Hillenbrand (HI) 16 Nov 232023 Q4 Earnings call transcript

Greetings, and welcome to the Hillenbrand Fourth Quarter Fiscal Year 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Sam Mynsberge, Vice President, Investor Relations for Hillenbrand. Thank you.

You may begin.

Thank you, operator, and good morning, everyone. Quarter XXXX Fourth Earnings Hillenbrand's to and Year-End Fiscal Call. Welcome

to CEO, by CFO, and like website to that our today's our joined referenced posted Kim supplemental Bob your slides the President I'd will and I'm IR President and Ryan; on attention Vice our VanHimbergen. on be direct call. Senior

exchange. Also, results could are safe operating contain the differ not comparisons exclude laws. and that call, this are statements to we including currency X. from measures, be reminder A materially. forward-looking for performance, non-GAAP securities during future Slide of the certain impact that course segments, to guarantees certain which divestitures harbor the and the Turning These of discussing of statements our our comments organic will may actual provisions acquisitions, performance subject our foreign

Slide the our is all be Additionally, Batesville of performance periods as I appendix review risk our as information, our statements and be the as the for which based our presented, can of divested could a that website commentary well on will encourage deeper you continuing discontinued forward-looking presentation X our of XX-K, found the operations non-GAAP for to reminder, segment and as actual a on operations. results. on classified impact factors the discussion

With that, I'll Kim. now over call turn the Kim? to

Hillenbrand our morning, we completion to dedication and associates for and for us joining the characterized of and resiliency the serving believe our Thanks and today start commitment Their strategic throughout good and trends. now of their long-term for our are review the XXXX. I'd supported a transformed divestiture everyone. secular Hillenbrand's outlook global a acquisitions industries, strengthened provide our including XXXX and the year brands X and Sam, processing as our for foundation we of which by care significantly transformation food as technologies strategy portfolio solutions durable death and industrial fiscal legacy by have Thank highly-engineered fiscal we long-term industrial leading through you, and as year a diligence executed recognizing company growth pure-play by plastics, of These success that actions possible. made segment. variety recycling, like

core market the from systems are we roughly applications what Process our Food and that a we've $XXX had end build with XXXX. now we on of process on products, XXXX or technological the and of completion September do upon well Hillenbrand notably, engineering at capabilities attractive million at FPM, This Most pharma of basis, Materials, Schenck increased the to business Performance and leverages pro portfolio. nearly scale food the tenfold backbone and up and forma what the in expertise of this and X,

growth less us we forward. Additionally, cyclical platform move acquisitions a we these provide believe as

early still the our we're of significant energized for that of our expectations, lie by the and the in absolutely our value been associates, While these to shareholders. create teams and ahead opportunities ahead integrations acquisitions, performing innings businesses for are customers the our have

in year expectations. per fourth the Revenue at the in was strong finished by earnings to APS line quarter We turning Now delivering with in and range. in the end performance. high adjusted share guidance our our our margins of the quarter

Additionally, we added FPM X a our X-month close. result September contribution as a from of

this move a our to record order winning of through we in momentum APS to $XX our modestly in we our within a several customer in large experienced a basis, MTS face decision recycling for segment, sequential environment APS million XXXX. business continue nearly orders and excited the delays on ongoing to for continue soft quarter. including on We We're build as did order equipment capital segment. improve projects

over customers over coming year, momentum throughout businesses both the from being strong recognized with significant our upon for potential to selected in recycling recently Award be technologies. place revenue want acquired XXX the companies to end Stuttgart for aftermarket thrilled where we've capabilities performance, our did our seen market, sustainability our growth years. Building the the to also recently technological recycling we to for team related We're the for our congratulate considered strong I this quarterly see food record as segments. winner we as Innovation provide aftermarket continued business deliver the first can exciting in

by driven large Our operating advances. and cash orders of corresponding expectations, was out below customer flow the the push primarily continued

capital execution continued made ongoing initiatives. we reducing receivables, our in working improvement headway and of inventory highlighting the However, unbilled customer

the performance year. year, growth a of APS by by by was runner throughout segment. offset X% partially primarily decline X% our in which organic MTS persisted consolidated our lower grew for growth revenue For XX%, acquisition driven segment the in by we revenue driven hot equipment, our full and robust This

of environment levels continues customer pipeline global timing to product the year backlog record to levels a inquiries and the across compared customer organic and lower and economic geopolitical decisions, the of saw pose While we XXXX. to we solid entering fiscal our the the categories, some with projects are challenge remain key entering

