NDSN - Earnings call 1 2024 | Nordson Corporation

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Operator

Good morning. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Nordson First Quarter Fiscal Year 2024 Conference Call. [Operator Instructions]. I would now like to turn the conference over to Lara Mahoney. begin. may you Lara,

Lara Mahoney

President, morning. Thursday, and Lara with Corporate and fiscal our quarter Shamrock, our Good We first Interim of you XXXX XX, welcome Sundaram Vice to Investor President to Vice Stephen and Relations Communications. call CEO; Controller This you. and Mahoney, CFO. today, is conference President Nagarajan, Corporate February Thank results. I'm Nordson's here report

will being slides refer our XX, both release well conference presentation press there on that will days. available webcast website XXXX. website conference we on Thursday, for during You www.nordson.com/investors. can find the There available call until investor be our to as as will call broadcast today's This our telephone be a our February of XX and at call live is replay

yesterday. During reconciliation comparable this provided metric press We've references conference the make most to issued will call, financial the GAAP to metrics. non-GAAP we of in metrics these a release

statements to our Before may other as that with please X number statements this differ. made our future in based Nordson's presentation of that note current call we certain during involve upon refer where are risks, be factors could performance filings we Exchange uncertainties the forward-looking regarding results begin, Slide the and company's Commission and materially to a discussed Securities that These actual expectations. may cause of

first quarter Moving to discuss Slide today's highlights. will on Naga agenda X,

about guidance. on sheet conclude performance. turn flow. enterprise for will XXXX will X will with then Steve and the to year business to and fiscal performance the balance full high-level He an share the quarter discuss a Naga will We and second earnings over cash the update commentary then also sales company the our Steve review call total and segments.

be We happy questions. your to then take will

turn over Naga. that, X call and the to Slide hand With I'll to

Sundaram Nagarajan

first near million the At which to guidance lines. outset, Good morning, First I'd Industrial weakness Quarter for in Call. the quarter XXXX recognize joining than growth first dedicated of who framework NBS results. Polymer product leverage everyone. fiscal Electronics in lines, the Nordson deliver Conference our Sales offset the Next you quarter This solid were Thank team like driven Nordson's our strong our $XXX continued was top performance Medical Processing Interventional, more Coatings by of and range. to product

costs top focus product addition, In in margins customers to mix. differentiated strong resulting incremental share addition on $X.XX. earnings in improved adjusted adjusting our This of led products, and simplifying and focus, to strategically per

EPS exceeded quarter. guidance for This our the

to million, like cash quarter Finally, of new of first a record. our highlight I'd flow XXX% quarter $XXX net free This first which income. was was

to also recognize of the performance to our sales would and which margin integration, our like steady ARAG quarter. I progress the in contributed EBITDA

precision to perspective as quarter. be speak few the more for agriculture and to a on over turn the to engagement Steve but call new energy results the first, continue our of technology the about market, minutes, financial enterprise I'll in the about well provide as excited and We end our employees. detailed I'll performance

Stephen Shamrock

million, by decrease Slide were cost with $XXX to of quarter year-over-year of through On first This you'll continue partially the organic everyone. from Consistent to a sales favorable #X, quarter the offset X%. offset quarters, of volume, X% price driven prior was million. morning benefit ARAG we primarily as partially good and by Naga, by was sales an decrease fiscal acquisition, first sales an inflation. organic pass to you, compared XXXX $XXX year's prior Thank see the X% increase

gross adjusted approximately year prior compared quarter million fiscal our step-up improvement for combination electronics first of profit, product $XXX As offset to $XXX the periods, million excluding Naga in weakness our both points strength in referenced, were reflects inventory in XXX Gross and nonrecurring of first industrial quarter. by margin ongoing factors. medical of basis totaled in a product amortization lines XXXX lines. in the This

