NORDSON CORP
For the period ended Apr 30, 2026. Filed May 21, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 30, 2026 · Filed May 21, 2026
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Item 2. Results of Operations
Results of Operations
Below is a detailed comparison of our results of operations for the six months ended April 30, 2026 and April 30, 2025.
As used throughout this Quarterly Report on Form 10-Q, geographic regions include the Americas (United States, Canada, Mexico and Central and South America), Asia Pacific and Europe.
Consolidated Financial Results
Consolidated financial results for the three months ended April 30, 2026 and April 30, 2025 were as follows:
| Three Months Ended | |||
|---|---|---|---|
| (In thousands except for per-share amounts) | April 30, 2026 | April 30, 2025 | Change |
| Sales | $740,847 | $682,938 | 8.5% |
| Cost of sales | 336,770 | 309,034 | 9.0% |
| Gross margin | 404,077 | 373,904 | 8.1% |
| Gross margin % | 54.5% | 54.7% | (0.2)% |
| Selling and administrative expenses | 206,874 | 205,154 | 0.8% |
| Operating profit | 197,203 | 168,750 | 16.9% |
| Interest expense - net | (21,580) | (26,019) | (17.1)% |
| Pension settlement charge | (24,049) | — | 100.0% |
| Other income (expense) - net | (10,400) | (3,961) | 162.6% |
| Income before income taxes | 141,174 | 138,770 | 1.7% |
| Income tax expense | 23,858 | 26,366 | (9.5)% |
| Net income | $117,316 | $112,404 | 4.4% |
Consolidated financial results for the six months ended April 30, 2026 and April 30, 2025 were as follows:
| Six Months Ended | |||
|---|---|---|---|
| (In thousands except for per-share amounts) | April 30, 2026 | April 30, 2025 | Change |
| Sales | $1,410,308 | $1,298,358 | 8.6% |
| Cost of sales | 640,109 | 588,558 | 8.8% |
| Gross margin | 770,199 | 709,800 | 8.5% |
| Gross margin % | 54.6% | 54.7% | (0.1)% |
| Selling and administrative expenses | 406,591 | 400,103 | 1.6% |
| Operating profit | 363,608 | 309,697 | 17.4% |
| Interest expense - net | (44,321) | (51,637) | (14.2)% |
| Pension settlement charge | (24,049) | — | 100.0% |
| Other income (expense) - net | 10,437 | (2,435) | (528.6)% |
| Income before income taxes | 305,675 | 255,625 | 19.6% |
| Income tax expense | 54,977 | 48,569 | 13.2% |
| Net income | $250,698 | $207,056 | 21.1% |
Net Sales
Net sales for the IPS, MFS and ATS segments were as follows:
| Three Months Ended · Variance - Increase (Decrease) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Apr 30, 2026 | % of Total | Apr 30, 2025 | % of Total | Organic | Acquisitions / Divestitures | Currency | Total | |
| IPS | $350,466 | 47.3% | $318,847 | 46.7% | 5.0% | 0.8% | 4.1% | 9.9% |
| MFS | 212,850 | 28.7% | 202,809 | 29.7% | 7.8% | (3.9)% | 1.1% | 5.0% |
| ATS | 177,531 | 24.0% | 161,282 | 23.6% | 8.5% | —% | 1.6% | 10.1% |
| Total | $740,847 | $682,938 | 6.6% | (0.8)% | 2.7% | 8.5% | ||
| Six Months Ended · Variance - Increase (Decrease) | ||||||||
| Apr 30, 2026 | % of Total | Apr 30, 2025 | % of Total | Organic | Acquisitions / Divestitures | Currency | Total | |
| IPS | $677,327 | 48.0% | $619,295 | 47.7% | 4.1% | 0.4% | 4.9% | 9.4% |
| MFS | 406,033 | 28.8% | 396,418 | 30.5% | 5.3% | (4.2)% | 1.3% | 2.4% |
| ATS | 326,948 | 23.2% | 282,645 | 21.8% | 13.8% | —% | 1.9% | 15.7% |
| Total | $1,410,308 | $1,298,358 | 6.6% | (1.1)% | 3.1% | 8.6% | ||
Three Months Ended April 30, 2026
The IPS organic sales increase of 5.0 percent was driven by improving industrial coating and polymer processing systems demand, ongoing growth in precision agriculture end markets and stable demand in broader consumer and industrial end markets. MFS organic sales increased 7.8 percent due to growth in engineered fluid solutions and medical product lines. The ATS organic sales increase of 8.5 percent was driven by ongoing growth in electronics dispense systems.
