Thu, May 29, 6:08 PM (20 days ago)
**Nordson Corporation (NDSN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $682.9 million (Q1 2025) vs. $650.6 million (Q1 2024), a 5% increase. - **Operating Profit:** $168.8 million (Q1 2025) vs. $168.6 million (Q1 2024), a slight 0.1% increase. - **Net Income:** $112.4 million (Q1 2025) vs. $118.2 million (Q1 2024), a 4.9% decrease. - **Earnings per Share (EPS):** $1.97 (Q1 2025) vs. $2.05 (Q1 2024), a 3.9% decrease. - **Gross Margin:** 54.7% (Q1 2025) vs. 56.2% (Q1 2024), a 1.5% decrease. - **Operating Margin:** 24.7% (Q1 2025) vs. 25.9% (Q1 2024), a 1.2% decrease. **Segment Performance:** - **Industrial Precision Solutions (IPS):** Sales decreased by 6.9% organically due to weaker systems demand in polymer processing and industrial coatings. - **Medical and Fluid Solutions (MFS):** Sales decreased by 10.0% organically but saw inorganic growth due to the Atrion acquisition. - **Advanced Technology Solutions (ATS):** Sales increased by 18.1% organically driven by broad-based demand in semiconductor and electronics end markets. **Cash Flow:** - **Operating Cash Flow:** $278.3 million (H1 2025) vs. $294.9 million (H1 2024), an 8.4% decrease. - **Capital Expenditures:** $37.4 million (H1 2025) vs. $21.9 million (H1 2024), a 70.8% increase. - **Free Cash Flow:** $240.9 million (H1 2025) vs. $273.0 million (H1 2024), a 11.4% decrease. **Debt and Liquidity:** - **Total Debt:** $2.12 billion (Q1 2025) vs. $2.10 billion (Q4 2024). - **Cash and Cash Equivalents:** $130.2 million (Q1 2025) vs. $115.9 million (Q4 2024), a 12.4% increase. - **Credit Facility:** $1.15 billion, with $280.0 million outstanding on the term loan facility and $243.0 million on the revolving credit facility as of Q1 2025. **Future Outlook and Uncertainties:** - **Acquisitions:** The Atrion acquisition is expected to contribute to future growth in the MFS segment. - **Divestiture:** The company plans to divest select product lines within its medical contract manufacturing business, expected to close in Q4 2025. - **Trade Policies:** Changes in trade policies, tariffs, and import/export regulations could negatively impact sales, margins, and profitability. - **Currency Fluctuations:** Unfavorable exchange rates impacted sales and operating results. **Future Operations Impact:** - **Growth Strategy:** Nordson aims to leverage its scalable growth framework to deliver top-tier growth with leading margins and returns. - **Operational Efficiency:** The company continues to focus on strategic cost and manufacturing optimization actions to improve operational efficiency. - **Innovation:** Nordson's focus on innovation and application expertise is expected to drive future growth and market leadership.