NBS favorable With growth a our top we Next framework, products are focusing mix. product on driving

higher which also quarter, helped and sales had year-over-year the factory improvement. the efficiencies, part drive improved we During

the and Ascend strategy build as execute acquisition. the acquisitions, well acquisition-related of the increase is of $XXX EBITDA strategic by as periods metric. key gross as through EBITDA a a driven important we over million adjusted ARAG or As and million, EBITDA XX% year prior contribution cost scale sales, for controls in improved both items margins profitability from X% $XXX increasingly totaled

share. share, per nonrecurring XXXX. share, totaled amortization acquisition-related the income excluding of interest totaled of decreased Net our Looking a increased foreign higher debt expenses. increased prior continues in the million million rate losses the year. $X.XX. and for an costs year execution per year Adjusted tax with earnings is to with expenses rate rates. exchange quarter X% or our intangibles $XX successful at improvement related $XXX nonoperating Net amount per the interest net primarily for of compared lower $XX $X million in share XX% acquisition guidance effective million million of which Tax $X.XX demonstrate strategy. Ascend range levels prior increase associated to expense from line of the and Other and expense the in to adjusted This earnings the benefits $XX prior $X.XX quarter of was

Now quarters increased to X year increased upon segment. this build XX% the as well Precision first prior to fiscal business. ARAG processing let's and year growth industrial by our XX increased worth acquisition-related driven as continuing ARAG the Slide in quarter, to in growth. acquisition XX sales, base sales record first XXXX It's of an Organic of sales million. excluding for compared XX compared ARAG over million $XXX prior a coatings, XX% polymer the the the the X Industrial EBITDA, costs, to review performance. year EBITDA million of businesses. of highlighting primarily first quarter of XXXX of that of growth The prior quarter, first was in the quarter sales XX the EBITDA sales marks quarter of through increase $XXX and organic X% nonwovens sales to $XXX turn organic driven XX% Solutions year-over-year segment or EBITDA quarters the plus was this acquisition, of consecutive increase out by

see Slide Fluid On our solutions fluid you'll increased in and Medical product of product quarter first Medical Solutions softness Solutions quarter, another components offsetting of by Interventional sales the X, in year's medical line, fluid and to our prior $XXX compared double-digit lines. growth million driven X%

we XXXX. destocking, started to quarter, for a biopharma significant of year's was last the which During this headwind the anniversary in fiscal weakness segment

quarter XX% sales, which million increase an or year million First the is The EBITDA Medical the over a of Interventional of primarily prior factory of million XXXX is $XX margin the combination compared EBITDA organic of XX% $X due gains Solutions. XXX and quarter efficiency $XX of growth leveraging to with in point improvement or coupled in cost EBITDA basis sales. to was first of actions,

Turning X. to Slide

sales an see dispense markets. were prior in $XXX the serving The million, You'll to decrease end year semiconductor electronics by the decrease products quarter. Solutions compared Advanced segment, sales first XX% weakness driven primarily Technology across was

$XX million quarter the EBITDA or year of million, quarter prior was First trailed $XX EBITDA excluding sales, of which costs. acquisition-related XX% first

on decrease XX%. volume, our decremental to decremental ahead the EBITDA adjusted mix profit. tied of reduction overall approximately contributed to of cost is and the favorable operating actions target While reduction in margins was This in XX%

based the X.Xx and Slide leverage quarter, to $XXX a flow the we and on was on Finally, in trailing months sheet of turning had resulting end of balance of ratio net the XX At debt EBITDA. billion, cash X. cash first million $X.X the

a organic inorganic year. our quarter capacity improvement and continue We available $XX million, growth flow the strong and cash to to was pursue record million also flow from have significant want performance. $XXX I opportunities. to borrowing Free prior cash first highlight

of in As buying at a income, share. the average net the XXbX-X per quarter. of on price of $XXX percentage under repaid strong strategically flow approximately stock and in an share plan, million $X in $XXX back cash free debt, cash company XX,XXX dividends quarter. paid was our million We We deployed repurchases million of $XX XXX% spent shares the flow

for $XX to interest expense purposes million. $XX and million full of effective the XX%, rate of capital fiscal expenditures estimated year, an million XX% to of $XX approximately net to million modeling For assume tax $XX

another call back the I the for of efforts delivering all in turn now their Naga. team We'll quarter. turn I'll want strong Nordson to to thank and XX, Slide to

