Free cash flow generation has become increasingly erratic, swinging from a $153.4M surplus in 2024Q4 to a $31.6M deficit in 2026Q1, largely driven by volatile working capital requirements.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 |
|---|
| Cash from Operations | 40.1M | 56.2M | 168M | 70.2M | 191.1M | 528.4M | 354.8M | 178.9M | 248.3M | 246.2M | 238.2M | 105M | 179.6M | 127.2M | 138.2M | 189.5M | 118.2M | 123.2M | 101.8M | 127.3M | 124.6M | 88.9M | 132M | 366.1M | 397M | 445M | 295M |
| Operating CF Margin % | - | 2.1% | 5.28% | 2.48% | 8.25% | 23.57% | 14.1% | 9.9% | 14.03% | 15.48% | 15.48% | 6.58% | 10.77% | 8.19% | 14.06% | 21.45% | 15.78% | 18.98% | 15.01% | 19.08% | 18.47% | 13.48% | 20.62% | 21.61% | 22.87% | 26.6% | 18.02% |
| Operating CF Growth % | -364.48% | -66.55% | 139.32% | -63.27% | -63.83% | 48.93% | 98.32% | -27.95% | 0.85% | 3.36% | 126.86% | -41.54% | 41.2% | -7.96% | -27.07% | 60.32% | -4.06% | 21.02% | -20.03% | 2.17% | 40.16% | -32.65% | -63.94% | -7.78% | -10.79% | 50.85% | - |
| Net Income | 34.5M | 43.1M | -213.2M | 107.1M | 109.4M | 249.9M | -60.1M | 121.4M | 76.6M | 126.2M | 112.8M | 111.4M | 109.7M | 63.4M | 104.8M | 106.1M | 92.3M | 102.3M | 93.2M | 99.5M | 113.2M | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation & Amortization | 133.7M | 138.5M | 158M | 125.6M | 98.6M | 115.1M | 130.6M | 58.5M | 56.5M | 56.6M | 60.4M | 54.3M | 58.4M | 89.4M | 40.4M | 36.1M | 28.5M | 18.6M | 19.1M | 18.5M | 17.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 4.7M | 0 | 0 | 0 | 0 | 17.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -154.1M | -131.1M | -39.6M | -5.6M | 12.5M | 12.2M | -19.5M | 6.7M | 3.7M | 37.1M | -4.7M | -500K | -8.2M | -23.6M | -5M | -4.5M | -18.5M | 3.2M | -3.1M | -7.1M | 800K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 95M | 100.7M | 276.4M | -107.2M | 159.8M | -41.1M | 178.8M | 16.8M | 80.8M | 8.5M | 14.7M | 21.5M | -2.5M | 14.8M | 10.2M | 59.8M | 8.2M | -6.2M | -600K | 9.6M | -3.6M | 88.9M | 132M | 366.1M | 397M | 445M | 295M |
| Working Capital Changes | -73.7M | -95M | -13.6M | -49.7M | -189.2M | 174.9M | 125M | -24.5M | 30.7M | 17.8M | 55M | -81.7M | 22.2M | -16.8M | -12.2M | -8M | 7.7M | 5.3M | -6.8M | 6.8M | -3.5M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Receivables | 1.3M | -1.6M | -5.9M | -30.8M | -124.2M | -24.2M | 91.7M | -66.2M | -13M | 10.7M | 9.7M | -15.4M | 0 | -38.9M | -18.5M | -8.8M | -4.9M | 3M | 2M | 5.9M | -3.2M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 43.2M | 33.9M | 83.1M | 57.2M | -115.7M | -33.4M | 58.5M | -8.6M | -24M | 5.4M | 11.3M | 5.2M | 3.3M | 26.5M | -6.2M | -5.9M | 20.9M | 6.1M | -1.7M | 1.8M | 5M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -24.3M | -25.3M | -17.8M | -14.7M | 95M | 91.3M | -68.2M | 46.4M | 41.6M | 17.2M | 30.2M | -76.6M | 18.3M | 100K | 4.9M | -1.7M | 900K | -2.6M | -2.5M | -300K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 184.6M | 192.7M | 26.8M | -729.9M | -143.4M | 126M | -1.3B | -51.2M | -23.4M | -13.5M | -253.5M | -29.5M | -8.3M | -441M | -22.5M | -154.5M | -348.7M | -5.3M | -4.2M | -20.1M | -15.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Expenditures | -32.3M | -38.3M | -54.2M | -69.3M | -38.3M | -40M | -35.9M | -25.5M | -27M | -22M | -21.2M | -31M | -23.6M | -29.9M | -20.9M | -21.9M | -16.3M | -10M | -10M | -15.6M | -18.8M | -16.3M | -16.3M | -114.7M | -121M | -101M | -106M |
