Operating margins have faced persistent downward pressure, declining to 6.3% in 2026Q1 as integration costs from recent acquisitions continue to weigh on profitability.
| 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 |
|---|
| Sales/Revenue | 2.52B | 2.67B | 3.18B | 2.83B | 2.32B | 2.24B | 2.52B | 1.81B | 1.77B | 1.59B | 1.54B | 1.6B | 1.67B | 1.55B | 983.2M | 883.4M | 749.2M | 649.1M | 678.1M | 667.2M | 674.6M | 659.4M | 640.3M | 1.69B | 1.74B | 1.67B | 1.64B |
| Revenue Growth % | -19.23% | -15.99% | 12.63% | 22.06% | 3.3% | -10.95% | 39.27% | 2.1% | 11.31% | 3.37% | -3.66% | -4.22% | 7.33% | 57.99% | 11.3% | 17.91% | 15.42% | -4.28% | 1.63% | -1.1% | 2.31% | 2.98% | -62.2% | -2.43% | 3.77% | 2.2% | - |
| Cost of Goods Sold | 1.67B | 1.77B | 2.13B | 1.88B | 1.55B | 1.51B | 1.7B | 1.18B | 1.13B | 999.4M | 967.8M | 1.03B | 1.08B | 1.03B | 594.3M | 513.5M | 435.9M | 374.7M | 397.6M | 388.6M | 391.9M | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 66.31% | 66.81% | 66.45% | 67.01% | 67.33% | 67.69% | 65.53% | 63.73% | 62.85% | 62.91% | 64.28% | 64.66% | 66.61% | 60.45% | 58.13% | 58.18% | 57.73% | 58.63% | 58.24% | 58.09% | - | - | - | - | - | - |
| Gross Profit | 849.5M | 900.8M | 1.06B | 948.2M | 763.8M | 732.3M | 813.3M | 623M | 642.1M | 590.8M | 570.6M | 570.4M | 589.2M | 518.7M | 388.9M | 369.9M | 313.3M | 274.4M | 280.5M | 278.6M | 282.7M | 659.4M | 640.3M | 1.69B | 1.74B | 1.67B | 1.64B |
| Gross Margin % | 33.75% | 33.69% | 33.19% | 33.55% | 32.99% | 32.67% | 32.31% | 34.47% | 36.27% | 37.15% | 37.09% | 35.72% | 35.34% | 33.39% | 39.55% | 41.87% | 41.82% | 42.27% | 41.37% | 41.76% | 41.91% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | -14.74% | 11.42% | 24.14% | 4.3% | -9.96% | 30.55% | -2.97% | 8.68% | 3.54% | 0.04% | -3.19% | 13.59% | 33.38% | 5.14% | 18.07% | 14.18% | -2.17% | 0.68% | -1.45% | -57.13% | 2.98% | -62.2% | -2.43% | 3.77% | 2.2% | - |
| Operating Expenses | 697.2M | 744.3M | 816M | 653.7M | 496.7M | 507.3M | 610.1M | 412.2M | 409.1M | 372.7M | 379.5M | 358.7M | 414.7M | 400.6M | 240.1M | 211.3M | 175.4M | 119.4M | 130.9M | 123M | 105.3M | 0 | 0 | 1.36B | 1.69B | 1.43B | 1.43B |
| OpEx % of Revenue | - | 27.84% | 25.64% | 23.13% | 21.45% | 22.63% | 24.24% | 22.81% | 23.11% | 23.44% | 24.67% | 22.46% | 24.87% | 25.79% | 24.42% | 23.92% | 23.41% | 18.39% | 19.3% | 18.44% | 15.61% | - | - | 80.44% | 97.35% | 85.54% | 87.54% |
| Selling, General & Admin | 628.1M | 650M | 713.6M | 574.1M | 442.7M | 451.6M | 0 | 0 | 0 | 0 | 0 | 17.7M | 0 | 0 | 240.1M | 211.3M | 175.4M | 0 | 130.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | 24.31% | 22.42% | 20.31% | 19.12% | 20.15% | - | - | - | - | - | 1.11% | - | - | 24.42% | 23.92% | 23.41% | - | 19.3% | - | - | - | - | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 94.3M | 102.4M | 79.6M | 54M | 55.7M | 610.1M | 412.2M | 409.1M | 372.7M | 379.5M | 341M | 414.7M | 400.6M | 0 | 0 | 0 | 119.4M | 0 | 123M | 105.3M | 0 | 0 | 1.36B | 1.69B | 1.43B | 1.43B |
| Operating Income | 152.3M | 156.5M | 240.5M | 294.5M | 267.1M | 225M | 203.2M | 210.8M | 233M | 218.1M | 191.1M | 211.7M | 174.5M | 118.1M | 148.8M | 158.6M | 137.9M | 155M | 149.6M | 155.6M | 177.4M | 659.4M | 640.3M | 331.3M | 46M | 242M | 204M |
