Hillenbrand (HI) Q1 2025 earnings summary

Executive summary

• Announced sale of 51% stake in Milacron injection molding and extrusion business to Bain Capital for $287 million, with ~$250 million after-tax proceeds to be used for debt reduction; Hillenbrand retains 49% stake, advancing portfolio transformation toward higher-growth, less cyclical markets.

• Q1 FY2025 revenue was $707 million, down 9% year-over-year, with adjusted EPS of $0.56, down 19%, and net income of $6 million, all in line with expectations despite macroeconomic headwinds.

• Food, health, and nutrition end markets now comprise nearly 30% of revenue, with record orders and strong integration progress in these segments partially offsetting weakness in plastics projects.

• Portfolio transformation continues, focusing on less cyclical, higher-growth markets, with strategic acquisitions on pause until leverage returns to target range.

• Backlog at quarter-end was $1.82 billion, down 15% year-over-year, mainly due to lower order intake in Advanced Process Solutions.

Financial highlights

• Q1 2025 revenue was $707 million, down 9% year-over-year; adjusted EBITDA was $97 million, down 15%; adjusted EBITDA margin was 13.7%.

• GAAP net income was $6 million ($0.09 per share), down from $17 million ($0.24 per share) last year, mainly due to higher business development and integration costs.

• Cash flow from operations was a use of $11 million, improved by $13 million year-over-year due to better working capital efficiency.

• Gross margin improved to 33.2%, up 70 basis points year-over-year, driven by productivity and pricing.

• Capital expenditures were ~$10 million in Q1; $16 million returned to shareholders via dividends.

Outlook and guidance

• FY2025 guidance: revenue of $2.625–2.8 billion, adjusted EBITDA of $411–447 million, adjusted EPS of $2.45–2.80, and operating cash flow of ~$150 million.

• Guidance reflects only six months of Milacron results; $300 million revenue and $41 million adjusted EBITDA removed for the second half.

• Q2 expected revenue of $685–705 million and adjusted EPS of $0.53–0.58, with performance consistent with Q1.

• Free cash flow guidance for FY2025 is ~$105 million.

• Guidance assumes no material impact from tariffs, FX, or a broad-based recession.