Nordson Corporation Q1 FY2026 earnings call

• Entered 2026 optimistic about end market demand trends, achieved record first quarter sales of $669 million, 9% increase y-o-y with 7% organic growth. • Organic growth broad-based across segments, notable strength in ATS due to semiconductor end market momentum. • Solid execution and volume leverage drove strong profit performance, EBITDA up 8%, adjusted earnings per share up 15%. • Free cash flow $123 million, cash flow conversion over 100% of net income. • Strategically deployed cash for share repurchase, dividends, debt management, and investment. • End markets playing out as expected, with IPS investments sustaining, medical end markets returning to normalized growth, ATS dispense and surface treatment product lines driving growth. • Team did outstanding job maintaining SG&A in ATS guided by NBS Next growth framework

Industrial Precision Solutions: Sales of $327 million, up 9% y-o-y, organic sales up 3% with 6% favorable currency impact, EBITDA $110 million (34% of sales, down 2% y-o-y). Medical and Fluid Solutions: Sales $193 million, relatively flat y-o-y, organic sales up 3% (4% negative impact from divested medical contract manufacturing business), EBITDA $70 million (36% of sales, up 9% y-o-y). Advanced Technology Solutions: Sales $149 million, up 23% y-o-y, organic sales up 21%, EBITDA $33 million (22% of sales, up 43% y-o-y)

• Second quarter fiscal 2026 sales range $710 million to $740 million, adjusted earnings per share range $2.70 to $2.90. • Full year sales expected range $2.860 billion to $2.980 billion (4.5% midpoint increase), adjusted earnings range $11 to $11.60 per diluted share (10% midpoint increase). • Top end of full year sales range assumes continued momentum from electronics end markets and modest improvement in industrial and automotive product lines; bottom end assumes some broader pullback in end market demand in second half

• Weather impact on medical production and supply chain in late January, estimated 1% impact on sales. • FX impact on IPS segment, with 6% positive FX impact contributing to lower incrementals. • Potential broader pullback in end market demand in second half affecting full year guidance

Q: Unpack margin dynamics around systems geographic mix and if mix will improve.

A: Dan Hopgood said no fundamental change in margin outlook, mix issue in quarter, things moving back to normal.

Q: Expand on slow start in medical excluding weather.

A: Dan Hopgood said incrementals strong, mid-single-digit outlook, Sundaram Nagarajan added supply chains stabilized, order entry momentum in fluid component business, healthy pipeline.

Q: ATS piece context, dispense, X-ray, T&I.

A: Sundaram Nagarajan said strong order entry, dispense strongest, X-ray starting to inflect, T&I in X-ray and AMI, feel good about ATS.

Q: IPS segment context.

A: Sundaram Nagarajan said returned to growth, 3% organic growth, investments in packaging and product assembly sustaining, Precision Ag growth, polymer processing and automotive stabilized.

Q: Medical weather impact granularity.

A: Daniel Hopgood said primarily interventional products and fluid components, about 1% impact, 3% growth would have been 4% without weather.

Q: M&A standpoint.

A: Sundaram Nagarajan said active pipeline, looking at expanding medical component portfolio, test and inspection opportunities, core technology in industrial, disciplined on multiples and criteria.

Q: ATS general electronics signs of life.

A: Daniel Hopgood said stable demand at low growth rates, early signs of capacity investments in lower level electronics.

Q: Emerging technologies in semi application space.

A: Sundaram Nagarajan said have products for optical modules, seeing orders related.

Q: FX incrementals across segments.

A: Daniel Hopgood said varies by segment, 25%-30% range for normal incremental, FX impact will lessen as year plays out.

Q: Full year guidance end markets outperforming.

A: Daniel Hopgood said medical stable, upside in general industrial and automotive, ATS continuing demand strength.

Q: DRAM pricing impact.

A: Sundaram Nagarajan said de minimis exposure, benefit from capacity adds.

Q: ATS test and inspection cycle.

A: Sundaram Nagarajan said X-ray slower to recover, automotive return to help.

Q: MFS margin comps.

A: Daniel Hopgood said margins sustainable in 37%-ish range, divestiture impact on year-over-year comparisons.

Q: ATS segment growth lumpiness.

A: Daniel Hopgood said not tied to Lunar New Year, tied to customer demand requirements.

Q: IPS segment Asia strength.

A: Sundaram Nagarajan said broad-based demand, stabilized businesses contributing.

Q: ATS AI demand impact.

A: Sundaram Nagarajan said balanced, higher than mid-single digit in up years