Q4 GAAP EPS of $1.07 increased from $0.17 in the prior year; adjusted EPS of $0.83 decreased 18%
FY 2025 net revenue of $2.67 billion decreased 16% vs. prior year; pro forma net revenue decreased 9%
FY 2025 GAAP EPS of $0.61 increased from $(3.03) in the prior year; adjusted EPS of $2.49 decreased 25%
BATESVILLE, Ind., Nov. 19, 2025 /PRNewswire/ -- Hillenbrand, Inc. (NYSE:HI), a leading global provider of highly-engineered processing equipment and solutions, reported results for the fourth quarter and full fiscal year, which ended September 30, 2025. Reported results for the fiscal fourth quarter exclude the divested Milacron injection molding and extrusion (MIME) business in both the consolidated and Molding Technology Solutions (MTS) segment results.
"Our teams delivered strong results in the fourth quarter, underpinned by focused execution of our strategic initiatives amid the evolving macroeconomic backdrop," said Kim Ryan, President and Chief Executive Officer of Hillenbrand. "Over the past several years, Hillenbrand has transformed into a pure-play global industrial company, strategically invested in the business, and carefully managed costs. The transformation, along with these other actions, helped position us for long-term success and led to external interest in Hillenbrand. We are excited about the pending acquisition by Lone Star and remain focused on serving our customers through the transition period."
Hillenbrand to be Acquired by Lone StarAs announced on October 15, 2025, Hillenbrand has entered into a definitive agreement to be acquired by an affiliate of Lone Star Funds ("Lone Star") in an all-cash transaction that equates to an enterprise value of approximately $3.8 billion. Under the terms of the agreement, Hillenbrand shareholders will receive $32.00 per share in cash. The transaction was unanimously approved by the Company's Board of Directors and is expected to close by the end of the first quarter of calendar year 2026, subject to customary closing conditions, including approval by Hillenbrand shareholders and receipt of required regulatory approvals.
Conference Call Information and GuidanceGiven the pending acquisition by Lone Star, Hillenbrand will not be conducting a fourth quarter and fiscal year 2025 conference call and webcast. In addition, Hillenbrand will not issue financial guidance for fiscal year 2026.
Summary of Fourth Quarter 2025 Results1
Three Months Ended September 30,
Change
(unaudited, dollars in millions, except EPS)
2025
2024
$
%
Net revenue
652.1
837.6
(185.5)
(22) %
GAAP net income attributable to HI
75.7
12.1
63.6
526 %
Adjusted EBITDA1
107.9
143.8
(35.9)
(25) %
GAAP diluted EPS
1.07
0.17
0.90
529 %
Adjusted diluted EPS1
0.83
1.01
(0.18)
(18) %
Cash flows from operating activities
67.7
166.5
(98.8)
(59) %
Pro forma net revenue1
652.1
683.3
(31.2)
(5) %
Pro forma adjusted EBITDA1
107.9
122.6
(14.7)
(12) %
Net revenue of $652 million decreased 22% compared to the prior year primarily due to the MIME divestiture. On a pro forma basis net revenue decreased 5% as lower capital equipment and aftermarket parts and service volumes more than offset favorable foreign currency impact and favorable pricing.
GAAP net income of $76 million, or $1.07 per share, increased from $0.17 per share in the prior year primarily due to a decrease in income taxes, gain on sale of our minority stake in TerraSource Holdings ("TerraSource"), and favorable pricing and productivity improvements, partially offset by impairment charges related to the hot runner product line within the MTS segment taken in the fourth quarter, the divestiture of MIME, lower volume, cost inflation, and unfavorable mix.
Adjusted net income of $59 million resulted in adjusted EPS of $0.83, a decrease of 18%, primarily due to the divestiture of MIME, lower volume, cost inflation, and unfavorable mix, partially offset by favorable pricing, productivity improvements, and a decrease in effective tax rate.
