Hillenbrand Reports 9% Revenue Decline and $40.9 Million Net Loss in Q2 Fiscal 2025

Hillenbrand, Inc. reported a significant decline in financial performance for the second quarter of fiscal 2025, with net revenue of $715.9 million, down 9% from $785.3 million in the same period last year. The company's gross profit also decreased to $236.4 million, a 6% drop compared to $250.7 million in the prior year. The decline in revenue was primarily attributed to decreased volume in the Advanced Process Solutions segment, which saw a 12% reduction in revenue, partially offset by favorable pricing. The Molding Technology Solutions segment experienced a smaller decline of 2%. The company recorded a net loss attributable to Hillenbrand of $40.9 million, or $(0.58) per share, compared to a net income of $6.1 million, or $0.09 per share, in the previous year.

The financial results reflect several strategic changes, including the divestiture of the Milacron injection molding and extrusion business, which was completed on March 31, 2025. This divestiture resulted in a pre-tax loss of $54.6 million, impacting the overall profitability for the quarter. Additionally, the company incurred $4.1 million in transaction costs related to this divestiture. The divestiture is part of Hillenbrand's strategy to streamline operations and focus on its core segments, which include Advanced Process Solutions and Molding Technology Solutions.

Operationally, Hillenbrand's total assets decreased to $4.8 billion as of March 31, 2025, down from $5.2 billion at the end of the previous fiscal year. The company reported a decrease in order backlog, particularly in the Advanced Process Solutions segment, which fell by 15% year-over-year. The company’s cash and cash equivalents increased significantly to $458.4 million, up from $199.3 million, reflecting improved liquidity following the divestiture. The company also reported a reduction in interest expenses, which decreased by 25% due to favorable financing arrangements.

Looking ahead, Hillenbrand anticipates continued challenges in the market, including cost inflation and fluctuating demand. The company expects to refine its tax estimates related to the Milacron divestiture throughout the remainder of fiscal 2025. Despite the current challenges, Hillenbrand remains committed to its strategic initiatives, including potential acquisitions and investments in its core business segments. The company has approximately $125 million remaining under its share repurchase program and plans to continue paying quarterly dividends, reflecting its commitment to returning value to shareholders.