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Jun 30
Hillenbrand Q3 2025 Earnings Report
Hillenbrand reported its fiscal third quarter 2025 results, with revenue decreasing by 24% and adjusted EPS falling by 40% compared to the prior year, primarily due to the divestiture of the MIME business and lower capital equipment volume. The company advanced strategic initiatives, including debt reduction and integration of its Food, Health, and Nutrition business, while achieving $30 million in run-rate cost synergies earlier than planned.
Key Takeaways
Hillenbrand's fiscal third quarter 2025 saw a significant 24% decrease in revenue to $599 million and a 40% drop in adjusted EPS to $0.51, largely impacted by the divestiture of the MIME business and reduced capital equipment volume. Despite these challenges, the company made progress on strategic initiatives, including debt reduction through asset sales and achieving cost synergies from recent acquisitions, demonstrating resilience amidst macroeconomic uncertainties.
Revenue for the fiscal third quarter 2025 was $599 million, a 24% decrease compared to the prior year, primarily due to the MIME business divestiture and lower capital equipment volume in APS.
GAAP EPS increased to $0.03 from $(3.53) in the prior year, while adjusted EPS decreased by 40% to $0.51, mainly attributed to the MIME divestiture and lower volume.
The company successfully achieved $30 million in run-rate cost synergies from the Linxis and FPM acquisitions earlier than planned, enhancing the Food, Health, and Nutrition business.
Hillenbrand reduced debt by over $300 million during the fiscal year through proceeds from the MIME divestiture and the sale of its minority interest in TerraSource, improving its net debt to pro forma adjusted EBITDA ratio to 3.9x.
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 core outlook for fiscal year 2025, maintaining the midpoint of its full-year adjusted EPS range based on year-to-date performance and its outlook for the fiscal fourth quarter.
Positive Outlook
- Maintaining the midpoint of the full-year adjusted EPS range, indicating confidence in profitability despite challenges.
- Continued focus on optimizing capital structure, as evidenced by debt pay down and credit facility amendments.
- Strategic portfolio refinement towards higher margin, higher growth, and higher ROIC businesses.
- Successful achievement of $30 million in run-rate cost synergies from recent acquisitions earlier than planned.
- Anticipated positive impact on net leverage from the TerraSource divestiture.
Challenges Ahead
- Projected net revenue for Total Hillenbrand to decrease by 17%-18% year-over-year for fiscal 2025.
- Anticipated adjusted EBITDA for Total Hillenbrand to decrease by 25%-28% year-over-year for fiscal 2025.
- Expected adjusted EPS to decrease by 29%-34% year-over-year for fiscal 2025.
- Operating cash flow is projected to be approximately $60 million, a significant decrease from previous periods.
- Ongoing uncertainty stemming from macroeconomic conditions and tariffs continues to impact customer purchasing decisions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income