Hillenbrand Reports Fiscal Third Quarter 2025 Results

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].