Nordson Posts Record Quarter as Advanced Technology Sales Surge 28%
The precision dispensing equipment maker lifted its full-year guidance for the third consecutive quarter after posting $818 million in sales, an all-time high.
Nordson Corp. (NDSN) reported record quarterly sales of $818 million in its fiscal third quarter, a 10% increase from $742 million a year earlier, as accelerating demand in its Advanced Technology Solutions segment and a swelling backlog pointed to sustained momentum heading into the final quarter of its fiscal year.
The results marked the strongest top-line growth of the company's fiscal year, with organic sales rising approximately 12%, up from 7% in each of the prior two quarters. Adjusted earnings reached a record $3.25 a share, a 19% jump from $2.73 a year ago.
The Advanced Technology Solutions segment drove the quarter's outperformance. Sales in the unit, which serves electronics and semiconductor end markets, climbed 28% year over year to a record $220 million, with organic growth of 31%. That pace represented a sharp acceleration from 8% organic growth in the second quarter and 21% in the first. Segment EBITDA margin expanded to 30% from 24% a year earlier, pushing EBITDA up 58% to a segment record of $66 million. The margin trajectory has been steep: it stood at 22% in the first quarter and 27% in the second.
Medical and Fluid Solutions also gained momentum, posting 11% organic growth in the quarter, excluding the impact of a divestiture, compared with 8% in the second quarter and 3% in the first. Segment EBITDA reached a record $88 million, translating to a 38% margin.
Industrial Precision Solutions, the company's largest segment, was the relative laggard. Organic growth slowed to 3% from 5% in the prior quarter, and EBITDA margin compressed to 35% from 37% a year ago.
Geographically, Asia Pacific was the standout, with total sales growth of 22.2% and organic growth of 24.1%, far outpacing the Americas at 5.4% and Europe at 3.1%. The regional strength aligns with the semiconductor and electronics demand fueling the ATS segment.
Backlog entering the fourth quarter surged 35% year over year, a marked acceleration from 18% growth at the end of the second quarter and roughly 4% at the end of the first. The trajectory suggests order intake is outpacing the revenue ramp, a dynamic that typically extends the earnings cycle for capital-goods manufacturers.
Gross margin widened to 55.5% from 54.8% a year ago, reflecting favorable product mix and volume leverage. Total EBITDA margin held at 32%, flat year over year, though the nine-month figure slipped to 31% from 32% in the prior-year period. Free cash flow conversion for the nine months ended in the quarter was 125%, down from 140% a year earlier but still robust.
A non-cash loss of $14.9 million on a minority investment weighed on GAAP results, reducing earnings by approximately 52 cents a share. Excluding that charge, adjusted earnings growth tracked ahead of revenue growth, underscoring the operating leverage in the business.
Nordson raised its full-year fiscal 2026 guidance for the third consecutive quarter, now projecting sales of $3.04 billion to $3.08 billion and adjusted earnings of $11.80 to $12.00 a share. The initial forecast set at the start of the fiscal year called for $2.83 billion to $2.95 billion in sales and $10.80 to $11.50 in adjusted earnings.
The accelerating backlog and broad-based segment growth position Nordson to close its fiscal year on a stronger footing than management anticipated three quarters ago, with the Advanced Technology Solutions unit emerging as the primary engine of the company's record run.