Hillenbrand 2025 Q4 Earnings Strong EPS Growth Amid Revenue Decline

Hillenbrand (HI) reported Q4 2025 earnings that exceeded expectations despite a significant revenue drop. The company’s adjusted EPS of $0.83 beat analyst estimates by 36.1%, while net revenue fell 22.1% to $652.1 million. The pending $3.8 billion acquisition by Lone Star has prompted the company to forgo FY 2026 guidance.

Revenue

Hillenbrand’s total revenue for Q4 2025 declined by 22.1% year-over-year to $652.1 million, primarily due to the divestiture of its Milacron injection molding and extrusion business. On a pro forma basis, revenue decreased 5%, reflecting lower capital equipment and aftermarket parts volumes. The Advanced Process Solutions segment reported revenue of $557.3 million, while the Molding Technology Solutions segment saw a 3% pro forma increase to $94.8 million, driven by favorable foreign currency impact and pricing.

Earnings/Net Income

The company’s GAAP net income surged 526% to $77.70 million in Q4 2025, translating to an EPS of $1.07. This marked a 416.3% increase from $0.21 in the prior-year period. Adjusted net income of $59 million resulted in an adjusted EPS of $0.83, a 18% decline year-over-year, primarily due to the MIME divestiture and cost inflation. The robust EPS growth highlights effective cost discipline and pricing strategies, despite operational headwinds.

Price Action

The stock price of Hillenbrand edged down 0.00% during the latest trading day, 0.06% over the week, and rose 0.51% month-to-date. Historically, a strategy of buying shares on earnings report dates and holding for 30 days yielded a 24.5% cumulative return over three years, outperforming the 15.5% buy-and-hold benchmark. This approach demonstrated resilience, with a maximum drawdown of -10.5% during the backtest period.

Post-Earnings Price Action Review

A strategy of purchasing Hillenbrand shares on the date of quarterly earnings releases and holding for 30 days has historically shown favorable performance. Over the past three years, this approach generated a cumulative return of 24.5%, significantly outpacing the 15.5% return of a simple buy-and-hold strategy. The resilience of this method is underscored by a maximum drawdown of only -10.5% during the backtest period, indicating its effectiveness even in market downturns.

CEO Commentary

Kim Ryan, CEO of Hillenbrand, emphasized the company’s strong Q4 performance despite macroeconomic challenges. She highlighted strategic execution, cost discipline, and progress in productivity and pricing initiatives. Ryan also expressed optimism about the pending Lone Star acquisition, noting its transformative potential and the company’s commitment to serving customers during the transition.

Guidance

Hillenbrand will not issue financial guidance for FY 2026 or hold a Q4 earnings call due to the pending acquisition by Lone Star. The $3.8 billion deal, expected to close by the end of Q1 2026, has shifted the company’s focus to the transaction’s completion timeline rather than providing forward-looking metrics.

Additional News

Recent non-earnings updates include Hillenbrand’s pending $3.8 billion acquisition by Lone Star, which was announced on October 15, 2025. The all-cash deal, valued at $32.00 per share, is expected to close by Q1 2026. Additionally, CFO Robert VanHimbergen will depart in June 2025, with Megan Walke serving as interim CFO. The company also completed a $375 million debt redemption and amended its credit facilities to enhance financial flexibility.

Key Financials

Hillenbrand’s Q4 2025 results reflect a mix of challenges and strategic progress. While revenue fell sharply due to the MIME divestiture, adjusted EPS outperformed expectations. The company’s focus on cost reduction, pricing, and operational efficiency has mitigated some of the revenue decline. However, the pending acquisition has led to a pause in guidance, signaling a shift in strategic priorities. Investors are advised to monitor the acquisition’s timeline and its implications for Hillenbrand’s long-term trajectory.