Hillenbrand Reports Fiscal Second Quarter 2025 Results

Revenue of $716 million decreased 9% compared to prior year primarily due to lower volume in the Advanced Process Solutions (APS) segment

GAAP EPS of $(0.58) decreased from $0.09 in the prior year primarily due to a loss on the sale of the majority stake in Milacron injection molding and extrusion business; adjusted EPS of $0.60 decreased 21% compared to prior year primarily due to lower APS volume

Completed sale of majority stake in Milacron injection molding and extrusion business on March 31st; net proceeds of ~$265 million used for debt pay down and allows for greater focus on our higher margin, higher growth, and less cyclical businesses

Fiscal 2025 Outlook: Updating guidance to reflect impact of tariffs and elevated macroeconomic uncertainty; full year EPS now expected to be $2.10 – $2.45; Q3 adjusted EPS of $0.46 to $0.53

Hillenbrand, Inc., a leading global provider of highly-engineered processing equipment and integrated solutions, reported results for the fiscal second quarter, which ended March 31, 2025. Reported results for the fiscal second quarter include the Milacron injection molding and extrusion business in both the consolidated and Molding Technology Solutions (MTS) segment results.

“Through the quarter, global macroeconomic conditions worsened as uncertainty around tariffs escalated significantly. In light of this, I was pleased with our business performance, which is a testament to the disciplined execution of our teams. We experienced solid year-over-year order growth in our food, health, and nutrition portfolio, as well as our separation products, along with relatively stable performance in APS aftermarket and across MTS. However, looking ahead, we expect customers to remain cautious in their capital investment decisions over the near-term given the increase in tariffs and heightened macro uncertainty, prompting us to adjust our outlook for the remainder of the fiscal year. Our teams across the enterprise are executing strategies to strengthen our supply chain and help mitigate increased costs, including surcharge pricing, alternative sourcing, and shifting production within our current footprint,” said Kim Ryan, President and Chief Executive Officer of Hillenbrand.

“Despite this challenging and unpredictable operating environment, we remain confident in the long-term growth prospects of our end markets and the strong competitive positioning of our industry-leading brands. We firmly believe our portfolio transformation positions us to drive profitable growth once macro conditions improve.”

Summary of Second Quarter 2025 Results

Net revenue of $716 million decreased 9% compared to the prior year primarily due to lower capital equipment volume, partially offset by favorable pricing.

A GAAP net loss of $41 million, or $(0.58) per share, decreased from income of $0.09 per share in the prior year primarily due to a loss on the sale of the Milacron injection molding and extrusion business, as well as lower volume, an increase in business acquisition, divestiture, and integration costs, and cost inflation, partially offset by productivity, synergies, and favorable pricing.

Adjusted net income of $42 million resulted in adjusted EPS of $0.60, a decrease of $0.16, or 21%, and adjusted EBITDA of $99 million decreased 19% compared to the prior year primarily due to lower volume and cost inflation, partially offset by productivity, synergies, and favorable pricing. The adjusted effective tax rate for the quarter was 30.9%, an increase of 280 basis points compared to the prior year due to unfavorable geographic mix of income. 

Advanced Process Solutions (APS)

Net revenue of $494 million decreased 12% compared to the prior year primarily due to lower capital equipment volume, partially offset by favorable pricing.

Adjusted EBITDA of $79 million decreased 22% primarily due to lower volume and cost inflation, partially offset by productivity, synergies, and favorable pricing. Adjusted EBITDA margin of 16.0% decreased 200 basis points primarily due to unfavorable operating leverage as a result of lower volume.

Backlog of $1.59 billion decreased 15% compared to the prior year primarily due to lower order intake, but was up 1% sequentially primarily due to favorable foreign currency exchange rates.

Molding Technology Solutions (MTS)

Net revenue of $222 million was down 2% year over year primarily driven by unfavorable foreign currency exchange rates.

Adjusted EBITDA of $32 million decreased 4%, primarily due to cost inflation, partially offset by productivity. Adjusted EBITDA margin of 14.5% decreased 40 basis points from the prior year.

Backlog of $55 million decreased $175 million compared to the prior year due to the divestiture of the Milacron injection molding and extrusion business. On an organic basis, which excludes the Milacron business and the impact of foreign currency exchange rates, backlog was up $7 million, or 14%, compared to the prior year.

Balance Sheet, Cash Flow and Capital Allocation

Hillenbrand’s cash flow from operations was $1 million in the quarter, which was generally consistent with the prior year. During the quarter, the Company had capital expenditures of approximately $9 million and returned approximately $16 million to shareholders in the form of quarterly dividends.

As of March 31, 2025, net debt was $1.46 billion, and the net debt to pro forma adjusted EBITDA ratio was 3.4x, inclusive of the cash proceeds from the sale of Milacron. Liquidity was approximately $770 million, including $458 million in cash on hand and the remainder available under our revolving credit facility. 

On April 29, 2025, the Company, in conjunction with its majority stake joint-venture partner in TerraSource Global (TerraSource), entered into a definitive agreement to sell the TerraSource business to Astec Industries for $245 million. This transaction is expected to close in late fiscal third quarter or early fiscal fourth quarter 2025, subject to regulatory approvals and other customary closing conditions. The Company expects to receive after-tax cash proceeds of approximately $100 million, of which approximately $34 million will be in the form of a cash payment for an outstanding note receivable that the Company holds in connection with the 2021 divestiture of its majority interest in TerraSource and approximately 46% of the remaining net cash proceeds from the transaction in exchange for its minority interest in TerraSource. The net proceeds from the transaction will be used for debt pay down, resulting in an approximate 0.2x favorable impact to net leverage.

Milacron Transaction

On March 31, 2025, the Company completed the sale of approximately 51% of its interest in the Milacron injection molding and extrusion business to an affiliate of Bain Capital. Net proceeds were held as cash on the balance sheet as of March 31, 2025, and were used to pay down debt subsequent to the quarter end.

Fiscal 2025 Outlook

Hillenbrand is updating its annual guidance range to reflect backlog levels exiting the fiscal second quarter and the impact of tariffs, including the indirect impact of further order delays due to increased macroeconomic uncertainty. This outlook is based on tariff policy in place as of April 29, 2025, and assumes direct tariff impact of approximately $15 million in EBITDA.

For the full second quarter results, click here.

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.

Source: Hillenbrand, Inc.