Open the filing on EDGARNordson Corporation Reports Record Second Quarter Fiscal 2026 Results and Increases Full Year Guidance
Second Quarter Highlights:
- Sales were a second quarter record of $741 million, an increase of 8% year-over-year
- Earnings per diluted share were $2.09, up 6% year-over-year
- Adjusted earnings per diluted share were $2.86, a second quarter record and up 18% year-over-year
- Continued strength in demand with backlog up 18% compared to prior year
- Increasing full year guidance for sales and earnings
WESTLAKE, Ohio--(BUSINESS WIRE)--May 20, 2026--Nordson Corporation (Nasdaq: NDSN) today reported results for the fiscal second quarter ended April 30, 2026. Sales were a second quarter record of $741 million compared to the prior year’s second quarter sales of $683 million. The second quarter 2026 sales included an organic sales increase of 7% driven by growth in all segments, as well as a favorable currency translation impact of 3%. This sales result was slightly offset by the previously announced divestiture and the contribution of a small acquisition that was completed during the quarter.
Net income was $117 million, or $2.09 of earnings per diluted share, compared to prior year’s second quarter net income of $112 million, or $1.97 of earnings per diluted share. Second quarter 2026 earnings included a one-time, non-cash settlement charge to annuitize about 30% of the U.S. pension obligation and a non-cash loss on minority investments recognized during the quarter. Excluding these items and acquisition-related amortization and costs, second quarter adjusted earnings per diluted share were a record $2.86, an 18% increase from the prior year adjusted earnings per diluted share of $2.42.
EBITDA was also a second quarter record of $235 million, or 32% of sales, an increase of 8% compared to prior year EBITDA of $217 million, or 32% of sales.
Commenting on the Company’s fiscal 2026 second quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, “Our solid execution of the Ascend Strategy resulted in second quarter records for sales, adjusted earnings and EBITDA. Our free cash flow conversion also continues to be a strength, enabling a healthy mix of shareholder returns and reinvestment in growth. Thank you to our teams for delivering another strong quarter.”
On March 16, 2026, the Company acquired CapstanAG Systems, a precision agriculture company in North America that is a complementary bolt-on to our existing footprint. This small, but strategic, acquisition provides the Company with an established and synergistic platform to grow its precision agriculture portfolio with mid-tier OEMs in North America.
Second Quarter Segment Results
Record second quarter Industrial Precision Solutions sales of $350 million increased 10% from the prior year, inclusive of an organic sales increase of 5%, favorable currency translation of 4%, and an acquisition contribution of 1%. The organic sales increase 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. EBITDA in the quarter was $124 million, or 35% of sales, up 9% from the prior year second quarter EBITDA of $114 million.
Medical and Fluid Solutions sales of $213 million, also a second quarter record, increased 5% compared to the prior year second quarter. This increase was inclusive of an organic sales increase of 8% and a favorable currency impact of 1%. Sales growth was partially offset by 4% related to the previously divested medical contract manufacturing business. The organic sales increase was driven by growth in engineered fluid solutions and medical product lines. EBITDA in the quarter was $79 million, or 37% of sales, up 3% from the prior year second quarter EBITDA of $77 million.
Record quarterly Advanced Technology Solutions sales of $178 million increased 10% compared to the prior year second quarter, inclusive of an organic sales increase of 8% and favorable currency translation of 2%. The organic sales increase was driven by ongoing growth in electronics dispense systems. EBITDA in the quarter was $48 million, or 27% of sales, up 22% from the prior year second quarter EBITDA of $40 million.
Outlook
The Company enters the third quarter with increased backlog, up 18% over the prior year. Order entry momentum was broad-based in the quarter across all segments. These trends position the Company to deliver third quarter fiscal 2026 sales in the range of $760 to $790 million. Third quarter adjusted earnings are forecasted to be in the range of $2.95 to $3.15 per diluted share.
Based on the continuing momentum of our end markets as evidenced by our backlog and order entry, the Company is increasing its full year guidance. Sales are now expected to be in the range of $2,930 to $3,010 million and adjusted earnings to be in the range of $11.30 to $11.80 per diluted share.
