Nordson Corporation Exceeds Expectations in Q2 2025 with Strong Sales Growth and Operational Excellence
Nordson Corporation, a leading global industrial company delivering innovative solutions for the precision technology and medical science markets, has announced its second-quarter fiscal year 2025 results. The company's performance exceeded expectations, driven by strength in advanced technology system and part sales, as well as solid growth in nonwoven systems and medical fluid components.
Speaking on the conference call, Sundaram Nagarajan, President and CEO of Nordson Corporation, highlighted the company's momentum entering the second quarter. "We started the second quarter with increasing momentum in order entry and backlog enabling us to outperform the midpoint of our sales and earnings guidance," he said. This was largely driven by strength in advanced technology system and part sales, where order entry continues to be solid due to ongoing customer demand within semiconductor and selected electronic applications.
The company's Atrion integration has also gone well, with results continuing to perform above expectations. Customer adoption of Atrion's differentiated products has been impressive, as has the adoption of the NBS Next framework driving operational efficiencies and delivering solid growth results. Operational excellence during the quarter drove strong profit performance, resulting in 32% overall EBITDA margins.
Nordson Corporation has also been executing a balanced capital deployment strategy, buying back $85 million in shares during the quarter and paying $44 million in dividends. The company maintained its debt leverage ratio at 2.4x, comfortably within its targeted range.
Looking ahead to the third quarter of fiscal year 2025, Sundaram Nagarajan provided a high-level commentary on enterprise performance and updated guidance. He also announced an agreement to divest select product lines within the medical contract manufacturing business, which is expected to improve growth profile going forward and be accretive to margins post sale.
Nordson Corporation's Q2 2025 results demonstrate the company's ability to execute a balanced capital deployment strategy while driving strong sales growth and operational excellence. As the global industrial landscape continues to evolve, Nordson Corporation remains well-positioned to deliver innovative solutions for precision technology and medical science markets.
The conference call also provided an opportunity for investors to ask questions, with Sundaram Nagarajan and Dan Hopgood, Executive Vice President and Chief Financial Officer, available to address concerns and provide further insight into the company's performance.
