Hillenbrand (HI) Stock Forecast & Price Target

Hillenbrand Inc. has demonstrated a positive financial performance, with pro forma core Molding Technology Solutions (MTS) sales increasing by 3% year-over-year, significantly surpassing expectations by $41 million driven by strong results within the Advanced Process Solutions (APS) and MTS segments. The company reported an EBITDA that was $10 million above forecasts, supported by higher consolidated segment-level performance, although mitigated by elevated corporate expenses. Furthermore, the announced all-cash acquisition by Lone Star Funds, valuing Hillenbrand at approximately $3.8 billion, reflects a favorable valuation of 9.4x 2025 EV/EBITDA, highlighting the firm’s strong market position and strategic growth potential going forward.

Hillenbrand Inc. reported a pro forma core sales decline of 8% year-over-year, reflecting a steeper drop than previously anticipated, while the adjusted EBITDA also decreased by 12% year-over-year, indicating challenges in operational performance despite being $10 million above expectations. The company's backlog showed a concerning trend, with the Advanced Process Solutions (APS) backlog declining 10% year-over-year, which could signal ongoing weakness in demand for capital equipment and aftermarket services. Furthermore, the mixed results in the Molding Technology Solutions (MTS) segment, where core sales declined 10%, suggest that even positive factors like price capture and foreign exchange tailwinds were insufficient to counterbalance the overall negative sales momentum.