Hillenbrand, Inc.

Revenue was $599 million, down 24% year over year, or down 10% pro forma. Pro forma adjusted EBITDA was $84 million, down 28%, and pro forma adjusted EBITDA margin was 14.1%, down 360 basis points. Adjusted EPS was $0.51, down 40% year over year. GAAP net income was $2 million versus a loss of $249 million in the prior-year quarter, reflecting the absence of a noncash impairment charge recorded in fiscal 2024. In APS, revenue was $507 million, down 11%, adjusted EBITDA was $80 million, down 27%, margin was 15.8%, and backlog was $1.57 billion, down 10%. In MTS, pro forma revenue was $92 million, down 2%, adjusted EBITDA was $18 million, down 9%, margin was 19.9%, and backlog was $55 million, up 7%. Cash flow from operations was a use of about $2 million, capital expenditures were $10 million, and about $16 million was paid to shareholders via the dividend. Net debt was $1.51 billion and net debt to pro forma adjusted EBITDA was 3.9x at quarter end; after the TerraSource minority stake sale, management said leverage improved by roughly 0.2x to about 3.7x. For the full year, Hillenbrand raised revenue guidance to $2.59 billion-$2.63 billion from $2.56 billion-$2.62 billion, narrowed adjusted EPS guidance to $2.20-$2.35 from $2.10-$2.45, kept the midpoint unchanged, and expects operating cash flow of about $60 million and CapEx of $40 million.

Kim Ryan said the company has spent the year simplifying the portfolio, reducing debt, and integrating the Food, Health and Nutrition businesses. She highlighted the MIME divestiture and TerraSource sale as important steps that generated cash and helped reduce debt by over $300 million, while also noting that the company has already reached $30 million in annualized cost synergies from Linxis and FPM. Her tone was confident but realistic: she repeatedly emphasized that customer delays appear to be timing-related rather than cancellations, and said Hillenbrand is positioned to benefit as macro conditions stabilize.

Megan Walke said the quarter reflected lower volume and divestiture impacts, with revenue of $599 million, pro forma adjusted EBITDA of $84 million, and adjusted EPS of $0.51. She noted margin pressure from lower volumes, unfavorable mix and inflation, and said cash flow from operations was a use of about $2 million because customer advances were lower. She also outlined balance-sheet actions: net debt was $1.51 billion, leverage was 3.9x at quarter end, the TerraSource proceeds were about $115 million versus roughly $100 million expected, and a refinancing plus note redemption pushed the next maturity to 2029 and increased flexibility.

Analysts focused on whether the post-quarter order improvement in APS was coming from plastics or Food, Health and Nutrition, how backlog and book-to-bill should trend, and whether MTS demand and pricing were improving. Management said the APS uptick was mainly in plastics, including polyolefin and engineering plastics, across the U.S. and parts of Asia, while MTS strength was led by India and China, with controller orders often preceding hot-runner demand. On cash flow and leverage, management said debt paydown remains the top priority, but leverage should only improve as orders convert and EBITDA recovers; on the dividend, they said it is reviewed regularly by the Board and no specific change was announced.