Hillenbrand (HI) Q1 2026 earnings summary

Executive summary

• Net revenue for the quarter ended December 31, 2025, was $550.2 million, down 22% year-over-year, primarily due to the divestiture of Milacron and lower capital equipment sales volume.

• Gross profit decreased 22% to $183.7 million, with gross margin improving slightly by 20 basis points to 33.4%.

• Net income attributable to shareholders was a loss of $2.2 million, compared to income of $6.4 million in the prior year.

• Adjusted EBITDA declined 36% to $62.1 million, mainly due to the Milacron divestiture, lower volume, and cost inflation.

• The company is in the process of being acquired by Lone Star Funds, with the merger expected to close by the end of Q1 2026.

Financial highlights

• Advanced Process Solutions revenue fell 9% to $463.6 million; Molding Technology Solutions revenue dropped 56% to $86.6 million.

• Gross profit for Advanced Process Solutions decreased 14% to $151.1 million; Molding Technology Solutions gross profit decreased 45% to $32.6 million.

• Selling, general, and administrative expenses decreased 13% to $149.2 million, reflecting the Milacron divestiture and lower variable compensation.

• Interest expense, net, decreased 20% to $20.2 million.

• Effective tax rate rose to 108.4% due to one-time discrete impacts related to the Milacron sale and restructuring activities.

Outlook and guidance

• Approximately 74% of the $1,486.7 million backlog is expected to be realized over the next twelve months.

• The merger with Lone Star Funds is anticipated to close by the end of Q1 2026, subject to customary conditions.