Nordson (NDSN) Stock Forecast & Price Target

Nordson demonstrated a resilient financial performance, with total sales increasing 1% year-over-year to $752 million, and a notable 17.4% growth in its Advanced Technology Solutions segment. The company projects fiscal year 2026 sales between $2.83 billion and $2.95 billion, indicating an expected organic sales growth of approximately low to mid-single digits, while maintaining a strong backlog that improved by 5% year-over-year. Furthermore, Nordson's free cash flow conversion exceeded 100%, and with a net leverage ratio of 2.1x, the company has significant balance sheet flexibility to support its future strategies.

Nordson's financial outlook appears negative due to several key factors, including a net debt to TTM EBITDA ratio of 2.1x, indicating a consistent debt load that may raise concerns about financial stability. The Industrial Precision Solutions segment showed stagnant revenue growth of only 0.5% year-over-year, primarily hindered by a 2.0% organic decline in demand for polymer processing, contributing to a backlog decrease of approximately 5% sequentially. Additionally, the overall revenue fell short of expectations, highlighting challenges in organic sales growth despite some support from foreign exchange adjustments and acquisitions.