Hillenbrand Reports Fiscal First Quarter 2025 Results and Announces Sale of Majority Stake in Milacron Injection Molding and Extrusion Business

Updates Full Year Guidance to Reflect Transaction; Maintains Outlook for Remaining Businesses

Hillenbrand, Inc., a leading global provider of highly-engineered processing equipment and solutions, reported results for the fiscal first quarter, which ended December 31, 2024, and announced the majority sale of its Milacron injection molding and extrusion business, within the Molding Technology Solutions (MTS) segment, to an affiliate of Bain Capital. Reported results for the fiscal first quarter include Milacron in both the consolidated and MTS results. Hillenbrand’s annual guidance has been updated to reflect the impact of the transaction.

• Revenue of $707 million decreased 9% compared to prior year, in line with Company expectations
• GAAP EPS of $0.09 decreased from $0.24 in the prior year; adjusted EPS of $0.56 decreased 19% compared to prior year, in line with Company expectations
• Portfolio Transformation: The Company has entered into a definitive agreement to sell a majority stake in its Milacron injection molding and extrusion business for $287 million; expected net proceeds after tax of approximately $250 million to be used for debt paydown
• Transaction represents continued execution of Hillenbrand’s transformation by enhancing overall margin profile and focusing portfolio on less cyclical, higher growth opportunities
• Fiscal 2025 Outlook: Updating guidance for Milacron transaction but maintaining previous outlook for remaining businesses with adjusted EPS of $2.45 – $2.80; Q2 adjusted EPS of $0.53 to $0.58

“We delivered first quarter results in line with our expectations, with continued momentum in executing cross-selling and cost synergies within our food, health, and nutrition portfolio. Our teams remained focused on advancing our integration initiatives and managing discretionary costs, as total order volumes remained soft, which we had anticipated. Our customer quote pipelines remain healthy, reinforcing our confidence in our long-term strategy. Despite the challenging macro environment, we believe our strong competitive positioning will enable us to deliver significant value to our customers as end markets recover, driving profitable growth across our business.”

“The agreement to divest a majority stake in the Milacron business reflects the continuation of Hillenbrand’s transformation as we’ve significantly reshaped our portfolio toward less cyclical, higher-growth opportunities. Over the last few years, we have exited our secularly declining death care segment and pursued several strategic acquisitions, building scale in the attractive food, health, and nutrition end markets, which now comprise just under 30% of our total revenue mix on a pro forma basis. We believe this transaction not only delivers value for Hillenbrand and our shareholders, but also Milacron and its customers, as they have a strong partner in Bain Capital to help drive their next phase of growth,” said Kim Ryan, President and Chief Executive Officer of Hillenbrand.

Summary of First Quarter 2025 Results¹

Net revenue of $707 million decreased 9% compared to the prior year primarily due to lower volume, partially offset by favorable pricing.

Net income of $6 million, or $0.09 per share, decreased from $0.24 per share in the prior year primarily due to an increase in business acquisition and integration costs, lower volume, and cost inflation, partially offset by productivity, favorable pricing, synergies, and the impact of cost actions, including the MTS restructuring completed in the prior year.

Adjusted net income of $40 million resulted in adjusted EPS of $0.56, a decrease of $0.13, or 19%, and adjusted EBITDA of $97 million decreased 15% compared to the prior year primarily due to lower volume and cost inflation, partially offset by productivity, favorable pricing, synergies, and the impact of the MTS restructuring actions completed in the prior year. The adjusted effective tax rate for the quarter was 29.2%, an increase of 60 basis points compared to the prior year. 

Total backlog of $1.82 billion decreased 15% compared to the prior year primarily driven by lower order intake in the Advanced Process Solutions segment, while MTS backlog increased 1%.

Advanced Process Solutions (APS)

Net revenue of $511 million decreased 10% compared to the prior year primarily due to lower volume, partially offset by favorable pricing.

Adjusted EBITDA of $83 million decreased 14% due to lower volume and cost inflation, partially offset by favorable pricing, productivity, and cost synergies. Adjusted EBITDA margin of 16.2% decreased 70 basis points.

Backlog of $1.58 billion decreased 17% compared to the prior year primarily due to lower order intake.

Molding Technology Solutions (MTS)

Net revenue of $196 million was down 5% year over year primarily driven by lower volume.

Adjusted EBITDA of $27 million decreased 15%, primarily due to lower volume, cost inflation, and price pressure, partially offset by cost actions, including savings from the restructuring program completed in the prior year. Adjusted EBITDA margin of 14.0% decreased 170 basis points from the prior year.

Backlog of $233 million increased 1% compared to the prior year.

Balance Sheet, Cash Flow and Capital Allocation¹

Hillenbrand’s cash flow from operations represented a use of $11 million in the quarter, an improvement of $13 million year-over-year, primarily driven by working capital improvements, partially offset by lower earnings. During the quarter, the Company had capital expenditures of approximately $10 million and returned approximately $16 million to shareholders in the form of quarterly dividends.

As of December 31, 2024, net debt was $1.7 billion, and the net debt to adjusted EBITDA ratio was 3.4x, which was in line with Company expectations. Liquidity was approximately $632 million, including $208 million in cash on hand and the remainder available under our revolving credit facility.

Milacron Transaction

On February 5, 2025, the Company entered into a definitive agreement to sell an ownership stake of approximately 51% in its Milacron injection molding and extrusion business to an affiliate of Bain Capital for $287 million, subject to customary closing adjustments. The Company will retain an ownership stake of approximately 49%. This transaction reflects the continued execution of Hillenbrand’s portfolio transformation and profitable growth strategy. The net proceeds after tax are expected to be approximately $250 million and will be used for debt paydown. The transaction is expected to be completed at the end of Hillenbrand’s fiscal second quarter or beginning of the fiscal third quarter, subject to customary closing conditions. Following the close of the transaction, Hillenbrand’s consolidated results will include a proportionate share of Milacron’s net income (or loss) as equity income at corporate. In fiscal year 2024, Milacron generated $526 million in revenue and $64 million in adjusted EBITDA.

Fiscal 2025 Outlook

Hillenbrand is updating its annual guidance range to reflect the majority sale of the Milacron business. This change includes the removal of Milacron’s consolidated results from the second half of the fiscal year, partially offset by reduced interest expense and the expected income generated from the ownership stake following the transaction’s close. The Company is maintaining its previous range for the remaining businesses based on its original assumption for foreign currency exchange rates. The Company is actively monitoring the potential impacts of tariff policy and the effects of foreign currency exchange rate fluctuations that may extend beyond its original assumptions for the year. The outlook does not assume a material impact from these factors. Additionally, the outlook does not assume a broad-based recession. 

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About Hillenbrand

Hillenbrand (NYSE: HI) is a global industrial company operating in over 40 countries with over 10,000 associates serving a wide variety of industries around the world. Guided by our Purpose — Shape What Matters For Tomorrow™ — we pursue excellence, collaboration, and innovation to consistently shape solutions that best serve our associates, customers, communities, and other stakeholders. Hillenbrand’s portfolio includes brands such as Coperion, Milacron Injection Molding & Extrusion, and Mold-Masters, in addition to Batesville. To learn more, visit: www.Hillenbrand.com.

Source: Hillenbrand, Inc.