Reflecting on the full year outlook, Mr. Nagarajan said, “We delivered a strong first half of fiscal 2026, highlighted by record performance and ongoing momentum across our end markets. Supported by robust order entry and backlog, we expect this momentum to continue and are increasing our full year sales and earnings guidance. Our NBS Next growth framework, close-to-the-customer business model, and differentiated precision technologies position us well to compound profitable growth.”
Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on Thursday, May 21, 2026, at 8:30 a.m. eastern time, which can be accessed at https://investors.nordson.com. Information about Nordson’s investor relations and shareholder services is available from Lara Mahoney, vice president, investor relations and corporate communications at (440) 204-9985 or lara.mahoney@nordson.com.
Forward-looking statements notice
Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as “may,” “will,” “should,” “could,” “expects,” “anticipates,” “believes,” “projects,” “forecasts,” “outlook,” “guidance,” “continue,” “target,” or the negative of these terms or comparable terminology. These 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 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 U.S. 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 and the other factors discussed in Item 1A (Risk Factors) in the Company’s most recently filed Annual Report on Form 10-K and in its Forms 10-Q filed with the Securities and Exchange Commission, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement in this press release.
Nordson Corporation is an innovative precision technology company that leverages a scalable growth framework through an entrepreneurial, division-led organization to deliver top tier growth with leading margins and returns. The Company’s direct sales model and applications expertise serve global customers through a wide variety of critical applications. Its diverse end market exposure includes consumer non-durable, medical, electronics and industrial end markets. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in over 35 countries. Visit Nordson on the web at www.nordson.com, linkedin/Nordson, or www.facebook.com/nordson.
SEGMENT INFORMATION (Unaudited)
| Three Months Ended | Six Months Ended |
|---|
| April 30, 2026 | April 30, 2025 | April 30, 2026 | April 30, 2025 |
|---|
| SALES | | | | | | | | |
| Industrial Precision Solutions | $350,466 | | $318,847 | | $677,327 | | $619,295 | |
| Medical and Fluid Solutions | 212,850 | | 202,809 | | 406,033 | | 396,418 | |
| Advanced Technology Solutions | 177,531 | | 161,282 | | 326,948 | | 282,645 | |
| Total sales | $740,847 | | $682,938 | | $1,410,308 | | $1,298,358 | |
| EBITDA | | | | | | | | |
| Industrial Precision Solutions | $123,578 | 35% | $113,548 | 36% | $233,889 | 35% | $226,324 | 37% |
| Medical and Fluid Solutions | 79,193 | 37% | 76,538 | 38% | 149,399 | 37% | 140,870 | 36% |
| Advanced Technology Solutions | 48,327 | 27% | 39,516 | 25% | 80,927 | 25% | 62,287 | 22% |
| Corporate expenses | (15,911) | | (12,448) | | (26,038) | | (24,224) | |
| Total EBITDA (non-GAAP) | $235,187 | 32% | $217,154 | 32% | $438,177 | 31% | $405,257 | 31% |
