Hillenbrand Reports Fiscal Third Quarter 2025 Results
Hillenbrand (NYSE:HI) reported fiscal Q3 2025 results with revenue of $599 million, down 24% year-over-year, while pro forma revenue decreased 10%. The company posted GAAP EPS of $0.03, improving from $(3.53) in the prior year, while adjusted EPS was $0.51, down 40% year-over-year.
Key developments include achieving $30 million in run-rate cost synergies from Linxis and FPM acquisitions ahead of schedule, divesting minority stake in TerraSource for $115 million used for debt reduction, and successfully amending credit facilities. The company maintains its adjusted EPS midpoint guidance while updating core outlook for fiscal 2025.
Net debt stands at $1.51 billion with a net debt to pro forma adjusted EBITDA ratio of 3.9x, improving to 3.7x post-TerraSource divestiture. The company faces challenges from macroeconomic conditions and tariffs impacting customer purchasing decisions.
Hillenbrand (NYSE:HI) ha comunicato i risultati del terzo trimestre fiscale 2025 con ricavi per $599 million, in calo del 24% rispetto all’anno precedente; i ricavi pro forma sono diminuiti del 10%. La società ha riportato un utile per azione GAAP di $0.03, in netto miglioramento rispetto a $(3.53) dell’anno precedente, mentre l'EPS rettificato è stato di $0.51, in diminuzione del 40% su base annua.
Tra gli sviluppi chiave figurano il raggiungimento, prima del previsto, di sinergie di costo a run-rate pari a $30 million derivanti dalle acquisizioni di Linxis e FPM; la cessione di una partecipazione di minoranza in TerraSource per $115 million, destinati alla riduzione del debito; e la rinegoziazione con successo delle linee di credito. La società mantiene il punto medio della guidance sull'EPS rettificato, pur aggiornando le prospettive core per il 2025 fiscale.
Il debito netto è pari a $1.51 billion con un rapporto debito netto/EBITDA rettificato pro forma di 3.9x, che migliora a 3.7x dopo la cessione di TerraSource. L’azienda affronta sfide legate al contesto macroeconomico e ai dazi che incidono sulle decisioni d’acquisto dei clienti.
Hillenbrand (NYSE:HI) presentó los resultados del tercer trimestre fiscal 2025 con ingresos de $599 million, una caída del 24% interanual; los ingresos pro forma disminuyeron un 10%. La compañía registró un EPS GAAP de $0.03, frente a $(3.53) del año anterior, mientras que el EPS ajustado fue de $0.51, un descenso del 40% interanual.
Entre los hitos clave se incluye la consecución, por delante de lo previsto, de sinergias de costes en run-rate por $30 million derivadas de las adquisiciones de Linxis y FPM; la desinversión de una participación minoritaria en TerraSource por $115 million destinada a reducir deuda; y la exitosa enmienda de sus facilidades de crédito. La compañía mantiene el punto medio de su guía de EPS ajustado, aunque actualiza su outlook core para el ejercicio fiscal 2025.
La deuda neta asciende a $1.51 billion con una ratio deuda neta/EBITDA ajustado pro forma de 3.9x, que mejora a 3.7x tras la desinversión en TerraSource. La empresa afronta retos por las condiciones macroeconómicas y los aranceles que afectan las decisiones de compra de los clientes.
Hillenbrand (NYSE:HI)는 2025 회계연도 3분기 실적을 발표하면서 매출이 $599 million으로 전년 대비 24% 감소했으며, 프로포마 매출은 10% 감소했다고 밝혔습니다. 회사는 GAAP 기준 주당순이익(EPS) $0.03을 기록해 전년의 $(3.53)에서 크게 개선됐고, 조정 EPS는 $0.51로 전년 대비 40% 감소했습니다.
주요 사항으로는 Linxis와 FPM 인수로 인한 연환산(run-rate) 비용 시너지를 예상보다 빠르게 $30 million 확보한 점, TerraSource 지분 일부를 $115 million에 매각해 부채 축소에 활용한 점, 그리고 신용 시설을 성공적으로 개정한 점이 있습니다. 회사는 조정 EPS 가이던스의 중간값은 유지하면서 2025 회계연도 핵심 전망(core outlook)을 업데이트했습니다.
순부채는 $1.51 billion이며, 순부채 대비 프로포마 조정 EBITDA 비율은 3.9x로 TerraSource 매각 후 3.7x로 개선됩니다. 회사는 거시 경제 상황과 관세로 인한 고객 구매 결정 영향이라는 도전에 직면해 있습니다.