Six Months Ended April 30, 2026
The IPS organic sales increase of 4.1 percent was driven by balanced growth across most product lines with particular strength in industrial coating, precision agriculture and polymer processing product lines. MFS organic sales increased 5.3 percent driven by strong growth in engineered fluid solutions and modest growth in all other medical product lines. The ATS organic sales increase of 13.8 percent was driven by exceptional growth in electronic dispense systems.
Net Sales by region were as follows:
| Three Months Ended · Variance - Increase (Decrease) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Apr 30, 2026 | % of Total | Apr 30, 2025 | % of Total | Organic | Acquisitions / Divestitures | Currency | Total | |
| Americas | $308,253 | 41.6% | $292,463 | 42.8% | 5.9% | (1.7)% | 1.2% | 5.4% |
| Europe | 194,459 | 26.2% | 172,496 | 25.3% | 6.4% | (0.3)% | 6.6% | 12.7% |
| Asia Pacific | 238,135 | 32.2% | 217,979 | 31.9% | 7.8% | (0.1)% | 1.5% | 9.2% |
| Total | $740,847 | $682,938 | 6.6% | (0.8)% | 2.7% | 8.5% | ||
| Six Months Ended · Variance - Increase (Decrease) | ||||||||
| Apr 30, 2026 | % of Total | Apr 30, 2025 | % of Total | Organic | Acquisitions / Divestitures | Currency | Total | |
| Americas | $570,183 | 40.4% | $560,300 | 43.2% | 2.9% | (2.2)% | 1.1% | 1.8% |
| Europe | 376,920 | 26.7% | 340,259 | 26.2% | 3.0% | (0.2)% | 8.0% | 10.8% |
| Asia Pacific | 463,205 | 32.8% | 397,799 | 30.6% | 14.8% | (0.1)% | 1.7% | 16.4% |
| Total | $1,410,308 | $1,298,358 | 6.6% | (1.1)% | 3.1% | 8.6% | ||
Gross profit and Selling and administrative expenses
Gross margins were 54.5 percent and 54.7 percent for the three months ended April 30, 2026 and April 30, 2025, respectively. Gross margins were 54.6 percent and 54.7 percent for the six months ended April 30, 2026 and April 30, 2025, respectively. Selling and administrative expenses increased for the three and six months ended April 30, 2026 in support of higher sales but declined as a percentage of sales.
Profit
Segment EBITDA for the IPS, MFS and ATS segments and a reconciliation to consolidated operating profit were as follows for the three and six months ended April 30, 2026 and April 30, 2025, respectively:
| Three Months Ended | |||||
|---|---|---|---|---|---|
| Apr 30, 2026 | % of Sales | Apr 30, 2025 | % of Sales | % of Sales Change | |
| Industrial precision solutions | $123,578 | 35.3% | $113,548 | 35.6% | (0.3)% |
| Medical and fluid solutions | 79,193 | 37.2% | 76,538 | 37.7% | (0.5)% |
| Advanced technology solutions | 48,327 | 27.2% | 39,516 | 24.5% | 2.7% |
| Total segment EBITDA | 251,098 | 33.9% | 229,602 | 33.6% | 0.3% |
| Inventory step-up amortization | (1,135) | — | |||
| Acquisition costs | (534) | (513) | |||
| Severance and other | — | (10,313) | |||
| Depreciation and amortization | (36,315) | (37,578) | |||
| Corporate expenses | (15,911) | (12,448) | |||
| Operating profit | $197,203 | $168,750 | |||
| Six Months Ended | |||||
| Apr 30, 2026 | % of Sales | Apr 30, 2025 | % of Sales | % of Sales Change | |
| Industrial precision solutions | $233,889 | 34.5% | $226,324 | 36.5% | (2.0)% |
| Medical and fluid solutions | 149,399 | 36.8% | 140,870 | 35.5% | 1.3% |
| Advanced technology solutions | 80,927 | 24.8% | 62,287 | 22.0% | 2.8% |
| Total segment EBITDA | 464,215 | 32.9% | 429,481 | 33.1% | (0.2)% |
| Inventory step-up amortization | (1,135) | (3,135) | |||
| Acquisition costs | (534) | (1,543) | |||
| Severance and other | — | (16,274) | |||
| Depreciation and amortization | (72,900) | (74,608) | |||
| Corporate expenses | (26,038) | (24,224) | |||
| Operating profit | 363,608 | 309,697 | |||
Three Months Ended April 30, 2026
Segment EBITDA for IPS was relatively flat on higher sales. Segment EBITDA for MFSdecreased 50 basis points despite higher sales due to the impact of near-term product start-up headwinds. Segment EBITDA for ATSincreased 270 basis points driven by robust sales growth and controlled selling and administrative expenses.
