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Mar 31, 2023
Hillenbrand Q2 2023 Earnings Report
Hillenbrand's second quarter performance exceeded expectations, driven by strong orders in Advanced Process Solutions and sequential improvement in Molding Technology Solutions.
Key Takeaways
Hillenbrand reported a 22% increase in revenue to $691 million, with organic revenue growth of 9%. Adjusted EPS increased by 14% to $0.74. The company exited the quarter with a record backlog of $1.97 billion, up 16% year-over-year.
Revenue from continuing operations increased 22% to $691 million, with organic revenue up 9%.
GAAP EPS from continuing operations was $0.33, while adjusted EPS from continuing operations increased 14% to $0.74.
Record backlog increased 16% to $1.97 billion, with organic backlog up 3%.
Operating cash flow increased by $65 million to $50 million.
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 for fiscal year 2023 and quarterly adjusted EPS guidance for fiscal Q3 on a continuing operations basis, maintaining the midpoint of adjusted EPS guidance while slightly raising the revenue estimate at the midpoint.
Positive Outlook
- FY23 Revenue for Advanced Process Solutions is projected to be $1,800 - $1,830 million, a 42% - 44% increase year-over-year.
- FY23 Revenue for Molding Technology Solutions is projected to be $1,010 - $1,030 million, a (3)% - (1)% decrease year-over-year.
- FY23 Hillenbrand Revenue is projected to be $2,810 - $2,860 million, a 22% - 24% increase year-over-year.
- FY23 Adjusted EBITDA is projected to be $468 - $499 million, a 16% - 24% increase year-over-year.
- Full Year Adjusted EPS is projected to be $3.30 - $3.50, a 21% - 29% increase year-over-year.
Challenges Ahead
- FY23 Adjusted EBITDA margin for Advanced Process Solutions is projected to be 18.5% - 19.0%, a (120) - (70) decrease in bps year-over-year.
- FY23 Adjusted EBITDA margin for Molding Technology Solutions is projected to be 19.0% - 20.0%, a (170) - (70) decrease in bps year-over-year.
- Fiscal Q3 Adjusted EPS is projected to be $0.88 - $0.94, a 28% - 36% increase year-over-year.
- Molding Technology Solutions revenue is expected to decline (3)% - (1)% year-over-year.
- Some customer decision delays continue to be experienced.
Revenue & Expenses
Visualization of income flow from segment revenue to net income