| CapEx % of Revenue | 1.28% | 1.43% | 1.7% | 2.45% | 1.65% | 1.78% | 1.43% | 1.41% | 1.53% | 1.38% | 1.38% | 1.94% | 1.42% | 1.92% | 2.13% | 2.48% | 2.18% | 1.54% | 1.47% | 2.34% | 2.79% | 2.47% | 2.55% | 6.77% | 6.97% | 6.04% | 6.48% |
| Acquisitions | 85.5M | 86M | 55.4M | -653.4M | -93.4M | 166M | -1.26B | -25.7M | 3.7M | 5.7M | -233.4M | 2.8M | 7.5M | -414.1M | -4.4M | -240.9M | -371.2M | 200K | 100K | -4.5M | -2.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 16.7M | 30.3M | 25.6M | -7.2M | -11.7M | 0 | 0 | 0 | -100K | -400K | 0 | -2.8M | 0 | 0 | 0 | 95.9M | 1.6M | 2.2M | 0 | 0 | -448.1M | 16.3M | 16.3M | 114.7M | 121M | 101M | 106M |
| Cash from Financing | -275M | -279.4M | -227.1M | 693.4M | -244.2M | -523.3M | 854.9M | 217.5M | -232.5M | -215.1M | 21.6M | -83.2M | -155.5M | 336.5M | -211.1M | -22M | 289.8M | -97.4M | -94.4M | -103.5M | -107M | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt Issued (Net) | -200.3M | -204.8M | -155.9M | 748.6M | 5M | -344.2M | 922M | 273.8M | -120.2M | -147.2M | 83.6M | -26.2M | -104.1M | 385.6M | -162.3M | 28.1M | 187.9M | -40M | 99.1M | 0 | 4.8M | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -800K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 0 | 0 | -1000K | 1000K | -1000K | -1000K | 0 | -700K | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -63.7M | -63.4M | -62.5M | -61.3M | -62M | -64M | -63.4M | -52.6M | -52.1M | -51.9M | -51.1M | -50.4M | -49.7M | -48.7M | -47.6M | -46.9M | -46.2M | -45.6M | -22.8M | 0 | -69.8M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -203.9M | -121.1M | 0 | 0 | -61M | -28M | -21.2M | -11.2M | -16.5M | 0 | 0 | -3.8M | 0 | -12.5M | -6.2M | 0 | -700K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -10.2M | -12.2M | -11.1M | -14.9M | -8.6M | -7.1M | -4.9M | -6.3M | -10.4M | -1.7M | -800K | 1.2M | 14.8M | -400K | -1.2M | 0 | 146.3M | 0 | -164.9M | -103.5M | -41.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -36.7M | -35M | -43.9M | 14.5M | -211.7M | 135.6M | -87.6M | 342.9M | -10.3M | 14.8M | 3.7M | -9.7M | 15.3M | 22.5M | -95.3M | 17.1M | 63.2M | 20.5M | 2.8M | 11.9M | 2.6M | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 7.8M | 17.9M | 113.8M | 900K | 152.8M | 500.2M | 318.9M | 153.4M | 221.3M | 224.2M | 217M | 74M | 156M | 97.3M | 117.3M | 167.6M | 101.9M | 113.2M | 91.8M | 111.7M | 105.8M | 72.6M | 115.7M | 251.4M | 276M | 344M | 189M |
| FCF Margin % | 0.31% | 0.67% | 3.58% | 0.03% | 6.6% | 22.32% | 12.67% | 8.49% | 12.5% | 14.1% | 14.11% | 4.63% | 9.36% | 6.26% | 11.93% | 18.97% | 13.6% | 17.44% | 13.54% | 16.74% | 15.68% | 11.01% | 18.07% | 14.84% | 15.9% | 20.56% | 11.55% |
| FCF Growth % | -94.87% | -84.27% | 12544.44% | -99.41% | -69.45% | 56.85% | 107.89% | -30.68% | -1.29% | 3.32% | 193.24% | -52.56% | 60.33% | -17.05% | -30.01% | 64.48% | -9.98% | 23.31% | -17.82% | 5.58% | 45.73% | -37.25% | -53.98% | -8.91% | -19.77% | 82.01% | - |
| FCF per Share | 0.11 | 0.25 | 1.62 | 0.01 | 2.12 | 6.63 | 4.34 | 2.42 | 3.47 | 3.50 | 3.40 | 1.16 | 2.45 | 1.54 | 1.88 | 2.70 | 1.65 | 1.83 | 1.47 | 1.79 | 1.70 | 1.16 | 1.85 | 4.01 | 4.40 | 5.49 | 3.02 |
| FCF Conversion (FCF/Net Income) | 0.23x | 1.30x | -0.80x | 0.12x | 0.91x | 2.11x | -5.90x | 1.47x | 3.24x | 1.95x | 2.11x | 0.94x | 1.64x | 2.01x | 1.32x | 1.79x | 1.28x | 1.20x | 1.09x | 1.28x | 1.10x | 0.86x | 1.16x | 1.94x | 9.02x | 2.62x | 1.92x |
