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Highlights
- Hillenbrand's Q1 revenue of $707 million decreased 9% year-over-year, in line with expectations.
- The company is selling a majority stake in its Milacron injection molding and extrusion business for $287 million to Bain Capital.
- Fiscal 2025 outlook updated to reflect the transaction, maintaining guidance for the remaining businesses with adjusted EPS of $2.45 - $2.80.
Hillenbrand, Inc. (NYSE:HI), a global leader in highly-engineered processing equipment and solutions, today reported its financial results for the first quarter of fiscal 2025, ending December 31, 2024. The company also announced the majority sale of its Milacron injection molding and extrusion business, a key move in its ongoing portfolio transformation.
For the fiscal first quarter, Hillenbrand reported revenue of $707 million, marking a 9% decline compared to the previous year. This decrease was primarily attributed to lower volume, though favorable pricing partially offset the decline. The company’s GAAP earnings per share (EPS) for the quarter were $0.09, down from $0.24 in the prior year. Adjusted EPS was $0.56, a 19% decrease compared to the same period in the previous year, in line with the company’s expectations.
The portfolio transformation took center stage as Hillenbrand entered into a definitive agreement to sell a majority stake in its Milacron injection molding and extrusion business to an affiliate of Bain Capital for $287 million. The transaction is expected to generate net proceeds of approximately $250 million after taxes, which Hillenbrand intends to use for debt reduction. This sale is part of the company's strategic efforts to enhance its overall margin profile and refocus its portfolio on higher-growth, less cyclical opportunities.
The company’s net income for the quarter was $6 million, or $0.09 per share, reflecting a decrease from $0.24 per share in the prior year. The decline was mainly due to higher business acquisition and integration costs, lower volume, and cost inflation. These challenges were partially mitigated by productivity improvements, favorable pricing, synergies, and cost-saving actions, including the MTS restructuring completed in the prior year.
Adjusted net income for the quarter was $40 million, resulting in adjusted EPS of $0.56, down 19% year-over-year. Adjusted EBITDA also decreased by 15% to $97 million, primarily driven by lower volume and cost inflation, although these factors were partially offset by productivity gains, favorable pricing, and synergies.
Looking ahead, Hillenbrand updated its full-year fiscal 2025 guidance to reflect the impact of the Milacron transaction, while maintaining its prior outlook for the remaining businesses. The company now expects adjusted EPS for fiscal 2025 to be in the range of $2.45 to $2.80, with adjusted EPS for the second quarter projected to be between $0.53 and $0.58.
Hillenbrand’s total backlog at the end of the first quarter was $1.82 billion, down 15% compared to the previous year. This decrease was primarily driven by lower order intake in the Advanced Process Solutions segment, while the Molding Technology Solutions (MTS) segment saw a 1% increase in backlog.
