Financial Data and Key Metrics Changes - Revenue for the fiscal third quarter was $599 million, down 24% year-over-year, or 10% on a pro forma basis, primarily due to the divestiture of the MIME business and lower capital equipment volume in APS [14][15] - Pro forma adjusted EBITDA decreased 28% to $84 million, with an adjusted EBITDA margin of 14.1%, down 360 basis points, largely due to lower volume impacting operating leverage [15] - GAAP net income was $2 million, a significant improvement from a loss of $249 million in the prior year, attributed to a non-cash impairment charge recorded in the previous fiscal year [15] - Adjusted earnings per share decreased 40% to $0.51, in line with expectations, primarily due to the divestiture of the MIME business and lower APS volumes [15][16] Business Line Data and Key Metrics Changes - In the Advanced Process Solutions (APS) segment, revenue decreased 11% to $507 million, driven by lower volume, partially offset by favorable pricing [17] - The Molding Technology Solutions (MTS) segment saw pro forma revenue of $92 million, a decrease of 2% year-over-year, with growth in the hot runner business offset by a decline in mold-based sales [19] - Backlog for APS decreased 10% year-over-year to $1.57 billion, while MTS backlog increased 7% year-over-year to $55 million [18][19] Market Data and Key Metrics Changes - The food, health, and nutrition market now represents over 25% of global revenue, with significant progress in achieving $30 million in run-rate cost synergies from recent acquisitions [6][7] - Strong quoting and test facility activity were noted, indicating potential future order growth despite current delays in decision-making due to macroeconomic uncertainties [8][10] Company Strategy and Development Direction - The company is focused on simplifying its portfolio, reducing debt, and advancing integration and commercial synergies within its Food, Health, and Nutrition businesses [5] - Recent divestitures generated approximately $380 million in net proceeds, which were used to reduce debt by over $300 million, strengthening the balance sheet [5] - The company aims to leverage its global network and systems integration capabilities to enhance customer value across various end markets [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying markets served by the APS segment, anticipating a return to normalized order patterns as the macroeconomic environment stabilizes [10] - The company is optimistic about future order activity, citing recent key orders placed since the end of the third quarter as encouraging signs [19][22] - Management emphasized the importance of maintaining close relationships with customers to facilitate timely order decisions and project execution [31][32] Other Important Information - The company is actively engaged in a search for a permanent CFO, with the interim CFO bringing significant experience to the role [13] - The company has implemented surcharge pricing and adjusted contract terms to mitigate the impact of tariffs, while also localizing supply chains [12] Q&A Session Summary Question: Can you elaborate on the uptick in orders post-quarter? - Management noted that the uptick in orders is primarily from the plastics side, particularly in polyolefins and engineering plastics, with orders coming from various geographies including the U.S. and Asia [30][31] Question: What is the outlook for MTS demand and quoting activity? - Management indicated that quoting activity has improved, particularly in India and China, with new product launches driving demand [35][36] Question: How is the company addressing cash flow challenges? - Management highlighted that cash flow is expected to improve as new orders come in, with a focus on negotiating favorable contract terms to ensure progress payments [40][41] Question: Is there any discussion regarding the dividend given the current leverage? - Management stated that the dividend is regularly reviewed with the Board of Directors, but no specific announcements were made regarding changes at this time [53]

Third Quarter FY 2025 Earnings Call Presentation August 12, 2025 Hillenbrand Call Participants Trent Schwartz Executive Director, IR Kim Ryan President & CEO Megan Walke VP & Interim CFO Disclosure Regarding Forward-Looking Statements Throughout this earnings presentation, 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 S ...