Sundaram Nagarajan

Steve. off Nordson is The to the Thanks, XXXX. fiscal getting team a start to good

stronger I precision travel our in in the market-leading As delivering the customer diversified business technology. to robust is model to close our of differentiated is markets have that impact privilege Nordson Ascend sustaining the witnessing operating and through Nordson of a performance. building positions end sites, strategy I

data, Using they of making on growth manifested new with should each growth simplify. core a crystal-clear Now division, as as how NBS our a Next entrepreneurial strength in are teams they has we the they in operate businesses. mindset, is prioritize where owner and must well an view have where profitable opportunities coupled choices become our

customization responsive new For to meet example, efforts They agile work times product be execution, automotive standard needs and them able worked needs. to battery more eliminate we're with lead its in complex shortening a and Industrial electric customer, the the changes our a and with configurations on drove standardize allowing product, top to customer with Coatings customer application. significant closely team the a to dynamic

or top products manufacturing months. and team on-time a Our performance for kanban-based This demand-based led their has Medical system delivery has improvement last Solutions to its implemented Interventional the products. manufacturing over identified their in significant X visual

when to in respond placed top delighting medical team was win team had a order this large The customers customer. dynamic device one the quickly, and our able demand big and serving of a changes

serves As and making of product on to decisions our are I call, gross our improves the margins. our focus teams mentioned customers beginning mix our well, top the the products at enhances

profitability simplification the competitive In our addition, NBS this to financial see on in Next a positively that results. our quarter. becoming cost for Nordson is steady their is how to deployment and impacting work in exciting contributed advantage resulted actions Nordson strategic across It

expected year. start of our markets are end performing at Our the fiscal as

is nondurable EBITDA and the margin performance the sales in Industrial and our and contributed ARAG consumer team end are steady, integration the well markets to quarter. going

Our Solutions double continued surgeries grow the digits aging product noninvasive population. trends lines to by Interventional and Medical buoyed in

fluid of entry product are have which [Indiscernible] headwind now pickup the fiscal components monitoring impact a lines, destocking that we biopharma negative XXXX. order closely. within seeing in We're modest the in We was

significant Our term. in guidance does not biopharma any short growth pickup expect

cycle weaker the demand Our semiconductor exposed first quarter. in as product the expected lines experienced to electronics

about cycle automotive and very Act electronic the opportunities remain next CHIPS positive driving electronics, We onshoring, more. the growth including AI,

realize year. fully the be benefits second now of of of closer see XXXX, we half expected the to we opportunities calendar may While end it the those in to

this plan we provide of progresses, adjustments. and job product includes focusing done the for to customer, are differentiated future testament seeing making investors our good the work. quarter operations ability better leaders the we growth with targets to year cost have what ATS very This implementing growth. this outperform Through the and market. of innovation to NBS positioning their As in to a a Next to strategic positioning visibility framework ATS' in decremental is themselves closer the on all

fiscal to backlog the trends, backlog. per and to year This X% diluted rest XXXX to quarter now businesses. the of in current historical on Slide Turning forecasted We on businesses, XXXX. of $XXX systems range the we growth X% with XX. second X% share. the entered full order to our in in patterns over in customer record fiscal have entry to growth year to our be our remains issued order approximately are returned entry earnings are concentrated X% while revenue Full Based narrowing previously outlook norms visibility million

FX of X% a from to impact continues contributing the This acquisition, guidance. approximately guidance full at the assume midpoint rates year ARAG neutral and growth

assumes have semiconductor While the lower low midpoint end in the begins electronics our now the recovery range fourth quarter markets of guidance, of we end the the XXXX. of fiscal of raised

forecasted the with quarter second in range $X.XX the sales of $X.XX $XXX million share. adjusted million, XXXX, fiscal per of $XXX diluted be in of are to For to earnings to the range

markets end Chinese and shutdown. quarter impact New of guidance the Second the electronics weaker considers Year

and record recently questions, X Before and to recognize I Electric retired In to open President of production from Board leadership for Lincoln additions focused January, wanted we performance and Earlier improvement CEO shareholder our experience through management. our energy Chris grew Schneider of Clayton call Directors. welcomed her Mapes, CEO Chairman our of we week, brings operating new Company. this Executive Schneider, President Holdings, and at Board April Dell and industrial is at operations demonstrated digital, of a a Chairwoman to Electric experience on A.O. well Smith the floor we X. announced director of Her The track of career, and value at to wealth Throughout America. Timken his supply Chris chain M&A global General former Board. operations, effective our and Chris appointment automation which Annette as creation. as and has a North career and Motors Technologies to leadership Annette global at

