % 54.7 % (0.2) %
Selling and administrative expenses 206,874 205,154 0.8 %
Operating profit 197,203 168,750 16.9 %
Interest expense - net (21,580) (26,019) (17.1) %
Pension settlement charge (24,049) - 100.0 %
Other income (expense) - net (10,400) (3,961) 162.6 %
Income before income taxes 141,174 138,770 1.7 %
Income tax expense 23,858 26,366 (9.5) %
Net income $ 117,316 $ 112,404 4.4 %
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Consolidated financial results for the six months ended April 30, 2026 and April 30, 2025 were as follows:
Six Months Ended
(In thousands except for per-share amounts) April 30, 2026 April 30, 2025 Change
Sales $ 1,410,308 $ 1,298,358 8.6 %
Cost of sales 640,109 588,558 8.8 %
Gross margin 770,199 709,800 8.5 %
Gross margin % 54.6 % 54.7 % (0.1) %
Selling and administrative expenses 406,591 400,103 1.6 %
Operating profit 363,608 309,697 17.4 %
Interest expense - net (44,321) (51,637) (14.2) %
Pension settlement charge (24,049) - 100.0 %
Other income (expense) - net 10,437 (2,435) (528.6) %
Income before income taxes 305,675 255,625 19.6 %
Income tax expense 54,977 48,569 13.2 %
Net income $ 250,698 $ 207,056 21.1 %
Net Sales
Net sales for the IPS, MFS and ATS segments were as follows:
Three Months Ended Variance - Increase (Decrease)
Apr 30, 2026 % of Total Apr 30, 2025 % of Total Organic Acquisitions / Divestitures Currency Total
IPS $ 350,466 47.3% $ 318,847 46.7% 5.0 % 0.8 % 4.1 % 9.9 %
MFS 212,850 28.7% 202,809 29.7% 7.8 % (3.9) % 1.1 % 5.0 %
ATS 177,531 24.0% 161,282 23.6% 8.5 % - % 1.6 % 10.1 %
Total $ 740,847 $ 682,938 6.6 % (0.8) % 2.7 % 8.5 %
Six Months Ended Variance - Increase (Decrease)
Apr 30, 2026 % of Total Apr 30, 2025 % of Total Organic Acquisitions / Divestitures Currency Total
IPS $ 677,327 48.0% $ 619,295 47.7% 4.1 % 0.4 % 4.9 % 9.4 %
MFS 406,033 28.8% 396,418 30.5% 5.3 % (4.2) % 1.3 % 2.4 %
ATS 326,948 23.2% 282,645 21.8% 13.8 % - % 1.9 % 15.7 %
Total $ 1,410,308 $ 1,298,358 6.6 % (1.1) % 3.1 % 8.6 %
Three Months Ended April 30, 2026
The IPS organic sales increase of 5.0 percent was driven by improving industrial coating and polymer processing systems demand, ongoing growth in precision agriculture end markets and stable demand in broader consumer and industrial end markets. MFS organic sales increased 7.8 percent due to growth in engineered fluid solutions and medical product lines. The ATS organic sales increase of 8.5 percent was driven by ongoing growth in electronics dispense systems.
Six Months Ended April 30, 2026
The IPS organic sales increase of 4.1 percent was driven by balanced growth across most product lines with particular strength in industrial coating, precision agriculture and polymer processing product lines. MFS organic sales increased 5.3 percent driven by strong growth in engineered fluid solutions and modest growth in all other medical product lines. The ATS organic sales increase of 13.8 percent was driven by exceptional growth in electronic dispense systems.
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Net Sales by region were as follows:
Three Months Ended Variance - Increase (Decrease)
Apr 30, 2026 % of Total Apr 30, 2025 % of Total Organic Acquisitions / Divestitures Currency Total
Americas $ 308,253 41.6% $ 292,463 42.8% 5.9 % (1.7) % 1.2 % 5.4 %
Europe 194,459 26.2% 172,496 25.3% 6.4 % (0.3) % 6.6 % 12.7 %
Asia Pacific 238,135 32.2% 217,979 31.9% 7.8 % (0.1) % 1.5 % 9.2 %
Total $ 740,847 $ 682,938 6.6 % (0.8) % 2.7 % 8.5 %
Six Months Ended Variance - Increase (Decrease)
Apr 30, 2026 % of Total Apr 30, 2025 % of Total Organic Acquisitions / Divestitures Currency Total
Americas $ 570,183 40.4% $ 560,300 43.2% 2.9 % (2.2) % 1.1 % 1.8 %
Europe 376,920 26.7% 340,259 26.2% 3.0 % (0.2) % 8.0 % 10.8 %
Asia Pacific 463,205 32.8% 397,799 30.6% 14.8 % (0.1) % 1.7 % 16.4 %
Total $ 1,410,308 $ 1,298,358 6.6 % (1.1) % 3.1 % 8.6 %
Gross profit and Selling and administrative expenses
Gross margins were 54.5 percent and 54.7 percent for the three months ended April 30, 2026 and April 30, 2025, respectively. Gross margins were 54.6 percent and 54.7 percent for the six months ended April 30, 2026 and April 30, 2025, respectively. Selling and administrative expenses increased for the three and six months ended April 30, 2026 in support of higher sales but declined as a percentage of sales.