The adjusted effective tax rate for the quarter was 23%, a decrease of 440 basis points compared to the prior year, primarily due to completion of a review of eligible foreign tax credits available for prior year internal distributions associated with the implementation of the provisions of the Tax Cuts and Jobs Act.
Adjusted EBITDA of $108 million decreased 25% year over year primarily due to the MIME divestiture, lower volume, cost inflation, and unfavorable mix, partially offset by favorable pricing and productivity improvements. On a pro forma basis, adjusted EBITDA decreased 12%.
Advanced Process Solutions (APS)
Three Months Ended September 30,
Change
(unaudited, dollars in millions)
2025
2024
$
%
Net revenue
557.3
591.1
(33.8)
(6) %
Adjusted EBITDA1
103.8
117.1
(13.3)
(11) %
Adjusted EBITDA Margin %1
18.6 %
19.8 %
(120) bps
Net revenue of $557 million decreased 6% compared to the prior year primarily due to lower capital equipment and aftermarket parts and service volumes, partially offset by favorable foreign currency impact and favorable pricing.
Adjusted EBITDA of $104 million decreased 11% and adjusted EBITDA margin of 18.6% decreased 120 basis points as productivity, favorable pricing, and favorable foreign currency impact were more than offset by unfavorable operating leverage as a result of lower volume, unfavorable mix, cost inflation, and increased tariffs.
Backlog of $1.52 billion decreased 10% compared to the prior year and was down 3% on a sequential basis.
Molding Technology Solutions (MTS)
Three Months Ended September 30,
Change
(unaudited, dollars in millions)
2025
2024
$
%
Net revenue
94.8
246.5
(151.7)
(62) %
Adjusted EBITDA1
21.1
42.0
(20.9)
(50) %
Adjusted EBITDA Margin %1
22.3 %
17.0 %
530 bps
Pro forma net revenue1
94.8
92.2
2.6
3 %
Pro Forma adjusted EBITDA1
21.1
20.8
0.3
1 %
Pro Forma Adjusted EBITDA Margin %1
22.3 %
22.6 %
(30) bps
Net revenue of $95 million decreased 62% primarily due to the MIME divestiture. Pro forma net revenue increased 3% as a result of favorable foreign currency impact and pricing.
Adjusted EBITDA of $21 million decreased 50%, primarily due to the MIME divestiture and pro forma adjusted EBITDA increased 1%. Pro forma adjusted EBITDA margin of 22.3% decreased 30 basis points from the prior year primarily due to inflation and increased tariffs, partially offset by productivity improvements and favorable pricing.
Pro forma backlog of $52 million increased 2% compared to the prior year and was down 5% on a sequential basis.
Summary of Fiscal Year 2025 Results1
Twelve Months Ended September 30,
Change
(dollars in millions, except EPS)
2025
2024
$
%
Net revenue
2,673.8
3,182.8
(509.0)
(16) %
GAAP net income (loss) attributable to HI
43.1
(213.2)
256.3
120 %
Adjusted EBITDA1
388.0
511.7
(123.7)
(24) %
GAAP diluted EPS
0.61
(3.03)
3.64
120 %
Adjusted diluted EPS1
2.49
3.32
(0.83)
(25) %
Cash flows from operating activities
56.2
191.3
(135.1)
(71) %
Pro forma net revenue1
2,428.3
2,656.7
(228.4)
(9) %
Pro forma adjusted EBITDA1
363.5
447.6
(84.1)
(19) %
Hillenbrand's full year net revenue of $2.67 billion decreased 16% compared to the prior year primarily due to the MIME divestiture and lower volume in APS. Pro forma net revenue was down 9% as lower capital equipment and aftermarket parts and service volumes more than offset favorable foreign currency impact and favorable pricing. Full year APS net revenue decreased 10%, while MTS net revenue decreased 32%, or 3% on a pro forma basis.
