Hillenbrand (HI) Stock Forecast & Price Target

Hillenbrand Inc. has demonstrated solid financial performance with a pro forma core sales increase of 3% year-over-year in its Molding Technology Solutions (MTS) segment, surpassing expectations by $41 million, which is indicative of strong demand in both its Advanced Process Solutions (APS) and MTS segments. The valuation metrics suggest that the company is positioned favorably, trading at 9.4x EV/EBITDA based on estimated adjusted EBITDA for 2026, reflecting robust operating fundamentals. Additionally, Hillenbrand's strategic acquisitions over the past year and its ability to realize targeted cost synergies further bolster its financial outlook, positioning the company for potential growth despite some external challenges in the plastics market.

Hillenbrand Inc experienced a pro forma core sales decline of 8% year-over-year, which, although better than expectations, reflects ongoing weaknesses in its operating environment, particularly in the Advanced Process Solutions segment, where core sales dropped by 10%. Adjusted EBITDA decreased by 12% year-over-year, indicating deteriorating profitability despite slight revenue overperformance, predominantly driven by increased corporate expenses. Additionally, the company's backlog fell significantly, particularly in the APS segment, underscoring challenges in capturing new orders and sustaining demand in a competitive market landscape.