Nordson Corp (NASDAQ:NDSN) stock fell 0.08% (As on December 11, 11:30:38 AM UTC-4, Source: Google Finance) after the company reported fourth quarter adjusted earnings that exceeded analyst expectations and provided a solid outlook for fiscal 2026. The company’s Medical and Fluid Solutions segment was a standout performer, with sales increasing 10% YoY to $220 million, driven by growth across all product lines. EBITDA margin for this segment improved significantly to 40% from 36% in the prior year. The company achieved record EBITDA of $900 million for the full fiscal year 2025, representing 32% of sales, and generated record free cash flow of $661 million, a conversion rate of 136% of net income. Adjusted net income was $171 million, up from prior year adjusted net income of $160 million.

Moreover, Industrial Precision Solutions sales of $362 million decreased 2% compared to the prior year fourth quarter, driven by a 4% organic sales decrease and a favorable currency impact of 2%. The organic sales decrease was driven by double-digit weakness in polymer processing systems. Advanced Technology Solutions sales of $171 million decreased 4% compared to the prior year fourth quarter, driven by an organic sales decrease of 5% and a favorable currency impact of 1%. Ongoing sales strength in electronics dispense systems was more than offset by fewer deliveries of test and inspection systems, particularly x-ray systems.

NDSN in the fourth quarter of FY25 has reported the adjusted earnings per share of $3.03, beating the analysts’ estimates for the adjusted earnings per share of $2.93. The company had reported the adjusted revenue growth of 1 percent to $752 million in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $761.06 million. The company’s quarterly performance was driven by strong operational execution despite mixed end-market conditions. EBITDA in the fourth quarter was $256 million, or 34% of sales, an increase of 6% compared to prior year EBITDA of $241 million, or 32% of sales.

For fiscal 2026, Nordson forecasts sales between $2.83 billion and $2.95 billion, with the midpoint of $2.89 billion aligning closely with analyst expectations of $2.92 billion. The company projects adjusted earnings of $10.80 to $11.50 per share, with the midpoint of $11.15 slightly above the consensus of $11.09.

Nordson enters fiscal 2026 with approximately $600 million in backlog, up 5% from the prior year end, excluding backlog associated with divested businesses. For the first quarter of fiscal 2026, the company expects revenue between $630 million and $670 million and adjusted earnings between $2.25 and $2.45 per share.