Hillenbrand (NYSE:HI) a publié les résultats du troisième trimestre fiscal 2025, avec un chiffre d'affaires de $599 million, en baisse de 24% d'une année sur l'autre ; le chiffre d'affaires pro forma a diminué de 10%. La société a affiché un BPA GAAP de $0.03, en nette amélioration par rapport à $(3.53) l'année précédente, tandis que le BPA ajusté s'est élevé à $0.51, en baisse de 40% sur un an.
Parmi les faits marquants : l'obtention, avant la date prévue, de synergies de coûts en run-rate de $30 million liées aux acquisitions de Linxis et FPM ; la cession d'une participation minoritaire dans TerraSource pour $115 million, utilisée pour réduire la dette ; et la renégociation réussie des facilités de crédit. La société maintient le point médian de sa guidance sur le BPA ajusté tout en mettant à jour ses perspectives core pour l'exercice 2025.
La dette nette s'élève à $1.51 billion avec un ratio dette nette/EBITDA ajusté pro forma de 3.9x, qui s'améliore à 3.7x après la cession de TerraSource. L'entreprise doit faire face à des défis liés aux conditions macroéconomiques et aux droits de douane qui influencent les décisions d'achat des clients.
Hillenbrand (NYSE:HI) meldete für das Geschäftsjahr Q3 2025 einen Umsatz von $599 million, ein Rückgang von 24% gegenüber dem Vorjahr; der Pro-forma-Umsatz sank um 10%. Das Unternehmen wies einen GAAP-Ergebnis je Aktie (EPS) von $0.03 aus, womit es sich gegenüber $(3.53) im Vorjahr deutlich verbesserte. Das bereinigte EPS lag bei $0.51, ein Rückgang von 40% im Jahresvergleich.
Wesentliche Entwicklungen sind das vorzeitige Erreichen von Run-rate-Kostensynergien in Höhe von $30 million aus den Übernahmen von Linxis und FPM, der Verkauf einer Minderheitsbeteiligung an TerraSource für $115 million zur Schuldenreduzierung sowie die erfolgreiche Änderung der Kreditlinien. Das Unternehmen bestätigt den Mittelwert der Guidance für das bereinigte EPS und aktualisiert gleichzeitig den Core-Ausblick für das Geschäftsjahr 2025.
Die Nettoverschuldung beträgt $1.51 billion mit einem Verhältnis von Nettoverschuldung zu Pro-forma-bereinigtem EBITDA von 3.9x, das sich nach der TerraSource-Veräußerung auf 3.7x verbessert. Das Unternehmen steht vor Herausforderungen durch die makroökonomische Lage und Zölle, die die Kaufentscheidungen der Kunden beeinflussen.
- Achieved $30 million run-rate cost synergies from acquisitions ahead of schedule
- Successfully reduced debt by over $300 million during fiscal year through strategic divestitures
- Improved GAAP EPS to $0.03 from $(3.53) loss in prior year
- Successfully amended and extended credit facilities for greater financial flexibility
- Maintained adjusted EPS guidance midpoint despite challenges
- Revenue declined 24% year-over-year to $599 million
- Adjusted EPS decreased 40% to $0.51
- Operating cash flow turned negative at $(1.5) million, down from $45.6 million prior year
- High leverage with net debt to adjusted EBITDA ratio at 3.9x
- Customers delaying purchases due to tariff uncertainty
Insights
Hillenbrand reported mixed Q3 results with revenue ahead of expectations despite a 24% decline, while maintaining adjusted EPS guidance midpoint amid strategic portfolio refinement.