being a outlook, our later XXXX demand As are detail more grounded which the in cover in call. in we Bob result, will

for synergies. backlog, we executing positioned Nevertheless, what productivity we initiatives and our and we and innovation cost to our firmly and focused driving we growth believe controlling commercial brands remain are and integrating recent accelerate with long-term technologies, leading on acquisitions by can well our

sustainability and the towards in by usage furthering how the turn Purpose, by in finalist Matters critically water to Shape and we've approach MSCI like progress Responsible being over named to for rating on a to and of by exemplified our report, disclosing these the launch. published take What Business our Tomorrow, upgrade year. Reuters Bob, Before on past this reflect X we've I'd organization key our most accomplishments Awards our emissions. I'm emissions, Scope reducing moment a showcasing our for fourth we our important recent embraced Purpose received another transparency commitment our in to call to May, This recognition a AA efforts, has I proud the made our annual

call our turn outlook. over Bob to and financial now the With that, cover to performance our I'll

Kim, and good Thanks, everyone. morning,

to quarter due Slide softness September. MTS, increase acquisitions, our $XXX basis, as consolidated revenue decreased in fourth XX% month the an primarily FPM on to revenue by delivered prior of in performance year, of XX% an throughout $XX million we of an growth On the organic million, X. experienced including organic Turning X% APS offset the to decline X% year. the We by compared for was from driven order year-over-year

favorable increase million were FPM. basis including of down net to offset by XX% earnings This and inflation approximately the $XX the came lower of primarily lower compensation higher million $XXX in expectations, XX%. an of We up of organically an integration-related pricing, net and year income EBITDA the costs, variable million year, of prior acquisition improvements tax our Adjusted expenses. Adjusted adjusted end increased of at or productivity over MTS $X.XX prior from organic contribution in increase $XX strong volume. due a in and from figure per share XX $X.XX We points included cost despite margin lower volume. reported XX.X%, of EBITDA as X% GAAP delivered

the flow $XX Our operations generated in adjusted $XX to XX.X%. approximately prior quarter, quarterly Capital $XX the effective returned our cash quarter, million quarter We million through of were tax rate year. from the was we flat and dividend. which the in expenditures in million to was shareholders

$XXX pricing acquisitions, Now APS year, partially favorable starting million increased inflation. XX% product Slide primarily moving mix Organic or revenue APS organically by parts with productivity service cost of increased million volume, improvements, by increased prior X. were compensation EBITDA performance, of higher the to driven and XX% aftermarket variable XX% Adjusted favorable offset revenue. X% and pricing, segment and as to lower year-over-year. on $XXX year-over-year revenue compared higher favorable

up basis, in orders driven delivered XX.X%, adjusted Sequentially, billion compared basis decision driven year. due over primarily quarter from the by XX%, to backlog large X% the lower prior to prior $X.X We on customer several the was Backlog EBITDA On strong projects. plastic for of backlog XX% points FPM. systems, by large year, XXX of resulting increased increased delays the organic of acquisitions. margin acquisition the continued decreased which an

a product large facilities across full food previously key of we communicated, of our growth durable seen test decision as Middle of projects platforms plastic and and to have inquiries East. our We plastics, in see elongation utilization within an new continue of the customer level we particularly and Asia healthy the recycling. Though timing, systems

lead and positioned closely focused order remain our backlog improving existing and when on us We well to executing monitor normalize. patterns keep customer our times continue for this to

inflation, million injection runner decreased to molding Revenue of $XXX XX.X% million points by equipment. on EBITDA prior XX% largely primarily mix. of volume Adjusted $XX MTS unfavorable of margin volume compared to X. to Adjusted lower lower driven to product year-over-year hot inflation. basis EBITDA and cost for of Turning cost volume XXX Slide XX%, impact the and due and decreased year, decreased due

relatively We continue saw additional products our and higher-margin remained experience slow, America. to hot in China softness as we runner weakness in North

costs the was QX. molding and and decreased throughout demand prior The a million in anticipated teams at a the stable we productivity, moment. driving to low our and headwind return due injection persisted were that as but well a into Order we're year, coming fiscal further for experienced discretionary backlog recovers. discuss execution the mix remain to As the relatively 'XX existing orders quarter, focused we're primarily the $XXX of compared XX% result, to than decreased I'll the positioned and managing volumes growth greater to what equipment. to outlook confident of on in we QX quarter. Backlog for level

