Nordson Corp Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Halloran - Robert W. Baird & Co Inc - Analyst : So first question is on the ATS segment, specifically the semi side. In the past, the higher growth areas have been driving the strength in that piece. Are you seeing any broadening out across the semiconductor applications yet? Or is it still concentrated in some of the areas, data center, wherever, AI, where you've seen strength traditionally? In other words, have you seen that broaden out to some of the more traditional electronic applications, auto, wherever else you want to talk to? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 1:30PM, NDSN.OQ - Q4 2025 Nordson Corp Earnings Call

Question: Michael Halloran - Robert W. Baird & Co Inc - Analyst : Okay. And then on the margin side of things, maybe just some help on trajectory into this year. Very robust margins, particularly MFS, this quarter. Is this the right zone to think about sequentially as we work through the year next year? Or are there any one-offs? In other words, are these the right margin levels to build off of, are these the representative margins to build off of adjusting for revenue levels as we work through '26?

Question: Matt Summerville - DA Davidson & Co - Analyst : Can you guys hear me okay?

Question: Matt Summerville - DA Davidson & Co - Analyst : Okay. Perfect. So can you put a little bit of a finer point on what you're seeing with respect to X-ray Inspection, in the sense that I would imagine if a lot of the semi-driven growth is being steered by AI, cloud, kind of the more technologically rich chip architectures. I would think the pull-through and almost more of a real-time pull-through on x-ray would be more pronounced maybe than what you're seeing. So can you kind of talk about why the two pieces of the business may be decoupled, whether you think that's sort of temporary?

Question: Matt Summerville - DA Davidson & Co - Analyst : And then just as a follow-up, with Atrion seemingly in a good spot, maybe just talk in a little bit more detail about M&A actionability from here on out at 2.1 times net leverage and whether or not at $250-ish wherever your stock is going to trade today, are you still a buyer in the open market?

Question: Christopher Glynn - Oppenheimer & Co Inc - Analyst : Okay. I was showing unmuted and then it prompted me to unmute again and again. Can you hear me?

Question: Christopher Glynn - Oppenheimer & Co Inc - Analyst : Okay. Great. I just want to drill back down into a little bit at the lower end. It sounded like what that contemplates is more the hypothetical versus anything you're seeing. But I wanted to understand how the dynamic of lumpiness of electronic processing systems orders might play into it. Does the idea of lumpiness get negated on a 12 year basis and fiscal '26 should fully participate in what you've often characterized as the beginning of a multiyear run for ATS?

Question: Christopher Glynn - Oppenheimer & Co Inc - Analyst : Yeah. Makes sense. And then just a last one on polymer processing. Obviously, you had an excellent fiscal '24 and pretty steep downturn in fiscal '25. You've said that is categorically behind you. Are there rumblings customer activity in polymer processing? And is that a factor that could push you nicely to the upside of the guidance range? I think last quarter on the call, it was referenced a couple of times about customer discussions in polymer processing having turned decidedly.

Question: Walter Liptak - Seaport Research Partners - Analyst : Naga, congratulations on the five years of NBS Next. And so I wanted to ask, as you look back, what do you think went best for you guys? And what was the toughest? And if I'm recalling, there was a little bit more of like a growth focus on your NBS Next. How do you feel about that now? And what should we be thinking about over the next five years?

Question: Walter Liptak - Seaport Research Partners - Analyst : Okay. Great. And on the profitability side, as you pointed out, the profits were good. What inning are we at now, do you think with that operational EBITDA part of NBS Next?

Question: Walter Liptak - Seaport Research Partners - Analyst : Okay. It does.