Nordson 2025 Q4 Earnings Strong Earnings Growth with 26.2% EPS Surge

Nordson (NDSN) reported fiscal 2025 Q4 earnings on Dec 10, 2025, delivering a 26.2% year-over-year increase in EPS to $2.70, surpassing analyst expectations. The company’s total revenue rose 1.0% to $751.82 million, while its guidance for Q1 2026 sales ($630–670 million) and adjusted EPS ($2.25–2.45) was slightly below consensus estimates.

Revenue

Nordson’s total revenue for Q4 2025 reached $751.82 million, driven by its Industrial Precision Solutions segment, which led with $361.71 million. The Medical and Fluid Solutions segment contributed $219.50 million, reflecting robust demand, while Advanced Technology Solutions added $170.60 million. The 1.0% year-over-year revenue growth was tempered by the divestiture of its medical contract manufacturing business.

Earnings/Net Income

The company’s EPS surged 26.2% to $2.70 in Q4 2025, with net income climbing 24.1% to $151.63 million. This marked continued earnings growth and underscored Nordson’s operational resilience, as it maintained profitability for over 20 consecutive years. The strong EPS performance highlights the company’s effective cost management and strategic focus on high-margin segments.

Price Action

Nordson’s stock edged up 0.81% during the latest trading day but declined 0.95% for the week. Month-to-date, the stock gained 1.59%, reflecting mixed short-term investor sentiment despite the earnings beat.

Post-Earnings Price Action Review

The strategy of buying Nordson shares following its Q4 2025 earnings report and holding for 30 days resulted in a -3.39% return, significantly underperforming the benchmark’s 67.96% gain. The excess return of -71.36% and a CAGR of -1.15% over three years indicate a portfolio decline, raising questions about the effectiveness of post-earnings trading strategies for the stock.

CEO Commentary

CEO Sundaram Nagarajan emphasized a “strong operational finish” to fiscal 2025, with adjusted EPS rising 9% year-over-year to $3.03. He highlighted record EBITDA margins, 128% free cash flow conversion, and disciplined capital allocation through share repurchases, dividends, and debt reduction. For fiscal 2026, Nagarajan expressed confidence in leveraging the “NBS Next growth framework” to achieve $2.8 billion in sales and $900 million in EBITDA, supported by a 5% higher backlog and macroeconomic resilience.

Guidance

Nordson projected fiscal 2026 sales of $2.83–2.95 billion and adjusted EPS of $10.80–11.50, with Q1 2026 guidance of $630–670 million in sales and $2.25–2.45 in adjusted EPS. The company aims to capitalize on its $600 million backlog and market trends, while prioritizing shareholder value through acquisitions, dividends, and debt management.

Additional News

1. Dividend Announcement: Nordson declared a $0.82 quarterly dividend, yielding ~1.4% annually.

2. Insider Sales: Executive officers sold 13,600 shares in the past 90 days, valued at $3.188 million, raising concerns about insider confidence.

3. Institutional Investor Activity: Large investors, including Danske Bank and CIBC, increased stakes in Nordson during Q3 2025, with Danske Bank’s position alone valued at $23.85 million.