NDSN

Nordson’s second quarter results drew a strong positive market reaction, fueled by broad-based sales gains across all major business segments. Management pointed to particularly robust growth in the Advanced Technology and Medical segments, highlighting accelerated order momentum and a 35% year-over-year increase in backlog. CEO Sundaram Nagarajan emphasized the impact of the company’s Ascend Strategy and operational execution, stating, “We are winning due to our unique competitive advantages and the successful execution of our Ascend Strategy.” These factors led to record sales and profit performance, underpinned by strong cash conversion and margin expansion. Is now the time to buy NDSN? Find out in our full research report (it’s free). Revenue: $817.7 million vs analyst estimates of $780.2 million (10.3% year-on-year growth, 4.8% beat) Adjusted EPS: $3.25 vs analyst estimates of $3.09 (5% beat) Adjusted EBITDA: $262.5 million vs analyst estimates of $254.2 million (32.1% margin, 3.3% beat) The company lifted its revenue guidance for the full year to $3.06 billion at the midpoint from $2.97 billion, a 2.9% increase Management raised its full-year Adjusted EPS guidance to $11.90 at the midpoint, a 3% increase Operating Margin: 27.3%, up from 25.3% in the same quarter last year Organic Revenue rose 12% year on year (miss) Market Capitalization: $18.58 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Michael Halloran (Baird) asked about the context for Nordson’s backlog surge and potential lead time elongation. CFO Dan Hopgood explained that backlog growth is broad-based with no significant change in order patterns or lead times, and most backlog turns over within six months. Jeffrey Hammond (KeyBanc) questioned the outsized contribution of Advanced Technology Solutions to the earnings outlook. CEO Sundaram Nagarajan clarified that ATS is benefiting from peak-cycle demand, while Medical also contributed to the raised guidance, and Industrial Precision performed in line with expectations. Matt Summerville (D.A. Davidson) inquired about growth drivers within Medical and Fluid Solutions and expectations for the next quarter. Hopgood noted broad-based gains across medical components, interventional, and fluid products, with some areas already returning to historic growth rates and others still ramping. Christopher Glynn (Oppenheimer) sought details on new application opportunities in Industrial Precision Solutions. Nagarajan explained that IPS continues to pursue niche applications across sectors like batteries and data centers, but near-term growth is expected from incremental opportunities rather than major breakthroughs. Edward Magi (BNP Paribas) asked about the M&A pipeline and target areas. Nagarajan and Hopgood reiterated the company’s disciplined approach, with a focus on medical and test & inspection acquisitions, and a long-term goal of balancing organic and inorganic growth. Looking forward, the StockStory team will be tracking (1) the pace and sustainability of order momentum in Advanced Technology Solutions, (2) normalization and growth trends within Medical and Fluid Solutions, and (3) evidence of operational improvements driving margin expansion across segments. The timing and scope of new chip manufacturing investments in North America could serve as a key incremental growth lever. Nordson currently trades at $333.64, up from $309.92 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Nordson Corporation NDSN reported third-quarter fiscal 2026 adjusted earnings of $3.25 per share, up 19.0% year over year and 5.2% above the Zacks Consensus Estimate of $3.09. Revenues of $817.67 million increased 10.3% and beat the consensus estimate of $779 million by 5.0%.Broad organic growth across all three segments powered the quarter, with Advanced Technology Solutions leading the expansion. Order momentum also remained strong, with backlog up 35% from the prior-year level. Organic sales increased 11.7% year over year. The net impact of acquisitions and divestitures reduced growth by 1.2%, while currency translation was a 0.2% headwind. The company reported record third-quarter sales in each of its three business segments.Asia Pacific revenues rose 22.2% to $293.76 million, marking the strongest regional increase. Americas sales increased 5.4% to $331.47 million, while Europe revenues advanced 3.1% to $192.43 million. The regional mix showed that growth extended beyond a single market. Industrial Precision Solutions revenues rose 4.7% to $367.25 million. Organic sales increased 3.3%, driven by strength in packaging, industrial coatings, polymer processing and nonwovens product lines. Acquisitions added 0.9%, while currency contributed 0.5%. Segment EBITDA was $129.90 million, with margin at 35%. Medical and Fluid Solutions revenues increased 5.0% to $230.54 million, despite a 5.6% divestiture drag. Organic sales climbed 10.6% on growth in engineered fluid solutions and medical product lines. Advanced Technology Solutions revenues surged 28.4% to $219.88 million, supported by 30.9% organic growth in electronics dispense and test and inspection applications. Advanced Technology Solutions also delivered record EBITDA of $65.70 million, up 58.1%, with margin improving to 30% from 24%. Medical and Fluid Solutions EBITDA rose to a record $88.29 million, while its margin remained at 38%. Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation Quote Cost of sales increased 8.6% year over year to $363.94 million. Gross profit rose 11.6% to $453.73 million, while gross margin expanded 70 basis points to 55.5%. Selling and administrative expenses increased 11.7% to $230.64 million.Operating profit jumped 18.8% to $223.09 million. Adjusted operating profit was $225.94 million, up 12.6%. EBITDA increased 10.1% to $262.48 million, while the EBITDA margin held at 32%. Net income rose to $152.85 million from $125.78 million. GAAP earnings were $2.73 per diluted share, up from $2.22 a year earlier. Net interest expense declined to $20.36 million from $25.70 million. For the first nine months of fiscal 2026, cash from operating activities increased 10.5% to $570.47 million. Free cash flow rose 13.5% to $530.16 million. Third-quarter free cash flow was $236.75 million, representing a 144% conversion rate.Nordson exited the quarter with cash and cash equivalents of $113.43 million, compared with $108.44 million at the end of fiscal 2025. Long-term debt declined to $1.53 billion from $1.68 billion, while short-term debt and current maturities fell to $202 million from $315 million. During the first nine months, NDSN paid $137.38 million in dividends, up 3.3% year over year. Treasury-share purchases totaled $158.79 million, down 27.2% from the prior-year period. Capital spending totaled $40.31 million, compared with $49.00 million a year ago.The company repaid a net $258.03 million of debt during the period. Management also highlighted $1.1 billion of near-term capacity for strategic acquisitions, while net debt leverage improved to 1.7 times trailing 12-month EBITDA from 2.1 times at the end of fiscal 2025. Nordson now expects fiscal 2026 sales of $3,035-$3,075 million, up from the prior $2,930-$3,010 million range. Adjusted earnings are projected at $11.80-$12.00 per share, compared with the previous $11.30-$11.80 range. The revised outlook calls for sales growth of 9-10% and adjusted earnings growth of 15-17%. Management expects the strong sales pace from the first nine months to continue into the fourth quarter, supported by order-entry momentum and strength in key end markets. Foreign currency is expected to have a neutral impact on fourth-quarter sales if rates remain at current levels. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.Generac Holdings Inc. GNRC came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordson Corporation (NDSN) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Constellium SE (CSTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The rally that moved the stock leaned on two of three segments; the backlog behind it grew without anyone waiting longer. Nordson (NDSN) closed Thursday at $334.70, an 8.0% gain in a single session and a 52-week high, while the S&P 500 fell 0.8% and peers Graco (GGG), Illinois Tool Works (ITW) and Parker Hannifin (PH) all finished lower. The move followed record fiscal Q3 2026 results and a raised full-year outlook. The quarter explains the direction; the order book explains the size. The Raise Is Not Evenly Owned Across The Three Segments Sales of $818 million were a quarterly record, up 10% year over year in total and 12% organically, and adjusted earnings per share cleared the high end of the company's own third-quarter guidance by ten cents. The full-year adjusted earnings guide was raised to $11.80 to $12 per diluted share. Organic sales grew 31% at Advanced Technology Solutions and about 11% at Medical and Fluid Solutions, against 3% at Industrial Precision Solutions, which management calls half the company. By management's account, the upside came from Advanced Technology Solutions and the medical business, while Industrial Precision Solutions ran as expected at the 3% that is its long-term goal. That is a narrow base for a move this size. Why That Backlog Is Orders Rather Than A Queue Backlog left the quarter up 35% from a year earlier, and a number that size normally deserves suspicion: backlog also swells when a company cannot ship, and the queue then reads as demand. Management's account is the opposite: lead times have come down rather than stretched, and roughly 80% of the backlog still turns within about six months. A book that mostly clears in half a year and is a third larger is intake, not congestion. Advanced Technology's growth, meanwhile, runs through two product lines, Electronics Dispense and Test and Inspection, whose X-ray and optical technologies management calls critical to semiconductor packaging. Much of that demand sits in Asia today, and by management's account the North American chip manufacturing buildout has produced no Nordson orders yet. What Is Left When The Systems Orders Stop About 60% of what the company sells generates recurring revenue, including aftermarket parts, consumables and services, and that revenue keeps earning when systems orders pause. Free