Nordson Corporation (NDSN): history, ownership, mission, how it works & makes money

A Brief History of Nordson Corporation

Founded in 1954, Nordson Corporation has established itself as a leader in precision technology solutions. The company specializes in the design and manufacture of equipment used for dispensing, applying, and controlling precision materials. Over the decades, Nordson has expanded its operations globally, with a significant focus on innovation and customer service.

Acquisitions and Growth

Nordson's growth strategy has heavily relied on acquisitions. In 2022, the company acquired CyberOptics Corporation for approximately $400 million, further enhancing its capabilities in the advanced technology solutions segment. This acquisition contributed to a notable increase in revenue streams.

Financial Performance (2024)

For the nine months ending July 31, 2024, Nordson reported total sales of $1.95 billion, reflecting a 1.9% increase from $1.91 billion in the same period of 2023. The increase was attributed to a 4.5% contribution from acquisitions, though organic sales decreased by 2.2% and currency translation had an unfavorable impact of 0.4%.

Segment Performance

The company operates through three main segments: Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions. For the nine months ended July 31, 2024, the performance of each segment was as follows:

• Industrial Precision Solutions: Sales increased to $1.09 billion, up 10.8% from $985.6 million in the prior year.
• Medical and Fluid Solutions: Sales were $495.2 million, a slight increase of 0.7% from $491.7 million.
• Advanced Technology Solutions: Sales decreased to $358.1 million, down 17.1% from $432 million due to organic sales decreases and unfavorable currency effects.

Stock Performance and Dividends

Nordson Corporation has consistently provided value to its shareholders through dividends. As of July 31, 2024, the company declared dividends of $0.68 per share, reflecting a commitment to returning capital to shareholders while investing in growth opportunities.

The stock performance also reflects the company's resilience, with a closing price of approximately $166.21 as of July 31, 2024. This represents a stable position in a fluctuating market environment.

Future Outlook

Looking ahead, Nordson plans to continue focusing on innovation, operational efficiency, and strategic acquisitions to enhance its market position. The company is well-positioned to leverage its strengths in precision technology to drive future growth.

A Who Owns Nordson Corporation (NDSN)

Major Shareholders

As of 2024, the ownership structure of Nordson Corporation (NDSN) is characterized by a mix of institutional and individual shareholders. The largest shareholders include:

Institutional Ownership

The institutional ownership of Nordson Corporation is significant, accounting for approximately 60% of the total shares outstanding. Key institutional investors include:

Executive Ownership

As of 2024, the executive team and board members hold a combined total of approximately 2.3% of Nordson's shares, reflecting strong alignment with shareholder interests:

Recent Changes in Ownership

In 2024, there have been notable changes in ownership due to share repurchase programs and institutional rebalancing:

Dividend Information

Nordson Corporation has a consistent dividend policy, with the following recent declarations:

Nordson Corporation (NDSN) Mission Statement

Nordson Corporation's mission statement emphasizes its commitment to delivering innovative solutions that enhance the quality of life and improve the productivity of its customers. The company aims to achieve growth by focusing on precision dispensing, fluid management, and advanced technology solutions across diverse markets globally.

Core Values

• Integrity: Conducting business with transparency and honesty.
• Innovation: Committing to continuous improvement and cutting-edge technology.
• Customer Focus: Prioritizing customer needs and delivering exceptional service.
• Collaboration: Fostering teamwork to enhance creativity and efficiency.
• Sustainability: Promoting eco-friendly practices and solutions.

Financial Performance Overview

As of July 31, 2024, Nordson Corporation reported the following financial data:

Market Segments

Nordson operates through three primary segments:

• Industrial Precision Solutions: Focuses on dispensing and processing technology.
• Medical and Fluid Solutions: Provides fluid management solutions in medical and high-tech industries.
• Advanced Technology Solutions: Develops products for electronics end markets, including semiconductors and printed circuit boards.

Recent Acquisitions

In August 2023, Nordson completed the acquisition of ARAG for approximately €957,000, which was financed through borrowings under a term loan facility. The acquisition is expected to enhance Nordson's capabilities in the dispensing and processing technology market.

Employee and Global Presence

Nordson Corporation has approximately 7,700 employees and operates in over 35 countries. Its manufacturing facilities are strategically located in the United States, China, Germany, Ireland, Israel, Italy, Mexico, the Netherlands, and the United Kingdom.

Commitment to Sustainability

The company is dedicated to sustainable practices and developing eco-friendly products that minimize environmental impact while meeting customer needs.

Strategic Goals

• Enhance customer satisfaction through innovation and quality.
• Expand market share in existing and new markets.
• Leverage technology to drive operational efficiency.
• Maintain financial strength to support growth initiatives.

Nordson's mission is to provide innovative solutions that enhance productivity and quality, reflecting its commitment to excellence and customer service.