| Operating Margin % | 6.05% | 5.85% | 7.56% | 10.42% | 11.54% | 10.04% | 8.07% | 11.66% | 13.16% | 13.72% | 12.42% | 13.26% | 10.47% | 7.6% | 15.13% | 17.95% | 18.41% | 23.88% | 22.06% | 23.32% | 26.3% | 100% | 100% | 19.56% | 2.65% | 14.46% | 12.46% |
| Operating Income Growth % | - | -34.93% | -18.34% | 10.26% | 18.71% | 10.73% | -3.61% | -9.53% | 6.83% | 14.13% | -9.73% | 21.32% | 47.76% | -20.63% | -6.18% | 15.01% | -11.03% | 3.61% | -3.86% | -12.29% | -73.1% | 2.98% | 93.27% | 620.22% | -80.99% | 18.63% | - |
| EBITDA | 285.9M | 295M | 398.5M | 420.1M | 365.7M | 329.6M | 333.8M | 269.3M | 289.5M | 274.7M | 251.5M | 266M | 232.9M | 207.5M | 189.2M | 194.7M | 166.1M | 173.6M | 168.7M | 174.1M | 195.1M | 659.4M | 640.3M | 331.3M | 46M | 242M | 204M |
| EBITDA Margin % | 11.36% | 11.03% | 12.52% | 14.87% | 15.79% | 14.71% | 13.26% | 14.9% | 16.36% | 17.27% | 16.35% | 16.66% | 13.97% | 13.36% | 19.24% | 22.04% | 22.17% | 26.74% | 24.88% | 26.09% | 28.92% | 100% | 100% | 19.56% | 2.65% | 14.46% | 12.46% |
| EBITDA Growth % | -23.66% | -25.97% | -5.14% | 14.88% | 10.95% | -1.26% | 23.95% | -6.98% | 5.39% | 9.22% | -5.45% | 14.21% | 12.24% | 9.67% | -2.82% | 17.22% | -4.32% | 2.9% | -3.1% | -10.76% | -70.41% | 2.98% | 93.27% | 620.22% | -80.99% | 18.63% | - |
| D&A (Non-Cash Add-back) | 133.6M | 138.5M | 158M | 125.6M | 98.6M | 104.6M | 130.6M | 58.5M | 56.5M | 56.6M | 60.4M | 54.3M | 58.4M | 89.4M | 40.4M | 36.1M | 28.2M | 18.6M | 19.1M | 18.5M | 17.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| EBIT | 60M | 92.1M | -17.9M | 294.6M | 264M | 280.9M | 58.9M | 204.1M | 169.8M | 213.5M | 189.4M | 186.1M | 183.2M | 117.7M | 147.3M | 168.8M | 150.6M | 162.9M | 155.5M | 157M | 177.4M | 659.4M | 640.3M | 331.3M | 46M | 242M | 204M |
| Net Interest Income | -89.6M | -94.5M | -121.5M | -77.7M | -64.3M | -74.3M | -74.2M | -26.3M | -21.9M | -25.2M | -25.3M | -23.8M | -23.3M | -24M | -12.4M | -11M | 11.1M | 11.2M | 5.3M | 1.4M | 1.4M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 5.5M | 3.4M | 3.2M | 1.1M | 1.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12.2M | 13.5M | 7.5M | 1.4M | 42.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 89.6M | 94.5M | 121.5M | 77.7M | 69.8M | 77.6M | 77.4M | 27.4M | 23.3M | 25.2M | 25.3M | 23.8M | 23.3M | 24M | 12.4M | 11M | 4.2M | 2.1M | 2.2M | 0 | 21.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -181.9M | -158.9M | -379.9M | -77.6M | -67.4M | -18.4M | -221.7M | -34.1M | -86.5M | -29.8M | -27M | -49.4M | -14.6M | -24.4M | -13.9M | -800K | 8.5M | 5.8M | 3.7M | 1.4M | 1.4M | -659.4M | -640.3M | -51M | -27M | -21M | 0 |
| Pretax Income | -29.6M | -2.4M | -139.4M | 216.9M | 199.7M | 206.6M | -18.5M | 176.7M | 146.5M | 188.3M | 164.1M | 162.3M | 159.9M | 93.7M | 134.9M | 157.8M | 146.4M | 160.8M | 153.3M | 157M | 178.8M | 0 | 0 | 280.3M | 19M | 221M | 204M |
| Pretax Margin % | -1.18% | -0.09% | -4.38% | 7.68% | 8.63% | 9.22% | -0.73% | 9.78% | 8.28% | 11.84% | 10.67% | 10.16% | 9.59% | 6.03% | 13.72% | 17.86% | 19.54% | 24.77% | 22.61% | 23.53% | 26.5% | - | - | 16.55% | 1.09% | 13.21% | 12.46% |
| Income Tax | -73.8M | -54.5M | 64.8M | 102.8M | 84M | 78.6M | 34.9M | 50.5M | 65.3M | 59.9M | 47.3M | 49.1M | 48.7M | 28.3M | 30.1M | 51.7M | 54.1M | 58.5M | 60.1M | 57.5M | 65.6M | 0 | 0 | 99.7M | -37M | 52M | 74M |
