Hillenbrand Reports Fiscal Q2 2025 Results Amid Tariff Uncertainty and Portfolio Shift

Hillenbrand, Inc. posted fiscal Q2 2025 revenue of $716 million, down 9% year-over-year, primarily due to volume declines in the Advanced Process Solutions (APS) segment. GAAP EPS swung to a loss of $(0.58) from $0.09, largely driven by a $54.6 million loss from the divestiture of a 51% stake in the Milacron injection molding and extrusion business. Adjusted EPS declined 21% to $0.60 due to volume softness and macroeconomic pressures.

The company used the $265 million in net proceeds from the Milacron transaction to reduce debt, improving balance sheet flexibility. Hillenbrand also announced the sale of its TerraSource business for $245 million, expecting $100 million in after-tax proceeds and an approximate 0.2x reduction in net leverage.

Segment results showed APS revenue fell 12% to $494 million, with adjusted EBITDA down 22% and margin compression of 200 bps. Molding Technology Solutions (MTS) revenue dipped 2% to $222 million, with EBITDA down 4%. Backlogs declined 15% overall, though organic MTS backlog increased 14%.

Hillenbrand updated its FY2025 guidance due to heightened macro and tariff-related risks. Full-year adjusted EPS is now expected between $2.10 and $2.45, down from prior expectations, and Q3 EPS is guided to $0.46–$0.53. Full-year revenue is projected at $2.56–$2.62 billion, down 18–20% YoY, with adjusted EBITDA in the $363–$395 million range.