Total company EBITDA is a non-GAAP measure. Refer to the reconciliation of non-GAAP measures - net income to EBITDA.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands except for per-share amounts)
| Three Months Ended | Six Months Ended |
|---|
| April 30, 2026 | April 30, 2025 | April 30, 2026 | April 30, 2025 |
|---|
| Sales | $740,847 | $682,938 | $1,410,308 | $1,298,358 |
| Cost of sales | 336,770 | 309,034 | 640,109 | 588,558 |
| Gross profit | 404,077 | 373,904 | 770,199 | 709,800 |
| Gross margin % | 54.5% | 54.7% | 54.6% | 54.7% |
| Selling and administrative expenses | 206,874 | 205,154 | 406,591 | 400,103 |
| Operating profit | 197,203 | 168,750 | 363,608 | 309,697 |
| Interest expense - net | (21,580) | (26,019) | (44,321) | (51,637) |
| Pension settlement charge | (24,049) | - | (24,049) | - |
| Other income (expense) - net | (10,400) | (3,961) | 10,437 | (2,435) |
| Income before income taxes | 141,174 | 138,770 | 305,675 | 255,625 |
| Income taxes | 23,858 | 26,366 | 54,977 | 48,569 |
| Net income | $117,316 | $112,404 | $250,698 | $207,056 |
| Weighted-average common shares outstanding: | | | | |
| Basic | 55,798 | 56,785 | 55,793 | 56,960 |
| Diluted | 56,100 | 57,038 | 56,113 | 57,265 |
| Earnings per share: | | | | |
| Basic earnings | $2.10 | $1.98 | $4.49 | $3.64 |
| Diluted earnings | $2.09 | $1.97 | $4.47 | $3.62 |
CONSOLIDATED BALANCE SHEETS (Unaudited)
| April 30, 2026 | October 31, 2025 |
|---|
| Cash and cash equivalents | $102,017 | $108,442 |
| Receivables - net | 606,689 | 587,843 |
| Inventories - net | 467,757 | 444,814 |
| Other current assets | 100,893 | 101,752 |
| Total current assets | 1,277,356 | 1,242,851 |
| Property, plant and equipment - net | 521,390 | 516,914 |
| Goodwill | 3,332,927 | 3,304,685 |
| Other assets | 832,745 | 853,231 |
| $5,964,418 | $5,917,681 |
| Notes payable and debt due within one year | $50,000 | $315,000 |
| Accounts payable and accrued liabilities | 441,875 | 443,260 |
| Total current liabilities | 491,875 | 758,260 |
| Long-term debt | 1,836,356 | 1,681,254 |
| Other liabilities | 433,952 | 434,596 |
| Total shareholders' equity | 3,202,235 | 3,043,571 |
| $5,964,418 | $5,917,681 |
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
| Six Months Ended |
|---|
| April 30, 2026 | April 30, 2025 |
|---|
| Cash flows from operating activities: | | |
| Net income | $250,698 | $207,056 |
| Depreciation and amortization | 72,900 | 74,608 |
| Pension settlement charge | 24,049 | - |
| Other non-cash items | (4,813) | 7,021 |
| Changes in operating assets and liabilities and other | (21,733) | (10,393) |
| Net cash provided by operating activities | 321,101 | 278,292 |
| Cash flows from investing activities: | | |
| Additions to property, plant and equipment | (27,693) | (37,439) |
| Acquisition of business, net of cash acquired | (11,643) | - |
| Other - net | (688) | 10,339 |
| Net cash used in investing activities | (40,024) | (27,100) |
| Cash flows from financing activities: | | |
| Repayment of long-term debt | (107,105) | (5,800) |
| Repayment of finance lease obligations | (3,753) | (2,627) |
| Dividends paid | (91,642) | (88,937) |
| Issuance of common shares | 43,008 | 2,803 |
| Purchase of treasury shares | (129,303) | (146,252) |