GAAP net income of $43 million, or $0.61 per share, increased from a loss of $(3.03) per share in the prior year primarily due to a decrease in non-cash impairment charges recorded related to the hot runner product line within the MTS segment, a decrease in income taxes, and gain on sale of our minority stake in TerraSource, partially offset by the loss on the divestiture of MIME and lower volume.
Adjusted net income of $176 million resulted in adjusted EPS of $2.49, a decrease of $0.83, or 25%, primarily due to lower volume, cost inflation, the divestiture of MIME, and increased tariffs, partially offset by productivity improvements and favorable pricing.
The adjusted effective tax rate for the year was 27.7%, a decrease of 40 basis points compared to the prior year.
Adjusted EBITDA of $388 million decreased 24% year over year primarily due to lower volume, cost inflation, the divestiture of MIME, and increased tariffs, partially offset by productivity improvements and favorable pricing. On a pro forma basis, adjusted EBITDA decreased 19%. Pro forma adjusted EBITDA margin of 15% was down 180 basis points.
Balance Sheet, Cash Flow and Capital Allocation1Hillenbrand generated cash flow from operations of $56 million in the year, a decrease of $135 million year-over-year, primarily due to lower earnings from decreased order volume and unfavorable timing of working capital requirements related to capital equipment sales. Capital expenditures were approximately $38 million in the year. During the year, the Company returned approximately $63 million to shareholders in the form of quarterly dividends.
As of September 30, 2025, net debt was $1.36 billion, and the net debt to pro forma adjusted EBITDA ratio was 3.7x. Liquidity was approximately $373 million, including $165 million in cash on hand and the remainder available under our revolving credit facility.
1These are non-GAAP financial measures, which are unaudited. See the reconciliations of Non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.
Hillenbrand's Form 10-K is expected to be filed jointly with this release and will be made available on the Company's website (https://ir.hillenbrand.com).
In addition to the financial measures prepared in accordance with United States generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP operating performance measures. These non-GAAP financial measures are referred to as "adjusted" measures and generally exclude the following items:
business acquisition, divestiture, and integration costs;
restructuring and restructuring related charges;
impairment charges;
gain on sale of property, plant, and equipment;
intangible asset amortization;
pension settlement (gain) charges;
inventory step-up costs related to acquisitions;
costs associated with debt financing activities;
other non-recurring costs related to a discrete commercial dispute;
gains and losses on divestitures;
gain on equity method investment;
other individually immaterial one-time costs;
the related income tax impact for all of these items; and
certain tax items related to recent acquisitions and divestitures, tax benefits of restructuring transactions, the revaluation of deferred tax balances resulting from fluctuations in currency exchange rates and non-routine changes in tax rates for certain foreign jurisdictions.
Refer to the Reconciliation of Non-GAAP Measures for further information on these adjustments. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.
Hillenbrand uses this non-GAAP information internally to measure operating segment performance and make operating decisions and believes it is helpful to investors because it allows more meaningful period-to-period comparisons of ongoing operating results. The information can also be used to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by items such as the above excluded items. Hillenbrand believes this information provides a higher degree of transparency.
One important non-GAAP financial measure Hillenbrand uses is adjusted earnings before interest, income tax, depreciation, and amortization ("adjusted EBITDA"). A part of Hillenbrand's strategy is to selectively acquire companies that we believe can benefit from the Hillenbrand Operating Model ("HOM") to spur faster and more profitable growth. Given that strategy, it is a natural consequence to incur related expenses, such as amortization from acquired intangible assets and additional interest expense from debt-funded acquisitions. Accordingly, we use adjusted EBITDA, among other measures, to monitor our business performance. We also use "adjusted net income" and "adjusted diluted earnings per share (EPS)," which are defined as net income and earnings per share, respectively, each excluding items described in connection with adjusted EBITDA. Adjusted EBITDA, adjusted net income, and adjusted diluted EPS are not recognized terms under GAAP and therefore do not purport to be alternatives to net income or to diluted EPS, as applicable. Further, Hillenbrand's measures of adjusted EBITDA, adjusted net income, and adjusted diluted EPS may not be comparable to similarly titled measures of other companies.
