Hillenbrand, Inc. Reports Q4 and FY 2024 Financial Results
Hillenbrand, Inc. (NYSE: HI), a global leader in processing equipment and solutions, has reported its financial results for the fourth quarter and full fiscal year ending September 30, 2024.
Key Financial Metrics
| Metric | Q4 2024 | YoY Change | FY 2024 | YoY Change |
|---|---|---|---|---|
| Revenue | $838 million | +10% | $3.18 billion | +13% |
| Organic Revenue Growth | -1% | - | -5% | - |
| GAAP EPS | $0.17 | -29% | $(3.03) | - |
| Adjusted EPS | $1.01 | -11% | $3.32 | -6% |
Interpretation: Hillenbrand's revenue for Q4 exceeded consensus estimates, although adjusted EPS fell short of expectations due to increased cost pressures and interest expenses. Despite year-over-year revenue growth driven by acquisitions, the company faced challenges such as lower capital equipment volume affecting organic growth.
Revenue by Segment
| Segment | Q4 2024 Revenue | YoY Change | FY 2024 Revenue | YoY Change |
|---|---|---|---|---|
| Advanced Process Solutions (APS) | $591 million | +15% | - | -2% |
| Molding Technology Solutions (MTS) | $247 million | Flat | - | -11% |
Interpretation: The APS segment drove revenue growth, bolstered by acquisitions, while organic revenue remained challenging due to lower volumes. Conversely, MTS performance was stagnant, reflecting sustained pressure from unfavorable product mix and cost inflation.
Key Developments and Operational Highlights
- Strong Q4 operating cash flow of $167 million, up $93 million year-over-year.
- Successful integration of FPM contributing to revenue growth.
- Sequential net leverage reduction to 3.3x.
Executive Comments
Kim Ryan, CEO of Hillenbrand, remarked on the company's completion of its first full year as a pure-play industrial company, highlighting the resilience and effective cost management initiatives helping to drive cash generation. Heading into fiscal 2025, the company remains focused on leveraging growth trends within its markets despite a cautious near-term outlook.
Shareholder Returns
- Hillenbrand returned approximately $63 million to shareholders through quarterly dividends in FY 2024.
Forward Guidance
For fiscal 2025, Hillenbrand anticipates adjusted EPS between $2.80 and $3.15 and Q1 adjusted EPS of $0.52 to $0.57. The company projects a mid-single-digit decline in overall revenue, primarily due to challenges in the APS segment.
Stock Price Movement
Post-earnings release, Hillenbrand's stock experienced a decline of approximately 1.82%, reflecting market reactions to mixed financial results and cautious outlook.
This concise outlook synthesizes Hillenbrand's performance and strategic positioning, providing stakeholders with insights into current achievements and future directions.
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