Core Viewpoint - Hillenbrand reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, but down from $0.85 per share a year ago [1] Financial Performance - The earnings surprise for the quarter was +2.00%, with the company previously expected to post earnings of $0.54 per share but actually delivering $0.60, resulting in a surprise of +11.11% [2] - Hillenbrand's revenues for the quarter ended June 2025 were $598.9 million, surpassing the Zacks Consensus Estimate by 4.63%, compared to $786.6 million in revenues a year ago [3] - The company has consistently exceeded consensus revenue estimates over the last four quarters [3] Stock Performance - Hillenbrand shares have declined approximately 35.9% since the beginning of the year, while the S&P 500 has gained 8.6% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $558.9 million, and for the current fiscal year, it is $2.20 on revenues of $2.55 billion [8] - The outlook for the industry can significantly impact the stock's performance, with the Industrial Services sector currently ranking in the top 29% of over 250 Zacks industries [9]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited consolidated financial statements for Q3 and YTD 2025/2024, including key statements and notes on Milacron and TerraSource divestitures [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Net revenue decreased for both periods, with a nine-month net loss improving from prior year's impairment, and Q3 2025 showing net income Consolidated Statements of Operations Highlights (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net revenue** | $598.9 | $786.6 | $2,021.7 | $2,345.2 | | **Gross profit** | $202.6 | $266.4 | $674.0 | $768.1 | | **Impairment charges** | $0.0 | $265.0 | $0.0 | $265.0 | | **Loss on divestiture** | $1.5 | $0.0 | $56.1 | $0.0 | | **Net income (loss) attributable to Hillenbrand** | $1.9 | $(248.9) | $(32.6) | $(225.6) | | **Diluted EPS attributable to Hillenbrand** | $0.03 | $(3.53) | $(0.46) | $(3.20) | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $4.68 billion from $5.24 billion, primarily due to Milacron divestiture impacts on goodwill, intangibles, and inventories Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 (unaudited) | September 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,286.3 | $1,509.9 | | **Goodwill** | $1,685.0 | $1,835.7 | | **Intangible assets, net** | $1,158.9 | $1,285.9 | | **Total Assets** | **$4,676.5** | **$5,238.7** | | **Total current liabilities** | $1,030.1 | $1,189.1 | | **Long-term debt** | $1,663.6 | $1,872.4 | | **Total Liabilities** | **$3,324.3** | **$3,781.3** | | **Total Shareholders' Equity** | $1,352.2 | $1,457.4 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $11.5 million, a decrease from prior year, with investing providing $84.4 million and financing using $107.0 million Cash Flow Summary (in millions) | Cash Flow Activity | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(11.5) | $24.8 | | Net cash provided by (used in) investing activities | $84.4 | $(40.2) | | Net cash (used in) provided by financing activities | $(107.0) | $13.4 | | **Net cash flows** | **$(37.9)** | **$(25.6)** | [Condensed Notes to Consolidated Financial Statements](index=9&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) Details accounting policies, revenue recognition, and key corporate actions, including Milacron divestiture loss, segment performance, and TerraSource divestiture - On March 31, 2025, the company divested its majority interest in the Milacron injection molding and extrusion business to an affiliate of Bain Capital, retaining a **48.74% minority ownership**. This resulted in a pre-tax loss of **$56.1 million** for the nine months ended June 30, 2025[30](index=30&type=chunk)[33](index=33&type=chunk) - As of June 30, 2025, the company's backlog was **$1,624.2 million**. Approximately **75%** of this is expected to be recognized as revenue over the next twelve months[28](index=28&type=chunk) - Subsequent