Hillenbrand, Inc. (HI): History, Ownership, Mission, How It Works & Makes Money

Hillenbrand, Inc. (HI) is a global industrial powerhouse, but do you truly understand how its massive portfolio shift-culminating in the recent divestitures and a pending $3.8 billion acquisition-redefined its core business?

The company's full fiscal year 2025 results, released in November 2025, show a net revenue of $2.67 billion and a significant turnaround to $43.1 million in GAAP net income, reflecting its new focus on highly-engineered processing equipment for plastics, food, and recycling.

This is a business that just completed a multi-year transformation, so how will the move to private ownership under Lone Star Funds, at a price of $32.00 per share, impact its long-term strategy in the Advanced Process Solutions segment?

Hillenbrand, Inc. (HI) History

You're looking for the bedrock of Hillenbrand, Inc., the story behind its current identity as a pure-play industrial company. The direct takeaway is this: Hillenbrand, Inc. is a global industrial firm that spent over a century transforming itself, moving from a single death-care business to a diversified provider of highly-engineered processing solutions, a transformation culminating in a definitive $3.8 billion acquisition agreement in late 2025.

The company's history is a masterclass in strategic portfolio management, where the most transformative decisions involved selling the very businesses that founded it. Honestly, it's rare to see a company so aggressively reshape its core.

Given Company's Founding Timeline

The roots of the current New York Stock Exchange-listed company, Hillenbrand, Inc. (HI), trace back to a small, family-run business, but the modern corporate entity was established through a major corporate restructuring.

Year established

The corporate origins lie in the founding of the Batesville Casket Company in 1906. The current public company, Hillenbrand, Inc., was formally incorporated on November 1, 2007, and became a separate public entity in 2008.

Original location

Batesville, Indiana, USA.

Founding team members

The foundational business was acquired and revitalized by John A. Hillenbrand in 1906. The Hillenbrand family maintained control for decades, with the 2008 spin-off emerging from the larger Hillenbrand Industries holding company.

Initial capital/funding

Specific initial funding details for the 1906 acquisition are characteristic of private family enterprises and aren't publicly detailed; early growth was primarily organic and funded through operations. The current company was formed via a spin-off, not a traditional venture capital funding round.

Given Company's Evolution Milestones

The company's strategic evolution shows a clear pivot from a diversified conglomerate to a focused industrial equipment provider through a series of key acquisitions and, more importantly, divestitures.

Given Company's Transformative Moments

The company's trajectory is defined by three major, transformative decisions that completely reshaped its business model and risk profile.

The 2008 spin-off of Hillenbrand, Inc. from Hill-Rom Holdings was the initial strategic split, but the real change came from using the new public entity as an acquisition vehicle to enter the industrial sector. They started buying processing equipment companies like Coperion and Rotex, shifting the core business away from the death-care industry.

Here's the quick math on the 2025 fiscal year performance that shows the result of this industrial focus: full year net revenue was $2.67 billion, with adjusted earnings per share (EPS) at $2.49. This financial profile, despite a 16% revenue decrease year-over-year due largely to divestitures, is what Lone Star valued at $3.8 billion.

• Divesting the Foundation (2023): Selling the Batesville Casket Company, the business that started it all in 1906, was the ultimate commitment to the industrial pivot. This move eliminated the legacy death-care segment and left the company focused entirely on highly-engineered processing equipment.
• Refining the Industrial Core (March 2025): The sale of a majority interest in the Milacron injection molding and extrusion (MIME) business further streamlined the portfolio. This action concentrated capital and management focus on the highest-growth, most critical processing solutions within the Advanced Process Solutions (APS) segment.
• The Final Private Equity Acquisition (October 2025): The definitive agreement to be acquired by Lone Star Funds for an enterprise value of approximately $3.8 billion is the final, near-term transformative moment. This cash-out for shareholders at $32.00 per share signals the end of its run as an independent public company and validates the strategic pure-play industrial transformation.

What this estimate hides is the complexity of integrating all those acquisitions over the last decade, but the market clearly recognized the value of the simplified, focused entity. If you want to dive deeper into who has been buying the stock during this transformation, you can read Exploring Hillenbrand, Inc. (HI) Investor Profile: Who's Buying and Why?

Next step: Understand the current business structure and how this focused industrial model actually generates that $2.67 billion in revenue.

Hillenbrand, Inc. (HI) Ownership Structure

Hillenbrand, Inc. is currently a publicly traded company on the New York Stock Exchange (NYSE: HI), but that status is changing fast. On October 15, 2025, the company announced a definitive agreement to be acquired by an affiliate of Lone Star Funds for $32.00 per share in an all-cash transaction, which values the company at an enterprise value of approximately $3.8 billion. This deal, expected to close by the end of the first quarter of calendar year 2026, means the company will soon become privately held, fundamentally altering its ownership structure and reporting requirements.