| Effective Tax Rate % | 249.32% | 2270.83% | -46.48% | 47.4% | 42.06% | 38.04% | -188.65% | 28.58% | 44.57% | 31.81% | 28.82% | 30.25% | 30.46% | 30.2% | 22.31% | 32.76% | 36.95% | 36.38% | 39.2% | 36.62% | 36.69% | - | - | 35.57% | -194.74% | 23.53% | 36.27% |
| Net Income | 34.5M | 43.1M | -211M | 569.7M | 208.9M | 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 | 102.8M | 113.8M | 189M | 44M | 170M | 154M |
| Net Margin % | 1.37% | 1.61% | -6.63% | 20.16% | 9.02% | 11.15% | -2.39% | 6.72% | 4.33% | 7.94% | 7.33% | 6.98% | 6.58% | 4.08% | 10.66% | 12.01% | 12.32% | 15.76% | 13.74% | 14.91% | 16.78% | 15.59% | 17.77% | 11.16% | 2.53% | 10.16% | 9.41% |
| Net Income Growth % | 115.55% | 120.43% | -137.04% | 172.71% | -16.41% | 515.81% | -149.51% | 58.49% | -39.3% | 11.88% | 1.26% | 1.55% | 73.03% | -39.5% | -1.23% | 14.95% | -9.78% | 9.76% | -6.33% | -12.1% | 10.12% | -9.67% | -39.79% | 329.55% | -74.12% | 10.39% | - |
| Net Income (Continuing) | 44.2M | 52.1M | -204.2M | 114.1M | 115.7M | 128M | -53.4M | 126.2M | 81.2M | 128.4M | 116.8M | 113.2M | 111.2M | 65.4M | 104.8M | 106.1M | 92.3M | 102.3M | 93.2M | 99.5M | 113.2M | 102.8M | 113.8M | 180.6M | 56M | 169M | 130M |
| Discontinued Operations | 0 | 0 | 2.2M | 462.6M | 99.5M | 127.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -300K | 0 | 0 | 8.4M | -12M | 1M | 24M |
| Minority Interest | 39.1M | 37.5M | 34.4M | 32.6M | 25.1M | 22.6M | 20.4M | 15.7M | 13M | 14.5M | 13.9M | 11.7M | 10.5M | 8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.49 | 0.61 | -3.00 | 8.13 | 2.89 | 3.31 | -0.82 | 1.92 | 1.20 | 1.97 | 1.77 | 1.74 | 1.72 | 1.01 | 1.68 | 1.71 | 1.49 | 1.66 | 1.49 | 1.59 | 1.82 | 1.64 | 1.82 | 3.02 | 0.70 | 2.72 | 2.46 |
| EPS Growth % | 417.96% | 120.33% | -136.9% | 181.31% | -12.69% | 503.66% | -142.71% | 60% | -39.09% | 11.3% | 1.72% | 1.16% | 70.3% | -39.88% | -1.75% | 14.77% | -10.24% | 11.41% | -6.29% | -12.64% | 10.98% | -9.89% | -39.74% | 331.43% | -74.26% | 10.57% | - |
| EPS (Basic) | - | 0.61 | -3.00 | 8.16 | 2.91 | 3.34 | -0.82 | 1.93 | 1.21 | 1.99 | 1.78 | 1.76 | 1.74 | 1.01 | 1.68 | 1.71 | 1.49 | 1.66 | 1.49 | 1.59 | 1.82 | 1.64 | 1.82 | 3.02 | 0.70 | 2.72 | 2.46 |
| Diluted Shares Outstanding | 70.9M | 70.8M | 70.4M | 70.1M | 72.2M | 75.4M | 73.4M | 63.3M | 63.8M | 64M | 63.8M | 63.9M | 63.8M | 63M | 62.4M | 62M | 61.9M | 61.7M | 62.5M | 62.5M | 62.3M | 62.68M | 62.53M | 62.68M | 62.68M | 62.68M | 62.68M |
| Basic Shares Outstanding | 70.9M | 70.7M | 70.4M | 69.8M | 71.7M | 74.9M | 73.4M | 62.9M | 63.1M | 63.6M | 63.3M | 63.2M | 63.2M | 62.7M | 62.2M | 62M | 61.9M | 61.7M | 62.5M | 62.5M | 62.3M | 62.68M | 62.53M | 62.5M | 62.5M | 62.5M | 62.5M |
| Dividend Payout Ratio | - | 147.1% | - | 10.76% | 29.68% | 25.61% | - | 43.33% | 68.02% | 41.13% | 45.3% | 45.24% | 45.31% | 76.81% | 45.42% | 44.2% | 50.05% | 44.57% | 24.46% | - | 61.66% | - | - | - | - | - | - |
Portfolio Transformation Execution Risk
As reported in recent financial filings, Hillenbrand's revenue growth has decelerated significantly, reaching a contraction of 22.2% in 2026Q1, a trend largely attributable to the strategic divestiture of the Batesville segment rather than a fundamental collapse in the core industrial machinery demand profile.
