- **Strategic Progress**: $300M debt reduction via asset sales; FHN cost synergies achieved 2 years early. 
- **Order Recovery**: Post-Q3 APS orders up in plastics; MTS hot runner quoting activity improving. 
- **Financial Update**: FY25 revenue guidance raised to $2.59B-$2.63B; net leverage 3.7x post-TerraSource sale. 
- **Tariff Mitigation**: Localized manufacturing reduces tariff risk; surcharge pricing implemented. 
- **FHN Growth**: Cross-selling drives $40M incremental sales; leveraging Coperion's global footprint. 


**【CEO Summary Section】**
- **Portfolio Simplification**: Completed MIME divestiture, generating $265M net proceeds, and sold minority stake in TerraSource for $115M, reducing debt by $300M. 
- **FHN Integration Success**: Achieved $30M annualized cost synergies 20 months post-Linxis/FPM acquisitions, 2 years ahead of schedule. 
- **Tariff Mitigation**: Implemented surcharge pricing, localized supply chains, and in-region manufacturing to reduce tariff exposure. 
- **Order Momentum**: Post-Q3, secured key APS orders in plastics (polyolefin/engineering) across U.S. and Asia, with test facilities and quote pipelines active. 
- **Backlog Dynamics**: APS backlog down 10% YoY due to delayed capital orders, but Q4 orders suggest stabilization. MTS backlog up 7% YoY on hot runner demand. 
- **FHN Growth**: Cross-selling initiatives yielded $40M in incremental sales, leveraging Coperion's global footprint for system solutions. 

**【CFO Financial Commentary】**
- **Q3 Financials**: Revenue $599M (-24% YoY), Adjusted EBITDA $84M (-28% YoY), Adjusted EPS $0.51 (-40% YoY). 
- **Leverage Improvement**: Net debt $1.51B, net debt/EBITDA 3.9x (3.7x post-TerraSource sale). 
- **Guidance Update**: FY25 revenue raised to $2.59B-$2.63B (prev $2.56B-$2.62B), Adjusted EPS narrowed to $2.20-$2.35. 
- **Cash Flow**: Operating cash use $2M (Q3), targeting $60M FY25. 

**【Q&A Highlights】**
- **Order Conversion**: APS orders post-Q3 reflect customer confidence in tariff mitigation strategies; MTS hot runner quoting activity up in China/India. 
- **Cash Flow Strategy**: Prioritize debt paydown; progress payments on large projects maintain cash flow visibility. 
- **Dividend Policy**: Board reviews dividend sustainability; no immediate changes, but under active consideration. 
- **MTS Pricing**: Competitive environment persists, but in-region manufacturing and new product launches improve pricing dynamics. 
- **Backlog Outlook**: APS backlog expected to stabilize; MTS short-cycle nature allows quick recovery if volumes return. 


Hillenbrand, Inc. (HI) Q3 2025 Earnings Call Transcript

- **Strategic Restructuring**: Divested Milacron stake, refocusing on high-margin food/health and sustainable plastics.
- **Q2 Results**: Revenue $716M (-9% YoY), adj. EPS $0.60 (-21% YoY) due to macro tariffs.
- **Tariff Impact**: $15M direct costs in H2, offset by $100M TerraSource sale and cost controls.
- **Long-Term Growth**: FHN adj. EBITDA +22% YoY, targeting 2.5x net debt/EBITDA by 2026.
- **Risks**: Global tariff uncertainty, MTS order delays, and elevated net leverage.

**【CEO Strategic Update】**
- Completed divestiture of 51% Milacron stake, refocusing on core Molding Technology Solutions (MTS) and Advanced Process Solutions (APS) segments.
- MTS now comprises Mold-Masters and DME, targeting less cyclical markets like food, health, and sustainable plastics.
- 2025 Q2 revenue $716M (-9% YoY), adj. EPS $0.60 (-21% YoY), driven by lower backlog and macro uncertainty.
- Tariffs causing customer delays, but no order cancellations; quote pipeline remains strong.
- 2025H2 outlook includes $15M direct tariff costs, with $34M from TerraSource sale reducing net debt.