cash flow was $237 million in the quarter, the fifth consecutive quarter of converting well over 100% of net income. Cash generation of that kind is one of the things the Trefis High Quality Portfolio looks for in its holdings. Management Named The Peak While The Market Bid The Stock Higher Advanced Technology sits at the peak of its cycle by management's own description, and fiscal 2027 growth there is expected to build off that peak at a mid-single-digit rate. The same account holds that the cycle still has room, with demand strong heading into fiscal 2027. The two reconcile as a rate against a level: the growth rate steps down from here, the record base it steps down from does not, and North American orders are still outside the numbers entirely. Whether the guide keeps moving up is the thing to watch, and a screen built on guidance revisions is where that shows across the market. Enjoy The Move, Then Check What It Did To Your Allocation A move like this is even better to own than to watch, and it is also how one holding grows into an outsized share of a portfolio. A position that has grown large enough to matter is worth sizing deliberately rather than by accident. What a position that size would do to your net worth is exactly what the Trefis Wealth team computes, with the same rules-based systematic discipline that runs our High Quality Portfolio. Request a free vulnerability audit of your biggest positions.

This article first appeared on GuruFocus. Revenue: Record sales of $818 million, a 10% increase year over year, with 12% overall organic growth. Adjusted EPS: Record $3.25 per share, a 19% increase from prior year's $2.73. EBITDA: Record $262 million, or 32% of sales, with incremental EBITDA contribution just shy of 32%. Adjusted Operating Profit: Record $226 million, or 28% of sales, up 13% year over year. Free Cash Flow: $237 million in the quarter, with a 144% conversion rate on net income. Backlog: Up 35% compared to the prior year, with broad-based growth across all segments. Industrial Precision Solutions Sales: $367 million, up 5% year over year, with 3% organic growth. Medical and Fluid Solutions Sales: Quarterly record of $231 million, up 5% year over year, with organic sales up 11%. Advanced Technology Solutions Sales: All-time quarterly record of $220 million, up 28% year over year, with organic sales up 31%. Advanced Technology Solutions EBITDA: Record $66 million, with a record EBITDA margin of 30% of sales, up from 24% in the prior year. Net Interest Expense: $20 million, a decrease of over $5 million versus the prior year. GAAP Net Income: $153 million, or $2.73 per share. Effective Tax Rate: 17.8% on a GAAP basis; 18.3% on an adjusted basis. Cash on Hand: $113 million at the end of the quarter. Net Debt: Approximately $1.6 billion, with a leverage ratio of 1.7 times. Capital Returns: $137 million in dividends paid and $159 million of shares repurchased year to date. Full-Year Guidance: Sales expected in the range of $3.035 billion to $3.075 billion; adjusted earnings expected in the range of $11.8 to $12 per diluted share. Warning! GuruFocus has detected 6 Warning Sign with NDSN. Is NDSN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q3 sales of $818 million, up 10% year-over-year with 12% organic growth, surpassing guidance. All three segments contributed to organic growth, with Advanced Technology Solutions achieving 31% organic growth and record EBITDA margins of 30%. Backlog increased 35% year-over-year, providing strong visibility into Q4 and beyond. Record adjusted EPS of $3.25, up 19% year-over-year, and record EBITDA of $262 million with a 32% margin. Strong free cash flow of $237 million with 144% conversion, enabling deleveraging to 1.7x and continued capital returns. Industrial Precision Solutions segment saw only 3% organic growth, with EBITDA margins flat year-over-year due to inflationary pressures. The company faces ongoing inflationary pressures from tariffs and geopolitical factors, requiring active mitigation. Medical and Fluid Solutions segment growth was partially offset by a 6% negative impact from the medical contract manufacturing divestiture. GAAP net income was impacted by a $15 million non-cash mark-to-market charge on minority investments, reducing reported EPS. Fourth-quarter incrementals are expected to be challenging year-over-year due to an outlier in the prior year's Q4 profitability. Q: Could you put the strong backlog growth in context? Have you seen any elongation in lead times, and what kind of visibility does it give you into next year? A: Dan Hopgood (CFO) explained that the backlog growth is broad-based across all three segments, with no real departure from normal order patterns. The backlog generally turns over in about six months, and while they are taking orders into 2027, lead times have actually been reduced over the years. Naga (CEO) added that their on-time delivery has significantly improved, allowing them to gain share due to shorter lead times than the competition. Q: Can you provide more context on what you're seeing in the ATS segment, specifically within Test & Inspection (T&I) and dispensing? A: Naga (CEO) stated that growth was broad-based in the quarter, with the dispense business typically ahead of the curve in the growth cycle. The T&I businesses, including X-ray and optical, are also seeing a good inflection point, which is critical for semiconductor packaging. He noted strong order entry and pipeline activity, giving them confidence not only for Q4 but well into next year. Q: Can you unpack the $0.35 raise in guidance between the businesses? How differentiated is the ATS growth versus the other two segments? A: Dan Hopgood (CFO) clarified that IPS is performing as expected, while the upside in Q3 and the Q4 outlook is driven by ATS and Medical, where order momentum has accelerated. Naga (CEO) added context by comparing growth rates to long-term targets: ATS is at the peak of its cycle with elevated growth, IPS is hitting its long-term goal of 3%, and MFS is exceeding its 6-7% target with 11% growth. Q: Can you speak to the margin dynamics in the IPS segment, and are there any tariff refunds expected? A: Dan Hopgood (CFO) stated there is no fundamental change in margin expectations, with long-term incremental targets of 35-40%. Given current market dynamics, the focus is on maximizing growth potential while maintaining strong margins, which are already at 35% in the quarter. Regarding tariffs, he noted they have not had a material impact on Nordson, and while they are pursuing recoveries, it is not a significant item. He did mention managing general inflationary pressures tied to freight and commodities. Q: Can you provide more granularity on the MFS segment's 11% organic growth, and what is implied for Q4? A: Dan Hopgood (CFO) said the growth is broad-based, with EFD benefiting from electronics demand. The medical component space, including interventional and specialty products, is also seeing broad-based growth and order demand. While not all areas are growing yet, they are walking their way back to normal mid-single-digit-plus growth in medical components. He did not provide specific segment-level Q4 guidance. Q: How are you thinking about the durability of the ATS cycle, and do you have any early views on fiscal '27 growth? A: Naga (CEO) indicated that based on pipeline activity, order entry, and backlog, there is still room in the cycle. While Q3 delivered 30% organic growth, he expects to build off this peak next year at a rate more in line with long-term mid-single-digit growth. He highlighted that North American chip manufacturing infrastructure investments have not yet translated into orders for Nordson, presenting a future opportunity as that build-out occurs. Q: Are there any emerging applications or market adoption opportunities in the IPS segment, such as in cans, clothing, or recycling? A: Naga (CEO) explained that IPS thrives on finding new applications and pivoting to growth niches. He mentioned early-stage opportunities in defense and data center build-out applications. While there isn't a single standout application like past highlights, the powder coating business is performing incredibly well due to multiple end-market applications. Dan Hopgood (CFO) added that these opportunities tend to be "singles, not home runs," but they are numerous. Q: The Q4 guidance implies a meaningful acceleration in sequential incrementals. Can you explain this? A: Dan Hopgood (CFO) attributed this to normal operational improvements and enhancements from their NBS Next framework. He noted that year-over-year incrementals are more challenging because Q4 of last year was an outlier in profitability. The Q4 outlook is reflective of their average annual growth algorithm and margin expectations. Q: What is the longer-term tax rate opportunity given the progress over the last few years? A: Dan Hopgood (CFO) stated that 18% is a good long-term expectation and reflective of their ongoing run rate. He indicated they will continue to assess it, but 18% is the right "ZIP code" to be in going forward. Q: Can you provide color on the M&A pipeline and which end markets are more attractive from a valuation perspective? A: Naga (CEO) reiterated that M&A is an important part of their growth algorithm, and they are actively pursuing opportunities that meet strategic and financial criteria. They are spending significant time expanding their medical platform and adding bolt-on assets like CapstanAG. Dan Hopgood (CFO) added that their long-term growth algorithm assumes half organic and half inorganic growth, and they remain disciplined in their approach. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Nordson Corporation? Here are five stocks we like better. Record third-quarter results: Nordson’s sales rose 10% to $818 million, while adjusted EPS increased 19% to a record $3.25, exceeding the high end of guidance. Adjusted operating profit and EBITDA also reached records. Strong demand improved visibility: Broad-based organic growth and accelerating orders lifted backlog 35% year over year, while free cash flow reached $237 million and leverage declined to 1.7 times. Fiscal 2026 outlook raised: Nordson now expects sales of $3.035 billion to $3.075 billion and adjusted EPS of $11.80 to $12.00, supported especially by strength in Advanced Technology Solutions and Medical and Fluid Solutions. 