full Slide cover on XX. briefly I'll Now results year

billion a and XX% organically increased month $XXX revenue year million to results Adjusted FPM prior MTS volume. APS or an X% reminder, the or points, due grew favorable as EBITDA XX X% performance. X%, investments effect cost basis Consolidated X of Adjusted EBITDA the variable by as of of increased to volume over cost lower strategic were productivity decreased these price while of include MTS As margin on in XX% increase decreased prior year lower pricing, the offset X%. and compared $X.XX higher of dilutive partially compensation APS coverage. and inflation organic improvements, basis primarily XX.X%

share and net rate adjusted $X.XX, XX%, X% increased backlog increase the operations XX.X%. down of the due and $XXX have per for for within million, of a projects largely impact of of headwind resulted large $X.X we in APS, $XXX an coming income tax income of 'XX million Organically, is million The $XXX for net into didn't MTS APS. challenge the a in lower to adjusted acquisitions. systems down due earnings year, delay will was to from FPM year large which primarily XX% that the of heading backlog to billion was adjusted revenue backlog orders due continued effective year. of from the nearly Linxis Total into GAAP and to MTS prior XX%, fiscal be

flow customer generated through our quarterly inventory, advances full by and prior $XXX higher payable timing, unfavorable and year year up were returned acquisition year and compared expenditures cash We of increase for $XXX earnings operating in million, million unbilled Capital partially we integration accounts dividends. offset costs. to receivables and $XX reductions million, in and shareholders approximately the as $XX an were business million to

highlighted, receivables throughout year. Kim levels in unbilled improvement our we As and had inventory sustained the

had anticipated flow we intake some to continued to the in the lower negatively impact than X of coming impact related However, order quarter our close delay is into timing our advances, FPM. customer the as and September cash

greater 'XX, ongoing potentially the approximately our and impacting expect conversion income. modest around expected with generate so synergy timing XX% outflow that related cadence. at a QX consistent or our we're the flow to confident of orders, of integration in longer-term net the cash which with cash with ability macro be be combined to we said, fiscal typical costs, our Given world cash, is in With uncertainty to achievement than

facility. line Slide balance $X.XX to of was FPM. with $XXX At had the billion, X.X, EBITDA quarter to cash and under on quarter $XXX including Turning million, expectations -- Net debt the hand debt forma and our under close our net XX. following end, available in of end remainder adjusted our was approximately the on the was which credit sheet pro liquidity of at revolving the of we million ratio

quarter X%. rate interest for was average the approximately weighted Our

to Turning deployment on capital XX. Slide

leverage investment attractive repurchases framework capital our attractive key X shareholders appropriate we've our profitable and and based dividend communicated, inorganic share an priorities: growth leverage deployment X.X. As net cash driving growing around to X.X to and through with consistently target maintain range of returning is profile and organic opportunities, a opportunistic through

continue to end we've quarter within by consistent is of we the the which leverage term, previously near fiscal of with to prioritize net of returning the debt Over goal XXXX, first the reduction target with communicated. our what

-- we We expect part of long-term end in value be capabilities to to look markets, our provide long-term important key continue to profitable strengthen M&A our to be accelerate our an to our growth strategy as shareholders. and

However, our deleveraging our our integrating recent to current on range. targeted acquisitions focus is and

Slide outlook Now let me with conclude remarks our XX. my on fiscal prepared 'XX

Our we as FPM trends result the in environment segment, global XX% the we to revenues billion our to partially it driven year, up XX% continued year. experienced macro in billion, and guidance of in by uncertainty $X.XX the MTS impact a organic With $X.XX throughout decline segment compared APS acquisition for fiscal XXXX offset by on lower year-over-year the of of of orders timing solid potential in may reflects to company order growth that, the have the anticipate the XXXX. total and prior the

expect We growth assuming acquisition. XX% interest million the in per adjusted range EBITDA the $XXX up midpoint of versus range. the for prior the share at the $X.XX, the million, to to to $XXX earnings associated FPM the year XX% year, expense of to to debt adjusted be and $XXX with reflecting approximately of X% million due We're of $X.XX up

the expect XX% our for XX% tax be effective to to the range rate We in adjusted year. of

flow now and leverage. on I'll touch cash

synergies. of earlier, As XX% integration cost for inclusive and to cash we're of $XX be approximately to I costs achieve our million mentioned XXXX, around conversion flow targeting anticipated

