NORDSON CORP
For the period ended Jul 31, 2026. Filed Aug 20, 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.
Jul 31, 2026 · Filed Aug 20, 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 nine months ended July 31, 2026 and July 31, 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 July 31, 2026 and July 31, 2025 were as follows:
| Three Months Ended | |||
|---|---|---|---|
| (In thousands except for per-share amounts) | July 31, 2026 | July 31, 2025 | Change |
| Sales | $817,667 | $741,509 | 10.3% |
| Cost of sales | 363,935 | 334,992 | 8.6% |
| Gross margin | 453,732 | 406,517 | 11.6% |
| Gross margin % | 55.5% | 54.8% | 0.7% |
| Selling and administrative expenses | 230,640 | 206,539 | 11.7% |
| Divestiture and related charges | — | 12,211 | 100.0% |
| Operating profit | 223,092 | 187,767 | 18.8% |
| Interest expense - net | (20,359) | (25,698) | (20.8)% |
| Other expense - net | (16,794) | (2,945) | 470.3% |
| Income before income taxes | 185,939 | 159,124 | 16.9% |
| Income tax expense | 33,093 | 33,340 | (0.7)% |
| Net income | $152,846 | $125,784 | 21.5% |
Consolidated financial results for the nine months ended July 31, 2026 and July 31, 2025 were as follows:
| Nine Months Ended | |||
|---|---|---|---|
| (In thousands except for per-share amounts) | July 31, 2026 | July 31, 2025 | Change |
| Sales | $2,227,975 | $2,039,867 | 9.2% |
| Cost of sales | 1,004,044 | 923,550 | 8.7% |
| Gross margin | 1,223,931 | 1,116,317 | 9.6% |
| Gross margin % | 54.9% | 54.7% | 0.2% |
| Selling and administrative expenses | 637,231 | 606,642 | 5.0% |
| Divestiture and related charges | — | 12,211 | 100.0% |
| Operating profit | 586,700 | 497,464 | 17.9% |
| Interest expense - net | (64,680) | (77,335) | (16.4)% |
| Pension settlement charge | (24,049) | — | 100.0% |
| Other expense - net | (6,357) | (5,380) | 18.2% |
| Income before income taxes | 491,614 | 414,749 | 18.5% |
| Income tax expense | 88,070 | 81,909 | 7.5% |
| Net income | $403,544 | $332,840 | 21.2% |
Net Sales
Net sales for the IPS, MFS and ATS segments were as follows:
| Three Months Ended · Variance - Increase (Decrease) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Jul 31, 2026 | % of Total | Jul 31, 2025 | % of Total | Organic | Acquisitions / Divestitures | Currency | Total | |
| IPS | $367,249 | 44.9% | $350,784 | 47.3% | 3.3% | 0.9% | 0.5% | 4.7% |
| MFS | 230,538 | 28.2% | 219,465 | 29.6% | 10.6% | (5.6)% | —% | 5.0% |
| ATS | 219,880 | 26.9% | 171,260 | 23.1% | 30.9% | —% | (2.5)% | 28.4% |
| Total | $817,667 | $741,509 | 11.7% | (1.2)% | (0.2)% | 10.3% | ||
| Nine Months Ended · Variance - Increase (Decrease) | ||||||||
| Jul 31, 2026 | % of Total | Jul 31, 2025 | % of Total | Organic | Acquisitions / Divestitures | Currency | Total | |
| IPS | $1,044,576 | 46.9% | $970,079 | 47.6% | 3.8% | 0.6% | 3.3% | 7.7% |
| MFS | 636,571 | 28.6% | 615,883 | 30.2% | 7.1% | (4.6)% | 0.9% | 3.4% |
| ATS | 546,828 | 24.5% | 453,905 | 22.2% | 20.1% | —% | 0.4% | 20.5% |
| Total | $2,227,975 | $2,039,867 | 8.4% | (1.2)% | 2.0% | 9.2% | ||
Three Months Ended July 31, 2026
The IPS organic sales increase of 3.3 percent was driven by strength in packaging, industrial coatings, polymer processing and nonwovens product lines. MFS organic sales increased 10.6 percent which was driven by growth in engineered fluid solutions and medical product lines. The ATS organic sales increase of 30.9 percent was driven by strong growth in electronics dispense and test and inspection product lines.
