Nordson Corporation (NDSN)

In the past six months, Nordson's stock price has experienced some notable events. The stock dropped 27.9% by April 2025, partly due to softer quarterly results. However, the stock surged nearly 10% following a stellar Q2 2025 earnings report, fueled by strong growth in the medical and electronics segments. In Q2 2025, Nordson's non-GAAP EPS of $2.42 beat the $2.36 forecast, and revenue reached $683 million, surpassing expectations. The acquisition of Atrion Corporation in 2024 has been exceeding expectations. Nordson also declared a third-quarter cash dividend for fiscal year 2025, payable on July 3, 2025. In August 2024, the company hiked its dividend by 15% to 78 cents per share, marking its 61st consecutive year of dividend increase. Despite some headwinds, Nordson's diversified business structure and strength in optical sensors, measurement & control, nonwovens, packaging, and consumer non-durable product lines are aiding the company.

While specific detailed information on demand seasonality for Nordson's products and services is not extensively provided, some insights can be inferred. Nordson's business has meaningful exposure to stable consumer non-durable end markets and generates almost half of its revenue from recurring parts and consumables sales, which provides stability. However, the company is also exposed to cyclical markets such as electronics and automotive vehicles, meaning a slowdown in these end markets could directly affect profitability as demand for its products is sensitive to general economic conditions and global macroeconomic factors. Historically, Nordson's stock has shown a chance of a "green month" in July, suggesting some potential for seasonal patterns. The company's diversified business structure helps mitigate the adverse impact of weakness in one end market with strength across others.

Nordson Corporation is a global leader in precision technology, engineering, manufacturing, and marketing differentiated products and systems for precision dispensing, applying, and controlling various fluids, as well as for testing, inspecting, and surface treating. The company's technology-based systems are utilized in manufacturing facilities worldwide to produce a wide range of goods for consumer durable, consumer non-durable, medical, and technology end markets. Nordson operates within the industrial sector, specifically in the industrial machinery and components industry. Nordson's operations are organized into three key segments: Industrial Precision Solutions (IPS), Medical and Fluid Solutions, and Advanced Technology Solutions (ATS).

Nordson has a significant global footprint, with direct operations in more than 35 countries across North America, Europe, Asia-Pacific, and Latin America. The company maintains a network of manufacturing facilities, research and development centers, and customer support offices in over 30 countries. Its principal manufacturing facilities are located in the United States, China, Germany, Ireland, Israel, Mexico, the Netherlands, and the United Kingdom. Approximately 67% of Nordson's revenues were generated outside the United States in 2022. The company's global reach and diversified geographic presence help mitigate regional economic risks.

Nordson has built a worldwide reputation for creativity and expertise in designing and engineering high-technology application equipment that meets specific customer needs. The company creates value for its customers by developing solutions that increase uptime, enable faster line speeds, and reduce material consumption. Nordson's competitive advantages include high recurring revenue from consumables and aftermarket services, differentiated products with proprietary technologies, strategic acquisitions, and global reach. In the past year, Nordson published its 2024 Environmental, Social, and Governance (ESG) Update, highlighting progress in reducing its environmental footprint. The company also announced a move to bolster its medical technology business. Nordson's commitment to rewarding shareholders through dividends and share buybacks is also a positive aspect of its reputation, with 61 consecutive years of dividend increases.

Nordson Corp. is primarily owned by institutional shareholders, who hold 74.38% of the stock, while Nordson insiders own 28.10%, and retail investors hold 0.00%. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. The largest individual Nordson shareholder is Russell Leroy Bauknight, owning 13.39% of the company's shares.