Nordson Posts Record Q3 Revenue and Profit on Semiconductor and Electronics Strength
The precision equipment maker reported $818 million in sales and $3.25 adjusted earnings per share, both all-time quarterly highs, as order backlog surged 35%.
Record Quarter Across Key Metrics
Nordson Corporation reported record third-quarter results on August 20, with sales reaching $818 million, a 10% increase from the prior year that included 12% organic growth across all three business segments (earnings call, 2026-08-20). Adjusted earnings per share hit an all-time high of $3.25, representing 19% year-over-year growth and exceeding the high end of guidance by $0.10.
"Order entry momentum continued to accelerate, driving backlog up 35% compared to the prior year," said President and CEO Sundaram Nagarajan, noting particular strength in Advanced Technology and Medical segments (earnings call, 2026-08-20).
The company's EBITDA reached a record $262 million, or 32% of sales, while free cash flow of $237 million translated to a 144% conversion rate on net income (earnings call, 2026-08-20).
Semiconductor Surge Powers Advanced Technology
The Advanced Technology Solutions segment delivered the strongest performance, posting record quarterly sales of $220 million—a 28% total increase and 31% organic growth compared to the prior year (earnings call, 2026-08-20). Growth came from both electronics dispense and test and inspection product lines, "reflecting the continued strength in semiconductor and broadening electronics end market demand," according to CFO Dan Hopgood (earnings call, 2026-08-20).
Segment EBITDA reached a record $66 million with margins expanding to 30% of sales, up from 24% in the prior year period, demonstrating significant operational leverage (earnings call, 2026-08-20).
Medical and Industrial Segments Post Solid Gains
Medical and Fluid Solutions achieved record quarterly sales of $231 million, with organic growth of approximately 11% driven by both engineered fluid solutions and medical product lines (earnings call, 2026-08-20). The segment posted record EBITDA of $88 million, or 38% of sales, up 6% year-over-year despite the impact of a previously divested contract manufacturing business.
Industrial Precision Solutions generated $367 million in sales, up 5% with 3% organic growth, as packaging, industrial coatings, and plastics processing demand continued to recover (earnings call, 2026-08-20). The segment maintained its 35% EBITDA margin while managing inflationary pressures.
Strong Balance Sheet Supports Capital Deployment
Nordson's leverage ratio improved to 1.7x with net debt of approximately $1.6 billion, providing "significant firepower to strategically deploy capital," Hopgood said (earnings call, 2026-08-20). Net interest expense decreased by over $5 million year-over-year, aided by deleveraging and the launch of a commercial paper program during the quarter.
Through nine months, the company has returned $137 million in dividends and repurchased $159 million in shares while investing $40 million in capital projects and completing the Capstan acquisition, all while reducing net debt (earnings call, 2026-08-20).
Outlook
For the first nine months of fiscal 2026, Nordson has grown revenue by 9% and adjusted earnings per share by 18% year-over-year. "Strong backlog, giving us confidence in the rest of the year," Nagarajan stated, noting the company is "well positioned to continue compounding profitable growth" as growth end markets continue to inflect (earnings call, 2026-08-20).
This article was generated by MarginX from the earnings call on 2026-08-20. It is not investment advice.