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    Nordson Corp (NDSN)

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    Business Description

    Nordson Corporation is an innovative precision technology company that engineers, manufactures, and markets differentiated products and systems used for precision dispensing, applying, and controlling adhesives, coatings, polymers, sealants, biomaterials, and other fluids . They also offer solutions for testing and inspecting quality, treating and curing surfaces, and various medical products such as catheters, cannulas, medical balloons, and medical tubing . The company operates in three primary segments: Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions .

    1. Industrial Precision Solutions - Delivers proprietary dispensing and processing technology to diverse end markets, including industrial, agricultural, consumer durables, and non-durables, with best-in-class profitability.
    2. Medical and Fluid Solutions - Provides fluid management solutions for medical and high-tech industrial markets, significantly expanding their addressable market through strategic acquisitions.
    3. Advanced Technology Solutions - Serves electronics end markets with products that integrate proprietary technologies for surface treatment, precise material dispensing, and test and inspection applications.

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Sundaram NagarajanPresident and Chief Executive OfficerAugust 1, 2019Sundaram Nagarajan has served as the President and CEO of Nordson Corporation since August 1, 2019. He previously had a 23-year career with Illinois Tool Works Inc., holding various executive roles, including Executive Vice President of the ITW Automotive OEM Segment from 2015. He is also a director of Wesco International .
    Stephen ShamrockVice President and Corporate Controller, Interim Chief Financial OfficerNovember 1, 2023Stephen Shamrock was appointed as Vice President and Corporate Controller, Interim CFO of Nordson Corporation effective November 1, 2023. Before joining Nordson in March 2022, he held positions at Wyandot Snacks, Inc. and Materion Corporation, and has experience from The Goodyear Tire & Rubber Company and KPMG, LLP .
    James E. DeVriesExecutive Vice President2012James E. DeVries has been serving as an Executive Vice President at Nordson Corporation since 2012. He has been with the company for over 38 years, working in various positions in engineering, operations, and division leadership, and played a key role in creating the NBS Next growth framework .
    Stephen P. LovassExecutive Vice President2017Stephen P. Lovass has been serving as an Executive Vice President at Nordson Corporation since 2017. He joined Nordson as a Corporate Vice President in November 2016 and was named Executive Vice President - Medical and Fluid Solutions effective August 1, 2022. Previously, he was President at Danaher Corporation .
    Jennifer McDonoughExecutive Vice President, General Counsel and SecretaryNovember 1, 2021Jennifer L. McDonough was named Executive Vice President, General Counsel and Secretary at Nordson Corporation effective November 1, 2021. She leads the company's global legal function and has over 20 years of experience advising companies on corporate initiatives. She previously worked at PPL Corporation and REX Energy Corporation .
    Joseph P. KelleyExecutive Vice President, Industrial Precision Solutions Segment LeaderNovember 1, 2023Joseph P. Kelley is the Executive Vice President and Industrial Precision Solutions segment leader at Nordson Corporation, effective November 1, 2023. He previously served as Executive Vice President and CFO since July 2020 and held roles at Materion Corporation, Avient Corporation, and Lincoln Electric .
    Sarah SiddiquiExecutive Vice President - Chief Human Resources OfficerFebruary 20, 2023Sarah Siddiqui was named Executive Vice President - Chief Human Resources Officer at Nordson Corporation, effective February 20, 2023. Before joining Nordson, she served as Vice President of HR at UTC Aerospace Systems and held other HR roles .
    Srinivas SubramanianExecutive Vice President - Advanced Technology SolutionsAugust 1, 2022Srinivas Subramanian was named Executive Vice President - Advanced Technology Solutions at Nordson Corporation effective August 1, 2022. He joined the company in 2006 and has held various roles of increasing responsibility .
    Annette ClaytonDirector, Member of the Audit CommitteeApril 1, 2024Annette Clayton serves as a Director at Nordson Corporation, starting April 1, 2024. She is also a member of the Audit Committee .
    Christopher MapesDirector, Member of the Audit CommitteeJanuary 16, 2024Christopher L. Mapes was appointed to the Board of Directors of Nordson Corporation effective January 16, 2024. He serves as a member of the Audit Committee and has over 35 years of experience in industrial manufacturing, previously serving as President and CEO of Lincoln Electric Holdings, Inc. .
    Daniel HopgoodExecutive Vice President, Chief Financial OfficerMay 20, 2024Daniel Hopgood joined Nordson Corporation as the Executive Vice President and CFO in May 2024. He has over 25 years of experience in various roles at large global industrial companies, including 12 years at Eaton Corporation .

    Questions to Ask Management

    1. Margins at Atrion have significantly declined since 2022. Beyond the general supply chain issues you've mentioned, can you provide specific actions you're taking to restore margins to Nordson levels, and what is your timeline for achieving this?

    2. Despite the year-over-year growth in your test and inspection products, particularly in optical and acoustic lines, the semiconductor cycle is known to be volatile. How sustainable is this growth, and what steps are you taking to mitigate potential future downturns in the semiconductor market?

    3. Your full-year EPS guidance remains unchanged at the midpoint despite the slightly dilutive impact of the Atrion acquisition in Q4. Given this, what other factors or business segments are offsetting this dilution, and how confident are you in achieving this guidance?

    4. With ARAG experiencing lower volumes due to a downturn in the agricultural market, what contingency plans do you have if this market doesn't recover as quickly as you anticipate, and how will prolonged weakness impact your overall growth strategy?