3 Automation-Focused Stocks Flying Under the Radar Nordson (NASDAQ:NDSN) reported record fiscal third-quarter sales, profit and adjusted earnings per share, as broad-based organic growth across its three operating segments and accelerating order activity lifted backlog 35% from a year earlier. For the quarter, the company posted sales of $818 million, up 10% from $742 million in the prior-year period. Organic sales increased 12%, while currency translation was effectively neutral. The results included a modest contribution from the CapstanAG acquisition, partly offset by the prior divestiture of Nordson’s medical contract manufacturing business. → Datavault AI Locks Down CyberCatch in $94M Security Rollup 3 Industrials Stocks Standing Out for Growth and Analyst Optimism Adjusted operating profit rose 13% to a record $226 million, or 28% of sales. EBITDA increased 10% to a record $262 million, representing 32% of sales. Adjusted earnings per share reached a record $3.25, up 19% from $2.73 a year earlier and $0.10 above the high end of the company’s guidance range. GAAP net income totaled $153 million, or $2.73 per share. Chief Financial Officer Dan Hopgood said GAAP results included a $15 million non-cash mark-to-market charge related to minority investments, as well as acquisition-related amortization and costs. The company’s adjusted effective tax rate was 18.3%, and management said it expects a full-year tax rate near 18%. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? These Quality Dividend Kings Grow their Dividends the Fastest President and Chief Executive Officer Sundaram Nagarajan said the company’s momentum from the first half continued in the third quarter. Through the first nine months of fiscal 2026, Nordson increased revenue 9% and adjusted EPS 18% year over year. “Order entry momentum continued to accelerate,” Nagarajan said, with backlog up 35% year over year. Backlog growth was broad-based across the company, with particular strength in the Advanced Technology Solutions and Medical and Fluid Solutions segments. → Home Depot Analysts See a Path to $375 and Beyond Hopgood said the majority of Nordson’s backlog typically converts to revenue within about six months, with roughly 80% expected to turn during that period. While the company is now taking some orders for 2027, he said it has not seen an elongation in customer lead times or a material change in ordering patterns. In fact, management said company lead times have generally decreased over time as delivery performance has improved. Free cash flow was $237 million in the quarter, equal to a 144% conversion rate of net income excluding the non-cash valuation loss. Nordson ended the quarter with $113 million in cash and approximately $1.6 billion in net debt. Its leverage ratio declined to 1.7 times. During the first nine months, the company paid $137 million in dividends, repurchased $159 million of shares, and invested $40 million in capital projects. Management said its balance sheet provides flexibility for shareholder returns, organic investment and acquisitions. Industrial Precision Solutions: Sales rose 5% to $367 million, including 3% organic growth. Demand was supported by packaging, industrial coatings applications and a continuing recovery in plastics processing. EBITDA was $130 million, or 35% of sales, matching the prior-year margin. Medical and Fluid Solutions: Sales increased 5% to a quarterly record of $231 million. Organic growth was about 11%, but reported growth was reduced by approximately 6 percentage points because of the medical contract manufacturing divestiture. EBITDA increased 6% to a record $88 million, or 38% of sales. Advanced Technology Solutions: Sales climbed 28% to a record $220 million, with organic sales up 31%. Growth occurred in both electronics dispensing and Test & Inspection product lines, reflecting semiconductor strength and broader electronics demand. EBITDA rose 58% to $66 million, lifting the segment’s EBITDA margin to a record 30%. Management characterized Industrial Precision Solutions as performing in line with its longer-term growth objectives, while Medical and Fluid Solutions and Advanced Technology Solutions drove the acceleration in the company’s outlook. Hopgood said medical component demand has normalized, with several product lines returning to stable growth, while fluid solutions demand has been broad-based across medical and electronics applications. In Advanced Technology Solutions, Nagarajan said dispensing demand has been ahead of the cycle, while Test & Inspection businesses have also reached an “inflection point,” including the company’s X-ray and optical operations. He said Nordson sees continued strength in order entry, customer discussions and its pipeline across dispensing and inspection. Nordson raised its fiscal 2026 outlook, citing backlog, order entry and end-market momentum. The company now expects full-year sales of $3.035 billion to $3.075 billion and adjusted diluted EPS of $11.80 to $12.00. The updated outlook assumes foreign