Hillenbrand(HI) - 2025 Q2 - Quarterly Results

Financial Performance - Revenue for the fiscal second quarter was $716 million, a decrease of 9$41 million, or $(0.58) per share, compared to income of$0.09 per share in the prior year, primarily due to a loss on the sale of the Milacron business[6]. - Adjusted EPS was $0.60, a decrease of 21$99 million, down 19% year-over-year, primarily due to lower volume and cost inflation[7]. - Fiscal 2025 revenue guidance is updated to $2.555 billion to$2.620 billion, reflecting a year-over-year decline of 20% to 18%[19]. - Net revenue for the three months ended March 31, 2025, was $715.9 million, a decrease of 8.8$785.3 million for the same period in 2024[32]. - Gross profit for the six months ended March 31, 2025, was $471.4 million, down from$501.7 million in the prior year, reflecting a decrease of 6.0%[32]. - The company reported a consolidated net loss of $38.6 million for the three months ended March 31, 2025, compared to a net income of$8.6 million in the same period last year[32]. - Adjusted net income from continuing operations attributable to Hillenbrand for the six months ended March 31, 2025, was $81.8 million, down from$102.6 million in 2024, reflecting a decrease of approximately 20.3%[35]. - The company's adjusted diluted EPS from continuing operations was $0.60 for the three months ended March 31, 2025, compared to$0.76 in 2024, indicating a decline of 21.1%[36]. Backlog and Future Outlook - Backlog decreased 15% year-over-year to $1.59 billion, primarily due to lower order intake, but increased 1$1,653.1 million, down from $1,926.7 million in 2024, a decrease of approximately 14.1$2.10 to $2.45[4]. Cash Flow and Debt - Operating cash flow for the fiscal year is projected to be approximately$120 million[19]. - Cash flows used in operating activities from continuing operations were $(10.0) million for the six months ended March 31, 2025[33]. - The total debt of Hillenbrand as of March 31, 2025, was$1,916.7 million, with a net debt of $1,458.3 million, resulting in a net debt to pro forma adjusted EBITDA ratio of 3.4[37]. - The sale of the majority stake in Milacron generated net proceeds of approximately$265 million, which were used for debt pay down[4]. - The company expects to receive after-tax cash proceeds of approximately $100 million from the sale of TerraSource Global, which will also be used for debt pay down[16]. Losses and Costs - The company incurred a loss on divestiture of$54.6 million during the three months ended March 31, 2025[32]. - Business acquisition, divestiture, and integration costs for the three months ended March 31, 2025, amounted to $25.1 million, significantly higher than$9.1 million in the same period of 2024[36]. - The company incurred a loss on divestiture of $54.6 million for the three months ended March 31, 2025, which was not present in the same period of 2024[36]. Tax and Shareholder Information - The effective tax rate for the three months ended March 31, 2025, was 12.9$0.2250 for the three months ended March 31, 2025, compared to $0.2225 in the same period last year[32]. - The weighted average shares outstanding (basic) for the six months ended March 31, 2025, was 70.7 million, consistent with the prior year[32]. Market Conditions and Strategic Initiatives - Hillenbrand anticipates potential impacts from global market conditions and competition, which may affect future performance and strategic initiatives[38]. - Hillenbrand is a global industrial company providing mission-critical processing equipment and solutions across various end markets, including durable plastics, food, and recycling[42]. - The company emphasizes its commitment to excellence, collaboration, and innovation to shape solutions that serve its stakeholders[42]. - Investors are advised to consider risks and uncertainties when evaluating forward-looking statements, as actual results may differ significantly[40]. - Hillenbrand's forward-looking information is only valid as of the date it is made, with no obligation to update or revise it[40].