continue towards the will focused XXXX. lumpy our cash returning to of guardrails the flow confident on end to basis, remain and achieving we our be a deleverage highly goal of quarter-to-quarter by QX While within

on segment touch quickly our I'll outlook. Now,

revenue we the up anticipate to For FPM. full billion billion, impact $X.X to of year largely APS, of XX% due XX%, $X.X to

aftermarket. to X% in of with growth organic performance expect and strong food, expected We X%, recycling

the a customer activity large quarters. full providing delays customers we've believe service we of order mentioned, more in for approach But system see as systems experienced capabilities healthy class the towards last cautious are of We revenue world. anywhere remain a to solutions due our over taking customer the level plastic to still in we and best and couple our

to We at EBITDA XX% effect the XX%, expect adjusted margin dilutive as year comes in FPM, around from down of XX% reminder, to the to be which margin. due prior a

drive our continuous to in guidance over to initiatives. start our are few moderate successful margin we years. highly synergies expansion next by the Given expansion confident year-over-year improvement reflects Organically, ability integration, the our volume, significant margin driven our and

Now turning to MTS.

year compared As first with revenue in which year this Kim are half year of the on a backlog we mentioned, the particularly pressure year. a significantly to entering full ago, lower the puts

last stabilized cautious have being macro are towards continuing the While orders over quarters, few uncertainty. we

our end in in improvement As order half assume range an result, uptick patterns, the of of orders low a the the the high does year. while end a in modest back not these expects

in current year normalized this assuming level guidance our not to are We return orders range.

EBITDA of of the cost expansion reflecting as points we executing margin XX.X% to adjusted mitigate help and an productivity macro targeting to focus headwinds. at about continued XX are XX.X%, basis actions on We midpoint the margin

review Please a For reflects which QX, guidance we call APS typical be the in the contribution growth net are to $X.XX. of $X.XX is range approximately in over moderate FPM, expect by guidance adjusted line I'll MTS. turn to we Slide of providing volume decline expected and in to with that, assumptions. With additional for This $X.XX Kim. from seasonality offset our organic and XX back EPS,

Bob. Thanks,

success to expanding far. taken strategic continue Hillenbrand higher in acquisitions environment. end As the growth, we've actions more all so markets. light already presence to these We've cyclical operating traction the the In less position by we enter I'm our seen in for performance we confident have a experience this, long-term dynamic XXXX, strong of through delivered

As we're operational the as synergies, commercial seen identify we've APS and we significant segment across and to in progress more in continue excellent coming the integration, drive sharing our we forward quarters. details collaboration to opportunity looking to

previously relentless continuous once improvements environment. and Tammy a within brings Additionally, as Tammy of by focused addition demand MTS global be on of the announced the our to significant I'm response growth for and segment demand positioning improvement President operational MTS to segment. cyclical excited leadership experience on return this we recovers. remain in Morytko driving challenging will

solutions. our for line that, of for I we'll highly to teams thank and so questions. more still throughout XXXX far opportunity our industrial all again now ahead. With processing a Finally, fiscal have achievements into I'm want significantly proud Hillenbrand pure-play transforming their and of open global equipment of engineered your the believe we efforts firmly and very leader

of Our Securities. Instructions] line first question CJS [Operator the with Moore comes from Daniel

with, of maybe integration, X.X in seeing start bit drill EBITDA Schenck down kind you're embedded the as separate update as guide FPM, FPM, I Peerless, an Kim, somewhat on on what's with but and say, a fiscal and months and should your from for well little Linxis then what Maybe perspective? from in revenue 'XX there a related, just

part your the months Okay. the let X.X integration, I'll Bob of But relative are take second to we in. question.

we we've excited opportunities I we've are about here. for mean were at -- think at We we a there. long -- we thought the that FPM we found time. I more about I are saw think we even what looked looked this excited

we due diligence. I think see during as we together, did bring even than more we these teams opportunity the

the into They integration. move only obviously already tremendous as to creating of and quickly we've the years couple opportunity of I the also think the us Coperion portfolio on Linxis for leverage them but we bring that then last foundation FPM, as And underway integrations scalable and to learned Milacron not the we and to what a for see during able over built were we value be Peerless in well.

But been an integration. the We've to really folding FPM able really, meetings. I'm really launch way in-flight are into we've coming together. regional these teams some excited integration about been So

together about to mesh ways to talking identify future begin and cultures not come just opportunities cost opportunities, thinking these how teams about commercial begin able been these to to can teams we for these We've bring but together.

