The chart below shows how HI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HI sees a -0.97% change in stock price 10 days leading up to the earnings, and a -2.54% change 10 days following the report. On the earnings day itself, the stock moves by -1.32%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Milacron Business Sale: Hillenbrand announced the sale of approximately 51% of its Milacron injection molding and extrusion business for $287 million, allowing for a focus on higher-margin growth opportunities.
Record Orders in FHN Markets: The company achieved record orders in the food, health, and nutrition (FHN) end markets, demonstrating strong demand across key application areas, including baked goods and pharmaceuticals.
Adjusted EBITDA Margin Analysis: Adjusted EBITDA margin for the Advanced Process Solutions (APS) segment was 16.2%, reflecting effective cost management despite lower volumes and cost inflation pressures.
Operational Cash Flow Improvement: Cash flow from operations improved by $13 million year-over-year, indicating enhanced working capital efficiency despite a seasonal decline in cash flow during Q1.
Shareholder Value Commitment: Hillenbrand returned approximately $60 million to shareholders through its quarterly dividend, underscoring its commitment to shareholder value even amid challenging market conditions.
Negative
Revenue Decline Analysis: Consolidated revenue decreased by 9% year over year to $707 million, primarily due to lower capital equipment demand and a reduced backlog.
Earnings Per Share Decline: Adjusted earnings per share fell by 19% to $0.56, reflecting the impact of lower starting backlog and ongoing market challenges.
EBITDA Decline Analysis: Adjusted EBITDA decreased by 15% to $97 million, with a margin decline of 110 basis points to 13.7%, driven by lower volume and cost inflation.
Backlog Decline Analysis: Backlog decreased by 17% year over year to $1.6 billion, indicating a slowdown in customer order decisions amid macroeconomic uncertainty.
MTS Segment Revenue Decline: Revenue from the MTS segment declined by 5% to $196 million, with adjusted EBITDA down 15% and a margin decrease of 170 basis points due to ongoing pricing pressure and lower volume.
Hillenbrand, Inc. (NYSE:HI) Q1 2025 Earnings Call Transcript
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