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Hillenbrand Financial Performance Report for Q4 and FY 2025

Hillenbrand, Inc., a notable global player in the processing equipment industry, has shared its financial results for the fourth quarter and the entire fiscal year 2025, concluding on September 30. The company's fourth quarter saw a substantial decline in revenue, reflecting broader market trends and strategic changes within the organization.

Quarterly Performance Overview

In the fourth quarter of fiscal year 2025, Hillenbrand reported net revenue of $652.1 million, which is a 22% decrease compared to the same period last year. On a pro forma basis, net revenue dipped by 5%, attributing lower sales primarily to the divestiture of its Milacron injection molding and extrusion business. Additionally, the company noted that its GAAP earnings per share (EPS) surged to $1.07, up significantly from $0.17 in the previous year, aided by improved net income attributable to Hillenbrand, which stood at $75.7 million, a steep increase of 526%.

However, adjusted EPS fell by 18% to $0.83, largely due to lower volumes and cost inflation influences from the ongoing economic climate. The adjusted EBITDA for the quarter registered at $107.9 million, down 25% year-over-year.

Annual Results Summary

For the fiscal year 2025, Hillenbrand's total net revenue amounted to $2.67 billion, reflecting a 16% decrease from the previous year. This decline stems from the same factors affecting the quarterly results, including reduced capital equipment sales and the impact of divesting certain business segments. Notably, the year concluded with a GAAP net income of $43.1 million, a significant turnaround from a loss of nearly $213.2 million in the before year.

Despite these redeeming figures, adjusted EPS was recorded at $2.49, representing a decrease of 25% as the company grapples with the adverse effects of market forces and its significant restructuring endeavors.

Strategic Transformations and Future Outlook

Kim Ryan, President and CEO of Hillenbrand, expressed optimism about the results despite the challenges, stating that the company has effectively positioned itself for future success through strategic investments and operational efficiencies. He mentioned the strong execution of their strategic initiatives amidst fluctuating macroeconomic conditions.

A significant aspect of Hillenbrand's current phase is its impending acquisition by Lone Star Funds, announced on October 15, 2025. This transaction, poised to close in the first quarter of 2026, will have shareholders receiving $32 per share in cash, marking a pivotal moment in Hillenbrand's evolution as a focused industrial entity. Ryan emphasized that this acquisition will bolster the company’s capabilities and expand its market reach.

Conclusion

As Hillenbrand navigates through these financial challenges and prepares for the effects of the acquisition, the focus remains on maintaining customer engagement and ensuring operational sustainability. As they gear up for the transition, the company aims to leverage its enhanced capabilities to deliver better solutions to the market and reinforce its position as a leader in the global industrial landscape. Stakeholders and investors remain keenly interested in how these developments will unfold in the upcoming fiscal year.