Consolidated operating profit increased in 2026 compared to 2025 due to the overall increase in segment EBITDA and the absence of severance costs in 2026.
Six Months Ended April 30, 2026
Segment EBITDA for IPSdecreased 200 basis points despite higher sales due to unfavorable product and geographic mix in the first quarter. Segment EBITDA for MFSincreased 130 basis points due to higher sales and favorable mix from the divestiture of the contract manufacturing business, partially offset by the impact of near-term product start-up headwinds. Segment EBITDA for ATSincreased 280 basis points driven by robust sales growth and controlled selling and administrative expenses.
Consolidated operating profit increased in 2026 compared to 2025 principally due to the overall increase in segment EBITDA and the absence of severance costs as well as lower acquisition and related inventory step-up amortization costs in 2026.
Interest expense and Other expenses
Interest expense for the three months ended April 30, 2026 was $21,942, compared to $26,572 in the comparable period of 2025. The decrease, compared to the prior year period, was primarily due to lower average debt levels and a stable-to-declining rate environment. Other income (expense) - net for the three months ended April 30, 2026 was expense of $10,400 compared to expense of $3,961 in the comparable period of 2025. Included in other income (expense) - net for the three months ended April 30, 2026 were unrealized losses on minority investments of $9,827, pension and postretirement income of $986, and $2,385 of foreign currency losses. Included in other income (expense) - net for the three months ended April 30, 2025 were pension and postretirement income of $1,019 and $3,199 in foreign currency losses.
Interest expense for the six months ended April 30, 2026 was $45,073, compared to $53,131 in the comparable period of 2025. The decrease, compared to the prior year period, was primarily due to lower average debt levels and a stable-to-declining rate environment. Other income (expense) - net was income of $10,437 compared to expense of $2,435 in the comparable period of 2025. Included in other income (expense) - net for the six months ended April 30, 2026 were unrealized gains on minority investments of $12,411, pension and postretirement income of $1,922, and $4,679 of foreign currency losses. Included in other income (expense) - net for the six months ended April 30, 2025 were pension and postretirement income of $2,035 and $2,868 in foreign currency losses.
During the second quarter of 2026, we completed a partial plan settlement transaction in regards to our U.S. pension plan in which plan assets amounting to $104,148 were used to purchase a group annuity contract from RGA. The settlement resulted in a loss of $24,049 for the three and six months ended April 30, 2026 as shown on the Condensed Consolidated Statements of Income.
Income Tax Expense
Income tax expense was $23,858, or 16.9% of pre-tax income, for the three months ended April 30, 2026, as compared to $26,366, or 19.0% of pre-tax income for the three months ended April 30, 2025. Income tax expense was $54,977, or 18.0% of pre-tax income, for the six months ended April 30, 2026, as compared to $48,569, or 19.0% of pre-tax income for the six months ended April 30, 2025.
Net Income
Net income was $117,316, or $2.09 per diluted share, for the three months ended April 30, 2026, compared to net income of $112,404, or $1.97 per diluted share, in the same period of 2025. This represented a 4.4 percent increase in net income and a 6.1 percent increase in diluted earnings per share. The increase of $0.12 per diluted share was primarily driven by higher operating profit, lower interest and tax expense and the benefit of share repurchases, partially offset by a pension settlement charge and higher other expense.
Net income was $250,698, or $4.47 per diluted share, for the six months ended April 30, 2026, compared to net income of $207,056, or $3.62 per diluted share, in the same period of 2025. This represented a 21.1 percent increase in net income and a 23.5 percent increase in diluted earnings per share. The increase of $0.85 per diluted share was primarily driven by higher operating profit, lower interest and tax expense, the benefit of share repurchases and higher other income, partially offset by a pension settlement charge.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.