Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2025

Basis of presentation

Basis of presentation — The accompanying Consolidated Financial Statements include the accounts of Hillenbrand and its subsidiaries, as well as three subsidiaries where the Company’s ownership percentage is less than 100%.  The portion of the businesses that are not owned by the Company is presented as noncontrolling interests within shareholders’ equity in the Consolidated Balance Sheets.  Income attributable to the noncontrolling interests is separately reported within the Consolidated Statements of Operations.  All significant intercompany accounts and transactions have been eliminated. Certain prior period balances have been reclassified to conform to the current presentation.

For the year ended September 30, 2024, $9.4 of equity method investments were reclassified from other long-term assets on the accompanying Consolidated Balance Sheet for comparability with the September 30, 2025 Consolidated Balance Sheet. There was no change to total assets for the year ended September 30, 2024 as a result of this reclassification. For the years ended September 30, 2024 and 2023, respectively, $5.8 and $0.1 of gain on equity method investments were reclassified from selling, general and administrative expense in the Consolidated Statements of Operations. There was no change to total net income (loss) from continuing operations for the years ended September 30, 2024 and 2023, respectively, as a result of this change.

Use of estimates

Use of estimates — The Company prepared the Consolidated Financial Statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”).  GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of net revenue and expenses during the reporting period.  The Company’s results are affected by economic, political, legislative, regulatory, and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies, and changes in the prices of raw materials, can have a significant effect on operations. These factors and other events may cause actual results to differ from management’s estimates.

Foreign currency translation

Foreign currency translation — The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for operating results.  Unrealized translation gains and losses are included in accumulated other comprehensive loss in shareholders’ equity in the Consolidated Balance Sheets.  When a transaction is denominated in a currency other than the subsidiary’s functional currency, the Company recognizes a transaction gain or loss in selling, general and administrative expenses within the Consolidated Statements of Operations when the transaction is settled.

Cash and cash equivalents

Cash, cash equivalents, and restricted cash include short-term investments with original maturities of three months or less.  The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents and restricted cash are valued at cost, which approximates their fair value.

Trade receivables

Trade receivables are recorded at the invoiced amount and generally do not bear interest, unless they become past due.  The allowance for credit losses is a best estimate of the amount of probable credit losses and collection risk in the existing trade receivables portfolio. Account balances are charged against the allowance when the Company believes it is probable the trade receivables will not be recovered. The Company generally holds trade receivables until they are collected. At September 30, 2025 and 2024, the Company had an allowance for credit losses against trade receivables of $11.3 and $13.6, respectively.

Inventories

Inventories are generally valued at the lower of cost or net realizable value, unless the inventories are acquired in a business combination, at which time it is recorded at fair value. Costs of inventories have been determined principally by the first-in, first-out (“FIFO”) and average cost methods. Inventories are comprised of the following amounts at:

Property, plant, and equipment

Property, plant, and equipment are carried at cost less accumulated depreciation, unless the property, plant and equipment is acquired in a business combination, at which time is recorded at fair value. Depreciation is computed using principally the straight-line method based on estimated useful lives of three to 50 years for buildings and improvements and three to 25 years for machinery and equipment. Major improvements that extend the useful lives of such assets are capitalized while expenditures for maintenance, repairs, and minor improvements are expensed as incurred. Upon disposal or retirement, the cost and accumulated depreciation of assets are eliminated. Any gain or loss is reflected within gain on sale of property, plant, and equipment on the Consolidated Statements of Operations. The Company reviews these assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset (i.e. fair value) are less than its carrying amount. The impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. There was no impairment loss during the years ended September 30, 2025, 2024, or 2023. Total depreciation expense for the years ended September 30, 2025, 2024, and 2023 was $39.8, $51.4, and $42.1, respectively. Property, plant, and equipment are summarized as follows at:

Leases

Leases — The Company’s lease portfolio is comprised of operating leases primarily for manufacturing facilities, offices, vehicles, and certain equipment. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on whether the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Leases are classified as operating or finance leases at the commencement date of the lease. Operating leases are recorded within operating lease right-of-use assets, other current liabilities, and operating lease liabilities in the Consolidated Balance Sheets. The Company’s finance leases were insignificant as of September 30, 2025 and 2024. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. The Company elected an accounting policy to combine lease and non-lease components for all leases.

Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the implicit rate is generally not readily determinable for most leases, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate reflects the estimated rate of interest that the Company would pay to borrow on a collateralized basis over a similar term in a similar economic environment. Lease expense for operating leases is recognized on a straight-line basis over the lease term.

Leases may include renewal options, and the renewal option is included in the lease term if the Company concludes that it is reasonably certain that the option will be exercised. A certain number of the Company’s leases contain rent escalation clauses, either fixed or adjusted periodically for inflation of market rates, that are factored into the calculation of lease payments to the extent they are fixed and determinable at lease inception. The Company also has variable lease payments that do not depend on a rate or index, primarily for items such as common area maintenance and real estate taxes, which are recorded as variable costs when incurred.

Goodwill

Goodwill is not amortized, but is tested for impairment at least annually, or on an interim basis upon the occurrence of triggering events or substantive changes in circumstances. Goodwill has been assigned to reporting units. The Company assesses the carrying value of goodwill annually, or more often if events or changes in circumstances indicate there may be impairment.  Impairment testing is performed at a reporting unit level.

The following table summarizes the changes in the Company’s goodwill, by reportable operating segment, for the years ended September 30, 2025 and 2024:

	Advanced Process Solutions		Molding Technology Solutions		Total
Balance September 30, 2023	$	1,394.9	$	633.2	$	2,028.1
Impairment charges	—		(238.0)		(238.0)
Acquisition measurement period adjustments	(1.3)		—		(1.3)
Foreign currency adjustments	36.6		10.3		46.9
Balance September 30, 2024	1,430.2		405.5		1,835.7
Divestiture of Milacron	—		(180.0)		(180.0)
Impairment charges	—		(82.3)		(82.3)
Foreign currency adjustments	28.6		(0.6)		28.0
Balance September 30, 2025	$	1,458.8	$	142.6	$	1,601.4

Testing for impairment of goodwill and indefinite-lived intangible assets must be performed annually, or on an interim basis upon the occurrence of triggering events or substantive changes in circumstances that indicate that the fair value of the indefinite-lived intangible asset or reporting unit may have decreased below the carrying value. The Company’s annual goodwill and indefinite-lived intangible asset assessment is performed on July 1 at the indefinite-lived intangible asset and

reporting unit level, which consists of determining each indefinite-lived intangible asset or reporting unit’s current fair value compared to its current carrying value.

For purposes of the quantitative goodwill impairment assessment, weighting is equally attributed to both the market and income approaches in arriving at the fair value of the reporting units. The key assumptions for the market and income approaches we use to determine fair value of our reporting units are updated at least annually. Those assumptions and estimates include macroeconomic conditions, competitive activities, cost containment activities, achievement of synergy initiatives, market data and market multiples, discount rates, as well as future levels of net revenue growth and EBITDA margins, which are based upon the Company’s strategic plan. The strategic plan is updated as part of its annual planning process and is reviewed and approved by management and the Board of Directors. The strategic plan may be revised as necessary during a fiscal year, based on changes in market conditions or other changes in the reporting units. The most significant assumptions used in the determination of the estimated fair value of the indefinite-lived intangible assets and reporting units are the net revenue and EBITDA growth rates and the discount rate. The discount rate, which is consistent with a weighted-average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure. The discount rates may be impacted by adverse changes in the macroeconomic environment, volatility in the equity and debt markets, or other factors.

Determining the fair value of a reporting unit requires the Company to make significant judgments, estimates, and assumptions. Although there are always changes in assumptions to reflect changing business and market conditions, our overall valuation methodology and the types of assumptions we use have remained consistent and reasonable. However, future changes in the judgments, assumptions, and estimates that are used in the impairment assessment for goodwill, including discount rates and future cash flow projections, could result in significantly different estimates of fair values, resulting in future impairment charges related to recorded goodwill balances.

2025 Impairment

The Company performed its July 1, 2025 annual goodwill and indefinite-lived intangible asset impairment assessments for all five of its reporting units.

For the three reporting units within the Advanced Process Solutions reportable segment, the fair value was determined to exceed the carrying value, resulting in no impairment to goodwill as part of the annual assessment.

