Hillenbrand Reports 24% Revenue Decline in Q3 Fiscal 2025, Net Income Recovery

Hillenbrand, Inc. reported a significant decline in financial performance for the third quarter of fiscal 2025, with net revenue of $598.9 million, down 24% from $786.6 million in the same period last year. The decrease was primarily attributed to a 58% drop in revenue from the Molding Technology Solutions segment, largely due to the divestiture of the Milacron business. The Advanced Process Solutions segment also saw a decline, with revenue falling 11% to $507.0 million, driven by decreased volume despite some favorable pricing adjustments. For the nine months ended June 30, 2025, total revenue was $2.021 billion, a 14% decrease from $2.345 billion in the prior year.

The company's gross profit for the quarter was $202.6 million, down 24% from $266.4 million, resulting in a gross profit margin of 33.8%, slightly lower than the previous year's margin of 33.9%. Selling, general, and administrative expenses decreased by 16% to $146.3 million, reflecting cost-cutting measures and the impact of the Milacron divestiture. Hillenbrand recorded a net income of $1.9 million for the quarter, a notable recovery from a loss of $248.9 million in the same quarter of the previous year, primarily due to the absence of significant impairment charges that had affected prior results.

Strategically, Hillenbrand completed the divestiture of its Milacron segment on March 31, 2025, receiving total consideration of $286 million, which included cash and debt assumed by the buyer. This divestiture is part of a broader strategy to streamline operations and focus on core segments. The company also reported a loss on the divestiture of $56.1 million for the nine months ended June 30, 2025. Additionally, Hillenbrand's equity interest in Milacron Holdings is now accounted for under the equity method, reflecting a 48.74% ownership stake.

Operationally, the company reported a decrease in order backlog, which fell to $1.569 billion as of June 30, 2025, down 10% from the previous year. The Advanced Process Solutions segment's backlog decreased by 10%, while the Molding Technology Solutions segment saw a dramatic 77% decline due to the Milacron divestiture. The company’s employee headcount remained stable, with no significant changes reported in staffing levels.

Looking ahead, Hillenbrand anticipates continued challenges in the market, including cost inflation and fluctuating demand. The company expects to leverage its existing cash reserves and operational efficiencies to navigate these challenges. Hillenbrand's management remains focused on maintaining liquidity and financial flexibility, with plans to continue investing in its core business segments while managing costs effectively. The company also plans to pay quarterly dividends, reflecting its commitment to returning value to shareholders despite recent financial pressures.