Q2 2024 Hillenbrand Inc Earnings Call Transcript
Key Points
- Hillenbrand Inc reported a total revenue growth of 14%, driven by the acquisition of Schenck Process Food and Performance Materials business.
- Adjusted EBITDA increased by 13%, with a 100 basis points expansion in adjusted EBITDA margin.
- The company saw improved order rates sequentially in both segments, indicating potential recovery signs.
- Hillenbrand Inc is making good progress in integrating recent acquisitions, which is tracking ahead of schedule and contributing to margin expansion.
- The company has implemented cost control measures, including targeted restructuring and strict limitations on hiring and discretionary costs, which are contributing positively to financial performance.
- On an organic basis, revenues decreased by 5% year over year, indicating challenges in core business areas.
- The company faces ongoing global macroeconomic uncertainty impacting customer order decisions, leading to slower final customer decisions and impacting revenue.
- GAAP net income was significantly lower at $6 million, down from the previous year, influenced by increased restructuring costs and lower organic volume.
- Free cash flow for the year is expected to be significantly lower than previous expectations, primarily due to lower customer advances and the timing of working capital requirements.
- Hillenbrand Inc's net debt to adjusted EBITDA ratio increased to 3.5 times, putting pressure on the company's deleveraging timeline and financial flexibility.
Greetings. Welcome to Hillenbrand's second-quarter fiscal year 2024 earnings call. (Operator Instructions) Please note, this conference is being recorded.
At this time, I'll turn the conference over to Sam Mynsberge, Vice President of Investor Relations. Mr. Mynsberge, you may now begin your presentation.
Thank you, operator. Good morning, everyone. Welcome to Hillenbrand's earnings call for our second quarter of fiscal year 2024. I'm joined by our President and CEO, Kim Ryan; and our Senior Vice President and CFO, Bob VanHimbergen. I'd like to direct your attention to the supplemental slides posted on our IR website that we reference on today's call.
Turning to slide 3, I remind you that our comments may contain certain forward-looking statements that are subject to the Safe Harbor provisions of the securities laws. These statements are not guarantees of future performance, and our actual results could differ materially. Also during the course of this call, we will be discussing
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