The headline revenue decline masks the underlying shift toward a pure-play industrial technology model. Investors should monitor whether the remaining Advanced Process Solutions and Molding Technology Solutions segments can achieve organic growth once the portfolio rationalization is fully lapped.
Based on the provided income statement data, gross margins have hovered near 33.69% on average, yet operating margins have faced persistent downward pressure, falling to 6.3% in 2026Q1 as integration costs from recent acquisitions weigh on the company's ability to scale profitability.
The gap between gross and operating margins suggests that the company is currently absorbing significant overhead related to its transformation. Sustained margin expansion appears contingent on the successful realization of synergies from the Schenck Process integration and a shift toward higher-margin aftermarket service revenue.
According to the company's quarterly income statements, net income has exhibited extreme volatility, including a net loss of $2.2M in 2026Q1, which appears driven by non-recurring charges and acquisition-related accounting noise rather than core operational failure.
The erratic nature of the bottom line warrants caution, as investors must distinguish between structural profitability and one-time portfolio reshaping costs. The presence of stock-based compensation and potential amortization of intangibles suggests that reported EPS may not fully reflect the underlying cash-generative capacity of the business.
As indicated by the provided figures, SG&A expenses have remained a significant drag on operating income, with the company reporting $149.2M in 2026Q1, reflecting the ongoing costs of integrating complex industrial acquisitions into the existing corporate structure.
Management's ability to control these expenses will be a critical indicator of operational efficiency in the coming quarters. If SG&A does not scale down relative to revenue as the integration phase concludes, it may suggest that the company's cost structure is structurally higher than historical norms.
While management frames the pivot as a move toward secular growth, the income statement data suggests that Hillenbrand remains highly sensitive to industrial cycles, with operating margins showing vulnerability to even minor fluctuations in quarterly revenue volume.
Short-sellers may focus on the company's inability to maintain consistent operating profitability during this transition period. The reliance on large-scale capital projects in the APS segment introduces significant lumpiness that could lead to further earnings disappointments if global manufacturing demand softens.
Quick answers to the most common questions about buying HI stock.
For fiscal year 2025, Hillenbrand, Inc. (HI) reported total revenue of $2.67B. This represents a 63.3% increase compared to $1.64B in 2000.
Hillenbrand, Inc. (HI) is profitable, generating $43.1M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
Hillenbrand, Inc. (HI) reported an operating income of $156.5M, resulting in an operating profit margin of 5.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Hillenbrand, Inc. (HI) generated $900.8M in gross profit for the year, representing a gross profit margin of 33.7%. This demonstrates the company's core pricing power and production efficiency.