to the quarter end, on July 1, 2025, the company completed the divestiture of its joint-venture TerraSource to Astec Industries for **$245.0 million**, expecting to record a pre-tax gain of approximately **$66.0 million**[99](index=99&type=chunk) - In the prior year (Q3 2024), the company recorded significant impairment charges of **$265.0 million**, consisting of a **$238.0 million** goodwill impairment and a **$27.0 million** trade name impairment within the Molding Technology Solutions segment[48](index=48&type=chunk)[49](index=49&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses operational and financial results, highlighting Q3 and YTD revenue decreases due to Milacron divestiture and lower volumes, alongside liquidity and financing [Operations Review — Consolidated](index=33&type=section&id=Operations%20Review%20%E2%80%94%20Consolidated) Consolidated net revenue decreased 24% for Q3 and 14% for nine months, driven by Milacron divestiture and lower APS volume, with stable gross margin Revenue and Gross Profit Comparison (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Net Revenue** | $598.9 | $786.6 | (24%) | | **Gross Profit** | $202.6 | $266.4 | (24%) | | **Gross Profit Margin** | 33.8% | 33.9% | -10 bps | - The effective tax rate for Q3 2025 was **61.3%**, a significant increase from **4.1%** in Q3 2024, driven by an unfavorable geographic mix of earnings and an increase in unrecognized tax benefits[127](index=127&type=chunk) [Operations Review — Advanced Process Solutions](index=37&type=section&id=Operations%20Review%20%E2%80%94%20Advanced%20Process%20Solutions) APS segment net revenue decreased 11% to $507.0 million due to lower volume, with gross margin contracting 290 bps and backlog decreasing 10% - Q3 Net Revenue decreased **11%** YoY to **$507.0 million**, primarily from lower volume[139](index=139&type=chunk) - Order backlog stood at **$1,569.6 million** at June 30, 2025, a **10%** decrease from the prior year, mainly due to a decrease in capital equipment orders[140](index=140&type=chunk) - Q3 Gross profit margin fell **290 basis points** to **33.1%**, impacted by cost inflation and unfavorable product mix[141](index=141&type=chunk) [Operations Review — Molding Technology Solutions](index=38&type=section&id=Operations%20Review%20%E2%80%94%20Molding%20Technology%20Solutions) MTS segment net revenue sharply declined 58% to $91.9 million due to Milacron divestiture, yet gross margin improved 980 bps, and backlog fell 77% - Q3 Net Revenue decreased **58%** YoY to **$91.9 million**, primarily due to the Milacron divestiture[152](index=152&type=chunk) - Order backlog decreased **77%** YoY to **$54.6 million**, also due to the Milacron divestiture[152](index=152&type=chunk) - Q3 Gross profit margin improved significantly by **980 basis points** to **38.0%**, driven by productivity improvements and restructuring actions[153](index=153&type=chunk) [NON-GAAP OPERATING PERFORMANCE MEASURES](index=40&type=section&id=NON-GAAP%20OPERATING%20PERFORMANCE%20MEASURES) Consolidated adjusted EBITDA from continuing operations decreased 36% to $84.3 million for Q3 2025, driven by lower APS volume and cost inflation Reconciliation of Net Income (Loss) to Adjusted EBITDA (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Consolidated net income (loss)** | $4.1 | $(246.9) | $(25.6) | $(219.1) | | Interest, Taxes, D&A | $60.5 | $60.4 | $181.5 | $215.3 | | Impairment charges | $0.0 | $265.0 | $0.0 | $265.0 | | Loss on divestiture | $1.5 | $0.0 | $56.1 | $0.0 | | Other adjustments | $18.2 | $25.6 | $68.1 | $70.1 | | **Adjusted EBITDA from continuing operations** | **$84.3** | **$131.0** | **$280.1** | **$367.8** | [LIQUIDITY AND CAPITAL RESOURCES](index=41&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains sufficient liquidity, with $348.9 million available under its revolving credit facility and subsequent refinancing actions, including debt repayment - Subsequent to quarter-end, the company