Hillenbrand 2025 Q2 Earnings Performance Decline as Net Income Falls 548.8%

Hillenbrand (HI) reported its fiscal 2025 Q2 earnings on April 29, 2025. The company's revenue fell 8.8% year-over-year to $715.90 million, with a GAAP net loss of $0.58 per share compared to a profit of $0.09 per share in the previous year. This significant downturn was primarily due to the sale of the Milacron injection molding business and increased integration costs. The company also adjusted its full-year EPS guidance to reflect the impact of tariffs and economic uncertainty.

Revenue
The total revenue for Hillenbrand in Q2 2025 was $715.90 million, an 8.8% decrease from the previous year. The Advanced Process Solutions segment generated $494 million, while Molding Technology Solutions contributed $221.90 million. These figures highlight a decline primarily due to reduced volume in these segments.

Earnings/Net Income
Hillenbrand reported a net loss of $38.60 million, or $0.58 per share, in Q2 2025, compared to a net income of $8.60 million, or $0.09 per share, in Q2 2024. This reflects a significant decline in performance, largely driven by the Milacron business sale and increased costs.

Post-Earnings Price Action Review
The stock price response to Hillenbrand's earnings report was mixed, with varying reactions over different timeframes. Short-term market reactions to revenue, net income, and EPS disclosures showed volatility, with a slightly positive tilt for revenue-related events. However, it appears that the market requires time to fully digest these earnings revelations, as indicated by the 10-day win rate of 57.14% across metrics and a maximum observed return of 4.27% on day 68. This suggests that while positive surprises can lead to gains, these may not be immediate, and investors should consider other market conditions when evaluating performance.

CEO Commentary
“Through the quarter, global macroeconomic conditions worsened as uncertainty around tariffs escalated significantly. In light of this, I was pleased with our business performance, which is a testament to the disciplined execution of our teams. We experienced solid year-over-year order growth in our food, health, and nutrition portfolio, as well as our separation products, along with relatively stable performance in APS aftermarket and across MTS. However, looking ahead, we expect customers to remain cautious in their capital investment decisions over the near-term given the increase in tariffs and heightened macro uncertainty,” said Kim Ryan, President and Chief Executive Officer of Hillenbrand. “Despite this challenging and unpredictable operating environment, we remain confident in the long-term growth prospects of our end markets and the strong competitive positioning of our industry-leading brands.”

Guidance
Updating guidance to reflect the impact of tariffs and elevated macroeconomic uncertainty, Hillenbrand now expects full-year EPS to be in the range of $2.10 to $2.45. For the third quarter, adjusted EPS is projected between $0.46 and $0.53. The company anticipates cautious capital investment decisions from customers due to these macroeconomic factors, which informs this adjusted outlook for the remainder of the fiscal year.

Additional News
Hillenbrand has been actively engaged in strategic portfolio transformation efforts. The company completed the sale of a majority stake in its Milacron injection molding business to Bain Capital, generating approximately $265 million in net proceeds aimed at debt reduction. Additionally, Hillenbrand entered into a definitive agreement to sell the TerraSource Global business to Astec Industries for $245 million, expecting to receive after-tax cash proceeds of approximately $100 million. These divestitures are part of Hillenbrand's focus on strengthening its core business and improving financial flexibility. The company maintains a strong liquidity position with $770 million available, including $458 million in cash.