exchange rates remain at current levels, resulting in a neutral currency impact in the fourth quarter. Management said the guidance places Nordson at the high end of its previously communicated average growth algorithm. Nagarajan said more than half of Nordson’s portfolio is now exposed to growth end markets, including semiconductor, electronics and medical markets, while about 60% generates recurring revenue through aftermarket parts, consumables and services. He added that the company expects Advanced Technology Solutions to build from its current peak at a rate more consistent with its longer-term mid-single-digit growth target next year. Management also reiterated that acquisitions remain an important part of Nordson’s growth strategy. Nagarajan said the company is evaluating opportunities in medical and fluid solutions, Test & Inspection, and bolt-on assets that can expand existing businesses, while maintaining strategic and financial discipline. Nordson Corporation designs, manufactures and markets precision dispensing equipment and systems that apply adhesives, coatings, sealants and polymers in a broad range of industrial and medical applications. The company's portfolio spans fluid systems, curing and surface preparation technologies, vacuum and thermal management products, and advanced test and inspection solutions. Nordson's offerings serve critical manufacturing processes by delivering exacting dispensing accuracy and process control to ensure consistent product performance and high production throughput. Nordson operates through multiple segments that cater to diverse markets including electronics, packaging, medical, energy, automotive and general industrial sectors. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Nordson Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record quarterly sales of $818 million, driven by 12% organic growth and strong execution of the Ascend Strategy across all three segments. Advanced Technology Solutions (ATS) delivered 31% organic growth, reflecting peak-cycle demand in semiconductor and broadening electronics end markets. Medical and Fluid Solutions (MFS) reached record sales with 11% organic growth as medical component demand normalized and fluid systems demand expanded. Industrial Precision Solutions (IPS) maintained stable 3% organic growth, supported by packaging, industrial coatings, and a recovery in plastics processing. Backlog increased 35% year-over-year, providing high visibility into the fourth quarter and early fiscal 2027 across all business segments. Management attributed record EBITDA margins of 32% to volume leverage and the NBS Next framework, despite managing broader market inflationary pressures. The portfolio shift toward growth end markets (now over 50% of the business) and recurring revenue (60%) has reduced historical cyclicality. Increased full-year guidance for sales ($3.035B to $3.075B) and adjusted EPS ($11.80 to $12.00) based on sustained order entry momentum. ATS growth is expected to normalize toward mid-single digits in fiscal 2027, building off the current all-time record peak levels. Management anticipates future upside from North American semiconductor infrastructure investments, which have not yet impacted the order book. Guidance assumes neutral foreign exchange impacts for the fourth quarter and a stable effective tax rate of approximately 18%. Capital allocation remains focused on a 50/50 split between organic and inorganic growth, supported by a low 1.7x leverage ratio. Recorded a $15 million non-cash mark-to-market charge for minority investments, though the year-to-date impact remains negligible. Successfully launched a commercial paper program during the quarter, contributing to a $5 million reduction in net interest expense. Divestiture of the medical contract manufacturing business in the prior year created a 6% headwind to total MFS segment sales. Free cash flow conversion reached 144% of net income, marking the fifth consecutive quarter exceeding 100% conversion. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that despite the 35% backlog surge, lead times have actually reduced due to operational improvements under the Ascend Strategy. Backlog typically turns over within six months, with current orders now extending into fiscal 2027. The current 30% organic growth in ATS is viewed as a cycle peak, but demand remains robust across dispense, test, and inspection lines. Management expects to grow off this high base in 2027, noting that U.S. chip manufacturing build-outs represent a future growth catalyst not yet in the numbers. Management is prioritizing growth while 'holding serve' on margins at 35% for the IPS segment, balancing long-term 35-40% incremental targets with near-term market capture. Inflationary pressures are being managed through NBS Next operational efficiencies rather than just price increases. The company remains disciplined in pursuing acquisitions that fit strategic criteria: niche markets, differentiated tech, and high margins. Current focus areas for M&A include expanding the medical platform and adding bolt-on assets to test and inspection franchises.