entered into a new Fifth Amended and Restated Credit Agreement, providing a **$700 million** revolving credit facility and two term loans (**$175M** and up to **€240M**)[180](index=180&type=chunk)[182](index=182&type=chunk) - Effective July 21, 2025, the company repaid its **$375 million** senior unsecured notes due 2026 using proceeds from the TerraSource divestiture and new Euro Term Loans[184](index=184&type=chunk) - The company had approximately **$125.0 million** remaining for share repurchases under its existing authorization as of June 30, 2025[189](index=189&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk disclosures have occurred since the 2024 Form 10-K filing - There have been no material changes in quantitative and qualitative disclosures about market risk since the filing of the 2024 Form 10-K[203](index=203&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting identified - The Certifying Officers concluded that the company's disclosure controls and procedures were effective as of the end of the period[204](index=204&type=chunk) - No changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, internal controls were identified during the quarter[206](index=206&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is referenced in Note 14 to the Consolidated Financial Statements - Information regarding legal proceedings is located in Note 14 to the Consolidated Financial Statements[207](index=207&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) Updates risk factors, highlighting potential negative impacts from U.S. global trade policy uncertainty and proposed tariffs on operations - A key risk factor is the uncertainty in U.S. global trade policy, including recently announced or proposed tariffs on imports from various countries, which could increase costs and negatively impact operations[209](index=209&type=chunk)[210](index=210&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q3 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the third quarter of fiscal 2025[213](index=213&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including credit agreements, compensatory plan forms, and officer certifications

[Fiscal Third Quarter 2025 Performance Overview](index=1&type=section&id=Fiscal%20Third%20Quarter%202025%20Performance%20Overview) Hillenbrand's Q3 2025 results show revenue declines from divestitures, improved GAAP net income, and strategic debt reduction and synergy realization [Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) Hillenbrand's Q3 2025 results exceeded revenue expectations, met adjusted EPS, driven by strategic divestitures and synergy achievements - Strategic portfolio refinement and debt reduction were key activities, with over **$300 million** in debt paid down during the fiscal year from the MIME divestiture and the sale of a minority interest in TerraSource[3](index=3&type=chunk) - Achieved **$30 million** in run-rate cost synergies from the Linxis and FPM acquisitions earlier than planned, and is beginning to see commercial synergy potential[3](index=3&type=chunk)[5](index=5&type=chunk) - Q3 revenue exceeded expectations and adjusted EPS met expectations, despite customer delays due to the dynamic tariff landscape[4](index=4&type=chunk) Q3 2025 Key Financial Metrics (in millions, except EPS) | Metric | Value | Change vs. Prior Year | | :--- | :--- | :--- | | Revenue | $599 million | -24% | | Pro Forma Revenue | $599 million | -10% | | GAAP EPS | $0.03 | Increased from $(3.53) | | Adjusted EPS | $0.51 | -40% | [Consolidated Financial Results (Q3 2025)](index=2&type=section&id=Consolidated%20Financial%20Results%20%28Q3%202025%29) Hillenbrand's Q3 2025 net revenue decreased **24%** to **$599 million** due to divestitures, while GAAP net income improved and adjusted EPS fell **40%** Q3 2025 Consolidated Financial Summary (in millions, except EPS) | Metric | Q3 2025 | Q3 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | $598.9 | $786.6 | (24)% | | GAAP