Nordson Corporation

Ladies and gentlemen, thank you for joining us and welcome to the Nordson Corporation fourth quarter and fiscal year 2025 conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to unmute. I will now hand the conference over to Lara Mahoney. Please go ahead.

Thank you. Good morning. This is Laura Mahoney, Vice President of Investor Relations and Corporate Communications. I'm here with Sundaram Nagarajan, our President and Chief Executive Officer, and Dan Hopgood, Executive Vice President and Chief Financial Officer. We welcome you to our conference call today, Thursday, December 11, 2025, to report Nordson's fiscal year 2025 fourth quarter and full year results. You can find both our press release as well as our webcast slide presentation that we will refer to on today's call on our website at nordson.com forward slash investors. This conference call is being broadcast live on our investor website and will be available there for 30 days. During this conference call, we will make references to non-GAAP financial metrics. We've provided a reconciliation of these metrics to the most comparable gap metric in the press release issued yesterday. Before we begin, please refer to slide two of our presentation, where we will note that certain statements regarding our future performance that are made during this call may be forward-looking based upon Nordson's current expectations. These statements may involve a number of risks, uncertainties, and other factors as discussed in the company's filings with the Securities and Exchange Commission that could cause actual results to differ. Moving to today's agenda on slide three, NAGA will discuss fourth quarter and full year highlights. He will then turn the call over to Dan to review sales and earnings performance for the total company and the three business segments. Dan also will talk about the year-end balance sheet and cash flow. Naga will conclude with high-level commentary about our enterprise performance, including an update on the Ascend strategy, as well as our fiscal 2026 full year and first quarter guidance. We will then be happy to take your questions. With that, I'll turn to slide four and hand the call over to Nagas.

Good morning, everyone. Thank you for joining Norton's fiscal 2025 fourth quarter and full year conference call. I am pleased to share our solid fourth quarter results. Sales were up 1% over prior year, inclusive of the divest share of our medical contract manufacturing business that closed on September 2nd. Adjusted earnings per share grew 9% over the prior year, reaching the high end of our fourth quarter guidance. Notably, we achieved record EBITDA of $256 million, expanding EBITDA margin to 34% in the quarter. We also generated record cash flow of $194 million in the quarter, which is a conversion rate to the net income of 128%. This enabled us to continue repurchasing shares paying dividends, and further reducing debt. This is a strong operational result, and I want to thank the Nordstrand team for their ongoing commitment to delivering value to our customers and shareholders. As I turn to fiscal 2025 financial highlights on slide five, I want to reflect on the progress we have made since launching the Ascend strategy five years ago. In addition to Norton's legacy strengths of leadership positions in diversified niche and markets, high recurring parts revenues, a direct-to-customer model, and differentiated products built on deep knowledge of our customers' demanding applications, the Ascend strategy has added new capabilities, including the NBS Next growth framework and a division-led structure, which have empowered our teams to respond rapidly to changing market conditions. And certainly, we have navigated effectively through significant macroeconomic changes over the last five years. 2025 was no exception, and Nordsten delivered strong results in line with our initial guidance. We achieved record sales of 2.8 billion, up 4% from last year. Despite the macro disruptions, we delivered record adjusted earnings per share of $10.24, exceeding the midpoint of our initial full-year guidance. We maintained our average gross margins of 55% in an evolving tariff environment, demonstrating the value and differentiation we provide to our customers. Throughout fiscal 2025, we also continued to strengthen our portfolio. The integration of Atrion Medical has been a success and it contributed nicely to sales and EPS growth in the first year. We also strengthened our medical portfolio through the divestiture of our contract manufacturing business driving immediate improvement in our margins and increased focus on our remaining differentiated medical businesses. All of these actions delivered EBITDA of $900 million, achieving our 2025 Ascent Strategy goal. I would also like to highlight our full-year free cash flow conversion of 136% of net income. Our strong cash generation enabled us to repurchase about $300 million in shares, increase dividends for the 62nd consecutive year, and reduce our net debt, ending the year at a 2.1 times leverage ratio near the low end of our targeted range. I'll speak more to the enterprise performance in a few moments. But first, I'll turn the call over to Dan to provide more detailed perspective on our financial results for the fourth quarter and fiscal year 2025.