Hillenbrand Announces Fiscal Fourth Quarter and Full Year 2025 Results

Hillenbrand, Inc. (HI), a global player in engineered processing equipment and solutions, released its Q4 and full fiscal year results ending September 30, 2025. These results factor out the divested Milacron injection molding and extrusion (MIME) business from both consolidated figures and the Molding Technology Solutions (MTS) segment.

• Q4 net revenue reached $652 million, marking a 22% decrease year-over-year. Pro forma net revenue experienced a more moderate 5% decline.
• GAAP EPS for Q4 stood at $1.07, a significant increase from $0.17 in the previous year. However, adjusted EPS decreased by 18% to $0.83.
• For the full fiscal year 2025, net revenue amounted to $2.67 billion, 16% lower than the prior year. Pro forma net revenue decreased by 9%.
• FY 2025 GAAP EPS was $0.61, a substantial improvement from $(3.03) in the prior year. Adjusted EPS declined by 25% to $2.49.

Kim Ryan, President and CEO of Hillenbrand, stated that robust Q4 results were driven by focused execution of strategic initiatives amidst a changing macroeconomic climate. Ryan highlighted Hillenbrand’s transformation into a pure-play global industrial company, strategic investments, and cost management as factors positioning the company for long-term growth. “We are excited about the pending acquisition by Lone Star and remain focused on serving our customers through the transition period,” Ryan added.

Lone Star Acquisition on the Horizon

As previously announced, Hillenbrand is set to be acquired by an affiliate of Lone Star Funds in an all-cash transaction valuing the company at approximately $3.8 billion. Shareholders are slated to receive $32.00 per share. The deal, unanimously approved by Hillenbrand’s Board, is expected to finalize by the end of Q1 2026, pending shareholder and regulatory approvals.

No Conference Call or Guidance

Due to the pending acquisition, Hillenbrand will forgo holding a conference call and webcast for Q4 and FY2025 results. The company will also not provide financial guidance for fiscal year 2026.

Key Financial Metrics and Segment Performance

A closer analysis of the fourth-quarter results reveals specific trends within Hillenbrand’s operational segments:

• Advanced Process Solutions (APS): Net revenue decreased by 6% to $557 million, primarily due to lower capital equipment and aftermarket volumes. Adjusted EBITDA was down 11% to $104 million, with a margin of 18.6%, a 120 basis point decrease. The decline in EBITDA margin reflects unfavorable operating leverage, cost inflation, and increased tariffs, outweighing benefits from productivity and favorable pricing.
• Molding Technology Solutions (MTS): Net revenue saw a 62% drop to $95 million, attributed to the MIME divestiture. Pro forma net revenue increased by 3%. Adjusted EBITDA decreased by 50% to $21 million. Pro forma adjusted EBITDA margin decreased 30 basis points to 22.3%.

Backlog in APS decreased by 10% year-over-year to $1.52 billion, attributed to market conditions. While MTS pro forma backlog increased 2% to $52 million.

Looking at the full fiscal year, several factors contributed to the overall results:

• Net revenue for FY2025 was $2.67 billion, down 16% primarily due to MIME divestiture and lower volume in APS. Pro forma net revenue decreased 9%.
• GAAP net income reached $43 million, or $0.61 per share, compared to a loss of $(3.03) per share in the previous year. This improvement reflects decreased impairment charges and a gain on the sale of TerraSource.
• Adjusted EPS decreased to $2.49 due to lower volume, cost inflation, MIME divestiture, and increased tariffs, partially offset by productivity improvements and favorable pricing.
• Adjusted EBITDA decreased to $388 million, reflecting the impact of lower volume, cost inflation, MIME divestiture, and increased tariffs.

Balance Sheet & Cash Flow

Hillenbrand’s cash flow from operations was $56 million, a decrease of $135 million year-over-year. 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. Liquidity was approximately $373 million, including $165 million in cash on hand.

In light of the pending acquisition by Lone Star, Hillenbrand’s future strategic direction remains subject to market conditions and the closing of the merger transaction.