I Coperion, specifically where to rather these other a solutions just of Rotex, of even part as think bring the than into we've ways parts even seen be can can equation APS, we well. bring we

the talent, So bring are we together. as for we've I with the speak I we teams to from really entire and them think -- seen team we thrilled and are these the engagement capabilities the say that energy

Now I'll Bob into your built -- take the let question 'XX. about what's

Yes. Thanks, Kim.

so a of Dan, of just month contributed of in September So Schenck and X about September had reminder, year. revenue $XX million that's we $X.XX the into about close with the the

So fiscal I'd we margins incremental you see an about in bit you to if think $XXX in into about had total ticking in businesses were a food internally. the it's have million, also $XXX expected better up about of we million revenue XXXX. have that guidance, reminder performed XX%. remind about 'XX, that incremental We than

we've then of some excitement. far so a great and as Kim mentioned, meetings had And lot

I some on XX%, EPS, end would 'XX, to But 'XX. probably And a say. of you can maybe to so of little work incremental then continue it's is those that opportunities, margin $X.XX hopefully, here And in think margin up so the range. we continue as move above that $X.XX by to into I

helpful. That's

Maybe the numbers Sounds out talk organically acquisition. mid-single-digit of ahead, go solid sorry. you the from growth like I'm -- put

that's No, Yes. right. right. That's

relative of quantify, side expectations? kind much terms the are go-forward synergies, of and is kind to won't in left more but I offensive cost opportunity the and then the beyond? ask on on how 'XX for is you upside, Kim to your $XX embedded of defensive a potential the of initial fiscal basis Okay of in how And seeing million much guide or ball you

I'll the one. take Yes, first Yes.

Linxis guidance. of here that I'd up. some days, million there's early to $X say, probably, have the accelerate Dan, We're move think some million our XX, So got some only it, call but number savings kind about acquisitions and looking cost to the of Schenck rate. we excitement of about hopefully synergies way, that another, that, is to beyond XX certainly we we've embedded again, run which the accelerate $X in And we by have probably But of those. to

side referring I commercial the what to, on say you're is assume would I Dan.

asked the offensive the your would I coming question, that teams when On are side together. say you already

they certain streams that integration out work were collaborate in fact, of wanting on In our running front they to saw. in opportunities even

neither achieve of think to opportunities been Linxis I we take its company have of couple that a own. we've were to advantage that announced between able and on would Coperion able

by similar and they're that bringing Group, the it's presenting parts We on start of bring in to and parts legacy whether or customer Rotex are side things portfolio, together even already seeing of solutions, other offering beginning customers, FPM opportunity bringing the the into they're that those the to Linxis opportunities. Coperion to those we're

to come that. So more on

One more out. for jump me. I'll Okay.

backlog the On X% organically. still APS side, down

customers, particularly side, plastic what Just there. related, from on what are timing you the delays I'll the stop hearing that confidence simply are gives you

Yes.

that we've quotes will -- from their seeing that hearing entering say in a a whether we're factors side, a rates downturn, mean, I solve ] just to issue. general historically, making when are There -- I is what decision or whole just you What drying it's that that, variety. [ silver point not what that into seen whether about the There's it's is are up. one of So resources. kind interest customers concern is could of variety just will slowness I bullet there's that start on any

You drying start seeing test labs up.

start not our are You business, quote test short-cycle are ] still active those The pipelines drying labs things. up. and of The specifically very We're service [ any seeing full. parts seeing remarks, prepared had quarters the service also in we in the and APS both record regions, all business side MTS side. business, on We're service our mentioned as our our candidly. seeing

typical were seeing into would canaries of, we're slow heading hey, indicate nothing period is that that there a -- So we're here. repeat that the a that of

of takes unruly touches calls, here. becomes times backlog to a number I've manage there backlog level And the would -- there, of have, mentioned and I say, I The relative indicated is other number have work you had more backlog, of several previously manage manageable is I level to amount to it a is were backlog. on pretty certainly though, large of is the us that and the this think for that -- this we to a very that thing

we times in And lead some will better with to still expect healthy see performance revenue. the while will come chain, down business so in as you a that backlog fluctuations on supply seeing expect

from Our the of D.A. Matt Summerville line next question with comes Davidson.

Maybe just starting with MTS.