Given Company's Current Status

As of November 2025, Hillenbrand, Inc. remains a public company, which subjects it to the rigorous financial reporting and corporate governance standards of the Securities and Exchange Commission (SEC). This transparency is vital for investors, but it's important to remember the clock is ticking on its public life. The pending acquisition by Lone Star Funds will transition Hillenbrand into a private entity, shifting control from a diverse base of public shareholders to a single private equity firm. This is the single biggest factor affecting strategic decisions right now.

For fiscal year 2025, which ended September 30, 2025, the company reported net revenue of $2.67 billion and adjusted earnings per share (EPS) of $2.49. These numbers, while showing a decrease from the prior year, underpin the valuation in the acquisition agreement. You can find more on the company's core principles here: Mission Statement, Vision, & Core Values of Hillenbrand, Inc. (HI).

Given Company's Ownership Breakdown

The company's ownership is heavily concentrated among institutional investors, which is typical for a large, established industrial company. They hold the vast majority of shares, meaning big financial players like Blackrock Inc. and Vanguard Group Inc. dictate the shareholder vote. Here's the quick math on who holds the power:

Given Company's Leadership

The leadership team is responsible for navigating the company through its strategic transformation and the current acquisition process. They are the ones executing on the strategy that drove fiscal year 2025's $2.67 billion in net revenue.

• Kimberly K. (Kim) Ryan: President and Chief Executive Officer (CEO). She has led the company since December 2021, and her focus has been on transforming Hillenbrand into a pure-play global industrial company.
• Megan Walke: Interim Chief Financial Officer (CFO), Vice President, Corporate Controller and Chief Accounting Officer. She stepped into the Interim CFO role in June 2025.
• Tammi Morytko: Senior Vice President and Group President. She oversees significant business segments, including the Coperion Food, Health & Nutrition Division and the Mold-Masters and DME businesses.
• Bhavik Soni: Senior Vice President and Chief Information Officer (CIO). He manages the technology infrastructure supporting the global operations.

This team is defintely focused on ensuring a smooth operational transition as the company prepares for its private ownership under Lone Star Funds in early 2026. Their next step is managing the final regulatory and shareholder approvals for the acquisition.

Hillenbrand, Inc. (HI) Mission and Values

When you look at Hillenbrand, Inc., you're seeing a global industrial company that has intentionally reshaped its portfolio, and its cultural DNA is centered on shaping a better future through its engineering solutions, not just turning a profit.

The company's purpose and core values are the bedrock for its strategic transition, which is especially critical now as it navigates a definitive agreement to be acquired by Lone Star Funds for an enterprise value of approximately $3.8 billion, with shareholders set to receive $32.00 per share in cash.

Hillenbrand's Core Purpose

Hillenbrand's core purpose is the driving force behind its business model, which emphasizes lifecycle revenue-getting value from initial equipment sales and the recurring, higher-margin aftermarket parts and service. This is what guides the day-to-day decisions of its approximately 8,200 employees worldwide.

Official mission statement

The company doesn't use the stiff term 'mission statement' but instead articulates its reason for being through its Purpose. This is the ultimate filter for their strategy: to develop solutions that deliver superior returns for shareholders and exceptional value for customers.

• Guide all actions by the Purpose: Shape What Matters For Tomorrow™.
• Pursue excellence, collaboration, and innovation consistently.
• Serve associates, customers, communities, and other stakeholders with solutions.

Vision statement

The vision is clear: to be a world-class, global industrial company. They want to be the best in their space, and they rely on their proprietary Hillenbrand Operating Model (HOM) to get them there. That model is the repeatable framework for continuous improvement and profitable growth.

To be fair, the vision is being tested right now; while full-year 2025 Net Revenue was $2.67 billion, a decrease of 16% year-over-year due to divestitures and lower volume, the strategic portfolio moves are what the vision is all about. You can see how those financial results connect to the strategy in Breaking Down Hillenbrand, Inc. (HI) Financial Health: Key Insights for Investors.

Hillenbrand's Core Values

These values are the cultural guardrails, describing who the company is at its best. They show up in the numbers, too; for instance, the focus on debt reduction, which brought net debt down to $1.36 billion as of September 30, 2025, is a defintely a 'Drive To Deliver' action.

• Win As One: Collaborate with care, respect, and accountability across global teams.
• Partner With Possibility: Be problem solvers, using technical expertise to find breakthrough solutions with customers.
• Make It Matter: Operate with integrity because the way they make things matters.
• Drive To Deliver: Be a performance-driven organization with a growth mindset.

Given Company slogan/tagline

Hillenbrand's slogan is directly tied to its core Purpose. It's simple, and it captures the long-term impact of their engineered products, which are essential to industries like durable plastics, food, and recycling.