For the quarter ended July 2026, Nordson (NDSN) reported revenue of $817.67 million, up 10.3% over the same period last year. EPS came in at $3.25, compared to $2.73 in the year-ago quarter. The reported revenue represents a surprise of +4.96% over the Zacks Consensus Estimate of $779 million. With the consensus EPS estimate being $3.09, the EPS surprise was +5.18%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Nordson performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Industrial Precision Solutions: $367.25 million versus $363.91 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.7% change. Net Sales- Advanced Technology Solutions: $219.88 million compared to the $190.91 million average estimate based on two analysts. The reported number represents a change of +28.4% year over year. Net Sales- Medical and Fluid Solutions: $230.54 million compared to the $224.43 million average estimate based on two analysts. The reported number represents a change of +5.1% year over year. EBITDA- Industrial Precision Solutions: $129.9 million compared to the $132.67 million average estimate based on two analysts. EBITDA- Advanced Technology Solutions: $65.7 million compared to the $47.96 million average estimate based on two analysts. EBITDA- Medical and Fluid Solutions: $88.29 million versus the two-analyst average estimate of $84.81 million. View all Key Company Metrics for Nordson here>>> Shares of Nordson have returned +4.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordson Corporation (NDSN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Third Quarter Highlights: Sales were an all-time quarterly record of $818 million, an increase of 10% year-over-year Earnings per diluted share were a record $2.73, up 23% year-over-year Adjusted earnings per diluted share were $3.25, also a quarterly record and up 19% year-over-year Continued strength in demand with backlog up 35% compared to prior year Increasing full year guidance for sales and earnings WESTLAKE, Ohio, August 19, 2026--(BUSINESS WIRE)--Nordson Corporation (Nasdaq: NDSN) today reported results for the fiscal third quarter ended July 31, 2026. Sales were a quarterly record of $818 million, an increase of 10% compared to the prior year’s third quarter sales of $742 million. The third quarter 2026 sales included an organic sales increase of approximately 12% driven by growth in all segments. Organic sales growth was partially offset by the net unfavorable impact of a prior year divestiture and an acquisition in the second quarter. Net income was $153 million, or a record $2.73 of earnings per diluted share, compared to prior year’s third quarter net income of $126 million, or $2.22 of earnings per diluted share. Third quarter 2026 earnings included a non-cash loss on a minority investment recognized during the quarter. Excluding this item and acquisition-related amortization and costs, third quarter adjusted earnings per diluted share were a record $3.25, a 19% increase from the prior year adjusted earnings per diluted share of $2.73. Third quarter EBITDA reached an all-time quarterly record of $262 million, or 32% of sales, an increase of 10% compared to prior year EBITDA of $239 million, also at 32% of sales. Commenting on the Company’s fiscal 2026 third quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, "The strong momentum of the first half continued through the third quarter, delivering results above the high-end of our most recent earnings guidance. The team’s strong execution of the Ascend Strategy, combined with our diversified portfolio, differentiated precision technology and operational excellence, positioned us to deliver record sales in all three segments while maintaining our best-in-class margin performance. In addition, strong free cash flow generation enabled us to further strengthen our balance sheet, return capital to shareholders, and continue investing in the business to support future growth. I want to thank our global employees for delivering on the needs of our customers and achieving another outstanding quarter." Third Quarter Segment Results Record third quarter Industrial Precision Solutions sales of $367 million increased 5% from the prior year, inclusive of an organic sales increase of 3%, favorable currency translation of 1%, and an acquisition contribution of 1%. The organic sales increase was driven by strength in packaging, industrial coatings, polymer processing and nonwovens product lines. EBITDA in the quarter was $130 million, or 35% of sales, in line with prior year third quarter EBITDA of $130 million. Medical and Fluid Solutions sales of $231 million, an all-time quarterly record, increased 5% compared to the prior year third quarter. Excluding the divestiture of the contract manufacturing business, organic sales increased 11%. The organic sales increase was driven by growth in engineered fluid