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Profit
Segment EBITDA for the IPS, MFS and ATS segments and a reconciliation to consolidated operating profit were as follows for the three and six months ended April 30, 2026 and April 30, 2025, respectively:
Three Months Ended
Apr 30, 2026 % of Sales Apr 30, 2025 % of Sales % of Sales Change
Industrial precision solutions $ 123,578 35.3% $ 113,548 35.6% (0.3)%
Medical and fluid solutions 79,193 37.2% 76,538 37.7% (0.5)%
Advanced technology solutions 48,327 27.2% 39,516 24.5% 2.7%
Total segment EBITDA 251,098 33.9% 229,602 33.6% 0.3%
Inventory step-up amortization (1,135) -
Acquisition costs (534) (513)
Severance and other - (10,313)
Depreciation and amortization (36,315) (37,578)
Corporate expenses (15,911) (12,448)
Operating profit $ 197,203 $ 168,750
Six Months Ended
Apr 30, 2026 % of Sales Apr 30, 2025 % of Sales % of Sales Change
Industrial precision solutions $ 233,889 34.5% $ 226,324 36.5% (2.0)%
Medical and fluid solutions 149,399 36.8% 140,870 35.5% 1.3%
Advanced technology solutions 80,927 24.8% 62,287 22.0% 2.8%
Total segment EBITDA 464,215 32.9% 429,481 33.1% (0.2)%
Inventory step-up amortization (1,135) (3,135)
Acquisition costs (534) (1,543)
Severance and other - (16,274)
Depreciation and amortization (72,900) (74,608)
Corporate expenses (26,038) (24,224)
Operating profit 363,608 309,697
Three Months Ended April 30, 2026
Segment EBITDA for IPS was relatively flat on higher sales. Segment EBITDA for MFS decreased 50 basis points despite higher sales due to the impact of near-term product start-up headwinds. Segment EBITDA for ATS increased 270 basis points driven by robust sales growth and controlled selling and administrative expenses.
Consolidated operating profit increased in 2026 compared to 2025 due to the overall increase in segment EBITDA and the absence of severance costs in 2026.
Six Months Ended April 30, 2026
Segment EBITDA for IPS decreased 200 basis points despite higher sales due to unfavorable product and geographic mix in the first quarter. Segment EBITDA for MFS increased 130 basis points due to higher sales and favorable mix from the divestiture of the contract manufacturing business, partially offset by the impact of near-term product start-up headwinds. Segment EBITDA for ATS increased 280 basis points driven by robust sales growth and controlled selling and administrative expenses.
Consolidated operating profit increased in 2026 compared to 2025 principally due to the overall increase in segment EBITDA and the absence of severance costs as well as lower acquisition and related inventory step-up amortization costs in 2026.
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Nordson Corporation
Interest expense and Other expenses
Interest expense for the three months ended April 30, 2026 was $21,942, compared to $26,572 in the comparable period of 2025. The decrease, compared to the prior year period, was primarily due to lower average debt levels and a stable-to-declining rate environment. Other income (expense) - net for the three months ended April 30, 2026 was expense of $10,400 compared to expense of $3,961 in the comparable period of 2025. Included in other income (expense) - net for the three months ended April 30, 2026 were unrealized losses on minority investments of $9,827, pension and postretirement income of $986, and $2,385 of foreign currency losses. Included in other income (expense) - net for the three months ended April 30, 2025 were pension and postretirement income of $1,019 and $3,199 in foreign currency losses.
Interest expense for the six months ended April 30, 2026 was $45,073, compared to $53,131 in the comparable period of 2025. The decrease, compared to the prior year period, was primarily due to lower average debt levels and a stable-to-declining rate environment. Other income (expense) - net was income of $10,437 compared to expense of $2,435 in the comparable period of 2025. Included in other income (expense) - net for the six months ended April 30, 2026 were unrealized gains on minority investments of $12,411, pension and postretirement income of $1,922, and $4,679 of foreign currency losses. Included in other income (expense) - net for the six months ended April 30, 2025 were pension and postretirement income of $2,035 and $2,868 in foreign currency losses.
During the second quarter of 2026, we completed a partial plan settlement transaction in regards to our U.S. pension plan in which plan assets amounting to $104,148 were used to purchase a group annuity contract from RGA. The settlement resulted in a loss of $24,049 for the three and six months ended April 30, 2026 as shown on the Condensed Consolidated Statements of Income.
Income Tax Expense
Income tax expense was $23,858, or 16.9% of pre-tax income, for the three months ended April 30, 2026, as compared to $26,366, or 19.0% of pre-tax income for the three months ended April 30, 2025. Income tax expense was $54,977, or 18.0% of pre-tax income, for the six months ended April 30, 2026, as compared to $48,569, or 19.0% of pre-tax income for the six months ended April 30, 2025.