Nine Months Ended July 31, 2026
The IPS organic sales increase of 3.8 percent was driven by growth in virtually all product lines with particular strength in industrial coating, precision agriculture and polymer processing product lines. MFS organic sales increased 7.1 percent driven by strong growth in engineered fluid solutions and modest growth in all other medical product lines. The ATS organic sales increase of 20.1 percent was driven by exceptional growth in electronics dispense and test and inspection product lines.
Net Sales by region were as follows:
| Three Months Ended · Variance - Increase (Decrease) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Jul 31, 2026 | % of Total | Jul 31, 2025 | % of Total | Organic | Acquisitions / Divestitures | Currency | Total | |
| Americas | $331,471 | 40.5% | $314,568 | 42.4% | 7.3% | (2.5)% | 0.6% | 5.4% |
| Europe | 192,432 | 23.5% | 186,620 | 25.2% | 3.2% | (0.3)% | 0.2% | 3.1% |
| Asia Pacific | 293,764 | 36.0% | 240,321 | 32.4% | 24.1% | (0.1)% | (1.8)% | 22.2% |
| Total | $817,667 | $741,509 | 11.7% | (1.2)% | (0.2)% | 10.3% | ||
| Nine Months Ended · Variance - Increase (Decrease) | ||||||||
| Jul 31, 2026 | % of Total | Jul 31, 2025 | % of Total | Organic | Acquisitions / Divestitures | Currency | Total | |
| Americas | $901,654 | 40.5% | $874,868 | 42.9% | 4.5% | (2.3)% | 0.9% | 3.1% |
| Europe | 569,351 | 25.6% | 526,878 | 25.8% | 3.1% | (0.2)% | 5.2% | 8.1% |
| Asia Pacific | 756,970 | 34.0% | 638,121 | 31.3% | 18.2% | (0.1)% | 0.5% | 18.6% |
| Total | $2,227,975 | $2,039,867 | 8.4% | (1.2)% | 2.0% | 9.2% | ||
Gross profit and Selling and administrative expenses
Gross margins were 55.5 percent and 54.8 percent for the three months ended July 31, 2026 and July 31, 2025, respectively. Gross margins were 54.9 percent and 54.7 percent for the nine months ended July 31, 2026 and July 31, 2025, respectively. Selling and administrative expenses increased for the three and nine months ended July 31, 2026 in support of higher sales and were up slightly as a percentage of sales for the third quarter but declined as a percentage of sales year to date.
Profit
Segment EBITDA for the IPS, MFS and ATS segments and a reconciliation to consolidated operating profit were as follows for the three and nine months ended July 31, 2026 and July 31, 2025, respectively:
| Three Months Ended | |||||
|---|---|---|---|---|---|
| Jul 31, 2026 | % of Sales | Jul 31, 2025 | % of Sales | % of Sales Change | |
| Industrial precision solutions | $129,900 | 35.4% | $130,130 | 37.1% | (1.7)% |
| Medical and fluid solutions | 88,291 | 38.3% | 83,153 | 37.9% | 0.4% |
| Advanced technology solutions | 65,695 | 29.9% | 41,546 | 24.3% | 5.6% |
| Total segment EBITDA | 283,886 | 34.7% | 254,829 | 34.4% | 0.3% |
| Inventory step-up amortization | (2,269) | — | |||
| Acquisition costs | (576) | (235) | |||
| Severance and other | — | (451) | |||
| Divestiture and related charges | — | (12,211) | |||
| Depreciation and amortization | (36,546) | (37,847) | |||
| Corporate expenses | (21,403) | (16,318) | |||
| Operating profit | $223,092 | $187,767 | |||
| Nine Months Ended | |||||
| Jul 31, 2026 | % of Sales | Jul 31, 2025 | % of Sales | % of Sales Change | |
| Industrial precision solutions | $363,789 | 34.8% | $356,453 | 36.7% | (1.9)% |
| Medical and fluid solutions | 237,690 | 37.3% | 224,023 | 36.4% | 0.9% |
| Advanced technology solutions | 146,622 | 26.8% | 103,833 | 22.9% | 3.9% |
| Total segment EBITDA | 748,101 | 33.6% | 684,309 | 33.5% | 0.1% |
| Inventory step-up amortization | (3,404) | (3,135) | |||
| Acquisition costs | (1,110) | (1,778) | |||
| Severance and other | — | (16,725) | |||
| Divestiture and related charges | — | (12,211) | |||
| Depreciation and amortization | (109,446) | (112,454) | |||
| Corporate expenses | (47,441) | (40,542) | |||
| Operating profit | 586,700 | 497,464 | |||
Three Months Ended July 31, 2026
Segment EBITDA for IPSdecreased 170 basis points despite higher sales due to continued investment in innovation and select near-term inflationary pressures. Segment EBITDA for MFSincreased 40 basis points on higher sales. Segment EBITDA for ATSincreased 560 basis points driven by robust sales growth and actions taken to improve operations and footprint in prior periods.
