SG&A Efficiency Analysis: Comparing Pentair plc and Nordson Corporation

SG&A Efficiency: A Tale of Two Companies

In the competitive landscape of industrial manufacturing, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Over the past decade, Nordson Corporation and Pentair plc have showcased distinct trajectories in their SG&A spending.

From 2014 to 2023, Nordson Corporation maintained a relatively stable SG&A expense, averaging around $685 million annually. Notably, their expenses peaked in 2024, reflecting a strategic investment phase. In contrast, Pentair plc experienced a significant reduction in SG&A expenses, dropping from $1.49 billion in 2014 to approximately $680 million by 2023. This 54% decrease highlights Pentair's aggressive cost-cutting measures and operational efficiency improvements.

While Nordson's consistent spending suggests a steady growth strategy, Pentair's sharp decline in expenses may indicate a shift towards leaner operations. These trends offer valuable insights into each company's strategic priorities and market positioning.