Hillenbrand reported QQ2 2024 results characterized by a blend of strategic alliance execution and near-term demand headwinds. Revenue rose by 13.7% year-over-year to $785.3 million, largely driven by the FPM acquisition, while organic revenue declined 8% as lower capital equipment volumes more than offset higher aftermarket revenue and price realization. Consolidated EBITDA reached $122.9 million with a margin of approximately 15.7%, reflecting the drag from lower volumes and cost inflation, partially offset by cost actions and mix benefits from the FPM integration. A non-cash impairment related to the hot runner product line within Molding Technology Solutions (MTS) was highlighted by management during the August 2024 call, underscoring ongoing demand volatility in mid- and long-cycle equipment. The company maintained a disciplined cost-out agenda and is guiding toward full-year 2024 revenue of about $3.13–$3.16 billion and adjusted EBITDA of $502–$512 million, with adjusted EPS of $3.20–$3.30, acknowledging the softer-than-expected order intake in APS.
The QQ2 results emphasize Hillenbrand’s strategic positioning: a diversified portfolio with stronger aftermarket and services exposure, a solid APS backlog (roughly $1.73 billion) supported by FPM, and a MTS backdrop that requires continued cost discipline and project execution improvements. Management stresses that integration benefits are material (EBITDA margins >300 bps ahead of plan in the FPM business) and that synergies from the Linxis/FPM platform are progressing more quickly than originally anticipated. The near-term risk remains macro-driven order deferrals and later-than-expected capital spending, particularly in APS. Investors should monitor: APS order flow and backlog progression, the pace of MTS impairment recovery and cost-actions, FPM/Linxis synergy realization, debt reduction progress, and the trajectory of free cash flow in a period of ample capital discipline.