| Interest Paid | 0 | 89.5M | 123.4M | 80.6M | 62.6M | 63.2M | 56.7M | 19.9M | 20.7M | 20.3M | 22.7M | 20M | 21M | 21.7M | 11.3M | 10.6M | 1.8M | 2.1M | 1.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 67.9M | 115.8M | 238.6M | 71.5M | 93.2M | 39.2M | 53.3M | 38.9M | 18.2M | 48M | 36.4M | 80.2M | 24.4M | 35.3M | 61.5M | 75.7M | 54.7M | 63.4M | 65.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working Capital Volatility
As reported in recent financial statements, Hillenbrand's operating cash flow frequently decouples from net income, evidenced by a 2026Q1 OCF/NI ratio of 12.45, which highlights the extreme difficulty in reconciling accounting profits with the actual cash generated by the company's complex industrial machinery operations.
The persistent gap between net income and operating cash flow suggests that reported earnings are heavily influenced by non-cash charges and accounting adjustments rather than operational efficiency. Investors should monitor whether this disconnect is a structural byproduct of percentage-of-completion accounting or a sign of deteriorating cash collection quality.
Based on the provided quarterly data, Hillenbrand's free cash flow trajectory is highly inconsistent, swinging from a peak of $153.4M in 2024Q4 to a deficit of $31.6M in 2026Q1, indicating that the company's cash-generative capacity is currently insufficient to support its ongoing capital requirements.
The volatility in free cash flow margins suggests that the business is struggling to maintain a stable cash profile following its recent portfolio transformation. This instability warrants further investigation into whether the company can achieve consistent positive cash flow as it integrates its new food and recycling-focused acquisitions.
According to the company's reported cash flow figures, working capital changes have become a primary source of cash flow instability, with a significant $37.9M outflow in 2026Q1 alone, reflecting the challenges of managing inventory and receivables across a newly integrated and geographically dispersed industrial footprint.
The recurring negative working capital adjustments suggest that the company is struggling to optimize its cash conversion cycle, likely due to the long-lead-time nature of its APS project-based business. If these outflows continue, the company may face increased pressure on its liquidity position, potentially limiting its ability to fund future growth initiatives.
As indicated by the provided financial data, Hillenbrand has prioritized aggressive acquisition activity, such as the $724.1M net outflow in 2023Q4, while maintaining a consistent dividend payout of approximately $15.8M per quarter, despite the underlying volatility in the company's core operating cash flow generation.
The reliance on external capital to fund acquisitions while simultaneously paying dividends appears to be a high-risk strategy given the current instability in operating cash flow. Investors should monitor whether this capital allocation approach is sustainable or if it will necessitate a reduction in shareholder returns to preserve balance sheet health.
Quick answers to the most common questions about buying HI stock.
Hillenbrand, Inc. (HI) generated $56.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hillenbrand, Inc. (HI) generated $17.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hillenbrand, Inc. (HI) spent $38.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hillenbrand, Inc. (HI) returned $63.4M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.