Hillenbrand Reports Fiscal Third Quarter 2025 Results

Hillenbrand, Inc., a leading global provider of highly-engineered processing equipment and integrated solutions, reported results for the fiscal third quarter, which ended June 30, 2025. Reported results for the fiscal third quarter exclude the divested MIME business in both the consolidated and Molding Technology Solutions (MTS) segment results.

• Revenue of $599 million decreased 24% compared to prior year; pro forma revenue decreased 10%
• GAAP EPS of $0.03 increased from $(3.53) in the prior year; adjusted EPS of $0.51 decreased 40% compared to prior year
• Achieved $30 million of run-rate cost synergies associated with Linxis and FPM acquisitions earlier than planned
• On July 1, 2025, executed the divestiture of minority stake in TerraSource and used proceeds of approximately $115 million to pay down debt; successfully amended credit facilities
• 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 $300 million during the fiscal year. These portfolio moves allow us to focus on our higher margin, higher growth, and higher ROIC businesses serving the performance materials and FHN end markets. Within our FHN business, we recently achieved the $30 million in run-rate cost synergies from the Linxis and FPM acquisitions, and over the last several quarters we are beginning to see the proof points of the combined assets’ commercial synergy potential,” said Kim Ryan, President and Chief Executive Officer of Hillenbrand.

“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

Net revenue of $599 million decreased 24% compared to the prior year primarily due to the divestiture of the MIME business and lower capital equipment volume in APS, partially offset by favorable pricing. Pro forma net revenue decreased 10%.

GAAP net income of $2 million, or $0.03 per share, increased from a loss of $(3.53) per share in the prior year primarily due to the non-cash impairment charge recorded in the same period in the prior fiscal year related to the hot runner product line within the MTS segment.

Adjusted net income of $36 million resulted in adjusted EPS of $0.51, a decrease of $0.34, or 40%, primarily due to the divestiture of MIME and lower volume. Pro forma adjusted EBITDA of $84 million decreased 28% compared to the prior year, primarily due to lower volume, unfavorable product mix, and inflation, partially offset by productivity and favorable pricing.

The adjusted effective tax rate for the quarter was 29.4%, an increase of 80 basis points compared to the prior year due to unfavorable geographic mix of income. 

Advanced Process Solutions (APS)

Net revenue of $507 million decreased 11% compared to the prior year primarily due to lower capital equipment volume, partially offset by favorable pricing.

Adjusted EBITDA of $80 million decreased 27% primarily due to lower volume, unfavorable product mix, and inflation, partially offset by productivity and favorable pricing. Adjusted EBITDA margin of 15.8% decreased 340 basis points primarily due to unfavorable operating leverage as a result of lower volume and product mix, partially offset by productivity and price.

Backlog of $1.57 billion decreased 10% compared to the prior year primarily due to lower capital equipment order intake, partially offset by favorable foreign currency impact. Sequentially, backlog decreased 2%.

Molding Technology Solutions (MTS)

Net revenue of $92 million was down 58% year over year primarily due to the MIME divestiture. Pro forma net revenue decreased 2% primarily due to lower volumes.

Adjusted EBITDA of $18 million decreased 47%, primarily due to the divestiture of MIME. Pro forma adjusted EBITDA decreased 9% and pro forma adjusted EBITDA margin of 19.9% decreased 170 basis points from the prior year primarily due to inflation and tariffs, partially offset by productivity.

Pro forma backlog of $55 million increased 7% compared to the prior year. Sequentially, backlog was flat.

Balance Sheet, Cash Flow and Capital Allocation

Hillenbrand’s cash flow from operations represented a use of $2 million in the quarter, primarily due to lower customer advances from decreased order volume.  During the quarter, the Company had capital expenditures of approximately $10 million and returned approximately $16 million to shareholders in the form of quarterly dividends.

As of June 30, 2025, net debt was $1.51 billion, and the net debt to pro forma adjusted EBITDA ratio was 3.9x. Liquidity was approximately $512 million, including $163 million in cash on hand and the remainder available under our revolving credit facility.

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 $245 million. Hillenbrand received approximately $115 million from the transaction, which was used for debt pay down, resulting in an approximate 0.2x favorable impact and implying net leverage of 3.7x.

On July 22, 2025, the Company redeemed in full its $375 million notes due September 2026. The Company also announced the successful amendment and extension of its syndicated credit agreement and amendment of its L/G facility agreement. These actions mark a significant step in optimizing the Company’s capital structure, allowing for greater operational and financial flexibility.

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.

For full 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.