Q3 FY2026
Filed Aug 19, 2026Nordson Corporation Reports Record Third Quarter Fiscal 2026 Results and Increases Full Year Guidance
Record quarterly sales, GAAP and adjusted diluted EPS, and EBITDA were accompanied by 10.3% total sales growth, 11.7% organic sales growth, growth in all three segments, backlog up 35% compared with the prior year, and increased full-year sales and adjusted EPS guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| SalesGAAP | $817.667 million | – | 10.3% |
| Organic sales growthother | 11.7% | – | – |
| Acquisitions / divestitures sales impactother | (1.2)% | – | – |
| Currency sales impactother | (0.2)% | – | – |
| Gross profitGAAP | $453.732 million | – | – |
| Gross marginGAAP | 55.5% | – | – |
| Selling and administrative expensesGAAP | $230.640 million | – | – |
| Operating profitGAAP | $223.092 million | – | – |
| Net incomeGAAP | $152.846 million | – | – |
| Diluted earnings per shareGAAP | $2.73 | – | 23% |
| Adjusted net incomenon-GAAP | $182.210 million | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $3.25 | – | 19% |
| EBITDAnon-GAAP | $262.483 million, or 32% of sales | – | 10% |
| Total sales, nine months ended July 31GAAP | $2,227.975 million | – | 9.2% |
| Net income, nine months ended July 31GAAP | $403.544 million | – | – |
| Diluted earnings per share, nine months ended July 31GAAP | $7.20 | – | – |
| Adjusted diluted earnings per share, nine months ended July 31non-GAAP | $8.48 | – | – |
| EBITDA, nine months ended July 31non-GAAP | $700.660 million, or 31% of sales | – | – |
| Free cash flow, year to date July 31non-GAAP | $530.160 million | – | – |
| Free cash flow conversion, quarter to datenon-GAAP | 144% | – | – |
| Cash and cash equivalentsGAAP | $113.431 million | – | – |
| Short-term debt and current maturities of long-term debtGAAP | $202.000 million | – | – |
| Long-term debtGAAP | $1,529.005 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Industrial Precision SolutionsOrganic sales increased 3.3%, acquisitions contributed 0.9%, and currency translation contributed 0.5%. Organic growth reflected strength in packaging, industrial coatings, polymer processing and nonwovens product lines. EBITDA was $129.900 million, or 35% of sales, compared with $130.130 million, or 37% of sales. | $367.249 million | – | 4.7% |
| Medical and Fluid SolutionsOrganic sales increased 10.6%, partly offset by a (5.6)% acquisitions / divestitures impact. Growth was driven by engineered fluid solutions and medical product lines related to end-market demand. EBITDA was $88.291 million, or 38% of sales, compared with $83.153 million, or 38% of sales. | $230.538 million | – | 5.0% |
| Advanced Technology SolutionsOrganic sales increased 30.9%, partly offset by (2.5)% unfavorable currency translation. Growth was driven by electronics dispense and test and inspection product lines. EBITDA was $65.695 million, or 30% of sales, compared with $41.546 million, or 24% of sales. | $219.880 million | – | 28.4% |
Full year fiscal 2026 outlook
- Revenue$3,035 to $3,075 million
- NoteAdjusted earnings: $11.80 to $12.00 per diluted share
Capital returns
- Dividends paid were $137.384 million for the nine months ended July 31, 2026, compared with $133.008 million for the nine months ended July 31, 2025.
- Purchase of treasury shares was $158.792 million for the nine months ended July 31, 2026, compared with $218.194 million for the nine months ended July 31, 2025.
- Issuance of common shares was $49.143 million for the nine months ended July 31, 2026, compared with $5.419 million for the nine months ended July 31, 2025.
What drove it
- Total sales growth comprised 11.7% organic growth, partially offset by a (1.2)% acquisitions / divestitures impact and a (0.2)% currency impact.
- Backlog was up 35% compared to the prior year, and management cited continuing momentum in end markets as evidenced by backlog and order entry.
- Asia Pacific sales increased 22.2%, including 24.1% organic growth; Americas sales increased 5.4%; and Europe sales increased 3.1%.
- Advanced Technology Solutions had 30.9% organic sales growth, driven by electronics dispense and test and inspection product lines.
- Industrial Precision Solutions and Medical and Fluid Solutions each reported demand-driven growth across their cited product lines.
Concerns
- Third-quarter GAAP earnings included a non-cash loss on minority investments. The reported adjustment was $14.892 million, with a $0.52 EPS effect for total adjustments.
- Medical and Fluid Solutions sales included a (5.6)% acquisitions / divestitures impact from the divestiture of the contract manufacturing business.
- Advanced Technology Solutions reported (2.5)% unfavorable currency translation, and total company sales had a (0.2)% currency impact.
