Hillenbrand Q2 Earnings: Revenue Ahead of Expectations, CEO Discusses Cautious Order Behavior Amid Macro Uncertainty

Hillenbrand's Q2 revenue of $598.9 million beat estimates, despite a 23.9% year-over-year decline. Management attributed the results to cautious order behavior amid macroeconomic uncertainty and recent tariff announcements. CEO Kimberly Ryan emphasized project delays rather than cancellations, and the company completed portfolio simplification steps, including divesting its Milacron Injection Molding & Extrusion business and reducing debt. The company slightly lifted its revenue guidance for the full year to $2.61 billion and reiterated its full-year Adjusted EPS guidance of $2.28.

Industrial processing equipment and solutions provider Hillenbrand (NYSE:HI) reported its second-quarter (Q2) 2025 results, with revenue of $598.9 million exceeding analysts' expectations despite a significant year-over-year (YoY) decline of 23.9%. The company's full-year revenue guidance was slightly lifted to $2.61 billion, reflecting management's optimism for the remainder of the year.

Management attributed the quarter's performance to cautious order behavior from customers amid macroeconomic uncertainty and recent tariff announcements, particularly in its Advanced Process Solutions segment. CEO Kimberly Ryan emphasized that project delays rather than cancellations were the primary issue affecting order volumes.

Hillenbrand also completed several portfolio simplification steps, including the divestment of its Milacron Injection Molding & Extrusion business and a minority stake in TerraSource. These moves allowed the company to reduce debt by over $300 million during the fiscal year, providing a stronger financial foundation for future growth.

The company's adjusted earnings per share (EPS) of $0.51 for the quarter beat analysts' estimates by 3%, while adjusted EBITDA came in at $84.3 million, slightly missing analysts' estimates of $85.44 million. Hillenbrand's operating margin decreased to 9.4% from 11% in the same quarter last year, reflecting increased expenses such as marketing, R&D, and administrative overhead.

Looking ahead, Hillenbrand's full-year revenue guidance of $2.61 billion at the midpoint is 1.1% above analysts' estimates, with full-year Adjusted EPS guidance of $2.28 at the midpoint. The company's EBITDA guidance for the full year is $377.5 million at the midpoint, above analysts' estimates of $373.1 million.

While the company's Q2 results were encouraging, with several key metrics exceeding expectations, investors should closely monitor Hillenbrand's ability to maintain its momentum and navigate the ongoing challenges posed by macroeconomic uncertainty and tariffs.

References:

[1] https://finance.yahoo.com/news/hillenbrand-nyse-hi-exceeds-q2-204207444.html

[2] https://finance.yahoo.com/news/5-revealing-analyst-questions-hillenbrand-053156132.html