Just a little maybe more hot runner with to a color, end Kim respect seeing injection can. color demand little any and Are Bob, versus if there. you molding you add in trends divergence and market bit

about also in North referenced on America. And direction. price weakness other cost, slides, talk moving in the the You incremental maybe you some

So you know lot, all kind you a that? can kind but address of that's can address. of of I

Yes.

and -- relative of the injection In automotive weakness, Their to seeing. the footprint, expect markets, is out. their that, are the China. in that is I those things we stable. is things footprint, most India. businesses environment, have be kind work think that there and I But I divergence kind in has geographic demand to everyone not molding to think that the is continued of molding do some is That major or like does obviously, it mean, business way hot footprint between runner really not injection really our a in

some not And to pipeline and gives to on -- And for China. slightly the kind there to levels. robust India differences. pretty I color runner would say has it hoping sequentially seen are the periods it where a see in has business. expanded continue seeing we of better, while former we we'll demand been runner business hot to while in but that in continue some that in recovery do also the continued returned see softness continue Hopefully, that we're seeing China, you future really hot has some

America. America across saw you North any just the status. North the current weakness generally look in of kind was North some America whether end of markets, --

end we more end as continued expect markets next to in expect globally some we the in to stability so XX while weakness over expect and certain well. those other We start in months, return markets, markets

Bob turn to over question. then to your it going to I'm So relative

pricing, Yes. Matt. But on

exit price did XXX% we 'XX So coverage. with cost

the We supply as the focused side pricing the at chain looking expect global that With throughout X in increases management past to One last, really focus engineering, we've call team, seeing being house. But maintain well. it, we going where find is just really and as and would value costs months down area margins. is say XX those our I'd of savings. to come maintain same where with other those those actively say are and trying the achieve we in to seen after then to said, yes, And I XX pressure 'XX on. over things price value-add MTS both that our with customers the those can suppliers we're

operating initiatives different are and of resources productivity muscle to or is can up initiatives we I'd that creating amount that facilities, sure model. MTS, we whether all the continue in that when to flexibility can one resources and the particularly last side driving maximum dedicated the respond a is quickly of are the equation as make Those down are those it's most kind important its making important level. areas on productivity some Hillenbrand see and we that to organization. as on times at in as the working of These are skill pressure of the in volumes. there just And set dedicated that of these Great. And APS

million you differentiated could follow-up, around received. what respect maybe just recycling? the was little then does of I detail bid, bit project, to a assuming on go-forward project? more bidding what with And maybe you recycling how -- sort it you specifically Talk order a as Got look competitive about the funnel was hoping it. others, versus but the the And a the provide $XX scope of

important do with be being to of together to recyclers recycling, opportunities, solvent Coperion all the are we've steady recycling you would is able we capabilities to pipeline to of with bringing are based we so Herbold So critically the for got larger some that the have and a types systems in recycling of relative whether chemical, -- going that initiatives customers. large smaller And We tell recycling. really it's what mechanical, approach these recycling, or in a initiatives to participate pipeline.

the only Europe, we're there place an that interest really really But There in in projects and I of And the and everybody -- sites kind when opportunity about in areas, world. all increased the so strong an increased going what to rather are in is luminary on we North -- those excited markets all is the have thought, see where is U.S., world are coming India, in investments so growth jobs are Middle brings. We have lot is we of we've to okay, the in that, East level and and initiated expect of we've parts in America. those that seeing strong the year. where that had a growth we we We think initiated of over over at level take of the those initially looking recycling, seeing interest. do we recycling certain started underway that's

and together. put now know for really is these of set There's full this not people systems who people capabilities are new It's how a ready looking and -- a a And to not solutions. emerging.

of full real system by so customers step of the value can what many that up we a fact bring in terms -- And solutions. put for offering us have is we to together these

right certainly think expecting continues growth $XXX is as about Yes. just here to this kind add well we're of but that double-digit Matt, million, business you market low 'XX only and in fiscal now beyond develop. But would I that about

Company. with next Franzreb Sidoti & question the line Instructions] John [Operator of from Our comes

In about of months? Is quarters. jobs line in widened right delays the for pushed that you've is past, the recent to large in press several being time or narrowed talked the

