Q3 2026 Nordson Corp Earnings Call Transcript
Key Points
- Record Q3 sales of $818 million, up 10% year-over-year with 12% organic growth, surpassing guidance.
- All three segments contributed to organic growth, with Advanced Technology Solutions achieving 31% organic growth and record EBITDA margins of 30%.
- Backlog increased 35% year-over-year, providing strong visibility into Q4 and beyond.
- Record adjusted EPS of $3.25, up 19% year-over-year, and record EBITDA of $262 million with a 32% margin.
- Strong free cash flow of $237 million with 144% conversion, enabling deleveraging to 1.7x and continued capital returns.
- Industrial Precision Solutions segment saw only 3% organic growth, with EBITDA margins flat year-over-year due to inflationary pressures.
- The company faces ongoing inflationary pressures from tariffs and geopolitical factors, requiring active mitigation.
- Medical and Fluid Solutions segment growth was partially offset by a 6% negative impact from the medical contract manufacturing divestiture.
- GAAP net income was impacted by a $15 million non-cash mark-to-market charge on minority investments, reducing reported EPS.
- Fourth-quarter incrementals are expected to be challenging year-over-year due to an outlier in the prior year's Q4 profitability.
Hello, everyone. Thank you for joining us, and welcome to the Nordson Corporation third-quarter fiscal year 2026 conference call. (Operator Instructions)
I will now hand the conference over to Matt Matejka of Nordson. Matt, please go ahead.
Thank you. Good morning. This is Matt Matejka, Senior Director of Investor Relations. I'm here with Sundaram Nagarajan, our President and Chief Executive Officer; and Dan Hopgood, Executive Vice President and Chief Financial Officer. We welcome you to our conference call today, Thursday, August 20, to report Nordson's fiscal 2026 third-quarter results.
You can find both our press release as well as our webcast slide presentation that we will refer to during today's call on our website at www.nordson.com/investors. This conference call is being broadcast live on our investor website and will be available there for 30 days.
During this conference call, we
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