**【CFO Financial Review】**
- GAAP net loss $41M (-717% YoY) due to Milacron sale non-cash loss; adj. EBITDA $99M (-19% YoY).
- APS segment adj. EBITDA $79M (-22% YoY), MTS $32M (-4% YoY).
- Backlog $1.6B (-15% YoY) in APS, $55M in MTS (excluding Milacron).
- 2025 full-year guidance: Revenue $2.56-2.62B (-14-16% YoY), adj. EBITDA $363-395M (-17-23% YoY).

**【Q&A Key Themes】**
- **Tariff Mitigation**: $15M direct costs in 2025H2, offset by dual sourcing, surcharges, and $100M TerraSource proceeds.
- **Order Trends**: APS FHN +22% YoY, MTS hot runners stable in APAC but sluggish in Europe.
- **Leveraged Buyouts**: 2025 net debt/EBITDA 3.4x, targeting 2.5x+ by 2026.
- **M&A Strategy**: Evaluating all assets for divestiture; no immediate plans beyond TerraSource.
- **Cash Flow**: 2025 free cash flow $120M (-43% YoY), with $40M CapEx deferrals.


Hillenbrand (HI)-30 Apr 25-2025 Q2 Earnings call transcript

- **Strategic Restructuring**: Sold 51% of Milacron for $287M to focus on high-growth, less cyclical core businesses; $250M proceeds to reduce debt.
- **Record FHN Orders**: Q1 FHN orders hit new high, driven by North America and $30M+ annual cost synergies ahead of schedule.
- **Aftermarket Strength**: Aftermarket orders at record levels, targeting 30%+ revenue contribution in FY25.
- **FY25 Guidance**: Adjusted for Milacron sale, expects adj. EPS $2.45-$2.80, with ongoing macro uncertainty impacting near-term order timing.

**【CEO Opening Remarks】**
- Announced the sale of 51% stake in Milacron for $287M, retaining 49% ownership to focus on high-margin, less cyclical core businesses.
- FY25 Q1 revenue: $707M (-9% YoY), adj. EPS: $0.56 (-19% YoY), in line with expectations due to lower backlog.
- Food, Health & Nutrition (FHN) orders hit record levels, driven by North American demand and integration synergies.
- Aftermarket orders reached a new high, with modernization projects contributing to long-term partnerships.
- Global macro uncertainty (tariffs, inflation) delayed capital equipment orders, but pipelines remain healthy in India and Middle East.

**【CFO Financial Details】**
- Q1 adj. EBITDA: $97M (-15% YoY), margin: 13.7% (-110bps YoY) due to lower volume.
- APS segment: Revenue $511M (-10% YoY), adj. EBITDA $83M (-14% YoY), margin 16.2%.
- MTS segment: Revenue $196M (-5% YoY), adj. EBITDA $27M (-15% YoY), margin 14%.
- Net debt: $1.7B, net debt/adj. EBITDA: 3.4x. Proceeds from Milacron sale (~$250M) to be used for debt reduction.
- FY25 guidance: Revenue $2.63B-$2.8B, adj. EBITDA $411M-$447M, adj. EPS $2.45-$2.80 (excluding Milacron post-sale impact).

**【Q&A Highlights】**
- **Order Delays**: Customers waiting for clarity on tariffs, inflation, and interest rates; pipelines strong in India and Middle East.
- **Aftermarket Outlook**: ~30% of revenue mix, modernization projects driving 7-10 month revenue recognition; FY25 targeting 30%+ contribution.
- **Tariff Mitigation**: Localized production in China reduced tariff impact; ongoing strategic sourcing to minimize costs.
- **Milacron Transaction**: Expected close in Q2/FY25, with 49% equity income reported at corporate level post-close.

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