Hillenbrand Inc · Q2 2024 earnings

Briefing

Hillenbrand reported mixed results for Q2 2024, with revenue increasing due to acquisitions but organic revenue declining due to lower volume in the Molding Technology Solutions segment. EPS decreased, but adjusted EPS increased slightly. The company is updating its outlook for FY24 adjusted EPS and implementing additional cost actions.

Hillenbrand's Q2 2024 revenue increased by 14% to $785 million, driven by the FPM acquisition, while organic revenue decreased by 5%. GAAP EPS decreased to $0.09, but adjusted EPS increased to $0.76. The company is updating its FY24 adjusted EPS outlook to $3.30 - $3.50 and implementing cost-saving initiatives.

• Revenue increased 14% compared to the prior year, but organic revenue decreased 5% due to lower volume in the Molding Technology Solutions (MTS) segment.
• GAAP EPS decreased from $0.33 in the prior year, while adjusted EPS increased 3% compared to the prior year.
• The company expanded its previously announced MTS restructuring program and is implementing additional cost actions across the enterprise.
• The outlook for FY24 adjusted EPS was updated to $3.30 - $3.50, previously $3.60 - $3.95; Q3 adjusted EPS of $0.80 to $0.85.

Headline financials

Revenue & EPS history

Hillenbrand is updating its annual guidance range for fiscal year 2024 and is providing a fiscal Q3 outlook for adjusted earnings per share. These changes reflect reduced volumes stemming from lower than expected orders, unfavorable product mix in MTS, and pricing pressure in MTS, partially offset by approximately $8 million of in-year MTS restructuring benefits, cost actions throughout APS and corporate, and accelerated margin enhancement within the recent acquisitions.