• Shape What Matters For Tomorrow™

Hillenbrand, Inc. (HI) How It Works

Hillenbrand, Inc. is a global industrial company that operates by designing, manufacturing, and servicing highly-engineered, mission-critical processing equipment and solutions for a diverse set of end markets, primarily focusing on durable plastics, food, and recycling. The company generates stable revenue by selling complex capital equipment and then securing a long-term, high-margin stream of aftermarket parts and services for the large installed base of that equipment.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

Hillenbrand creates value by combining deep engineering expertise with a continuous improvement system called the Hillenbrand Operating Model (HOM). This model is the blueprint for driving efficiency and integrating acquisitions quickly, which is defintely a core part of their growth strategy.

• Design and Manufacture: They engineer complex, custom-built equipment that is mission-critical to a customer's production line, like specialized compounding extruders for plastics or material handling systems for food processing.
• Aftermarket Focus: A significant portion of their business-nearly 35% to 37% of segment revenue-comes from high-margin parts, services, and digital solutions necessary to maintain their global installed base. This buffers them against cyclical drops in new equipment sales.
• Strategic Portfolio Shift: The company has been aggressively transforming its portfolio, evidenced by the divestiture of the Milacron injection molding and extrusion business and the acquisition of the Schenck Process Food and Performance Materials (FPM) business. This shift is designed to focus on higher-growth, higher-margin end markets like Food, Health, and Nutrition (FHN).
• Synergy Realization: They focus on integrating acquired businesses rapidly to extract cost savings. For example, they achieved $30 million in run-rate cost synergies from the Linxis and FPM acquisitions earlier than planned in 2025.

Here's the quick math: Hillenbrand's total net revenue for fiscal year 2025 was $2,673.8 million, with a gross profit of $900.8 million, showing the scale of their global industrial operations.

Given Company's Strategic Advantages

The company's ability to succeed in competitive industrial markets hinges on a few key, durable advantages that go beyond just the equipment itself.

• Market Leadership and Brand Equity: Leading brands like Coperion in compounding and material handling, and Mold-Masters in hot runner systems, are synonymous with quality and reliability, securing a diversified and loyal customer base.
• Recession-Resistant Aftermarket Revenue: The large, global installed base of equipment requires continuous maintenance, repair, and operating supplies, creating a stable, recurring revenue stream that is less volatile than capital equipment sales.
• Global Footprint and Diversification: With significant operations in high-growth regions like Asia (e.g., China and India) and a presence across the Americas and EMEA, they can capitalize on expanding global industrialization and middle-class growth.
• Alignment with Macro Trends: Their focus on Food, Health, and Nutrition, plus their equipment for mechanical and chemical recycling, positions them to benefit directly from the long-term macro demand trends of sustainability and the expanding global middle class.

If you want to dig into the numbers behind this operational success, you should read Breaking Down Hillenbrand, Inc. (HI) Financial Health: Key Insights for Investors.

Hillenbrand, Inc. (HI) How It Makes Money

Hillenbrand, Inc. generates the vast majority of its revenue by designing, manufacturing, and servicing highly-engineered industrial processing equipment and solutions. They essentially sell complex machinery-like compounding and extrusion systems-to large-scale customers in industries such as plastics, food, and recycling, plus they earn a steady, high-margin stream from the aftermarket parts and services needed to keep that equipment running.

Hillenbrand, Inc.'s Revenue Breakdown

The company has strategically transformed into a pure-play industrial entity, which means the revenue mix is now heavily weighted toward the Advanced Process Solutions (APS) segment following the divestiture of the majority stake in the Milacron injection molding and extrusion (MIME) business in fiscal year 2025. Here is the approximate breakdown based on the post-divestiture operating structure as of the end of fiscal year 2025, which saw total net revenue of $2.67 billion.

The total net revenue for the full fiscal year 2025 was $2,673.8 million, representing a 16% decrease from the prior year, largely due to the Milacron divestiture. The Advanced Process Solutions segment's revenue decreased 10% in fiscal 2025, primarily from lower capital equipment and aftermarket sales volume. The Molding Technology Solutions segment's reported revenue fell 32% due to the divestiture, though its pro forma revenue-excluding the divested part-saw a modest increase in the fourth quarter, indicating some underlying strength in the remaining hot runner business.

Business Economics

The economic engine for Hillenbrand, Inc. relies on a classic razor-and-blade model, but on an industrial scale. They sell the complex, high-capital equipment (the razor) and then generate recurring, higher-margin revenue from the necessary parts and services (the blades) over the equipment's long life.