| Net cash used in financing activities | (288,795) | (240,813) |
| Effect of exchange rate change on cash: | 1,293 | 3,826 |
| Net change in cash and cash equivalents | (6,425) | 14,205 |
| Cash and cash equivalents: | | |
| Beginning of period | 108,442 | 115,952 |
| End of period | $102,017 | $130,157 |
SALES BY GEOGRAPHIC SEGMENT (Unaudited)
| Three Months Ended | Sales Variance |
|---|
| April 30, 2026 | April 30, 2025 | Organic | Acquisitions / Divestitures | Currency | Total |
|---|
| SALES BY SEGMENT | | | | | | |
| Industrial Precision Solutions | $350,466 | $318,847 | 5.0% | 0.8% | 4.1% | 9.9% |
| Medical and Fluid Solutions | 212,850 | 202,809 | 7.8% | (3.9)% | 1.1% | 5.0% |
| Advanced Technology Solutions | 177,531 | 161,282 | 8.5% | - % | 1.6% | 10.1% |
| Total sales | $740,847 | $682,938 | 6.6% | (0.8)% | 2.7% | 8.5% |
| SALES BY GEOGRAPHIC REGION | | | | | | |
| Americas | $308,253 | $292,463 | 5.9% | (1.7)% | 1.2% | 5.4% |
| Europe | 194,459 | 172,496 | 6.4% | (0.3)% | 6.6% | 12.7% |
| Asia Pacific | 238,135 | 217,979 | 7.8% | (0.1)% | 1.5% | 9.2% |
| Total sales | $740,847 | $682,938 | 6.6% | (0.8)% | 2.7% | 8.5% |
| Six Months Ended | Sales Variance |
| April 30, 2026 | April 30, 2025 | Organic | Acquisitions / Divestitures | Currency | Total |
| SALES BY SEGMENT | | | | | | |
| Industrial Precision Solutions | $677,327 | $619,295 | 4.1% | 0.4% | 4.9% | 9.4% |
| Medical and Fluid Solutions | 406,033 | 396,418 | 5.3% | (4.2)% | 1.3% | 2.4% |
| Advanced Technology Solutions | 326,948 | 282,645 | 13.8% | - % | 1.9% | 15.7% |
| Total sales | $1,410,308 | $1,298,358 | 6.6% | (1.1)% | 3.1% | 8.6% |
| SALES BY GEOGRAPHIC REGION | | | | | | |
| Americas | $570,183 | $560,300 | 2.9% | (2.2)% | 1.1% | 1.8% |
| Europe | 376,920 | 340,259 | 3.0% | (0.2)% | 8.0% | 10.8% |
| Asia Pacific | 463,205 | 397,799 | 14.8% | (0.1)% | 1.7% | 16.4% |
| Total sales | $1,410,308 | $1,298,358 | 6.6% | (1.1)% | 3.1% | 8.6% |
RECONCILIATION OF NON-GAAP MEASURES - NET INCOME TO EBITDA (Unaudited)
| Three Months Ended | Six Months Ended |
|---|
| April 30, 2026 | April 30, 2025 | April 30, 2026 | April 30, 2025 |
|---|
| Net income | $117,316 | $112,404 | $250,698 | $207,056 |
| Income taxes | 23,858 | 26,366 | 54,977 | 48,569 |
| Interest expense - net | 21,580 | 26,019 | 44,321 | 51,637 |
| Pension settlement charge | 24,049 | - | 24,049 | - |
| Other expense (income) - net | 10,400 | 3,961 | (10,437) | 2,435 |
| Inventory step-up amortization | 1,135 | - | 1,135 | 3,135 |
| Severance and other | - | 10,313 | - | 16,274 |
| Acquisition-related costs | 534 | 513 | 534 | 1,543 |
| Adjusted operating profit | 198,872 | 179,576 | 365,277 | 330,649 |
| Depreciation and amortization | 36,315 | 37,578 | 72,900 | 74,608 |
| EBITDA (non-GAAP) | $235,187 | $217,154 | $438,177 | $405,257 |
Represents non-recurring cost reduction actions as well as fees and non-cash inventory charges associated with acquisitions.
EBITDA is a non-GAAP measure used by management to evaluate the Company's ongoing operations. EBITDA is defined as operating profit plus certain adjustments, such as non-recurring cost reduction actions, fees and non-cash inventory charges associated with acquisitions, plus depreciation and amortization.
RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED NET INCOME AND EARNINGS PER SHARE (Unaudited)
| Three Months Ended | Six Months Ended |
|---|
| April 30, 2026 | April 30, 2025 | April 30, 2026 | April 30, 2025 |
|---|
| GAAP AS REPORTED | | | | |
| Net income | $117,316 | $112,404 | $250,698 | $207,056 |
| Diluted earnings per share | $2.09 | $1.97 | $4.47 | $3.62 |
| Shares outstanding - diluted | 56,100 | 57,038 | 56,113 | 57,265 |
| ADJUSTMENTS | | | | |
| Inventory step-up amortization | $1,135 | $ - | $1,135 | $3,135 |
| Acquisition costs | 534 | 513 | 534 | 1,543 |
| Severance and other | - | 10,313 | - | 16,274 |
| Acquisition amortization of intangibles | 19,406 | 19,696 | 38,975 | 39,007 |
| Entity liquidation | - | 988 | - | 988 |
| Non-cash loss (gain) on minority investments | 9,827 | - | (12,411) | - |
| Pension settlement charge | 24,049 | - | 24,049 | - |
| Total adjustments | $54,951 | $31,510 | $52,282 | $60,947 |
| Adjustments net of tax | $43,342 | $25,523 | $42,711 | $49,367 |
| EPS effect of adjustments | $0.77 | $0.45 | $0.76 | $0.86 |
| NON-GAAP | | | | |
| Adjusted net income | $160,658 | $137,927 | $293,409 | $256,423 |
| Adjusted earnings per share | $2.86 | $2.42 | $5.23 | $4.48 |
Represents non-recurring cost reduction actions as well as fees and non-cash inventory charges associated with acquisitions.
Represents non-cash loss (gain) on minority investments accounted for at fair value.
Adjusted net income is a non-GAAP measure defined as net income plus tax effected adjustments and other discrete tax items.
Adjusted earnings per share is a non-GAAP measure defined as GAAP EPS adjusted for tax effected adjustments and other discrete tax items.
RECONCILIATION OF NON-GAAP MEASURES - OPERATING CASH FLOW TO FREE CASH FLOW (Unaudited)
| Year to Date |
|---|
| April 30, 2026 | January 31, 2026 |
|---|
| Net cash provided by operating activities | $321,101 | $140,428 |
| Additions to property, plant and equipment | (27,693) | (17,513) |
| Free cash flow | $293,408 | $122,915 |
| Free cash flow - quarter to date | $170,493 | |
| Net income | $250,698 | $133,382 |
| Non-cash loss (gain) on minority investments and pension charge - after-tax | 9,383 | (16,679) |
| Net income excluding non-cash loss (gain) on minority investments and pension loss | $260,081 | $116,703 |
| Free cash flow conversion | 113% | 105% |
| Net income excluding non-cash loss (gain) on minority investments and pension charge - quarter to date | $143,378 | |
| Free cash flow conversion - quarter to date | 119% | |
| Year to Date |
| April 30, 2025 | January 31, 2025 |
| Net cash provided by operating activities | $278,292 | $159,122 |
| Additions to property, plant and equipment | (37,439) | (21,399) |
| Free cash flow | $240,853 | $137,723 |
| Free cash flow - quarter to date | $103,130 | |
| Net income | $207,056 | $94,652 |
| Free cash flow conversion | 116% | 146% |
| Net income - quarter to date | $112,404 | |
| Free cash flow conversion - quarter to date | 92% | |
Free cash flow is a non-GAAP measure used by management to evaluate the Company's ongoing operations and is defined as Net cash provided by operating activities minus Additions to property, plant and equipment.
Net income excluding non-cash loss (gain) on minority investments and pension charge is a non-GAAP measure used by management as an input to the calculation of Free cash flow conversion and is defined as Net income excluding non-cash losses (gains) on minority investments and pension settlement charge.
Free cash flow conversion is a non-GAAP measure used by management to evaluate the Company's ongoing operations and is defined as Free cash flow divided by Net income excluding non-cash losses (gains) on minority investments and pension settlement charge.
Management uses certain non-GAAP measures, such as adjusted net income, adjusted EPS, EBITDA, free cash flow, and free cash flow conversion, internally to make strategic decisions, forecast future results, and evaluate the Company's current performance. Given management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in the Company's core business across different time periods. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures to other companies' non-GAAP financial measures, even if they have similar names. Amounts may not add due to rounding.
Contacts
Lara Mahoney
Vice President
Investor Relations & Corporate Communications
440.204.9985
Lara.Mahoney@nordson.com