Hillenbrand Inc. reported fiscal 2025 fourth‑quarter net revenue of $652.1 million, a 22% decline from $837.6 million in Q4 2024, and full‑year net revenue of $2.67 billion, down 16% from $3.18 billion in 2024. GAAP net income for the quarter was $75.7 million ($1.07 per share) and $43.1 million ($0.61 per share) for the year. Adjusted EBITDA fell 25% to $107.9 million ($1.07 per share) in Q4 and 24% to $388 million ($2.49 per share) for the year.
The revenue decline reflects the divestiture of the Milacron injection molding and extrusion (MIME) business, which was completed in March 2025. Pro‑forma net revenue, excluding MIME, decreased 5% in Q4 and 9% for the full year, indicating that the underlying business still faced volume pressure. Segment analysis shows Advanced Process Solutions (APS) net revenue fell 10%, while Molding Technology Solutions (MTS) net revenue dropped 32% (3% pro‑forma), underscoring the impact of lower demand in the MTS segment.
GAAP net income and adjusted earnings per share beat consensus estimates. Revenue of $652.1 million surpassed the $592.25 million consensus by $59.85 million, a 10% beat. Adjusted EPS of $0.83 exceeded the $0.61 estimate by $0.22, a 36% beat, and adjusted EBITDA of $107.9 million outpaced the $96.77 million estimate by $11.13 million, a 11.5% beat. The earnings beat was driven by disciplined cost management and favorable pricing in the APS segment, which offset the revenue decline and the one‑time impact of the MIME divestiture.
Adjusted EBITDA margin contracted to 18.6% in Q4 from 20.6% in Q4 2024, a 120‑basis‑point decline, and fell to 15% for the year from 17% in 2024, a 180‑basis‑point drop. The compression reflects higher raw‑material costs, tariff exposure, and lower operating leverage from reduced volumes, while pricing power in APS helped maintain profitability. Pro‑forma adjusted EBITDA margin was 15% for the year, down 180 basis points, indicating that even after excluding MIME, the core business faced margin pressure.
Management noted that the company remains focused on its strategic transformation toward a pure‑play industrial model. CEO Kim Ryan said the divestiture of MIME was a “strategic decision to focus on less cyclical, higher‑growth opportunities.” The company will not issue guidance for fiscal 2026 because of the pending acquisition by Lone Star Funds, which is expected to close in early 2026. The transition period has prompted a cautious outlook, but the company’s ability to beat earnings estimates suggests resilience in its core operations.
Investors reacted with caution. Despite beating revenue and earnings estimates, the market response was muted, reflecting concerns about the pending acquisition, ongoing macroeconomic headwinds, and the need for the company to navigate a transition period while maintaining cost discipline and pursuing growth in its core segments.
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