Hillenbrand, Inc. has reported its fiscal fourth quarter and full year 2024 results. The company's Q4 revenue of $838 million increased by 10% compared to the prior year. However, organic revenue decreased by 1%. The GAAP EPS for Q4 was $0.17, down from $0.24 in the prior year, while the adjusted EPS of $1.01 decreased by 11%.
For the full year 2024, Hillenbrand reported revenue of $3.18 billion, representing a 13% increase from the prior year. However, organic revenue decreased by 5%. The GAAP EPS for the full year was $(3.03), a decrease from $1.53 in the prior year. The adjusted EPS was $3.32, down by 6%.
The company's strong Q4 operating cash flow of $167 million marked a significant increase of $93 million compared to the prior year. The net leverage decreased sequentially to 3.3x.
Looking forward to fiscal 2025, Hillenbrand provided guidance for full-year adjusted EPS of $2.80 * $3.15 and Q1 adjusted EPS of $0.52 * $0.57.
In terms of the company's operating segments, the Advanced Process Solutions (APS) segment saw a 15% increase in net revenue to $591 million, primarily due to the FPM acquisition. However, organic net revenue was down by 2%. The Molding Technology Solutions (MTS) segment reported essentially flat net revenue of $247 million. Adjusted EBITDA for the APS segment decreased by 14%, while the MTS segment saw an 8% decrease.
Hillenbrand's full year net loss of $213 million was largely due to non-cash impairment charges related to the MTS segment, as well as an increase in business integration and restructuring costs, lower volume, cost inflation, and higher interest expense. However, the company's adjusted net income resulted in an adjusted EPS of $3.32, a decrease of 6%.
The company's cash flow from operations for the year was $191 million, a decrease of $16 million year-over-year. The company returned approximately $63 million to shareholders in the form of quarterly dividends.
As of September 30, 2024, Hillenbrand's net debt was $1.69 billion, and the net debt to pro forma adjusted EBITDA ratio was 3.3x. The company's liquidity was approximately $799 million.
Hillenbrand also provided an outlook for fiscal 2025, anticipating total company revenue to be down mid-single digits at the midpoint, primarily driven by the APS segment. The company highlighted that debt reduction remains a top priority for cash.
The company disclosed that all financial results are reported on a continuing operations basis, excluding the divested Batesville segment, which is reported as discontinued operations for all periods presented. Following these announcements, the company's shares moved -1.7%, and are now trading at a price of $30.17. If you want to know more, read the company's complete 8-K report here.