Hillenbrand's fiscal Q3 2025 results reveal a company navigating significant transitions amid challenging macroeconomic conditions. Revenue came in at
Looking at segment performance, Advanced Process Solutions (APS) revenue fell
The company's strategic reshaping is evident in its balance sheet management. Hillenbrand has reduced debt by over
Working capital management appears challenging with operating cash flow turning negative at
Management's updated guidance maintains the adjusted EPS midpoint while slightly adjusting revenue expectations, suggesting some stabilization in their outlook despite persistent headwinds. The
Hillenbrand's strategic pivot toward higher-margin, higher-growth businesses serving performance materials and Food, Health, and Nutrition end markets appears on track, with the company achieving its
- Revenue of
$599 million 24% compared to prior year; pro forma revenue decreased10% - GAAP EPS of
$0.03 $(3.53) $0.51 40% compared to prior year - Achieved
$30 million - On July 1, 2025, executed the divestiture of minority stake in TerraSource and used proceeds of approximately
$115 million - Fiscal 2025 Outlook: Updating core outlook; maintaining adjusted EPS midpoint
"We continued to advance our strategic initiatives this quarter, including refining our portfolio, reducing debt, and advancing the integration and commercial synergy potential of our Food, Health, and Nutrition (FHN) business, despite the ongoing uncertainty stemming from macroeconomic conditions and tariffs. We used proceeds from the MIME divestiture and the sale of our minority interest in TerraSource to reduce debt by over
"During our fiscal third quarter, we delivered revenue ahead of and adjusted EPS in line with our expectations, despite customers continuing to delay purchasing decisions due to the dynamic tariff landscape. I am grateful for our teams, who took quick and deliberate action to mitigate these impacts through our in-region for-region approach and other initiatives we outlined. I remain confident our durable business segments, our differentiated technologies, and our people will continue to deliver best-in-class systems and solutions to our customers around the world."
Summary of Third Quarter 2025 Results
Three Months Ended June 30, | Change | ||||||
(unaudited, dollars in millions, except EPS) | 2025 | 2024 | $ | % | |||
Net revenue | $ 598.9 | $ 786.6 | $ (187.7) | (24) % | |||
GAAP net income (loss) attributable to HI | 1.9 | (248.9) | 250.8 | 101 % | |||
Adjusted EBITDA1 | 84.3 | 131.0 | (46.7) | (36) % | |||
GAAP diluted EPS | 0.03 | (3.53) | 3.56 | 101 % | |||
Adjusted diluted EPS1 | 0.51 | 0.85 | (0.34) | (40) % | |||
Cash flows from operating activities | (1.5) | 45.6 | (47.1) | (103) % | |||
Pro Forma Net Revenue1 | 598.9 | 663.0 | (64.1) | (10) % | |||
Pro Forma Adjusted EBITDA1 | 84.3 | 116.6 | (32.3) | (28) % | |||
Net revenue of
GAAP net income of
Adjusted net income of
The adjusted effective tax rate for the quarter was
Advanced Process Solutions (APS)
Three Months Ended June 30, | Change | ||||||
(unaudited, dollars in millions) | 2025 | 2024 | $ | % | |||
Net revenue | $ 507.0 | $ 569.4 | $ (62.4) | (11) % | |||
Adjusted EBITDA1 | 80.1 | 109.2 | (29.1) | (27) % | |||
Adjusted EBITDA Margin1 | 15.8 % | 19.2 % | (340) bps | ||||
Net revenue of
Adjusted EBITDA of
Backlog of
Molding Technology Solutions (MTS)
Three Months Ended June 30, | Change | ||||||
(unaudited, dollars in millions) | 2025 | 2024 | $ | % | |||
Net revenue | $ 91.9 | $ 217.2 | $ (125.3) | (58) % | |||
Adjusted EBITDA1 | 18.3 | 34.6 | (16.3) | (47) % | |||
Adjusted EBITDA Margin1 | 19.9 % | 15.9 % | 400 bps | ||||
Pro Forma Net revenue1 | $ 91.9 | $ 93.6 | $ (1.7) | (2) % | |||
Pro Forma Adjusted EBITDA1 | 18.3 | 20.2 | (1.9) | (9) % | |||
Pro Forma Adjusted EBITDA Margin1 | 19.9 % | 21.6 % | (170) bps | ||||
Net revenue of
Adjusted EBITDA of
Pro forma backlog of
Balance Sheet, Cash Flow and Capital Allocation
Hillenbrand's cash flow from operations represented a use of
As of June 30, 2025, net debt was
On July 1, 2025, the Company, in conjunction with its majority stake joint-venture partner, completed the divestiture of its minority stake interest in TerraSource to Astec Industries, in a transaction with a total purchase price of approximately
On July 22, 2025, the Company redeemed in full its
Fiscal 2025 Outlook
Hillenbrand is updating its core outlook for fiscal year 2025 and maintaining the mid-point of its full year adjusted EPS range based on year-to-date performance and its outlook for the fiscal fourth quarter.