Net Income | $1.9 | $(248.9) | 101% | | Adjusted EBITDA | $84.3 | $131.0 | (36)% | | GAAP Diluted EPS | $0.03 | $(3.53) | 101% | | Adjusted Diluted EPS | $0.51 | $0.85 | (40)% | | Pro Forma Net Revenue | $598.9 | $663.0 | (10)% | | Pro Forma Adjusted EBITDA | $84.3 | $116.6 | (28)% | - The significant increase in GAAP net income was primarily due to a non-cash impairment charge related to the hot runner product line within the MTS segment recorded in the prior fiscal year[7](index=7&type=chunk) - The decrease in adjusted EPS was mainly attributed to the divestiture of the MIME business and lower sales volume[8](index=8&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Both APS and MTS segments experienced Q3 revenue declines, with APS down **11%** and MTS down **58%** (or **2%** pro forma) [Advanced Process Solutions (APS)](index=2&type=section&id=Advanced%20Process%20Solutions%20%28APS%29) APS segment revenue decreased **11%** to **$507 million** due to lower capital equipment volume, with adjusted EBITDA falling **27%** APS Q3 2025 Performance (in millions) | Metric | Q3 2025 | Q3 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | $507.0 | $569.4 | (11)% | | Adjusted EBITDA | $80.1 | $109.2 | (27)% | | Adjusted EBITDA Margin | 15.8% | 19.2% | (340) bps | - The decline in revenue was primarily due to lower capital equipment volume, which was partially offset by favorable pricing[10](index=10&type=chunk) - Backlog stood at **$1.57 billion**, a **10%** decrease compared to the prior year and a **2%** sequential decrease[12](index=12&type=chunk) [Molding Technology Solutions (MTS)](index=3&type=section&id=Molding%20Technology%20Solutions%20%28MTS%29) MTS segment revenue decreased **58%** to **$92 million** due to MIME divestiture, or **2%** pro forma, with margins contracting **170 basis points** MTS Q3 2025 Performance (in millions) | Metric | Q3 2025 | Q3 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | $91.9 | $217.2 | (58)% | | Pro Forma Net Revenue | $91.9 | $93.6 | (2)% | | Adjusted EBITDA | $18.3 | $34.6 | (47)% | | Pro Forma Adjusted EBITDA | $18.3 | $20.2 | (9)% | | Pro Forma Adj. EBITDA Margin | 19.9% | 21.6% | (170) bps | - The significant year-over-year revenue decline was primarily due to the MIME divestiture[13](index=13&type=chunk) - Pro forma backlog increased **7%** compared to the prior year, reaching **$55 million**[15](index=15&type=chunk) [Balance Sheet, Cash Flow and Capital Allocation](index=3&type=section&id=Balance%20Sheet%2C%20Cash%20Flow%20and%20Capital%20Allocation) Hillenbrand's Q3 saw a **$2 million** cash use from operations, with net debt at **$1.51 billion** (3.9x leverage), reduced by **$115 million** post-quarter - Cash flow from operations was a use of **$2 million** in the quarter, primarily due to lower customer advances from decreased order volume[16](index=16&type=chunk) - As of June 30, 2025, net debt was **$1.51 billion**, with a net debt to pro forma adjusted EBITDA ratio of **3.9x**[17](index=17&type=chunk) - On July 1, 2025, the company used **~$115 million** in proceeds from the TerraSource divestiture for debt pay down, resulting in an approximate **0.2x** favorable impact on net leverage[18](index=18&type=chunk) - The company redeemed its **$375 million** notes due in 2026 and amended its credit facilities to enhance operational and financial flexibility[19](index=19&type=chunk)[20](index=20&type=chunk) [Fiscal 2025 Outlook](index=4&type=section&id=Fiscal%202025%20Outlook) Hillenbrand updated its fiscal 2025 outlook, projecting total net revenue between **$2,595 million** and **$2,630 million**, maintaining adjusted EPS midpoint [Updated Guidance](index=4&type=section&id=Updated%20Guidance) Hillenbrand updated its fiscal 2025 outlook, projecting total net revenue between **$2,595 million** and **$2,630 million**, maintaining adjusted EPS midpoint - The company is updating its core outlook for fiscal 2025 but maintaining the mid-point of its full year