Hillenbrand (HI) Stock Forecast & Price Target

Hillenbrand Inc. has demonstrated a positive trajectory in its financial performance, with a notable improvement in orders for the Molding Technology Solutions (MTS) segment, driven by increased investment in injection molding equipment in the U.S. and India, as well as improved demand in China facilitated by new product introductions. The company's core sales in MTS are projected to grow modestly in FY25, bolstered by stronger-than-anticipated results for FY24, while ongoing cost control measures and successful integration of acquired businesses are expected to enhance margins in both MTS and Advanced Process Solutions (APS). Furthermore, Hillenbrand's strategic focus on securing attractive, intellectual property-rich acquisitions positions it well for future operational leverage and sustained growth as demand returns across its diverse end markets.

Hillenbrand Inc. reported an adjusted EPS of $1.01 for F4Q24, surpassing expectations, but its core revenue declined approximately 1% year-over-year, accompanied by a significant margin contraction of about 210 basis points. The company anticipates a decline in business activity of 5%-10% going into FY25, driven by a deteriorating order and backlog trajectory, particularly in its Advanced Process Solutions segment. Additionally, while net leverage improved to 3.3x, the persistent potential for demand fluctuations in key markets and the need for debt reduction suggest a challenging landscape ahead, alongside a forecasted mid-single-digit decline in overall sales.