Updated Guidance $ millions, except EPS | Total Hillenbrand | Advanced Process Solutions | Molding Technology Solutions |
Net Revenue | |||
YoY | ( | ( | ( |
Adj. EBITDA $ / Margin %1 | |||
YoY | ( | (190) - (170) bps | 10 - 80 bps |
Adj. EPS1 | |||
YoY | ( | ||
Operating Cash Flow | |||
CapEx |
1These are non-GAAP financial measures, which are unaudited. See the reconciliations of Non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release. |
Conference Call Information
Date/Time: Tuesday, August 12, 2025, 8:00 a.m. ET
Dial-In for
Dial-In for International: +1-412-902-1013
Conference call ID number: 13754423
Webcast link: http://ir.hillenbrand.com under the News & Events tab (archived through Friday, September 12, 2025)
Replay - Conference Call
Date/Time: Available until midnight ET, Tuesday, August 26, 2025
Replay ID number: 13754423
Dial-In for
Dial-In for International: +1-201-612-7415
Hillenbrand's financial statements on Form 10-Q are expected to be filed jointly with this release and will be made available on the company's website (https://ir.hillenbrand.com).
In addition to the financial measures prepared in accordance with
- business acquisition, divestiture, and integration costs;
- restructuring and restructuring-related charges;
- intangible asset amortization;
- pension settlement charges (gain);
- inventory step-up costs;
- loss on divestiture;
- costs associated with debt financing activities;
- other non-recurring costs related to a discrete commercial dispute;
- the related income tax impact for all of these items; and
- the revaluation of deferred tax balances resulting from fluctuations in currency exchange rates and non-routine changes in tax rates for certain foreign jurisdictions.
Refer to the Reconciliation of Non-GAAP Measures for further information on these adjustments. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.
Hillenbrand uses this non-GAAP information internally to measure operating segment performance and make operating decisions and believes it is helpful to investors because it allows more meaningful period-to-period comparisons of ongoing operating results. The information can also be used to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by items such as the above excluded items. Hillenbrand believes this information provides a higher degree of transparency.
One important non-GAAP financial measure Hillenbrand uses is adjusted earnings before interest, income tax, depreciation, and amortization ("adjusted EBITDA"). A part of Hillenbrand's strategy is to selectively acquire companies that we believe can benefit from the Hillenbrand Operating Model ("HOM") to spur faster and more profitable growth. Given that strategy, it is a natural consequence to incur related expenses, such as amortization from acquired intangible assets and additional interest expense from debt-funded acquisitions. Accordingly, we use adjusted EBITDA, among other measures, to monitor our business performance. We also use "adjusted net income" and "adjusted diluted earnings per share (EPS)," which are defined as net income and earnings per share, respectively, each excluding items described in connection with adjusted EBITDA. Adjusted EBITDA, adjusted net income, and adjusted diluted EPS are not recognized terms under GAAP and therefore do not purport to be alternatives to net income or to diluted EPS, as applicable. Further, Hillenbrand's measures of adjusted EBITDA, adjusted net income, and adjusted diluted EPS may not be comparable to similarly titled measures of other companies.
Intangible assets relate to our acquisition activities and are amortized over their useful lives. The amortization of acquired intangible assets is reported separately in our Consolidated Statements of Operations as amortization expense. We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
Pro forma net revenue and pro forma adjusted EBITDA are defined respectively as net revenue and adjusted EBITDA excluding the Milacron injection molding and extrusion business that was divested on March 31, 2025. In addition, the ratio of net debt to pro forma adjusted EBITDA is a key financial measure that is used by management to assess Hillenbrand's borrowing capacity (and is calculated as the ratio of total debt less cash and cash equivalents to the trailing twelve months pro forma adjusted EBITDA). The Company presents net debt to pro forma adjusted EBITDA because it believes it is representative of the Company's financial position as it is reflective of the Company's ability to cover its net debt obligations with results from its core operations.
Hillenbrand calculates the foreign currency impact on net revenue, adjusted EBITDA, and backlog in order to better measure the comparability of results between periods. We calculate the foreign currency impact by translating current year results at prior year foreign exchange rates. This information is provided because exchange rates can distort the underlying change in sales, either positively or negatively.