- Industrial Precision Solutions EBITDA was $129.900 million, or 35% of sales, compared with $130.130 million, or 37% of sales in the prior-year quarter.
- The company identified risks including economic and political conditions, financial and market conditions, currency exchange rates, acquisitions and divestitures, trade policy and tariffs, tax-law changes, and events beyond its control.
What to watch
- Whether backlog and order-entry momentum support management's expectation that strong first-nine-month sales continue through the fourth quarter.
- Execution toward full-year sales guidance of $3,035 to $3,075 million and adjusted earnings guidance of $11.80 to $12.00 per diluted share.
- Sustainability of Advanced Technology Solutions growth in electronics dispense and test and inspection.
- Industrial Precision Solutions margin performance following its year-over-year EBITDA-margin change from 37% to 35%.
- The effects of divestiture and acquisition activity and currency translation on reported sales growth.
Balance sheet and cash flow
- Net cash provided by operating activities was $570.473 million for the nine months ended July 31, 2026, compared with $516.264 million in the prior-year period.
- Additions to property, plant and equipment were $40.313 million for the nine months ended July 31, 2026, compared with $49.002 million in the prior-year period.
- Free cash flow was $530.160 million year to date, compared with $467.262 million in the prior-year period. Quarter-to-date free cash flow was $236.752 million, versus $226.409 million in the prior-year quarter.
- Net repayment of debt was $258.025 million for the nine months ended July 31, 2026, compared with $94.664 million in the prior-year period.
- Cash and cash equivalents were $113.431 million at July 31, 2026, compared with $108.442 million at October 31, 2025.
- Total shareholders' equity was $3,269.059 million at July 31, 2026, compared with $3,043.571 million at October 31, 2025.
Analysis
Nordson reported a record fiscal third quarter, with sales of $817.667 million up 10.3% year over year and organic sales up 11.7%. All three operating segments grew, while acquisitions and divestitures reduced total sales growth by 1.2 percentage points and currency reduced it by 0.2 percentage points. Demand was broad-based in the company’s cited end markets, and backlog rose 35% compared with the prior year.
Profitability remained strong. Gross margin increased to 55.5% from 54.8%, operating profit was $223.092 million versus $187.767 million, and GAAP diluted EPS rose to a record $2.73 from $2.22. Adjusted diluted EPS was a record $3.25 versus $2.73, while EBITDA increased 10% to $262.483 million and remained 32% of sales. GAAP results included a non-cash loss on minority investments, and adjusted EPS excludes that item along with acquisition-related amortization and costs.
Advanced Technology Solutions was the principal growth and margin-expansion contributor. Sales rose 28.4%, including 30.9% organic growth, and EBITDA increased 58% to $65.695 million as its EBITDA margin rose to 30% from 24%. Medical and Fluid Solutions produced 10.6% organic growth excluding the contract-manufacturing divestiture and held EBITDA margin at 38%. Industrial Precision Solutions grew 4.7%, but its EBITDA was essentially unchanged and margin was 35% compared with 37% in the prior-year quarter.
Cash generation and balance-sheet actions were substantial over the first nine months. Operating cash flow was $570.473 million and free cash flow was $530.160 million, with quarter-to-date free cash flow of $236.752 million compared with $226.409 million in the prior-year quarter. The company repaid $258.025 million of debt, paid $137.384 million of dividends and purchased $158.792 million of treasury shares. Cash was $113.431 million at July 31, 2026, while short-term debt and long-term debt were lower than at October 31, 2025.
Management increased full-year fiscal 2026 guidance to sales of $3,035 to $3,075 million and adjusted earnings of $11.80 to $12.00 per diluted share. The outlook is explicitly based on backlog and order-entry momentum and management’s expectation that first-nine-month sales strength will continue through the fourth quarter. The key operating figures to monitor are the conversion of the 35% backlog increase into fourth-quarter revenue, continued electronics-related strength in Advanced Technology Solutions, and Industrial Precision Solutions margin performance.
Management, verbatim
The strong momentum of the first half continued through the third quarter, delivering results above the high-end of our most recent earnings guidance.
Sundaram Nagarajan, President and Chief Executive Officer
Based on backlog and order entry momentum, we expect the strong sales of the first nine months to continue through the fourth quarter.
Sundaram Nagarajan, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-quarter outlook was not provided; therefore, no comparison of actual results with prior guidance is available.
- Fourth-quarter fiscal 2026 standalone revenue and earnings guidance were not provided.
- Full-year fiscal 2026 gross-margin, operating-expense, tax-rate, cash-flow and capital-expenditure guidance were not provided.
- Third-quarter operating cash flow was not separately reported.
- Third-quarter tax rate was not reported.
- Quarter-over-quarter comparisons for revenue, segments, gross margin, operating profit, net income, EPS and EBITDA were not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.