Intangible assets relate to our acquisition activities and are amortized over their useful lives. The amortization of acquired intangible assets is reported separately in our Consolidated Statements of Operations as amortization expense. We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
Pro forma net revenue and pro forma adjusted EBITDA are defined respectively as net revenue and adjusted EBITDA excluding the MIME business that was divested on March 31, 2025. In addition, the ratio of net debt to pro forma adjusted EBITDA is a key financial measure that is used by management to assess Hillenbrand's borrowing capacity (and is calculated as the ratio of total debt less cash and cash equivalents to the trailing twelve months pro forma adjusted EBITDA). Hillenbrand presents the ratio of net debt to pro forma adjusted EBITDA because it believes it is representative of the Company's financial position as it is reflective of the Company's ability to cover its debt obligations with results from its core operations.
Hillenbrand calculates the foreign currency impact on net revenue, adjusted EBITDA, and backlog in order to better measure the comparability of results between periods. We calculate the foreign currency impact by translating current year results at prior year foreign exchange rates. This information is provided because exchange rates can distort the underlying change in sales, either positively or negatively.
Another important operational measure used is backlog. Backlog is not a term recognized under GAAP; however, it is a common measurement used in industries with extended lead times for order fulfillment (long-term contracts), like those in which our reportable operating segments compete. Backlog represents the amount of consolidated net revenue that we expect to realize on contracts awarded to our reportable operating segments. For purposes of calculating backlog, 100% of estimated net revenue attributable to consolidated subsidiaries is included. Backlog includes expected net revenue from large systems and equipment, as well as aftermarket parts, components, and service. The length of time that projects remain in backlog can span from days for aftermarket parts or service to approximately 18 to 24 months for larger system sales within the Advanced Process Solutions reportable operating segment. The majority of the backlog within the Molding Technology Solutions reportable operating segment is expected to be fulfilled within the next twelve months. Backlog includes expected net revenue from the remaining portion of firm orders not yet completed, as well as net revenue from change orders to the extent that they are reasonably expected to be realized. We include in backlog the full contract award, including awards subject to further customer approvals, which we expect to result in revenue in future periods. In accordance with industry practice, our contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.
Hillenbrand expects that future net revenue associated with our reportable operating segments will be influenced by order backlog because of the lead time involved in fulfilling engineered-to-order equipment for customers. Although backlog can be an indicator of future net revenue, it does not include projects and parts orders that are booked and shipped within the same quarter. The timing of order placement, size, extent of customization, and customer delivery dates can create fluctuations in backlog and net revenue. Net revenue attributable to backlog may also be affected by foreign exchange fluctuations for orders denominated in currencies other than U.S. dollars. Pro forma backlog is defined as backlog excluding recent divestitures, including the Milacron injection molding and extrusion business.
See below for a reconciliation from GAAP operating performance measures to the most directly comparable non-GAAP (adjusted) financial performance measures. Given that backlog is an operational measure and that the Company's methodology for calculating backlog does not meet the definition of a non-GAAP financial measure, as that term is defined by the U.S. Securities and Exchange Commission, a quantitative reconciliation is not required or provided.
Hillenbrand, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
Three Months Ended
September 30,
Year Ended
(Unaudited)
September 30,
2025
2024
2025
2024
Net revenue
$ 652.1
$ 837.6
$ 2,673.8
$ 3,182.8
Cost of goods sold
425.3
549.2
1,773.0
2,126.3
Gross profit
226.8
288.4
900.8
1,056.5
Selling, general and administrative expenses
146.3
194.1
650.0
713.6
Amortization expense
23.1
25.7
94.3
102.4
Impairment charges
83.5
—
83.5
265.0
Gain on a sale of property, plant, and equipment
—
(34.6)
—
(36.0)
Gain on equity method investments
(68.1)
