Sector: Industrials|Industry: Specialty Industrial Machinery|Market Cap: $11.92B|Employees: 7.9K
Nordson Corporation is a precision technology company that engineers, manufactures, and markets differentiated products and systems for dispensing, applying, and controlling adhesives, coatings, polymers, sealants, and other fluids. The company serves a wide variety of consumer non-durable, consumer durable, and technology end markets, with a global presence across more than 35 countries and approximately 66% of revenues generated outside the United States. Nordson leverages a scalable growth framework to deliver top tier growth with leading margins and returns.
The company reported a 2.3% increase in sales, reaching $2.69 billion, but organic sales declined by 2.5%. This growth was primarily fueled by acquisitions, notably Atrion, indicating a reliance on inorganic growth strategies to boost revenue.
Gross margin increased to 55.2% from 54.2%, a positive sign, but selling and administrative expenses rose by 7.9%, impacting overall profitability. This suggests that while the company is managing production costs effectively, overhead expenses are growing faster than revenues.
Net income decreased by 4.1% to $467.3 million, primarily due to a significant increase in interest expense, which rose by 49.4%. This indicates that the company's profitability is being negatively affected by increased borrowing costs, likely related to financing acquisitions.