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Dec 31, 2024
Hillenbrand Q1 2025 Earnings Report
Hillenbrand reported fiscal first quarter 2025 results, announced the sale of a majority stake in its Milacron injection molding and extrusion business, and updated its full-year guidance.
Key Takeaways
Hillenbrand's fiscal first quarter 2025 results were in line with expectations, with revenue decreasing 9% year-over-year to $707 million and adjusted EPS decreasing 19% to $0.56. The company announced the sale of a majority stake in its Milacron injection molding and extrusion business for $287 million, with net proceeds of approximately $250 million to be used for debt paydown. This transaction is part of Hillenbrand's portfolio transformation towards less cyclical, higher-growth opportunities.
Revenue of $707 million decreased 9% compared to the prior year, aligning with Company expectations.
Adjusted EPS of $0.56 decreased 19% compared to the prior year, also in line with Company expectations.
Hillenbrand entered a definitive agreement to sell a majority stake in its Milacron injection molding and extrusion business for $287 million, with net proceeds of approximately $250 million for debt paydown.
The transaction enhances the overall margin profile and focuses the portfolio on less cyclical, higher growth opportunities, reflecting continued portfolio transformation.
Hillenbrand
Hillenbrand
Hillenbrand Revenue by Segment
Revenue by Segment
Advanced Process Solutions Revenue
CapyFin.comMolding Technology Solutions Revenue
CapyFin.com Forward Guidance
Hillenbrand is updating its annual guidance to reflect the majority sale of the Milacron business, which includes removing Milacron's consolidated results from the second half of the fiscal year, partially offset by reduced interest expense and expected equity income from the ownership stake. The company maintains its previous range for remaining businesses based on original foreign currency exchange rate assumptions.
Positive Outlook
- Expected net proceeds of approximately $250 million from the Milacron sale will be used for debt paydown.
- The transaction enhances the overall margin profile of the company.
- The portfolio will be more focused on less cyclical, higher growth opportunities.
- The company maintains its previous outlook for remaining businesses, indicating stability.
- Customer quote pipelines remain healthy, reinforcing confidence in the long-term strategy.
Challenges Ahead
- The Milacron transaction will remove its consolidated results from the second half of the fiscal year.
- The outlook does not assume a broad-based recession, which could impact results if it occurs.
- Potential impacts of tariff policy could extend beyond original assumptions for the year.
- Effects of foreign currency exchange rate fluctuations may extend beyond original assumptions for the year.
- The outlook does not assume a material impact from tariff policy or foreign currency fluctuations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income