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Jul 31, 2024

Nordson Q3 2024 Earnings Report

Nordson's Q3 2024 sales met expectations, driven by industrial product lines, with strong gross margins and a 31% EBITDA margin.

Key Takeaways

Nordson Corporation reported a 2% increase in sales to $662 million for the third quarter of fiscal year 2024. Earnings per diluted share were $2.04, and adjusted earnings per diluted share were $2.41. The company is increasing its full-year revenue guidance and tightening its adjusted earnings per diluted share guidance.

Sales increased by 2% year-over-year, aligning with guidance midpoint.

Earnings per diluted share reached $2.04.

Adjusted earnings per diluted share were $2.41, exceeding guidance midpoint by $0.08.

Full-year revenue guidance increased to reflect the Atrion acquisition.

Total Revenue
$662M
Previous year: $649M
+2.0%
EPS
$2.41
Previous year: $2.35
+2.6%
EBITDA
$208M
Previous year: $208M
+0.0%
Gross Profit
$369M
Previous year: $360M
+2.4%
Cash and Equivalents
$165M
Previous year: $143M
+15.5%
Free Cash Flow
$143M
Previous year: $181M
-21.1%
Total Assets
$5.2B
Previous year: $4.2B
+24.0%

Nordson

Nordson

Nordson Revenue by Geographic Location

Forward Guidance

The Company is increasing its full-year revenue guidance range to $2,665 million - $2,705 million, inclusive of revenue from the Atrion acquisition in the fiscal fourth quarter. The Company is tightening full-year adjusted earnings per diluted share to the range of $9.45 - $9.65, unchanged at the midpoint, though now inclusive of the slightly dilutive Atrion impact in the fiscal fourth quarter.

Positive Outlook

  • Diversification of product portfolio.
  • Geographic exposure.
  • Mix of recurring revenue.
  • NBS Next growth framework.
  • Contributions of recent acquisitions.

Challenges Ahead

  • Dynamic environment.
  • Slightly dilutive Atrion impact in the fiscal fourth quarter.
  • Increased interest expense from prior year acquisitions
  • Slightly lower overall operating margins.
  • Lower demand in electronics and medical product lines

Revenue & Expenses

Visualization of income flow from segment revenue to net income