Nordson Corporation (NDSN) is a leading force in the industrial manufacturing landscape, specializing in the design and distribution of innovative products and systems for dispensing, applying, and controlling adhesives, coatings, polymers, sealants, biomaterials, and other fluids. Headquartered in Westlake, Ohio, Nordson’s product line caters to a diverse range of industries, including single-use components for low-volume operations and sophisticated microprocessor-based automated systems for high-speed, high-volume production lines.
The company’s performance is fueled by robust momentum within its Industrial Precision Solutions segment, driven by growing demand for nonwoven product lines in both industrial and consumer non-durable end markets. This segment also benefits from the increasing need for packaged goods in food and beverage, personal care, and cosmetics markets.
Nordson’s commitment to expansion through strategic acquisitions further strengthens its position in the market. In the third quarter of fiscal 2024 (ended July 2024), acquisitions contributed a significant 4% boost to the company’s total revenues. In August 2024, Nordson completed the acquisition of Atrion Corporation, a move that expands its medical offerings in the infusion and cardiovascular therapies market. Atrion’s three core businesses – Halkey Roberts, Atrion Medical, and Quest Medical – are expected to bring substantial operational synergies to Nordson’s existing medical business expertise.
Nordson’s commitment to shareholder value is evident through its consistent dividend payments and share repurchases. In the first nine months of fiscal 2024, the company paid out $116.8 million in dividends, reflecting a 4.8% increase year-over-year. In the same period, it repurchased shares worth $34.1 million. In August 2024, Nordson increased its dividend by a significant 15% to 78 cents per share, marking its 61st consecutive year of dividend growth. In September 2022, the company’s board authorized an additional $500 million in share repurchases, supplementing the existing authorization.
Nordson’s commitment to growth, strategic acquisitions, and shareholder rewards makes it a compelling investment choice for those seeking a strong and reliable company with a track record of delivering value. Investors looking for other companies in the same space might consider Flowserve Corporation (FLS), Crane Company (CR), and Ferguson Enterprises Inc. (FERG), all of which currently carry a Zacks Rank of 2 (Buy).