How Nordson Corporation (NDSN) Works

Company Overview

Nordson Corporation, incorporated in Ohio in 1954 and headquartered in Westlake, Ohio, operates in over 35 countries with approximately 7,700 employees. The company specializes in precision dispensing and processing technologies and serves diverse markets including industrial, medical, and electronics sectors.

Financial Performance

For the nine months ended July 31, 2024, Nordson reported worldwide sales of $1,945,439 thousand, reflecting a 1.9% increase from $1,909,319 thousand in the comparable period of 2023. The increase comprised a 4.5% contribution from acquisitions but was offset by a 2.2% decline in organic sales and a 0.4% adverse effect from currency translation.

Segment Performance

Nordson operates through three primary segments: Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions.

Industrial Precision Solutions

Sales for this segment were $1,092,099 thousand for the nine months ended July 31, 2024, up 10.8% from $985,610 thousand in the same period of 2023. This increase was driven by 2.5% organic growth and an 8.8% increase from acquisitions.

Medical and Fluid Solutions

Sales in this segment totaled $495,229 thousand, a slight increase of 0.7% compared to $491,683 thousand in the comparable period of 2023, primarily attributed to a 0.9% organic sales increase.

Advanced Technology Solutions

This segment reported sales of $358,111 thousand, reflecting a decrease of 17.1% from $432,026 thousand in the prior year, driven by a 16.6% organic sales decline.

Operating Expenses and Profitability

For the nine months ended July 31, 2024, cost of sales stood at $862,134 thousand, a marginal decrease from $868,007 thousand in the previous year. Gross profit margin improved to 55.7%, compared to 54.5% in 2023.

Income and Cash Flow

Net income for the nine months ended July 31, 2024 was $345,116 thousand, with cash provided by operating activities amounting to $459,812 thousand, down from $478,072 thousand in the previous year.

Debt and Equity Structure

As of July 31, 2024, long-term debt was reported at $410,144 thousand, down from $529,019 thousand at October 31, 2023. Total shareholders' equity increased to $2,853,757 thousand.

Market Position and Strategy

Nordson's strategy focuses on enhancing customer solutions globally through innovation and operational excellence. The company invests in R&D to develop advanced technologies and expand its product offerings.

How Nordson Corporation (NDSN) Makes Money

Operating Segments Overview

Nordson Corporation operates through three primary segments: Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions. Each segment contributes to the company's revenue through a diverse range of technologies and applications.

Industrial Precision Solutions

This segment generated sales of $1,092,099 thousand for the nine months ended July 31, 2024, representing an increase of 10.8% from $985,610 thousand in the comparable period of 2023. The growth was driven by an organic sales increase of 2.5% and an acquisition impact of 8.8%.

For the three months ended July 31, 2024, sales were $370,561 thousand, an increase of 9.6% compared to $338,257 thousand in the same period of 2023.

Operating profit for this segment was $344,305 thousand (31.5% of sales) for the nine months ended July 31, 2024, down from $329,439 thousand (33.4%) in 2023. The decline in margin was attributed to higher intangible asset amortization expenses related to acquisitions.

Medical and Fluid Solutions

This segment recorded sales of $495,229 thousand for the nine months ended July 31, 2024, a slight increase of 0.7% from $491,683 thousand in 2023. The organic sales increase was 0.9%, primarily in interventional solutions.

For the three months ended July 31, 2024, sales were $166,737 thousand, down 2.4% from $170,871 thousand in 2023.

Operating profit for this segment was $143,467 thousand (29.0% of sales) for the nine months ended July 31, 2024, compared to $141,326 thousand (28.7%) in 2023.

Advanced Technology Solutions

This segment experienced a decline in sales, recording $358,111 thousand for the nine months ended July 31, 2024, down 17.1% from $432,026 thousand in the same period of 2023. The decrease was driven by an organic sales decline of 16.6%.

For the three months ended July 31, 2024, sales were $124,306 thousand, a decrease of 10.9% from $139,549 thousand in 2023.

Operating profit for this segment was $60,767 thousand (17.0% of sales) for the nine months ended July 31, 2024, up from $70,136 thousand (16.2%) in 2023.

Geographic Sales Breakdown

Sales by geographic region for the nine months ended July 31, 2024 were as follows:

Overall Financial Performance

For the nine months ended July 31, 2024, Nordson Corporation reported total sales of $1,945,439 thousand, a 1.9% increase from $1,909,319 thousand in the same period of 2023. This was driven by a 4.5% increase due to acquisitions, partially offset by a 2.2% decrease in organic sales.

Net income for the nine months ended July 31, 2024, was $345,116 thousand, or $5.99 per diluted share, compared to $359,715 thousand, or $6.24 per diluted share in the same period of 2023.