solutions and medical product lines related to end market demand. EBITDA in the quarter was also a segment record $88 million, or 38% of sales, up 6% from the prior year third quarter EBITDA of $83 million. Record quarterly Advanced Technology Solutions sales of $220 million increased 28% compared to the prior year third quarter, inclusive of an organic sales increase of 31% and unfavorable currency translation of 3%. The organic sales increase was driven by strong growth in electronics dispense and test and inspection product lines. EBITDA in the quarter was a segment record $66 million, or 30% of sales, up 58% from the prior year third quarter EBITDA of $42 million. Outlook The Company enters the fourth quarter with strong demand momentum and increased backlog, up 35% over the prior year. 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 $3,035 to $3,075 million and adjusted earnings to be in the range of $11.80 to $12.00 per diluted share. Reflecting on the full year outlook, Mr. Nagarajan said, "Based on backlog and order entry momentum, we expect the strong sales of the first nine months to continue through the fourth quarter. This puts us on track to achieve over $3 billion in annual revenue for the full year. We are delivering above-market organic growth through accelerating demand in key end markets. Our differentiated technology, close to the customer business model and the execution of the NBS Next growth framework have positioned us well to compound profitable growth this year and into the future." Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on Thursday, August 20, 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 Matt Matejka, senior director, investor relations at (440) 597-8495 or [email protected]. 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 or www.linkedin.com/company/nordson-corporation. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260819874488/en/ Contacts Matt MatejkaSenior DirectorInvestor Relations(440) [email protected]

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how professional tools and equipment stocks fared in Q1, starting with Nordson (NASDAQ:NDSN). Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings. The 9 professional tools and equipment stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 7.7% above. While some professional tools and equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.9% since the latest earnings results. Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings. Nordson reported revenues of $740.8 million, up 8.5% year on year. This print exceeded analysts’ expectations by 1.8%. Despite the top-line beat, it was still a mixed quarter for the company with full-year EPS guidance slightly topping analysts’ expectations but a significant miss of analysts’ organic revenue estimates. Nordson delivered the weakest guidance update and weakest full-year guidance update in the group. Interestingly, the stock is up 10.2% since reporting and currently trades at $304.36. Read our full report on Nordson here, it’s free. Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors. Kennametal reported revenues of $736.6 million, up 42.6% year on year, outperforming analysts’ expectations by 1.3%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Kennametal pulled off the highest guidance raise, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 13.3% since reporting. It currently trades at $31.25. Is now the time to buy Kennametal? Access our full analysis of the earnings results here, it’s free. Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries. Lincoln Electric reported revenues of $1.22 billion, up 12% year on year, exceeding analysts’ expectations by 4.6%. Still, it was a mixed quarter as it posted a significant miss of analysts’ organic revenue estimates. Interestingly, the stock is up 9.3% since the results and currently trades at $282.05. Read our full analysis of Lincoln Electric’s results here. Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors. Hillman reported revenues of $442.3 million, up 9.8% year on year. This result surpassed analysts’ expectations by 1.3%. Overall, it was a very strong quarter as it also logged full-year revenue guidance beating analysts’ expectations and full-year EBITDA guidance beating analysts’ expectations. The stock is up 1.3% since reporting and currently trades at $8.42. Read our full, actionable report on Hillman here, it’s free. Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries. Fortive reported revenues of $1.10 billion, up 7.9% year on year. This print beat analysts’ expectations by 2.5%. It was a strong quarter as it also recorded a decent beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. The stock is down 7.1% since reporting and currently trades at $59.57. Read our full, actionable report on Fortive here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.