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Hillenbrand Reports Fiscal Second Quarter 2025 Results

Hillenbrand, Inc. (NYSE: HI), a global leader in engineered processing equipment and integrated solutions, announced its fiscal second quarter results for 2025. The quarterly report highlights a revenue drop to $716 million, down 9% from last year, primarily attributed to reduced volumes in the Advanced Process Solutions (APS) segment. It also revealed a GAAP EPS of $(0.58), a significant decline from last year's $0.09, majorly influenced by a loss associated with the sale of a majority stake in the Milacron injection molding and extrusion business.

Key Financial Highlights

In the quarter ending March 31, 2025, the company experienced significant impacts from the evolving macroeconomic landscape. CEO Kim Ryan commented on the challenging global conditions, worsened by increased uncertainties surrounding tariffs. Despite these issues, Hillenbrand reported solid growth in markets like food, health, and nutrition, reflecting the company's ability to adapt and navigate these turbulent times.

The second quarter net revenue stood at $715.9 million, compared to $785.3 million in the prior year. Hillsenbrand's GAAP net loss was $40.9 million. This loss underscores the broader market struggles facing the company, particularly following the Milacron divestiture, in which it sold approximately 51% of its stake to Bain Capital.

The adjusted earnings for the quarter were $0.60, down 21% from $0.76 last year. Additionally, adjusted EBITDA amounted to $98.8 million, which is a 19% decrease compared to $122.6 million in the previous year.

Segment Performance

Hillenbrand's report also detailed performance across its segments:

• - Advanced Process Solutions (APS): Revenue dropped 12% to $494 million, attributed to lower capital equipment demand, though it benefited somewhat from favorable pricing. The adjusted EBITDA for APS fell by 22% to $78.9 million as cost inflation eats into margins.
• - Molding Technology Solutions (MTS): This segment saw a smaller decline of 2%, with revenues at $221.9 million. The adjusted EBITDA decreased gently by 4% to $32.2 million, reflecting the competitive environment and cost pressures.

Strategies for Recovery

Ryan expressed confidence in the company's long-term growth potential despite current obstacles. She noted that the strategic focus shifted toward higher-margin and less cyclical business areas, enabled by the proceeds from the Milacron sale amounting to around $265 million, which were utilized for debt repayment.

Furthermore, Hillenbrand is implementing various measures to strengthen its supply chain amidst rising costs, including adjusting pricing strategies and seeking alternative sourcing options to mitigate these inflationary pressures. On this note, the backlog dropped 15% to $1.59 billion, reflecting lower order intake yet a slight sequential increase from favorable foreign currency exchange rates.

Looking Ahead

Hillenbrand has adjusted its full-year guidance in light of current market realities, projecting an EPS in the range of $2.10 to $2.45. The company anticipates cautious capital investment decisions from customers, acknowledging the broader impact of tariffs that could lead to order delays.

Overall, while the results for the second quarter indicate a challenging landscape for Hillenbrand, the company is navigating these waters with strategic initiatives aimed at long-term sustainable growth, demonstrating resilience and adaptability in a fluctuating environment.

For investors and stakeholders, these developments signal both challenges and opportunities as Hillenbrand positions itself for future recovery.