Hillenbrand’s second quarter saw revenue ahead of Wall Street’s expectations, despite a substantial year-over-year decline. Management attributed the quarter’s results to continued cautious order behavior amid macroeconomic uncertainty and recent tariff announcements, especially in its Advanced Process Solutions segment. CEO Kimberly K. Ryan explained, “We continued to experience cautious order behavior from customers amid continued global macroeconomic uncertainty and tariff announcements,” emphasizing that project delays rather than cancellations were the primary issue. The company also completed portfolio simplification steps, including divesting its Milacron Injection Molding & Extrusion business and a minority stake in TerraSource, using proceeds to reduce debt.
Is now the time to buy HI? Find out in our full research report (it’s free).
Hillenbrand (HI) Q2 CY2025 Highlights:
- Revenue: $598.9 million vs analyst estimates of $572.5 million (23.9% year-on-year decline, 4.6% beat)
- Adjusted EPS: $0.51 vs analyst estimates of $0.50 (3% beat)
- Adjusted EBITDA: $84.3 million vs analyst estimates of $85.44 million (14.1% margin, 1.3% miss)
- The company slightly lifted its revenue guidance for the full year to $2.61 billion at the midpoint from $2.59 billion
- Management reiterated its full-year Adjusted EPS guidance of $2.28 at the midpoint
- EBITDA guidance for the full year is $377.5 million at the midpoint, above analyst estimates of $373.1 million
- Operating Margin: 8.4%, down from 11.8% in the same quarter last year
- Backlog: $1.62 billion at quarter end
- Market Capitalization: $1.77 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hillenbrand’s Q2 Earnings Call
- Daniel Joseph Moore (CJS Securities) asked about the drivers of recent order upticks in Advanced Process Solutions. CEO Kimberly K. Ryan indicated strength in plastics—both polyolefin and engineering plastics—and highlighted the impact of close customer relationships in securing these orders.
- Moore (CJS Securities) also questioned improved demand and quoting activity in the MTS segment. Ryan noted increased quoting and orders in India and stability in China, emphasizing new product launches for local markets.
- Moore (CJS Securities) probed cash flow normalization and leverage. Interim CFO Megan Walke stated that leverage will remain stable in the near term but should improve as order momentum accelerates and cash advances are collected.
- Matt J. Summerville (D.A. Davidson) inquired about order activity in Food, Health and Nutrition. Ryan described order stability and outlined opportunities for growth through expanded cross-selling and leveraging existing Coperion infrastructure.
- Mitchell Brian Moore (KeyBanc Capital Markets) asked about the impact of tariffs and whether recent improvements in order activity could drive backlog growth by year-end. Ryan responded that while a clear trend has not yet emerged, ongoing customer engagement and full test labs are encouraging signs.
Catalysts in Upcoming Quarters
Looking ahead, our analysts are watching (1) the pace and consistency of order recovery in Advanced Process Solutions as customers adapt to new tariff realities, (2) measurable progress in commercial integration and cross-selling within Food, Health and Nutrition, and (3) whether recent cost synergies and portfolio moves continue to support margin stability. The timing and magnitude of backlog growth will be a key marker for sustained recovery.
Hillenbrand currently trades at $24.28, up from $19.80 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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