Nordson Corporation Reports 5% Revenue Growth but 4.9% Decline in Net Income for Q2 Fiscal 2025

Nordson Corporation reported its financial results for the second quarter of fiscal 2025, revealing a revenue increase of 5% to $682.9 million compared to $650.6 million in the same period last year. For the first half of the fiscal year, revenue rose slightly by 1.1% to $1.298 billion from $1.284 billion. However, net income for the quarter decreased by 4.9% to $112.4 million, or $1.97 per diluted share, down from $118.2 million, or $2.05 per diluted share, in the prior year. For the six-month period, net income fell by 9.1% to $207.1 million, or $3.62 per diluted share, compared to $227.8 million, or $3.95 per diluted share, in the same timeframe last year.

The company's operating profit for the second quarter was $168.8 million, a marginal increase from $168.6 million in the previous year. However, the operating margin decreased to 24.7% from 25.9% due to increased costs, particularly in selling and administrative expenses, which rose by 4% to $205.2 million. The cost of sales also increased by 8.5% to $309.0 million, contributing to a decline in gross margin percentage from 56.2% to 54.7%. The increase in interest expense, which rose by 32.1% to $26.6 million, was attributed to higher average debt levels resulting from acquisitions.

Strategically, Nordson completed the acquisition of Atrion Corporation in August 2024, enhancing its Medical and Fluid Solutions segment. This acquisition contributed to a 30% increase in sales for the MFS segment, which reported $202.8 million in revenue for the quarter. However, the Industrial Precision Solutions segment experienced a 6.9% decline in organic sales, primarily due to weaker demand in polymer processing and industrial coatings. The Advanced Technology Solutions segment saw an 18.1% increase in organic sales, driven by strong demand in semiconductor and electronics markets.

Geographically, sales in the Americas decreased by 0.7% to $292.5 million, while Europe saw a decline of 5.3% to $172.5 million. In contrast, the Asia Pacific region reported a significant increase of 25.2% to $218.0 million, reflecting strong growth in that market. As of April 30, 2025, Nordson employed approximately 7,800 people globally, maintaining a stable workforce compared to previous periods.

Looking ahead, Nordson remains focused on leveraging its recent acquisitions and optimizing its operations to drive growth. The company anticipates continued challenges in the market, particularly in the MFS segment due to ongoing destocking trends. However, it expects to benefit from its strategic initiatives and the integration of Atrion, positioning itself for potential growth in the coming quarters.