Consolidated operating profit increased in 2026 compared to 2025 principally due to the overall increase in segment EBITDA and absence of divestiture charges.
Nine Months Ended July 31, 2026
Segment EBITDA for IPSdecreased 190 basis points despite higher sales due to unfavorable product and geographic mix in the first quarter, continued investment in innovation and select near-term inflationary pressures. Segment EBITDA for MFSincreased 90 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 390 basis points driven by robust sales growth, controlled selling and administrative expenses and actions taken to improve operations and footprint in prior periods.
Consolidated operating profit increased in 2026 compared to 2025 principally due to the overall increase in segment EBITDA and the absence of severance costs and divestiture charges.
Interest expense and Other expenses
Interest expense for the three months ended July 31, 2026 was $20,823, compared to $26,258 in the comparable period of 2025. The decrease, compared to the prior year period, was primarily due to lower average debt levels enabled by our strong cash generation and a stable-to-declining rate environment. Other expense - net for the three months ended July 31, 2026 was expense of $16,794 compared to expense of $2,945 in the comparable period of 2025. Included in other expense - net for the three months ended July 31, 2026 were unrealized losses on minority investments of $14,892, pension and postretirement income of $984, and $2,023 of foreign currency losses. Included in other expense - net for the three months ended July 31, 2025 were pension and postretirement income of $1,008 and $3,041 in foreign currency losses.
Interest expense for the nine months ended July 31, 2026 was $65,896, compared to $79,389 in the comparable period of 2025. The decrease, compared to the prior year period, was primarily due to lower average debt levels enabled by our strong cash generation and a stable-to-declining rate environment. Other expense - net was $6,357 compared to expense of $5,380 in the comparable period of 2025. Included in other expense - net for the nine months ended July 31, 2026 were unrealized losses on minority investments of $2,481, pension and postretirement income of $2,906, and $6,702 of foreign currency losses. Included in other expense - net for the nine months ended July 31, 2025 were pension and postretirement income of $3,042 and $5,909 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 nine months ended July 31, 2026 as shown on the Condensed Consolidated Statements of Income.
Income Tax Expense
Income tax expense was $33,093, or 17.8% of pre-tax income, for the three months ended July 31, 2026, as compared to $33,340, or 21.0% of pre-tax income for the three months ended July 31, 2025. Income tax expense was $88,070, or 17.9% of pre-tax income, for the nine months ended July 31, 2026, as compared to $81,909, or 19.7% of pre-tax income for the nine months ended July 31, 2025.
Net Income
Net income was $152,846, or $2.73 per diluted share, for the three months ended July 31, 2026, compared to net income of $125,784, or $2.22 per diluted share, in the same period of 2025. This represented a 21.5 percent increase in net income and a 23.0 percent increase in diluted earnings per share. The increase of $0.51 per diluted share was primarily driven by higher operating profit, lower interest expense and the benefit of share repurchases, partially offset by a pension settlement charge and higher other expense.
Net income was $403,544, or $7.20 per diluted share, for the nine months ended July 31, 2026, compared to net income of $332,840, or $5.83 per diluted share, in the same period of 2025. This represented a 21.2 percent increase in net income and a 23.5 percent increase in diluted earnings per share. The increase of $1.37 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.
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