Portfolio Restructuring and Debt Reduction Achievements
Hillenbrand completed the divestiture of MIME, generating approximately $265 million in net proceeds, which was a key part of their portfolio simplification strategy.
The company also sold its minority interest in TerraSource, raising about $115 million, further strengthening its balance sheet.
Proceeds from these transactions were used to reduce total debt by over $300 million during fiscal 2025, significantly improving financial stability.
Management emphasized that these moves are part of a broader effort to focus on higher-margin, higher-growth businesses in Performance Materials and Food, Health and Nutrition markets.
The company highlighted that these strategic divestitures have contributed to a lower net leverage ratio, moving from 3.9x to approximately 3.7x after the TerraSource sale.
Adjusted operating income increased 48.8% year-on-year in Q4, with adjusted earnings per share rising 20.6% to a record $2.28.
Adjusted operating margin reached a record 20.6% in Q4, up 350 basis points year-on-year and 120 basis points sequentially.
Capital expenditures increased to $8.6 million in Q4 from $6.5 million a year ago.
Engineering Technologies revenue increased 26.8% to $32 million, led by acquisition benefits and organic growth from new products.
Engineering Technologies revenue increased 26.8% with 0.9% organic growth; Scientific revenue rose 2.3% but with a 13.9% organic decline due to NIH funding cuts.
Engraving revenue increased slightly by 0.6%, with improved operating margin due to productivity initiatives and restructuring.
Engraving revenue was flat with a slight organic decline but improved adjusted operating margin due to productivity initiatives and restructuring.
Fiscal year 2025 was a turning point for Standex with record profit generation and strong operational execution.
Fourth quarter sales increased 23.2% year-on-year to $222 million, driven by acquisitions and foreign currency benefits, partially offset by a slight organic decline of 1.4%.
Net cash provided by operating activities was $33.4 million in Q4, with free cash flow of $24.9 million, both improvements over the prior year.
Net leverage ratio was reduced to 2.6x at fiscal year-end, down from net cash of $5.3 million a year ago, with $27 million debt paydown in Q4.
Scientific segment revenue rose 2.3% due to acquisitions, offset by organic decline from NIH funding cuts.
Segment Electronics revenue grew 43.2% year-on-year to $115.2 million, driven by acquisitions and slight organic growth.
Segment performance highlights include Electronics revenue up 43.2% driven by acquisitions and slight organic growth, with adjusted operating margin of 28.5%.
Specialty Solutions revenue declined 1.2% due to market softness, with a decrease in operating margin.
Specialty Solutions revenue declined 1.2% with margin pressure due to market softness.
Dafinchi