In direct and from Annette technology differentiated addition grow operations Chris strategy. continues and Both our and Nordson will to and bring value to to global proposition. the products experience, unique and has to of through We Directors. industry and our Nordson's forward as with Ascend insight scale familiarity that Board benefiting look their counsel value

continued our With customers, I take that, to want support. and As thank for always, will team pause and questions. shareholders, your your we Nordson the

Operator

Matt from of line the Davidson. from comes question first Your Summerville D.A. Instructions] [Operator

Matt Summerville

A couple questions. of

sort last Naga, what the kind to prompted push a will, has you if of in that of ATS First, since business, on call, -- transpired quarter. out the last you the

So in been the gives see materialize confidence we're talking and this semiconductor. similarly, that electronics you've inflection going something about what you year? that And to

Sundaram Nagarajan

Thank which we not had following inflection or had for shipments shipments of ATS is couple we The in But expected, entry, as the has of What having Matt. as the Yes. things. would the was order precursor tell sort we quarters. quarter expected. the A as order is weaker to hoped. you in in demand the entry picked up you,

hoped. is mind. may But the happened later of in that be to thinking add other that has this had what will important is to keep cycle our couple than what we really So I is really a quarter a in inflects things that

First comps and business. the foremost, year, of for get in the back half clearly, the much easier

to customers. note in note, And have shipments, some second the front-end we to business, of also a Order compared very shipments have early would the niche to semiconductor would it's is that up way expected I are for businesses UV lamps a thing very is is half. some which manufacturing I third part It then when year. you in where customer we nicely supply we see designated indicator. but entry beginning last good a small in thing backlog Second small customer the

same adhesive shipments. pickup the you where see think In electronic way, also business entry sell and if businesses our some order packaging we barrels, in about the we there,

conversations that for what has pipeline So tell of really you remain indicators. away. or I with robust. early finally, still customers couple a been shelved Nothing will opportunity And put is our projects with

could So the half strongly is in yet. order entry we business. have, has evidence not second turned about out but That this enough to feel probably the for takeaway how business you have plays

I'll maybe there. stop So

Matt Summerville

to remarks proper that in conclusion just ATS. so that your cycle And follow-up, segment, a to a or over. months that be in maybe fairly as inspection you roll broad and sounded test with across implying is last weakness the maybe It XX drawing Yes. sticking prepared Is the like seeing starting been the saw you've here? investment the

Sundaram Nagarajan

Yes.

growth past the the the of test cycle have business. our -- and inspection, robust last had some very we and in terms dispense In

you're really you experience seeing to comparisons that are in the is its business are test inspection cycle I and what does keep much What way. would difficult strong up to muted business. difference. a But and and has our cyclicality That So our some been with. tell through what is is also is compared it a go more yes, comps distinct dispense when that

Operator

comes of from Poliniak line Wells question next Your Allison Fargo. from the

Allison Poliniak-Cusic

terms was I that that here. structural returning that in dynamics kind to point competitive some high if some to wanted to Could in growth Just growth to of to that sort business segment. there we turn in talk even There's way. maybe little obviously the just that I single-digit limited headwinds to It's had just that going achieve any there? a are thoughts challenges guess expect any nothing you of with to of any forward? or and at MFS, you still maybe return cyclical

Sundaram Nagarajan

to returned is growth. own do or see about structural any we changes the has our your answer to landscape? MFS question Yes. no. in The And position

in that growing Interventional serves. you a essentially business, grow which some so entry had in components, growth to in biopharma order And decline this MFS end modest see significant markets single we look continue is is And significant not If business this right? decline, from beginning our fluid so have a it is this medical last business, to MFS other digits, put to that negative Medical double this high in digits. to year. is we from grow What But pickup exposure biopharma, but continues anniversary, last year right? what double are the you business expect And at digits. was

serve we applications, care, entry see pretty patient and there. we We serve order surgical good

you're you're is digits. find business have us beyond a is terms And to single so going in high broad time, what over Solutions that as you medical. seeing MFS what return diversified well, exposure has have to which in of Fluid And there the

electronics, a business bit some there. that and beginning we're is to pickup so also tied to And little see

