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Oct 31, 2023

Nordson Q4 2023 Earnings Report

Reported a 5% increase in sales and record EBITDA for the quarter, driven by medical interventional solutions and industrial precision product lines.

Key Takeaways

Nordson Corporation reported a 5% increase in sales to $719 million and a record EBITDA of $227 million for the fourth quarter of fiscal year 2023. The company's performance was driven by strong growth in medical interventional solutions, industrial coatings, and polymer processing product lines, which offset weakness in electronics dispense and biopharma product lines. Adjusted earnings per diluted share were $2.46, compared to $2.44 in the prior year.

Sales increased by 5% to $719 million compared to the prior year.

EBITDA reached a quarterly record of $227 million, representing 32% of sales.

Earnings per diluted share were $2.22.

Adjusted earnings per diluted share were $2.46.

Total Revenue
$719M
Previous year: $684M
+5.2%
EPS
$2.46
Previous year: $2.44
+0.8%
EBITDA
$227M
Previous year: $202M
+12.4%
Gross Profit
$384M
Previous year: $363M
+5.8%
Cash and Equivalents
$116M
Previous year: $163M
-29.2%
Free Cash Flow
$153M
Previous year: $161M
-5.3%
Total Assets
$5.25B
Previous year: $3.82B
+37.5%

Nordson

Nordson

Nordson Revenue by Geographic Location

Forward Guidance

The company anticipates delivering sales growth in the range of 4% to 9% in fiscal 2024 when compared to fiscal 2023. Full year fiscal 2024 adjusted earnings are forecasted in the range of 1% to 8% growth per diluted share. First quarter fiscal 2024 sales are forecasted in the range of $615 to $640 million with adjusted earnings in the range of $2.00 to $2.10 per diluted share.

Positive Outlook

  • Sales growth in the range of 4% to 9% in fiscal 2024
  • Adjusted earnings forecasted in the range of 1% to 8% growth per diluted share in fiscal 2024
  • First quarter fiscal 2024 sales are forecasted in the range of $615 to $640 million
  • Adjusted earnings in the range of $2.00 to $2.10 per diluted share for the first quarter of fiscal 2024
  • Approximately $800 million in backlog

Challenges Ahead

  • Unfavorable book-to-bill in the fourth quarter and the majority of 2023
  • Over $200 million in backlog was consumed
  • Electronics dispense product lines softness
  • Biopharma end markets demand weakness persisted
  • Higher interest expense

Revenue & Expenses

Visualization of income flow from segment revenue to net income