I us. would mean, obviously, obviously, close where QX jobs into QX fact, and we've The to in were we were out fiscal got got pushed going for not QX of we've those decisions QX. 'XX in or anticipating be executed we're in certain made -- have that decisions

negotiations of terms anticipate are to at the -- be to, I would there So if would X, still were on could mean, decisions the that helps that things I that taking and would that to that September anticipate a you get we now things lumpy close that anticipating. through. thought and and widening or before forth days we're decision those are I back say contract of make question. typically would your Historically, we like definition, in another going say I they longer would by that we have answer we deal. terms If XX

that you positive demand And referenced the the aftermarket No, gains reflect that's I'm to made, Was what market? services natural looking recovery? for. to does bringing as changes any in you quarter. just being market Or that that in product or

aftermarket, you, an John, of about operating the is, we and still seeing growth, high quarter where teens that Yes. orders us kind the think of single-digit the knew in And that XXXX, I'd Hillenbrand coming had we level. right? quite you it's you we mid- say mid-teens even about of tell talked Linxis we've that level, full if orders in honestly, high that's to see model, we're with the and high of for the that's there. single-digit revenue. in there of kind just that really But part acquisition, out year, was And I'd it area focus aftermarket both growth for about opportunity think certainly

model just opportunity in that acquisitions an It's us. been of an we as of value honestly, focus it's quite to for area area continue the and the about think drive area. So operating

are that, of also It's of or add number also parts. debottlenecking modernization aftermarket. to for just I would reconfiguration It's consulting So not elements John, service. also a line. and a there It's of

of differentiator being order putting that make order done into parts increase has the an what that team make which work heard to properly, capital, sure months being I'd running the we those differentiators of their if installed And part selling of the of global in installed matters times a where really efficiently that's to continuously capabilities us, of as the continued through they over critical getting XX things say, and and but this there we to one a the they keep continue areas. has ability is their running to have are also proactively have our their as when base of expect seeing And development sure us, we're some we need quickly are all relationships would and out at say, facing proactive they focus capital time. that those think note kind entire interest running we hand, lines been customer and they're also all see maintain so up people and that that that to the able with in been and long as a specific that to those important keep pressures, to base, service that's make we've working area, those to would tapping lines orders the look on are -- customers financial been up them kind especially And the all between out to And things respond I think, inflationary to you I opportunity in fighting certain the times which service market. especially are of demands, of up we every in understands needs when for we start obviously, and hour critical and running, understands when last, to sure this and and us. I you understanding of lines support and those been -- lead some very have our of go-forward -- and for uptime point. to a penetrate they're to on from need products in at network

acquisitions. mentioned And recent remarks, of the Great. your prepared in you about outperformance

the Peerless. a give Linxis a side? us anniversaried of the just soon Can on the it's review. been little bit and synopsis revenue you savings How to quick You've talk much anniversary outperformance? cost about side versus Maybe

Yes.

side, say out Kim as would of the more -- team Linxis earlier, John, we've of actually team we're But the as legacy together. mentioned had -- just the we've are Coperion with had, cost on team, these on pace FPM meetings side. I our revenue as on coming we say So coming some well the I'd it's the excitement

line out going is opportunities can seeing and I think really top to coming. we get performance, be which know But encouraging the again, because we're stuff opportunities. there's we cost more more

dollar just the you're in last second margin above I this And it of is the Why of want one like properly, right. you're and question. to cost All for that recovery half year, dollar sure first in make dollar again, dollar, the dilutive? heard the I still that seems Bob. year, threshold. price to It half it's

obviously, in have the right? mean, business been that's we we the that been have, there's I into just been you just when John, price incremental cost -- sitting lot coverage. of a about backlog that's backlog baked cost think that So

So neutral, denominator. but dollar obviously just pretty dollar, it's for the numerator, have inflated

I that just maybe the was impression the was under backlog that cost I price protected the thought and that's something... in stuff

a It is, dollar for basis. as dollar

last what basis that was Yes, you're you think about flows dilutive points revenue, It's nowhere was it was through slightly as but it as year. like near still it it dilutive. pressure. John, seeing XX only dilutive. It's as

perspective. Got Thank for that it. you

EBITDA level, At the number. by that's an so the gross way, not margin

what ago. like was a more much it's year it So

floor Ryan concludes our Ladies comments. turn and Ms. that I'll final session. back any to question-and-answer for gentlemen, the

again want happy Thank in report all and when quarter February a We great one us fiscal for you. we your forward holiday thank to you our Have I season. interest in day speaking for and will today continued safe results. Hillenbrand. ownership to a look and in joining with you

you. Thank call. conference concludes today's This

your time. at Thank your You for may lines this participation. you disconnect