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Hillenbrand Reports Fiscal Second Quarter 2025 Results
HIHillenbrand(HI) Prnewswire·2025-04-29 20:15

Core Viewpoint - Hillenbrand, Inc. reported a decline in financial performance for the fiscal second quarter of 2025, primarily due to lower capital equipment volume and increased macroeconomic uncertainty, leading to an adjusted outlook for the remainder of the fiscal year [2][3][7]. Financial Performance Summary - Net revenue for the second quarter was 715.9million,adecreaseof9715.9 million, a decrease of 9% from 785.3 million in the prior year, mainly due to lower capital equipment volume [3][7]. - GAAP net loss attributable to Hillenbrand was 40.9million,or40.9 million, or (0.58) per share, compared to a profit of 6.1million,or6.1 million, or 0.09 per share, in the prior year [4][7]. - Adjusted EBITDA was 98.8million,down1998.8 million, down 19% from 122.6 million year-over-year, primarily due to lower volume and cost inflation [5][7]. - Adjusted diluted EPS was 0.60,adecreaseof210.60, a decrease of 21% compared to 0.76 in the prior year [5][7]. Segment Performance - Advanced Process Solutions (APS) segment net revenue was 494million,down12494 million, down 12% from 559.2 million, primarily due to lower capital equipment volume [6][8]. - Molding Technology Solutions (MTS) segment net revenue was 221.9million,adecreaseof2221.9 million, a decrease of 2% from 226.1 million, driven by unfavorable foreign currency exchange rates [10][11]. Backlog and Future Outlook - Total backlog decreased by 15% year-over-year to 1.59billion,primarilyduetolowerorderintake,althoughitincreasedby11.59 billion, primarily due to lower order intake, although it increased by 1% sequentially [9][12]. - The company updated its fiscal 2025 guidance, expecting total revenue between 2.555 billion and 2.620billion,reflectingayear−over−yeardeclineof202.620 billion, reflecting a year-over-year decline of 20% to 18% [17][18]. Cash Flow and Capital Allocation - Cash flow from operating activities was 1.3 million, a decrease of 59% from 3.2millionintheprioryear[3][13].−AsofMarch31,2025,netdebtwas3.2 million in the prior year [3][13]. - As of March 31, 2025, net debt was 1.46 billion, with a net debt to pro forma adjusted EBITDA ratio of 3.4x [14][38]. Recent Transactions - The company completed the sale of a majority stake in the Milacron injection molding and extrusion business on March 31, 2025, generating net proceeds of approximately 265million,whichwereusedfordebtreduction[7][16].−HillenbrandenteredintoanagreementtoselltheTerraSourcebusinesstoAstecIndustriesfor265 million, which were used for debt reduction [7][16]. - Hillenbrand entered into an agreement to sell the TerraSource business to Astec Industries for 245 million, expected to close in late fiscal third quarter or early fiscal fourth quarter 2025 [15].