Hillenbrand Inc · Q3 2023 earnings

Briefing

Hillenbrand reported third quarter results with revenue increasing 24% compared to the prior year and organic revenue increasing 5%.

Hillenbrand's Q3 2023 results showed revenue growth driven by acquisitions and organic growth in the Advanced Process Solutions segment. The company is managing customer delays in the Molding Technology Solutions segment and focusing on executing its backlog and driving operating efficiencies. They also entered into an agreement to acquire the Schenck Food and Performance Materials business.

• Revenue from continuing operations increased 24% to $717 million compared to the prior year, with organic revenue up 5%.
• GAAP EPS from continuing operations was $0.60, compared to $0.42 in the prior year; adjusted EPS from continuing operations increased 36% to $0.95.
• Operating cash flow increased by $104 million to $89 million compared to the prior year, with a 112% free cash flow conversion rate.
• An agreement was made to acquire Schenck Food and Performance Materials business, expanding Hillenbrand’s presence in the food end market.

Headline financials

Revenue & EPS history

Hillenbrand is narrowing its annual guidance for fiscal year 2023, lowering revenue estimates modestly due to customer order delays within the MTS segment, particularly in China, and an increase in customer delays for large plastics projects within the APS segment. The Company is raising the midpoint of its full year adjusted EPS range primarily due to lower interest expense and a more favorable expected tax rate of 29% compared to the previous estimate of 31%, primarily due to the benefit of a strategic tax initiative that will take effect in the fiscal fourth quarter.