#United States #Hillenbrand #Batesville #EPS #TerraSource

Hillenbrand Reports Fiscal Third Quarter 2025 Results

Hillenbrand, Inc. (NYSE: HI) has released its financial outcomes for the fiscal third quarter ending June 30, 2025. The company reported a revenue decline to $599 million, a significant 24% drop from the previous year. This decrease was partly attributed to the divestiture of its MIME business, along with a reduction in the capital equipment volume across its Advanced Process Solutions (APS) segment. However, on a pro forma basis, revenue only fell by 10%. Despite the challenges, Hillenbrand managed to improve its GAAP earnings per share (EPS) to $0.03, bouncing back from a loss of $(3.53) in the same quarter last year.

Strategic Moves to Address Challenges

Kim Ryan, President and Chief Executive Officer of Hillenbrand, highlighted the initiatives pursued in response to current market conditions. These included a focus on strategic portfolio refinement, debt reduction, and the integration of newly acquired businesses. The company reported achieving $30 million in cost synergies ahead of schedule from the acquisitions of Linxis and FPM, enhancing its operational efficiency.

Ryan went on to explain, "We continued to advance our strategic initiatives this quarter, including refining our portfolio, reducing debt, and advancing the integration and commercial synergy potential of our Food, Health, and Nutrition (FHN) business, despite the ongoing uncertainty stemming from macroeconomic conditions and tariffs." The divestiture of its minority stake in TerraSource netted approximately $115 million, which Hillenbrand utilized to lower its debt load by over $300 million this fiscal year. This strategic adjustment is expected to enhance their focus on higher-margin and growth-oriented businesses.

Financial Performance Overview

For the quarter, Hillenbrand reported:

• - Net Revenue: $598.9 million (down 24% YoY)
• - GAAP Net Income: $1.9 million vs. $(248.9) million YoY
• - Adjusted EBITDA: $84.3 million, a drop of 36% compared to $131 million a year prior.
• - Adjusted EPS: $0.51, representing a 40% decrease from last year's $0.85.

One of the notable outcomes of the third quarter included a cash flow from operating activities showing a use of $2 million, influenced by the lower volume of customer advances. Ryan emphasized the commitment to optimizing operational flexibility and capability as they navigate through various external challenges.

Focus on the Future

Moving ahead, Hillenbrand has reaffirmed its fiscal outlook, maintaining its adjusted EPS midpoint for the fourth fiscal quarter despite the ongoing market volatility, including the uncertainty around tariffs impacting customer purchasing decisions.

The company anticipates total revenue between $2.595 and $2.630 billion for the full fiscal year, alongside an adjusted EBITDA margin of approximately 16%. Hillenbrand expressed confidence in its diverse portfolio and resilient business segments, positioning itself to offer continued value to its customers worldwide.

Hillenbrand's pivotal focus on eliminating debt and capitalizing on synergies from their acquisitions illustrates a proactive approach to stabilizing and potentially boosting performance in the upcoming fiscal landscape.

For detailed financial statements, Hillenbrand will file its Form 10-Q, which will be available on the company's website.

Conclusion

In summary, Hillenbrand's third quarter of fiscal 2025 demonstrates the complexity of navigating a challenging business environment while simultaneously making strategic adjustments aimed at sustainability and growth. The concerted effort towards financial rehabilitation through debt reduction and synergistic integrations shows their commitment to securing a stable future amid economic uncertainties.