Allison Poliniak-Cusic

Got it. there. pretty business in seem order as about to of And I say, would you're you in Or for demand a then seeing IPS, that that normalize patterns in terms talked well? terms I it starting products red consistent sort of flag? Anything does what of think

Sundaram Nagarajan

this business is entry pretty But Order for of remarkable look, XX growth. we've I growing steady, steady. IPS, good. XX pretty been in mean, quarters. out

is it and ARAG in polymer our our year. segment to X% good we What us this this system you line, growth is see business big is product contribute organic entry help then what we to is going that backlog What similar So And also that we in to our are patterns order year. will like that's product [pre-COVID] process through order essentially that by and mean normalize. entries is this coatings line that. get remember mean industrial to strong have

So really about we good IPS. feel

So you, you, Matt And ATS that year. growth. would the summarize fourth then steady, think from were we tell start if this the X the to quarter growth. from way to expecting I growth, I X% nice the IPS, are contributing in pretty one about to of to to it, we and MFS questions, returned ARAG will recover

sort together, at we in all terms line. about have that midpoint, the revenue growth X% you of is top the put if in of that So of what

Operator

Your Boroditsky next the line from from question Saree of comes Jefferies.

Saree Boroditsky

X below again build to book believe was this quarter. I

this you you So to positive? year? as when expect would levels exit this you about how backlog And think do turn

Sundaram Nagarajan

Yes.

at in in If as as historic our look is right? we about we still businesses than normal of had still $XXX you you by doesn't What in conversations, go we anymore. that anxiety the exist most that order backlog, any normalized returned run patterns, this have as our higher size So in million, release customer of to be might have ago, normally don't it that. million people for something entry and noted our concerned a like we level constraints, even $XXX quarters supply X will back $XXX a well about the patterns. where million, business, order Order would you have mean is to be

So I vast rates. order and entry are entry growth organic order on its historical businesses, based our of would majority say, gotten levels to a the has those

Stephen Shamrock

normalized for add, as about well year about consumed as year million environment. QX, And too, last about point we $XX the if we backlog, a transition maybe $XXX another more the consumed full think to Naga's just And to data we I comments. million. mean Saree, you I'd

pace, still on say, we're I'll normalized So that, so.

Saree Boroditsky

Okay.

I $XX the to the New it the million being Year you the of about a impact. in in past, So talked Chinese you've second know million $XX believe quarter. impact

the still shift right would the this way to So that about be year? for think

Stephen Shamrock

quarter we're right? impact. FX of here roughly growth quarter as the The contribute to I you, what a and the that million the imply we're Chinese X% sales I we guidance you timing what second Saree, again, which ARAG $XX think the $XX of about No, would we've is for second negative guidance organic got tell million gave we I'd really of And seeing. the Year, New because expecting Yes. and think if be would about gave still say, to at that, X%, midpoint, neutral. and growth X% the about That's

that's growth that, from that half you is think Chinese of organic If the Year. negative about New about coming

the -- they growth the effect and the on in not organic opposite QX look we is rates as right? bad on So had So as well, that. surface QX in a basis, as even based obviously, on quarter-to-quarter

Operator

of Your next the comes question Mike from Baird. line Halloran from

Michael Halloran

follow I double could not up numbers that can Maybe [Indiscernible], on comment the sequentially see the in first to that you digits, is right? double-digit about think my talk Just as I the in there. seasonality handsome this least year if last want that wasn't up at you level.

can the are you uptick other the making the help quarter. semiconductor at that more relative seasonality? sequential get So to steady maybe to words, fourth get recovery the I us third New then going In and significant quarter? kind this in of in a quarter? nothing that the Year third there's And Is the the the versus sizable of into to cadencing XQ back more shifting quarter uptick half back and I normal the half the you're second just get you out else [Indiscernible] year, help of year, Chinese sure you impact, that in on the when shifting then