Net Income
Net income was $117,316, or $2.09 per diluted share, for the three months ended April 30, 2026, compared to net income of $112,404, or $1.97 per diluted share, in the same period of 2025. This represented a 4.4 percent increase in net income and a 6.1 percent increase in diluted earnings per share. The increase of $0.12 per diluted share was primarily driven by higher operating profit, lower interest and tax expense and the benefit of share repurchases, partially offset by a pension settlement charge and higher other expense.
Net income was $250,698, or $4.47 per diluted share, for the six months ended April 30, 2026, compared to net income of $207,056, or $3.62 per diluted share, in the same period of 2025. This represented a 21.1 percent increase in net income and a 23.5 percent increase in diluted earnings per share. The increase of $0.85 per diluted share was primarily driven by higher operating profit, lower interest and tax expense, the benefit of share repurchases and higher other income, partially offset by a pension settlement charge.
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Nordson Corporation
Financial Condition
Liquidity and Capital Resources
Cash and cash equivalents decreased $6,425 during the six months ended April 30, 2026. Approximately 71 percent of our consolidated cash and cash equivalents were held at various foreign subsidiaries as of April 30, 2026.
A comparison of cash flow changes for the six months ended April 30, 2026 to the six months ended April 30, 2025 is as follows:
Six Months Ended
April 30, 2026 April 30, 2025 Increase (Decrease)
Net Income and non-cash items $ 342,834 $ 288,685 $ 54,149
Changes in operating assets and liabilities (21,733) (10,393) (11,340)
Net cash provided by operating activities 321,101 278,292 42,809
Additions to property, plant and equipment (27,693) (37,439) 9,746
Acquisitions of businesses, net of cash acquired (11,643) - (11,643)
Other - net (688) 10,339 (11,027)
Net cash used in investing activities (40,024) (27,100) (12,924)
Net (repayment) issuance of long-term debt - net (107,105) (5,800) (101,305)
Repayment of finance lease obligations (3,753) (2,627) (1,126)
Dividends paid (91,642) (88,937) (2,705)
Issuance of common shares 43,008 2,803 40,205
Purchase of treasury shares (129,303) (146,252) 16,949
Net cash used in financing activities $ (288,795) $ (240,813) $ (47,982)
The increase in operating assets and liabilities was principally driven by an increase in inventory, partially offset by an increase in cash provided by accounts receivable collections. During the six months ended April 30, 2026, the Company was able to utilize its strong cashflow generation to repay $107 million of debt, repurchase $129 million in common shares, pay $92 million in dividends, and fund capital projects to drive organic growth.
We have a $1,200,000 Revolving Credit Facility that matures in January 2031. At April 30, 2026, we had $295,000 outstanding under the Revolving Credit Facility.
Our operating performance, balance sheet position and financial ratios for the six months ended April 30, 2026 remained strong. We were in compliance with all covenants in the agreements governing our debt as of April 30, 2026. We believe the Company is well-positioned to manage liquidity needs that arise from working capital requirements, capital expenditures, contributions related to pension and postretirement obligations, principal and interest payments on our outstanding debt, dividends, and share repurchases. Our primary sources of capital to meet these needs, as well as other opportunistic investments, are a combination of cash on hand, which was $102,017 as of April 30, 2026, cash provided by operations, which was $321,101 for the six months ended April 30, 2026, and available borrowings under our loan agreements and unused bank lines of credit, which totaled $1,050,604 as of April 30, 2026. Cash from operations, which when combined with our available borrowing capacity and ready access to capital markets, is expected to be more than adequate to fund our liquidity needs over the twelve months and the foreseeable future thereafter. The Company believes it has the ability to generate and obtain adequate amounts of cash to meet its short-term and long-term needs for cash. However, the impact of international conflicts, changes in trade policies, tariffs, and other import/export regulations of the United States and other nations could negatively impact our cash flow from operations and liquidity in future periods.
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Safe Harbor Statements Under the Private Securities Litigation Reform Act of 1995
This Quarterly Report on Form 10-Q, particularly "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate and the United States and global economies. Statements in this quarterly report that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "hope," "forecast," "management is of the opinion," use of the future tense and similar words or phrases. These forward-looking statements reflect management's current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, U.S. and international economic and political conditions; financial and market conditions; currency exchange rates and devaluations; possible acquisitions and the Company's ability to complete and successfully integrate acquisitions; the Company's ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements, including changes in tariffs by the United States or other nations; the effects of changes in tax law; and the possible effects of events beyond our control, such as political unrest, including the conflicts in Europe and the Middle East, acts of terror, natural disasters and pandemics.
In light of these risks and uncertainties, actual events and results may vary significantly from those included in or contemplated or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Factors that could cause our actual results to differ materially from the expected results are discussed in Part I, Item 1A, Risk Factors in our 2025 Form 10-K and Part II, Item 1A, Risk Factors in the Quarterly Report on Form 10-Q.
Nordson Corporation published this content on May 21, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 21, 2026 at 14:07 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]