• Aftermarket Stability: This is the key cushion. The Advanced Process Solutions segment's product lines are supported by aftermarket parts and services, which represented approximately 35% of that segment's total net revenue in fiscal 2025. Similarly, the Molding Technology Solutions segment saw about 37% of its net revenue come from aftermarket parts and services. This stable, recurring revenue stream helps buffer the company during cyclical downturns in new capital equipment sales.
• Pricing Power: Despite facing cost inflation and lower volumes in fiscal 2025, the company was able to partially offset these headwinds through 'favorable pricing' and productivity improvements. This suggests their highly-engineered, specialized equipment-like Coperion's compounding systems-gives them some pricing power in their niche markets.
• Strategic Focus: The divestiture of the majority of the Milacron business was a strategic move to focus on higher-margin, less-cyclical businesses, particularly in the Food, Health, and Nutrition (FHN) end markets. This portfolio refinement is defintely aimed at improving the overall quality of earnings and return on invested capital (ROIC) over the long term. You can read more about the strategic direction in the Mission Statement, Vision, & Core Values of Hillenbrand, Inc. (HI).

Hillenbrand, Inc.'s Financial Performance

The full fiscal year 2025 results, ending September 30, 2025, reflect a company in transition, managing macroeconomic challenges while executing a major portfolio shift. The headline is a significant improvement in GAAP net income, though the adjusted earnings per share saw a decline due to lower volume and inflation.

• Profitability Turnaround: Hillenbrand, Inc. reported a GAAP net income of $43.1 million for the full fiscal year 2025, a massive swing from a net loss of $211.0 million in the prior year. This turnaround was primarily driven by a decrease in non-cash impairment charges related to the MTS segment and gains from divestitures.
• Earnings Per Share (EPS): GAAP EPS was $0.61 for the year, up from a loss of $(3.03) per share in fiscal 2024. However, the Adjusted EPS, which strips out one-time items, was $2.49, a 25% decrease year-over-year, reflecting the real operational pressure from lower volumes and cost inflation.
• Balance Sheet Health: As of September 30, 2025, the company reported net debt of $1.36 billion. The proceeds from the divestiture of the Milacron business were used to pay down debt, which is a clear, positive action to strengthen the balance sheet and reduce interest expense.
• Order Backlog: The backlog for the Advanced Process Solutions segment, which is a key indicator of future capital equipment revenue, was reported at approximately $1.6 billion earlier in the year, though it showed a sequential decrease, signaling caution for near-term revenue growth.

Hillenbrand, Inc. (HI) Market Position & Future Outlook

Hillenbrand, Inc. is in a period of significant strategic transition, pivoting to a focused global industrial leader in highly-engineered process equipment, which is reflected in its fiscal year 2025 net revenue of $2.67 billion, a 16% decrease year-over-year primarily due to divestitures. The company's future outlook is largely tied to the successful closure of its pending acquisition by Lone Star Funds for approximately $3.8 billion, expected by the first quarter of 2026, which introduces both a definitive valuation and near-term integration risk.

The company's strategic moves, like the divestiture of its Milacron injection molding and extrusion business, are designed to narrow its focus to higher-margin, less cyclical segments like Advanced Process Solutions (APS) and Food, Health, and Nutrition (FHN).

Competitive Landscape

Hillenbrand competes in a fragmented global industrial sector, but its core strength lies in its specialized processing equipment brands like Coperion. The table below uses 2025 annual revenue as a proxy for market share to illustrate its scale relative to two diversified industrial peers.

Here's the quick math: Hillenbrand's 2025 revenue of $2.67 billion is smaller than peers like ITT Inc. (approx. $3.81 billion TTM revenue) and The Timken Company (approx. $4.54 billion TTM revenue), which means it holds a niche, yet dominant, position in its specialized segments.

Opportunities & Challenges

The company's focus on its core Advanced Process Solutions (APS) segment, where aftermarket parts and services contribute about 35% of net revenue, provides a stable, high-margin foundation. Still, macroeconomic headwinds and the uncertainty of a major acquisition mean you defintely need to watch a few key variables.

Industry Position

Hillenbrand's strategic transformation has positioned it as a focused industrial equipment provider, moving away from its more diversified past. Its strength is not in overall size compared to conglomerates, but in its specialized, high-performance product lines. The company's Coperion brand, for example, is a leader in compounding and extrusion technology for the plastics and chemical industries.

• Specialized Leadership: The company holds a strong, often leading, position in niche markets like compounding equipment for performance materials and food processing solutions.
• Aftermarket Stability: The substantial aftermarket business in APS, representing over a third of that segment's revenue, buffers against the cyclical nature of new equipment sales.
• Valuation Catalyst: The proposed acquisition by Lone Star Funds at $32.00 per share provides a clear, near-term valuation floor for shareholders, but it also signals a shift from public growth strategy to private value optimization.

If you want to dig into the numbers that support this strategic shift, you should read Breaking Down Hillenbrand, Inc. (HI) Financial Health: Key Insights for Investors. Hillenbrand's current net debt to pro forma adjusted EBITDA ratio of 3.7x, while improved, is still a metric to monitor, as the company focuses on debt reduction and capital management.