    5. Europe has shown weaker organic growth compared to other regions. What strategic initiatives are you implementing to address the challenges in the European market, and how do you plan to drive growth in this region amidst the current economic conditions?

    Share Repurchase Program

    Program DetailsProgram 1Program 2Program 3Program 4
    Approval DateDecember 2014 August 2015 August 2018 September 2022
    End Date/DurationNo expiration No expiration No expiration No expiration
    Total Additional Amount$300,000 $200,000 $500,000 $500,000
    Remaining Authorization Amount$0 $0 $23,798 $500,000
    DetailsTreasury shares Treasury shares Treasury shares Treasury shares

    Debt Maturity Schedule

    YearAmount Due (in $ millions)Debt TypeInterest Rate (%)% of Total Debt
    2025103.9 Senior Notes3.07 4.7% = (103.9 / 2,223.9) * 100
    2026330.0 Term Loan FacilityVariable (5.66) 14.8% = (330.0 / 2,223.9) * 100
    202710.0 Senior Notes3.13 0.4% = (10.0 / 2,223.9) * 100
    2028630.0 Revolving Credit Agreement & Notes5.60 28.3% = (630.0 / 2,223.9) * 100
    2029620.0 4.500% Notes4.50 27.9% = (620.0 / 2,223.9) * 100
    2033500.0 5.800% Notes5.80 22.5% = (500.0 / 2,223.9) * 100

    Auditor

    NameStart DateEnd DateReason for Change
    Ernst & Young LLP1956 PresentCurrent auditor

    Latest news

    Recent developments and announcements about NDSN.

    Financial Reporting

      Earnings Call

      ·
      Dec 12, 2024, 3:46 PM

      Nordson Corporation (NDSN) recently held its earnings call for the fiscal year 2024 fourth quarter and full year results. Here are the key points from the call:

      Financial Performance

      • Record Sales and EBITDA: Nordson reported record sales of $2.7 billion and record EBITDA of $849 million, which is 32% of sales. This performance is attributed to the company's growth framework, NBS Next, and its diversified business model .
      • Fourth Quarter Sales: Sales for the fourth quarter were $744 million, a 4% increase from the previous year, driven by acquisitions and favorable currency impacts, despite a 3% decline in organic sales .
      • Earnings Per Share: GAAP diluted earnings per share were $8.11, while adjusted diluted earnings per share were $9.73, reflecting a slight decrease due to higher interest costs from recent acquisitions .

      Management's Forward Guidance

      • Fiscal 2025 Outlook: Nordson anticipates sales growth of 2% to 7% above fiscal 2024 levels, with adjusted earnings per share expected to grow between neutral to 8% .
      • Conservative Approach: The company is entering 2025 with conservative expectations due to uncertainties in the global macro environment and customer spending hesitancy .

      Strategic Initiatives

      • Ascend Strategy and NBS Next: The Ascend strategy and NBS Next growth framework continue to drive profitable growth and operational efficiency. The company has strategically increased its mix of recurring revenue and expanded into high-growth markets like medical and electronics .
      • Atrion Acquisition: The acquisition of Atrion Medical is expected to be a significant growth driver, expanding Nordson's market in medical device components and contributing to recurring revenue streams .

      Market Conditions and Analyst Questions

      • Market Hesitancy: Analysts inquired about customer hesitancy, which management attributed to macroeconomic uncertainties and geopolitical factors. There is cautious optimism about potential recoveries in semiconductor and electronics markets .
      • Segment Performance: The Advanced Technology Solutions segment showed improvement with a 5% sales increase in the fourth quarter, driven by electronics and semiconductor markets .

      Analyst Interactions

      • Analysts questioned the impact of macroeconomic factors and the potential for market recovery. Management emphasized their conservative guidance and the strategic positioning of their business segments to handle market fluctuations .

      Overall, Nordson is cautiously optimistic about 2025, focusing on strategic growth initiatives and maintaining operational excellence amid uncertain market conditions.

      Earnings Report

      ·
      Dec 11, 2024, 10:11 PM

      Nordson Corporation has released its fourth quarter and fiscal year 2024 earnings results. For the fourth quarter, the company reported sales of $744 million, marking a 4% increase over the previous year. Earnings per diluted share were $2.12, while adjusted earnings per diluted share were $2.78. The integration of the Atrion Medical acquisition is progressing well, contributing positively to the quarter's results .

      For the full fiscal year 2024, Nordson achieved record sales of $2.7 billion, reflecting a 2% growth over the previous year's record sales. The earnings per diluted share for the year were $8.11, and EBITDA reached a record $849 million, up 4% from the prior year, representing 32% of sales. The adjusted earnings per diluted share for the year were $9.73 .

      Looking ahead, Nordson has provided guidance for fiscal 2025, forecasting sales between $2,750 to $2,870 million and adjusted earnings in the range of $9.70 to $10.50 per diluted share. The company enters fiscal 2025 with approximately $580 million in backlog and anticipates first-quarter sales between $615 to $655 million with adjusted earnings per diluted share ranging from $1.95 to $2.15 .

      Nordson's President and CEO, Sundaram Nagarajan, highlighted the company's strong performance in the Advanced Technology Solutions segment, driven by improving electronics demand and successful implementation of the NBS Next growth framework. The company remains cautious about the timing of end market recovery, particularly in electronics and agricultural product lines, due to the evolving global macro-environment .