Nordson Corporation, headquartered in Westlake, Ohio, is a leading global precision technology company specializing in the design, manufacture, and sale of products and systems used for dispensing adhesives, coatings, sealants, biomaterials, and other materials. The company serves a diverse range of end markets, including consumer non-durable, medical, electronics, and industrial sectors. Founded in 1954, Nordson operates in over 35 countries, leveraging a direct sales model and applications expertise to deliver innovative solutions to its customers.
Financial Performance
In fiscal year 2024, Nordson reported record sales of $2.7 billion, marking a 2% increase over the previous year. This growth was driven by a favorable acquisition impact of 5%, partially offset by a 3% decrease in organic volume. The company's EBITDA for the year was $849 million, representing 32% of sales, an improvement from the prior year's 31%. Net income stood at $467 million, with earnings per diluted share of $8.11. Adjusted net income was $561 million, with adjusted earnings per diluted share of $9.73.
Segment Performance
Nordson's operations are divided into three primary segments:
1. Industrial Precision Solutions (IPS): This segment focuses on dispensing and processing technology for adhesives, coatings, and sealants. In fiscal 2024, IPS reported sales of $1.48 billion, a 6.7% increase from the previous year, driven by a 6.6% acquisition impact.
2. Medical and Fluid Solutions (MFS): MFS provides fluid management solutions for medical and industrial applications. The segment achieved sales of $695 million in fiscal 2024, reflecting a 5.3% increase, primarily due to a 5.4% acquisition impact.
3. Advanced Technology Solutions (ATS): ATS offers products for electronics, semiconductor, and other advanced technology markets. This segment experienced a decline in sales, reporting $510 million in fiscal 2024, an 11.6% decrease from the prior year, attributed to an 11.4% decrease in organic sales.
Geographic Performance
Nordson's sales are geographically diversified:
- Americas: Sales reached $1.18 billion in fiscal 2024, a 2.5% increase from the previous year, with a 4.3% acquisition impact.
- Europe: Sales were $726 million, up 6.4%, driven by a 10.2% acquisition impact.
- Asia Pacific: Sales totaled $785 million, a 1.4% decrease, with a 1.0% acquisition impact.
Strategic Initiatives
Nordson's Ascend strategy, launched in 2021, aims to achieve $3 billion in annual sales and greater than 30% EBITDA margins by 2025. The company is on track toward this objective, leveraging its diversified portfolio and strategic acquisitions. In fiscal 2024, Nordson completed the acquisition of Atrion, enhancing its product offerings and market reach.
Environmental, Social, and Governance (ESG) Commitment
In November 2023, Nordson published its 2023 ESG Report, outlining progress toward climate-related targets, including a 50% reduction in net Scope 1 and Scope 2 CO₂ emissions by 2030 and achieving net-zero emissions by 2050. The company is implementing initiatives such as installing water filtration and reuse systems, planning onsite solar generation, transitioning its fleet to hybrid vehicles, and improving packaging.
Outlook
Entering fiscal 2025, Nordson has approximately $670 million in backlog, up 15% from the start of the year. The company expects second-quarter sales to be between $650 million and $690 million, with adjusted earnings per diluted share forecasted between $2.30 and $2.50. Nordson remains confident in its diversified portfolio and strategic initiatives to drive growth as market conditions improve.