Another important operational measure used is backlog. Backlog is not a term recognized under GAAP; however, it is a common measurement used in industries with extended lead times for order fulfillment (long-term contracts), like those in which our reportable operating segments compete. Backlog represents the amount of consolidated net revenue that we expect to realize on contracts awarded to our reportable operating segments. For purposes of calculating backlog,
Hillenbrand expects that future net revenue associated with our reportable operating segments will be influenced by order backlog because of the lead time involved in fulfilling engineered-to-order equipment for customers. Although backlog can be an indicator of future net revenue, it does not include projects and parts orders that are booked and shipped within the same quarter. The timing of order placement, size, extent of customization, and customer delivery dates can create fluctuations in backlog and net revenue. Net revenue attributable to backlog may also be affected by foreign exchange fluctuations for orders denominated in currencies other than
See below for a reconciliation from GAAP operating performance measures to the most directly comparable non-GAAP (adjusted) performance measures. Given that backlog is an operational measure and that the Company's methodology for calculating backlog does not meet the definition of a non-GAAP financial measure, as that term is defined by the
Hillenbrand, Inc. Consolidated Statements of Operations (Unaudited) (in millions, except per share data)
| |||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net revenue | $ 598.9 | $ 786.6 | $ 2,021.7 | $ 2,345.2 | |||
Cost of goods sold | 396.3 | 520.2 | 1,347.7 | 1,577.1 | |||
Gross profit | 202.6 | 266.4 | 674.0 | 768.1 | |||
Selling, general and administrative expenses | 146.3 | 174.2 | 497.2 | 513.5 | |||
Amortization expense | 22.9 | 25.5 | 71.2 | 76.7 | |||
Loss on divestiture | 1.5 | — | 56.1 | — | |||
Impairment charges | — | 265.0 | — | 265.0 | |||
Pension settlement charges (gain) | — | 26.9 | (1.7) | 35.2 | |||
Interest expense, net | 21.3 | 32.2 | 69.6 | 92.8 | |||
Income (loss) from continuing operations before income taxes | 10.6 | (257.4) | (18.4) | (215.1) | |||
Income tax expense (benefit) | 6.5 | (10.5) | 7.2 | 3.7 | |||
Income (loss) from continuing operations | 4.1 | (246.9) | (25.6) | (218.8) | |||
Loss from discontinued operations (net of income tax benefit) | — | — | — | (0.3) | |||
Consolidated net income (loss) | 4.1 | (246.9) | (25.6) | (219.1) | |||
Less: Net income attributable to noncontrolling interests | 2.2 | 2.0 | 7.0 | 6.5 | |||
Net income (loss) attributable to Hillenbrand | $ 1.9 | $ (248.9) | $ (32.6) | $ (225.6) | |||
Earnings (loss) per share | |||||||
Basic earnings (loss) per share | |||||||
Income (loss) from continuing operations attributable to Hillenbrand | $ 0.03 | $ (3.53) | $ (0.46) | $ (3.20) | |||
Loss from discontinued operations | — | — | — | — | |||
Net income (loss) attributable to Hillenbrand | $ 0.03 | $ (3.53) | $ (0.46) | $ (3.20) | |||
Diluted earnings (loss) per share | |||||||
Income (loss) from continuing operations attributable to Hillenbrand | $ 0.03 | $ (3.53) | $ (0.46) | $ (3.20) | |||
Loss from discontinued operations | — | — | — | — | |||
Net income (loss) attributable to Hillenbrand | $ 0.03 | $ (3.53) | $ (0.46) | $ (3.20) | |||
Weighted average shares outstanding (basic) | 70.8 | 70.5 | 70.7 | 70.4 | |||
Weighted average shares outstanding (diluted) | 70.8 | 70.5 | 70.7 | 70.4 | |||
Cash dividends per share | $ 0.2250 | $ 0.2225 | $ 0.6750 | $ 0.6675 | |||
Condensed Consolidated Statements of Cash Flows (in millions)
| |||
Nine Months Ended June 30, | |||
2025 | 2024 | ||
Cash flows (used in) provided by: | |||
Operating activities from continuing operations | $ (11.5) | $ 24.8 | |
Investing activities from continuing operations | 84.4 | (40.2) | |
Financing activities from continuing operations | (107.0) | 13.4 | |
Total cash used in discontinued operations | — | (23.3) | |
Effect of exchange rates on cash and cash equivalents | (3.8) | (0.3) | |
Net cash flows | (37.9) | (25.6) | |
Cash, cash equivalents, and restricted cash: | |||