adjusted EPS range[21](index=21&type=chunk) Fiscal 2025 Full Year Guidance (in millions, except EPS and percentages) | Metric | Total Hillenbrand | Advanced Process Solutions | Molding Technology Solutions | | :--- | :--- | :--- | :--- | | Net Revenue | $2,595 - $2,630 M | $2,005 - $2,030 M | $590 - $600 M | | YoY Revenue Change | (18%) - (17%) | (12%) - (11%) | (34%) - (33%) | | Adj. EBITDA | $370 - $385 M | 16.6% - 16.8% Margin | 16.0% - 16.7% Margin | | Adj. EPS | $2.20 - $2.35 | - | - | | YoY Adj. EPS Change | (34%) - (29%) | - | - | | Operating Cash Flow | ~$60 M | - | - | | CapEx | ~$40 M | - | - | [Financial Statements and Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides detailed unaudited consolidated financial statements, including statements of operations, cash flows, and reconciliations of GAAP to non-GAAP measures [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Unaudited Consolidated Statements of Operations show Q3 2025 net income of **$1.9 million** (or **$0.03** per diluted share), a significant improvement from prior year's **$248.9 million** net loss Consolidated Statements of Operations Highlights (Three Months Ended June 30, in millions) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net revenue | $598.9 | $786.6 | | Gross profit | $202.6 | $266.4 | | Impairment charges | $— | $265.0 | | Income (loss) from continuing operations | $4.1 | $(246.9) | | Net income (loss) attributable to Hillenbrand | $1.9 | $(248.9) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2025, cash used in operating activities was **$11.5 million**, with investing activities providing **$84.4 million** and financing activities using **$107.0 million** Cash Flow Summary (Nine Months Ended June 30, in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Operating activities | $(11.5) | $24.8 | | Investing activities | $84.4 | $(40.2) | | Financing activities | $(107.0) | $13.4 | | Net cash flows | $(37.9) | $(25.6) | | Cash at end of period | $190.0 | $224.6 | [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP measures, adjusting Q3 2025 GAAP net income and EPS to their respective adjusted figures Q3 2025 GAAP to Adjusted EPS Reconciliation | Item | Per Share Amount | | :--- | :--- | | Diluted EPS from continuing operations | $0.03 | | Business acquisition, divestiture, and integration costs | $0.18 | | Restructuring and restructuring-related charges | $0.08 | | Intangible asset amortization | $0.32 | | Loss on divestiture | $0.02 | | Other adjustments (net) | $(0.12) | | **Adjusted Diluted EPS** | **$0.51** | Q3 2025 Consolidated Net Income to Adjusted EBITDA Reconciliation (in millions) | Item | Amount | | :--- | :--- | | Consolidated net income (loss) | $4.1 | | Interest expense, net | $21.3 | | Income tax expense (benefit) | $6.5 | | Depreciation and amortization | $32.7 | | **EBITDA** | **$64.6** | | Business acquisition, divestiture, and integration costs | $12.7 | | Restructuring and restructuring-related charges | $5.5 | | Loss on divestiture | $1.5 | | **Adjusted EBITDA** | **$84.3** | Net Debt to Pro Forma Adjusted EBITDA Ratio (as of June 30, 2025) | Metric | Amount (in millions) | | :--- | :--- | | Total debt | $1,676.2 | | Less: Cash and cash equivalents | $162.8 | | **Net debt** | **$1,513.4** | | Pro forma adjusted EBITDA (TTM) | $389.1 | | **Ratio of net debt to pro forma adjusted EBITDA** | **3.9x** | [Appendix](index=4&type=section&id=Appendix) The appendix provides details on the conference call, explanations of non-GAAP financial measures, forward-looking statements, and an overview of Hillenbrand's business [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Hillenbrand will host a conference call and webcast on Tuesday, August 12, 2025, at **8:00 a.m. ET** to discuss fiscal Q3 2025 results - The conference call to discuss results is scheduled for Tuesday, August 12, 2025, at **8:00 a.m. ET**[23](index=23&type=chunk) [About Non-GAAP Financial