Nordson Corp (NASDAQ:NDSN) stock rose 5.80% (As on August 21, 11:26:53 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY25. The third quarter adjusted net income was $155 million versus prior year adjusted net income of $138 million. EBITDA in the third quarter was $239 million, or 32% of sales, an increase of 15% compared to prior year EBITDA of $208 million, or 31% of sales. Backlog is down approximately 5% sequentially following a strong third quarter. Additionally, free cash flow conversion was of 180% of net income. The company has approved a new $500 million share repurchase authorization.
Moreover, Industrial Precision Solutions sales of $351 million increased 1% from the prior year, inclusive of an organic sales decrease of 2% and favorable currency translation of 3%. The organic sales decrease was driven by weaker systems demand in polymer processing offsetting growth in most other product lines. Medical and Fluid Solutions sales of $219 million increased 32% compared to the prior year third quarter, inclusive of an acquisition impact of 31% and a favorable currency impact of 1%. Organic sales were flat inclusive of the contract manufacturing business that is held for sale. Advanced Technology Solutions sales of $171 million increased 17% compared to the prior year third quarter, inclusive of an organic sales increase of 15% and favorable currency translation of 3%. The organic sales increase compared to prior year was driven by robust growth in electronics dispense product lines. In this final full quarter of Atrion’s first year acquisition performance, the new employees again exceeded expectations and contributed to both sales and earnings results.
NDSN in the third quarter of FY25 has reported the adjusted earnings per share of $2.73, beating the analysts’ estimates for the adjusted earnings per share of $2.63. The company had reported the adjusted revenue growth of 12 percent to $742 million in the third quarter of FY25, beating the analysts’ estimates for revenue of $722.57 million. The third quarter 2025 sales included a favorable acquisition impact of 8%, an organic sales increase of 2% and a favorable currency translation impact of 2%.
Fiscal full year sales are now tracking slightly below the mid-point and full year adjusted earnings per share are now tracking slightly above the mid-point of the original guidance.