Hillenbrand Reports Fiscal Fourth Quarter and Full Year 2025 Results

Core Insights - Hillenbrand, Inc. reported a significant transformation into a pure-play global industrial company, with a pending acquisition by Lone Star Funds valued at approximately $3.8 billion, offering shareholders $32.00 per share in cash [2][4]. Financial Performance - For Q4 2025, net revenue was $652.1 million, a decrease of 22% year-over-year, primarily due to the divestiture of the Milacron injection molding and extrusion business [4][12]. - GAAP net income for Q4 was $75.7 million, or $1.07 per share, a substantial increase from $0.17 per share in the prior year, driven by lower income taxes and gains from the sale of a minority stake in TerraSource Holdings [5][12]. - Adjusted EBITDA for Q4 was $107.9 million, down 25% year-over-year, reflecting the impact of the MIME divestiture and lower volumes [8][12]. - Full fiscal year 2025 net revenue was $2.67 billion, a decrease of 16% compared to the previous year, with pro forma net revenue down 9% [15][16]. Segment Performance - Advanced Process Solutions (APS) reported Q4 net revenue of $557.3 million, a 6% decrease year-over-year, while adjusted EBITDA was $103.8 million, down 11% [9][10]. - Molding Technology Solutions (MTS) experienced a 62% decline in Q4 net revenue to $94.8 million, with adjusted EBITDA decreasing by 50% [13][14]. Cash Flow and Balance Sheet - Cash flows from operating activities for the year were $56 million, a decrease of $135 million year-over-year, attributed to lower earnings and unfavorable working capital timing [19]. - As of September 30, 2025, net debt stood at $1.36 billion, with a net debt to pro forma adjusted EBITDA ratio of 3.7x [20]. Tax and Effective Rates - The adjusted effective tax rate for Q4 was 23%, a decrease of 440 basis points from the prior year, mainly due to the completion of a review of eligible foreign tax credits [7][17].