Measures](index=5&type=section&id=About%20Non-GAAP%20Financial%20Measures) This section explains Hillenbrand's use of non-GAAP financial measures, clarifying their purpose for internal evaluation and investor comparison - Non-GAAP 'adjusted' measures generally exclude items such as business acquisition and divestiture costs, restructuring charges, intangible asset amortization, and other non-recurring costs[24](index=24&type=chunk)[27](index=27&type=chunk) - The company uses non-GAAP information internally to measure operating segment performance and believes it helps investors perform trend analysis by removing distortions from excluded items[25](index=25&type=chunk) - Backlog is defined as the amount of consolidated net revenue expected to be realized on awarded contracts, though it is not a term recognized under GAAP[31](index=31&type=chunk) [Forward-Looking Statements](index=14&type=section&id=Forward-Looking%20Statements) This section contains standard forward-looking statements, cautioning that future results may differ materially due to various risks and uncertainties - The document contains forward-looking statements that are subject to risks and uncertainties, and actual results could vary materially from expectations[43](index=43&type=chunk) - Key risk factors include global market conditions, trade policies, competition, supply chain disruptions, and risks related to acquisitions and divestitures[44](index=44&type=chunk) [About Hillenbrand](index=14&type=section&id=About%20Hillenbrand) Hillenbrand is a global industrial company providing highly-engineered processing equipment and solutions for end markets like durable plastics, food, and recycling - Hillenbrand is a global industrial company providing highly-engineered processing equipment and solutions to customers worldwide[47](index=47&type=chunk) - The company's portfolio serves end markets such as durable plastics, food, and recycling[47](index=47&type=chunk)

Core Viewpoint - Hillenbrand, Inc. reported a significant decline in net revenue for the fiscal third quarter of 2025, primarily due to the divestiture of the MIME business and lower capital equipment volume, while achieving improvements in net income and adjusted EPS compared to the previous year [1][4][5]. Financial Performance - Net revenue for the third quarter was $598.9 million, a decrease of 24% from $786.6 million in the prior year, mainly due to the MIME divestiture and lower capital equipment volume [4][6]. - GAAP net income attributable to Hillenbrand was $1.9 million, or $0.03 per share, compared to a loss of $(248.9) million, or $(3.53) per share, in the prior year, reflecting a significant recovery [5][6]. - Adjusted EBITDA was $84.3 million, down 36% from $131.0 million year-over-year, primarily due to lower volume and unfavorable product mix [4][6]. - Adjusted diluted EPS decreased by 40% to $0.51 from $0.85 in the previous year [4][6]. Strategic Initiatives - The company focused on refining its portfolio and reducing debt, successfully using proceeds from the MIME divestiture to pay down over $300 million in debt during the fiscal year [2][3]. - Hillenbrand achieved $30 million in run-rate cost synergies from recent acquisitions, indicating progress in integrating its Food, Health, and Nutrition (FHN) business [2][8]. Market Conditions - The company faced challenges as customers continued to delay purchasing decisions due to a dynamic tariff landscape, impacting revenue generation [3][8]. - Despite these challenges, Hillenbrand remains confident in its durable business segments and differentiated technologies to deliver solutions globally [3][8]. Outlook - Hillenbrand updated its fiscal 2025 outlook, maintaining the midpoint of its full-year adjusted EPS range based on year-to-date performance and expectations for the fourth quarter [18][20]. - The company anticipates total net revenue for fiscal 2025 to be between $2.595 billion and $2.630 billion, reflecting a year-over-year decline of 18% to 17% [20][21].

