Hillenbrand Reports 22% Revenue Decline and $2.2 Million Loss in Latest Quarter

Hillenbrand, Inc. reported a significant decline in financial performance for the three months ended December 31, 2025, with net revenue falling to $550.2 million, a decrease of 22% from $706.9 million in the same period of the previous year. The company's gross profit also decreased by 22% to $183.7 million, while consolidated net income dropped to $1.0 million, down from $8.9 million in the prior year. The loss attributable to Hillenbrand was $2.2 million, compared to a profit of $6.4 million in the previous year, resulting in a basic and diluted loss per share of $0.03.

The decline in revenue was primarily driven by a 9% decrease in the Advanced Process Solutions segment, attributed to lower capital equipment sales and reduced aftermarket parts and service revenue, despite some favorable pricing adjustments. The Molding Technology Solutions segment experienced a more pronounced decline, with revenue plummeting 56% due to the divestiture of the Milacron business. The company noted that foreign currency fluctuations had a marginal positive impact on revenue, increasing it by 4% in Advanced Process Solutions and 1% in Molding Technology Solutions.

In terms of operational developments, Hillenbrand's order backlog decreased by 10% to $1.432 billion, reflecting a reduction in capital equipment orders. The company also reported a loss on the divestiture of Milacron amounting to $3.4 million. Selling, general, and administrative expenses decreased by 13% to $149.2 million, driven by the divestiture and a reduction in variable compensation, although these expenses as a percentage of net revenue increased to 27.1%. The company’s effective tax rate surged to 108.4%, influenced by one-time impacts related to the sale of Milacron and restructuring activities.

Looking ahead, Hillenbrand is navigating a transformative period marked by the announced merger with Lone Star Funds, which is expected to close by the end of the first quarter of 2026. The merger agreement, approved by the board and shareholders, will see Hillenbrand shareholders receive $32.00 per share in cash. The company anticipates that the merger will provide a strategic opportunity to enhance its operational capabilities and market position. However, the company also faces challenges, including fluctuating market conditions, cost inflation, and the need to adapt to changing customer demands in its core markets.