At beginning of period | 227.9 | 250.2 | |
At end of period | $ 190.0 | $ 224.6 | |
Reconciliation of Non-GAAP Measures (in millions, except per share data)
| |||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Income (loss) from continuing operations | $ 4.1 | $ (246.9) | $ (25.6) | $ (218.8) | |||
Less: Net income attributable to noncontrolling interests | 2.2 | 2.0 | 7.0 | 6.5 | |||
Income (loss) from continuing operations attributable to Hillenbrand | 1.9 | (248.9) | (32.6) | (225.3) | |||
Impairment charges (1) | — | 265.0 | — | 265.0 | |||
Business acquisition, divestiture, and integration costs (2) | 12.7 | 24.9 | 55.9 | 39.6 | |||
Restructuring and restructuring-related charges (3) | 5.5 | 1.0 | 13.9 | 27.2 | |||
Inventory step-up costs (4) | — | — | — | 0.6 | |||
Intangible asset amortization (5) | 22.9 | 25.5 | 71.2 | 76.7 | |||
Pension settlement charges (gain) (6) | — | 26.9 | (1.7) | 35.2 | |||
Costs associated with debt financing activities (7) | 0.6 | 1.1 | — | 1.1 | |||
Other non-recurring costs related to a discrete commercial dispute | — | — | — | 6.1 | |||
Loss on divestiture | 1.5 | — | 56.1 | — | |||
Tax adjustments (8) | (0.7) | (0.1) | (11.7) | (0.2) | |||
Tax effect of adjustments (9) | (8.6) | (35.3) | (34.1) | (63.3) | |||
Adjusted net income from continuing operations attributable to Hillenbrand | $ 35.8 | $ 60.1 | $ 117.0 | $ 162.7 | |||
Diluted EPS from continuing operations attributable to Hillenbrand | $ 0.03 | $ (3.53) | $ (0.46) | $ (3.20) | |||
Impairment charges (1) | — | 3.76 | — | 3.76 | |||
Business acquisition, divestiture, and integration costs (2) | 0.18 | 0.35 | 0.79 | 0.56 | |||
Restructuring and restructuring-related charges (3) | 0.08 | 0.01 | 0.20 | 0.39 | |||
Inventory step-up costs (4) | — | — | — | 0.01 | |||
Intangible asset amortization (5) | 0.32 | 0.36 | 1.01 | 1.08 | |||
Pension settlement charges (gain) (6) | — | 0.38 | (0.02) | 0.50 | |||
Costs associated with debt financing activities (7) | 0.01 | 0.02 | — | 0.02 | |||
Other non-recurring costs related to a discrete commercial dispute | — | — | — | 0.09 | |||
Loss on divestiture | 0.02 | — | 0.79 | — | |||
Tax adjustments (8) | (0.01) | — | (0.17) | — | |||
Tax effect of adjustments (9) | (0.12) | (0.50) | (0.48) | (0.90) | |||
Adjusted Diluted EPS from continuing operations attributable to Hillenbrand | $ 0.51 | $ 0.85 | $ 1.66 | $ 2.31 | |||
______________________________________ | |
(1) | Hillenbrand recorded impairment charges to goodwill and certain indefinite-lived assets within the Molding Technology Solutions reportable operating segment during the three and nine months ended June 30, 2024. |
(2) | Business acquisition, divestiture, and integration costs during the three and nine months ended June 30, 2025 and 2024, primarily included costs associated with the integration of recent acquisitions. Includes acquisition costs of |
(3) | Restructuring and restructuring-related charges primarily included severance costs during the three and nine months ended June 30, 2025 and 2024. |
(4) | The amount during the nine months ended June 30, 2024, represents the non-cash charges related to the fair value adjustment of inventories acquired in connection with the acquisition of FPM. |
(5) | Intangible assets relate to our acquisition activities and are amortized over their useful lives. |
(6) | The pension settlement gain during the nine months ended June 30, 2025, was due to one-time premium refunds received related to the termination of the Company's |
(7) | Costs associated with debt financing activities during 2024 primarily included the accelerated amortization of deferred financing costs related to the |
(8) | For three and nine months ended June 30, 2025 and 2024, this primarily represents the net impact from certain non-recurring tax items, including items related to acquisitions and divestitures. |
(9) | Represents the tax effect of the adjustments previously identified above. |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Adjusted EBITDA: | |||||||
Advanced Process Solutions | $ 80.1 | $ 109.2 | $ 241.7 | $ 306.0 | |||
Molding Technology Solutions | 18.3 | 34.6 | 78.0 | 100.3 | |||