Stephen Shamrock

perspective, with that as I'll quarter weakness second quarter. would in at particularly fourth in Yes, the segment, you expected down that right? about What with not the the right? as from pickup the half, an comps referenced second for perspective, the there, seeing, mean sure the easier earlier, I Naga end from weighing should second the That's think that if you're ATS I get you if the the ATS also well I So start again, in tell is from look quarter guide right? market, Mike, electronics perspective. what is

talk at to that's what So we think confidence least us from if quarter-to-quarter, with I seasonality that and there works ATS. gives about respect how

Michael Halloran

what And and what's compare an Just seeing, the on you've just more the impact you given ARAG basis? kind any within underlying Okay. are context you're of does about thinking more I'm organic expectations the on how trends trends that. And could side? thinking that that already there? the then talk of

Sundaram Nagarajan

Mike, on You right? ARAG, were that was breaking.

Michael Halloran

Yes, sir.

Sundaram Nagarajan

what comments, will hearing you questions broad -- of because a make had answer hopefully, completely. I ARAG, a the trouble On I I couple little

I your if team, product I technology, answer didn't their don't So up. all differentiation please categories great of questions, of -- margins, here. going gross well, to margins the Integration EBITDA contributed our the follow if and ownership sales great is resulting do the of very and all confirmed during business

pretty business, is that about the how that of So integrating. All view. well point from excited is

ARAG expect replacement many couple things -- remember also that We cycle nozzles to is of these are XX% aftermarket business. right? change businesses life the Approximately of revenue about A most that business, parts this to in There this So parts X%. no replacement. is contribute periodic undergo to like there. short more of need

reduce customers, their sell you drive and for people efficiency fluids to components about low-cost and chemicals, the this fertilizers critical material, tractors. not of mostly then they about point selling business remember it, If which we're usage to is, like tied right? And next think costly

folks that are are implements, used to are spray, that We implements tied to to plant. implements manufacture used that

so have that able spend, and even update large definitely from you continuously to can productivity defer an that deliver a you on organization. farmer individual for efficiency when perspective, try you better implement or so And to CapEx and

on Nordson accretive slightly EPS amortization. be accretive EBITDA exclude to you business and We when to expect the to

overview gave a broad hopefully you So there. that

Michael Halloran

makes all overview, broader the No, sense. that Yes.

geared think was trends, the I you're the little trends seeing those more question and to just market. how in a materialize current bit

Sundaram Nagarajan

of terms Mike? In about, trends, is that you're demand what talking

Michael Halloran

the the your Because expecting understand too. contribution certainly certainly component remarks. in prepared I X%, understand the Yes, you're sir. I long-term

the just So sizable Europe, you off I'm market... in because for short-term dynamics, particularly hearing curious knowing that down a how do slowdown you have that's a I think you're impacting just

Sundaram Nagarajan

-- little we is It as same big manufacturer are bit, an Europe down. selling not since and a is us implement manufacturer or tractor does but the Yes. extent a market to implement components. the impact

So around an That's not it we're the have XX%. what extent seeing to Street heard the the does in impact, you've as in same but XX%, business. not

Operator

line next BNP [Operator from Buscaglia of the Andrew Paribas. comes question Buscaglia Instructions] from Your Andrew

Andrew Buscaglia

wanted that that to orders in to and rolls coming see that, confirm in something it -- those from that Just confirm, I'm just packaging? through UV relates lights ATS, else? converts. and QX to as what's feel trying electronics Or backlog is you confident it

Sundaram Nagarajan

Yes.

items X probably interrelated Andrew. you mentioned, that So

the the packaging barrels, of very good company, parts So they but indicators They right are they electronic on and the happening first UV that's smaller the because now. serve. are early

So if our finished up pick by lines. consumables, think to an you're you're or increasing your lines, manufacturer, electronic going device You're the manufacturer slack new increasing a you but buying about manufacturing of the right? not existing usage

our what you that in consumable so businesses, now. And barrels, and normally would packaging see right that's you're seeing, we're it seeing

that the goes business, opportunity a for It's but customers front way. early an much there. it early doesn't people our of us, new a but front who to essentially same is of the semiconductor. play in us. market make end in small the and play a early Nordson -- indicator good for the it's a that end We equipment lights, UV the sell On Again,

That's meant those So early I indicators. are what X that. by

a of our fourth That in of couple and backlog. terms inspection customer shipments orders quarter. backlog, have our test In in and businesses, is in in we our place third

us deliver ATS that in expectations portion up we still order fully gives the on that fourth pick to for third a those confidence have, expect system business So to And and are do the entity we shipments, right? the so. the quarter backlog is of

Andrew Buscaglia

Okay.

