Hillenbrand reported a solid Q4 2024 with revenue of $837.6 million, up 9.8% year over year and up from the prior quarter, driven by the FPM acquisition, favorable pricing, and a robust aftermarket franchise. Organic revenue declined 1%, underscoring ongoing end-market caution despite the acceleration in aftermarket momentum and backlog execution. Adjusted EBITDA totaled $144 million (margin ~17.1%), with GAAP net income of $12 million and adjusted net income of $71 million, translating to an adjusted EPS of approximately $1.10. Cash flow remained strong in the quarter, generating $167 million from operations and lowering net debt to about 3.3x adjusted EBITDA. Hillenbrand continued to emphasize cost discipline and capital allocation focused on debt paydown, evidenced by a free cash flow for the quarter of about $153 million and a year-end cash balance near $228 million, aided by an opportunistic sale-leaseback transaction.
For the full year, Hillenbrand delivered revenue of about $3.18 billion, up 30% versus 2023 aided by the FPM acquisition and strong aftermarket, with organic revenue down 5%. APS declined 2% organically, while MTS fell 11% due to lower backlog and soft demand for mid-sized capital equipment. Backlog improved in injection molding and hot runner markets, and the company highlighted that test labs remained active—an indicator of potential future capital investment, albeit with longer decision cycles. Management reiterated that the company remains on track to achieve roughly $30 million in run-rate cost savings from the integration program, realizing a meaningful portion already. 2025 guidance contemplates continued macro uncertainty with revenue of $2.93–$3.09 billion (down 3% to 8%), adjusted EBITDA of $452–$488 million, and adjusted EPS of $2.80–$3.15. APS is expected to be down 5%–10% in 2025, while MTS could be flat to up 2%. The company projects roughly $200 million of operating cash flow and about $50 million of capital expenditures for the year. The narrative remains constructive on margin expansion from cost actions and aftermarket growth but conservative on near-term demand normalization. Investors should monitor progress on the back half of 2025 as orders begin to unlock and as integration synergies translate into continued margin improvements.