Corporate | (14.1) | (12.8) | (39.6) | (38.5) | |||
Add: | |||||||
Loss from discontinued operations (net of income tax benefit) | — | — | — | (0.3) | |||
Less: | |||||||
Interest expense, net | 21.3 | 32.2 | 69.6 | 92.8 | |||
Income tax expense (benefit) | 6.5 | (10.5) | 7.2 | 3.7 | |||
Depreciation and amortization | 32.7 | 38.7 | 104.7 | 118.8 | |||
Impairment charges | — | 265.0 | — | 265.0 | |||
Pension settlement charges (gain) | — | 26.9 | (1.7) | 35.2 | |||
Loss on divestiture | 1.5 | — | 56.1 | — | |||
Business acquisition, divestiture, and integration costs | 12.7 | 24.9 | 55.9 | 39.6 | |||
Inventory step-up costs | — | — | — | 0.6 | |||
Restructuring and restructuring-related charges | 5.5 | 0.7 | 13.9 | 24.8 | |||
Other non-recurring costs related to a discrete commercial dispute | — | — | — | 6.1 | |||
Consolidated net income (loss) | $ 4.1 | $ (246.9) | $ (25.6) | $ (219.1) | |||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Consolidated net income (loss) | $ 4.1 | $ (246.9) | $ (25.6) | $ (219.1) | |||
Interest expense, net | 21.3 | 32.2 | 69.6 | 92.8 | |||
Income tax expense (benefit) | 6.5 | (10.5) | 7.2 | 3.7 | |||
Depreciation and amortization | 32.7 | 38.7 | 104.7 | 118.8 | |||
EBITDA | 64.6 | (186.5) | 155.9 | (3.8) | |||
Loss from discontinued operations (net of income tax benefit) | — | — | — | 0.3 | |||
Business acquisition, divestiture, and integration costs | 12.7 | 24.9 | 55.9 | 39.6 | |||
Inventory step-up costs | — | — | — | 0.6 | |||
Restructuring and restructuring-related charges | 5.5 | 0.7 | 13.9 | 24.8 | |||
Impairment charges | — | 265.0 | — | 265.0 | |||
Pension settlement charges (gain) | — | 26.9 | (1.7) | 35.2 | |||
Loss on divestiture | 1.5 | — | 56.1 | — | |||
Other non-recurring costs related to a discrete commercial dispute | — | — | — | 6.1 | |||
Adjusted EBITDA | 84.3 | 131.0 | 280.1 | 367.8 | |||
Less: Divestiture (1) | — | 14.4 | 24.6 | 42.9 | |||
Pro forma adjusted EBITDA | $ 84.3 | $ 116.6 | $ 255.5 | $ 324.9 | |||
Advanced Process Solutions adjusted EBITDA | $ 80.1 | $ 109.2 | $ 241.7 | $ 306.0 | |||
Molding Technology Solutions adjusted EBITDA | 18.3 | 34.6 | 78.0 | 100.3 | |||
Less: Divestiture (1) | — | 14.4 | 24.6 | 42.9 | |||
Molding Technology Solutions pro forma adjusted EBITDA | 18.3 | 20.2 | 53.4 | 57.4 | |||
Corporate adjusted EBITDA | (14.1) | (12.8) | (39.6) | (38.5) | |||
Consolidated pro forma adjusted EBITDA | $ 84.3 | $ 116.6 | $ 255.5 | $ 324.9 | |||
______________________________________ | |||||||
(1) The impact of the Milacron divestiture. | |||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
GAAP weighted average shares outstanding (diluted) | 70.8 | 70.5 | 70.7 | 70.4 | |||
Non-GAAP dilutive shares excluded from GAAP EPS calculation (1) | — | 0.2 | 0.1 | 0.2 | |||
Pro forma weighted average shares outstanding (diluted) | 70.8 | 70.7 | 70.8 | 70.6 | |||
______________________________________ | |
(1) | Due to the occurrence of a net loss on a GAAP basis for the nine months ended June 30, 2025 and three and nine months ended June 30, 2024, potentially dilutive securities were excluded from the calculation of GAAP earnings per, as they would have an anti-dilutive effect. However, as net income earned on a non-GAAP basis, these shares have a dilutive effect on adjusted EPS and are included here. |
June 30, | June 30, | ||
2025 | 2024 | ||
Advanced Process Solutions backlog | $ 1,569.6 | $ 1,735.7 | |
Molding Technology Solutions backlog | 54.6 | 238.5 | |
Less: Divestiture (1) | — | 187.3 | |
Molding Technology Solutions pro forma backlog | 54.6 | 51.2 | |
Consolidated pro forma backlog | $ 1,624.2 | $ 1,786.9 |
______________________________________ |
(1) The impact of the Milacron divestiture. |
Three Months Ended June 30, | |||
2025 | 2024 | ||
Advanced Process Solutions net revenue | $ 507.0 | $ 569.4 | |
Molding Technology Solutions net revenue | 91.9 | 217.2 | |
Less: Divestiture (1) | — | 123.6 | |
Molding Technology Solutions pro forma net revenue | 91.9 | 93.6 | |
Consolidated pro forma net revenue | $ 598.9 | $ 663.0 | |
______________________________________ |
(1) The impact of the Milacron divestiture. |
June 30, 2025 | |
Current portion of long-term debt | $ 12.6 |