And Okay. been Naga, have margins That's -- great, helpful. were a strong quarter.

like to now how much I'm, pertains more Ascend as it is and the pricing third has wondering been the really in left savings? tank It's cost year successful. and in things

Sundaram Nagarajan

Yes.

NBS I think Ascend framework a cost rather as a play. Next and than of growth

was across we implement framework -- put this about sort built In you company, and and together all when terms growth organically of where the within look, the deploy a are of company. Think

years, company, run X you're company. NBS way So right? now is still what in to becoming early do my innings, trying operate the the opinion, we is Next So the

see benefits to being beginning of just So the the you're effective. strategy

think say terms of delivering if terms in divisions are leadership about level would at performance. we of what divisions I you each in X using we where of So our or call it? -- X

specific very are growth, metrics on-time quality, delivery, These vitality, of employee new engagement. product customer

we are say, them there level X metrics the I within So performance. would leadership like and call company,

of metrics. divisions have those about leadership X level our of at most in We

have X or following. X We very closely

of is, example on first IPS -- big and see in a begin to to beginning in show great can places business, strategy strategy, that growth you're we the is organic of impact what beginning of were to the the implemented where and IPS see Next that, a where up couple NBS So divisions the Ascend is side. you the That the right? performance of these some and the our

is we organically, customer focused are Clearly, will solid growth. top expectation company incremental. growing we have innovation, on our So the

XX%. Our expectation is on growth organic

by that So margin to of not start. expansion, but virtue where you're we going that's some see

Operator

it. Got

from Capital Your next line Markets. question KeyBanc Hammond Jeff comes from the of

Jeffrey Hammond

in on to across Just -- focused going be the Chinese the back segments? is is more on New electronics? pretty that Or Year, broad that

Stephen Shamrock

to degree, is tell IPS ATS. that Jeff, would the in concentrated in of a impact Yes, lesser most I you that segment and

Jeffrey Hammond

I but seeing mean It hearing, biopharma. intake. the some on space, us. behind you're order that sound Naga, people that's like of the Okay. we're guess, And doesn't I from destocking then is in sounds real just like it any what

of start to for talk you visibility to to the what's base, that that customer kind inflect? As

Sundaram Nagarajan

Yes.

is than rather fundamentally an we business. this to timing, giving tell way you you let about what the think believe about think exact it me I

that's level, in it has cycle is much destocking to come businesses. And for The a we're at right. at place pretty of the You're bottom where lower what seeing the our demand a sure.

are general, this. customers, talking is That from in ordering, indicator And we talk current specific we their inventory that they is a future thing at is That orders. see are components us we point what what has their that to buy their people about in one of level. we pattern is As better changed. our ordering where are for

of more and -- book biopharma other changed. place most get business. regular no We like medical past, our we these kind get device longer the In orders. of manufacturing has orders. blanket blanket will customers That ship Instead, space,

that has changed. So

are have care. pretty part through we patient nice growth So But is working we some this. more still in the interesting

We applications. have growth pretty surgical good some in

And good you biopharma, to plastic, pretty and so has biopharma stainless love I pretty inflicts. don't amount still when transition still I'd exactly favorable for good just long-term tell about biopharmaceuticals, to the see Nothing we're beginning fundamentally shipment. trends all increased single-use that's from able be entry some know. intact, changed, of this to where to steel order business. plastics

Operator

time, We call in to queue further back I now the closing at over remarks. questions our will this for Naga turn have no

Sundaram Nagarajan

strength results of the close the strong of performance technology which rigorous growth. I commitment, diversified for for end Our and to you long-term makes framework. Have our these model, and us of today's The differentiated Thank want deployment Ascend possible. continued your employees well to implementation day. reflects time markets, positions Next for on thank their precision Nordson's call. the strategy customer products Again, operating a growth attention NBS great

Operator

you and you call. for Thank now may conference participation, This disconnect. your concludes today's

Nordson (NDSN) 22 Feb 242024 Q1 Earnings call transcript