Company Information - Hillenbrand, Inc. (NYSE: HI) is a global industrial company providing highly-engineered, mission-critical processing equipment and solutions to customers in over 100 countries [4] - The company's portfolio includes leading industrial brands serving large end markets such as durable plastics, food, and recycling [4] - Hillenbrand is guided by its purpose to "Shape What Matters For Tomorrow," focusing on excellence, collaboration, and innovation [4] Upcoming Events - Hillenbrand will hold a conference call and webcast on August 12, 2025, at 8:00 a.m. ET to discuss the results for the third quarter of fiscal year 2025, which ended June 30, 2025 [1] - A press release reporting the results will be issued after the market closes on August 11, 2025, and will be available on the company's investor relations website [3] - The live webcast will be archived on the investor relations website until September 12, 2025 [1]

Core Viewpoint - Hillenbrand, Inc. has announced the full redemption of its $375 million, 4.500% notes due September 2026, alongside significant amendments to its credit agreements, aimed at optimizing its capital structure and enhancing operational and financial flexibility [1][2][3]. Group 1: Financial Actions - The company redeemed $375 million in notes with a 4.500% interest rate, maturing in September 2026 [1]. - An amendment and extension of the syndicated credit agreement was successfully completed, which includes a $700 million revolving credit facility, a $175 million term loan, and a Euro-denominated delayed-draw term loan of up to €240 million [2]. - The company also amended its €325 million L/G facility agreement, with Commerzbank acting as the lead arranger and agent [2]. Group 2: Strategic Implications - The redemption of the notes and the amendments to the credit agreements represent a strategic move to optimize the company's capital structure [3]. - These actions are expected to provide greater operational and financial flexibility for the company moving forward [3]. Group 3: Company Overview - Hillenbrand, Inc. is a global industrial company that specializes in providing highly-engineered, mission-critical processing equipment and solutions across various sectors, including durable plastics, food, and recycling [4]. - The company is guided by its purpose to shape solutions that serve its stakeholders effectively [4].

Group 1 - Highland Copper Company Inc. has approved the grant of 6,632,271 incentive stock options, 3,116,875 Restricted Share Units, and 1,973,684 Deferred Share Units to its directors, executive officers, and employees, subject to regulatory approval [1] - The stock options have an exercise price of CDN$0.095 per share and are exercisable for a period of up to five years, with vesting occurring in three phases [1] - The Restricted Share Units and Deferred Share Units will vest in three equal parts over three years [1] Group 2 - Highland Copper Company is focused on exploring and developing copper projects in the Upper Peninsula of Michigan, U.S.A. [2] - The company owns the Copperwood deposit through long-term mineral leases and holds a 34% interest in the White Pine North project via a joint venture [2] - Highland Copper has 736,363,619 common shares issued and outstanding, listed on the TSX Venture Exchange under the symbol "HI" and trading on the OTCQB under "HDRSF" [2]

Core Insights - Highland Copper Company is making significant progress on its 100%-owned Copperwood Project, moving towards a near-term construction decision [1] Funding and Support - The Copperwood project is under consideration for a $50 million grant from the Michigan Economic Development Corporation, pending final approval from the Senate Appropriations Committee [2] - Wakefield Township has requested a separate $50 million infrastructure grant from the Michigan legislature, demonstrating strong local support for the project [3] - The proposed grant aims to enhance economic development in Gogebic County by upgrading local infrastructure, which will also support the Copperwood project [4] - Local leaders, including Wakefield Township Supervisor Mandy Lake and Congressman Jack Bergman, emphasize the project's importance for domestic copper production and job creation [5] Engineering and Development - Highland has awarded Front-End Engineering and Design contracts to DRA Global for mine and process plant engineering, and to Foth and Tetra Tech for water management and tailings disposal facility engineering, respectively [6] - The company plans to transition into Phase 2 of its engineering program in Q3 2025, targeting 35% completion for mine and process plant engineering and 85% for the tailings disposal facility by Q1 2026 [7] - Successful completion of metallurgical drill programs has been reported, with 400 kilograms of core samples sent for analysis, achieving results comparable to previous tests [8] Environmental Mitigation - The 2025 construction season focuses on fulfilling obligations related to environmental mitigation, including the planting of nearly 20,000 trees [10] - An off-site stream mitigation project is underway to replace undersized culverts with a 50-foot-span bridge, enhancing fish habitat and meeting mitigation obligations [11] Strategic Outlook - The company is focused on key work programs to enable a construction decision for Copperwood in 2026, including site preparation, engineering progress, and funding opportunities [12]