Long-term debt | 1,663.6 |
Total debt | 1,676.2 |
Less: Cash and cash equivalents | 162.8 |
Net debt | $ 1,513.4 |
Pro forma adjusted EBITDA for the trailing twelve months ended | $ 389.1 |
Ratio of net debt to pro forma adjusted EBITDA | 3.9 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
GAAP effective tax rate | 61.3 % | 4.1 % | (39.1) % | (1.7) % | |||
Impairment | — | 15.5 | — | 36.0 | |||
Discrete impact of Milacron divestiture | (29.1) | — | 255.4 | — | |||
Unrecognized tax benefits | — | — | (166.6) | — | |||
Legislative changes | 14.2 | — | (8.2) | — | |||
Other tax items | (8.0) | 3.4 | (8.2) | (1.9) | |||
Tax effect of non-GAAP adjustments (1) | (9.0) | 5.6 | (3.5) | (4.0) | |||
Adjusted effective tax rate | 29.4 % | 28.6 % | 29.8 % | 28.4 % | |||
______________________________________ |
(1) Refer to adjusted net income and EPS reconciliation for these adjustments that impact income before taxes. |
Forward-Looking Statements
Throughout this earnings release, we make a number of "forward-looking statements," including statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and that are intended to be covered by the safe harbor provided under these sections. These are statements about future capital structure, operations, and financial flexibility, or, as applicable, sales, earnings, cash flow, results of operations, uses of cash, financings, share repurchases, ability to meet deleveraging goals, and other measures of financial performance or potential future plans or events, strategies, objectives, beliefs, prospects, assumptions, expectations, and projected costs or savings or transactions of the Company that might or might not happen in the future, as contrasted with historical information. Forward-looking statements are based on assumptions that we believe are reasonable, but by their very nature are subject to a wide range of risks. If our assumptions prove inaccurate or unknown risks and uncertainties materialize, actual results could vary materially from Hillenbrand's expectations and projections.
The following list, though not exhaustive, contains words that indicate a forward-looking statement:
intend | believe | plan | expect | may | goal | would | project | position | future | outlook |
become | pursue | estimate | will | forecast | continue | could | anticipate | remain | likely | |
target | encourage | promise | improve | progress | potential | should | impact | strategy | assume |
Any number of factors, many of which are beyond our control, could cause our performance to differ significantly from what is described in the forward-looking statements. These factors include, but are not limited to: global market and economic conditions, including those related to the continued volatility in the financial markets, including as a result of
Shareholders, potential investors, and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. For a more in-depth discussion of certain factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading "Risk Factors" in Part I, Item 1A of Hillenbrand's Form 10-K for the year ended September 30, 2024, filed with the SEC on November 19, 2024, and in Part II, Item 1A of Hillenbrand's Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on April 29, 2025, as well as other risks and uncertainties detailed in our filings with the SEC from time to time. The forward-looking information in this release speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any forward-looking statement, whether written or oral, made to reflect new information, future developments or otherwise.
About Hillenbrand
Hillenbrand (NYSE: HI) is a global industrial company that provides highly-engineered, mission-critical processing equipment and solutions to customers around the world. Our portfolio is composed of leading industrial brands that serve large, attractive end markets, including durable plastics, food, and recycling. Guided by our Purpose — Shape What Matters For Tomorrow™ — we pursue excellence, collaboration, and innovation to consistently shape solutions that best serve our people, our customers, and our communities. To learn more, visit: www.Hillenbrand.com.
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