For the two reporting units within the Molding Technology Solutions reportable segment, the Company concluded that the carrying value for the Mold-Masters and DME reporting units exceeded their fair values, resulting in a goodwill impairment charge of $82.3 as of July 1, 2025. As a result of the limited cushion (or headroom as commonly referred) due to the prior year impairment of the Mold-Masters reporting unit (see below) and recent acquisitions, changes to exchange rates during 2025 that increased the carrying value of the reporting units, and modified revenue and cash flow projections utilized as inputs to estimating the fair value of the reporting units within the Molding Technology Solutions reportable operating segment, the Company concluded that the carrying value for those reporting units exceeded their fair value.

Additionally, under the relief-from-royalty fair value method, the Company concluded that the carrying value of the trade name associated with that Mold-Masters reporting unit exceeded its fair value resulting in an impairment charge of $1.2 recorded as of July 1, 2025. The goodwill and indefinite-lived intangible asset impairment charges are nondeductible for tax purposes.

During the twelve months ended September 30, 2025, the Company did not observe any triggering events or substantive changes in circumstances requiring the need for an interim impairment assessment prior or subsequent to the annual assessment date of July 1, 2025.

2024 Impairment

During the twelve months ended September 30, 2024, an interim impairment assessment was performed for certain reporting units within the Molding Technology Solutions reportable operating segment as a result of certain triggering events, in advance of the July 1, 2024 annual goodwill assessment date. The prior year interim impairment assessment was triggered by negative macroeconomic conditions and changing market fundamentals, which resulted in an interim downward revision to the forecast and a new five-year operating plan for certain reporting units within the Molding Technology Solutions reportable operating segment. As a result of the change to expected future cash flows within the revised five-year operating plan and the comparable market information used in the market approach for estimating the fair value of the Mold-Masters reporting unit, the Company concluded that the carrying value for the Mold-Masters reporting unit exceeded its fair value, resulting in a goodwill impairment charge of $238.0.

Additionally, under the relief-from-royalty fair value method, the Company concluded that the carrying value of the trade name associated with that Mold-Masters reporting unit exceeded its fair value. As a result, an impairment charge of $27.0 was recorded during the twelve months ended September 30, 2024. There were no other interim indicators of impairment in 2024, and it was determined that the fair value of all other reporting units that were assessed on the July 1 annual assessment date exceeded the carrying value of each reporting unit. The goodwill and indefinite-lived intangible asset impairment charges were nondeductible for tax purposes.

Summary

As a result of these factors and other factors discussed above, goodwill and indefinite-lived intangible assets for the reporting units within the Molding Technology Solutions reportable operating segment are more susceptible to impairment risk. The estimated fair value, as calculated during the annual impairment assessment, equaled the carrying value as a result of the impairments recognized.

Each of the reporting units within the Advanced Process Solutions reportable operating segment had sufficient cushion or headroom at the annual impairment assessment date.

The Company is required to provide additional disclosures about fair value measurements as part of the Consolidated Financial Statements for each major category of assets and liabilities measured at fair value on a non-recurring basis (including impairment assessments). Goodwill and indefinite-lived intangible assets were valued using Level 3 inputs, which are unobservable by nature, and included internal estimates of future cash flows (income approach). Significant increases (decreases) in any of those unobservable inputs in isolation would result in a significantly higher (lower) fair value measurement.

Intangible assets

Intangible assets are stated at the lower of cost or fair value.  With the exception of certain trade names, intangible assets are amortized on a straight-line basis over periods ranging from three to 21 years, representing the period over which the Company expects to receive future economic benefits from these intangible assets.  The Company assesses the carrying value of indefinite-lived trade names annually, or more often if events or changes in circumstances indicate there may be impairment.

Equity method investments

Equity method investments — The Consolidated Financial Statements includes certain investments, which are accounted for using the equity method of accounting as we have significant influence over the operating and financial policies but not controlling interests. When we record our proportionate share of net income or loss, we record it as an increase to gain on equity method investments in the Consolidated Statements of Operations and adjust the carrying value of our equity method investments. The maximum exposure to loss as a result of the Company’s involvement with the equity method investments cannot be quantified. The value of our equity method investments, which is recorded in equity method investments in the Consolidated Balance Sheets, was $68.8 and $9.2 at September 30, 2025 and 2024, respectively. We recorded our proportionate share of net income from equity method investments of $5.6, $5.8, and $0.1 for the years ended September 30, 2025, 2024, 2023, respectively, as an increase to gain on equity method investments.

On July 1, 2025, the Company, in conjunction with its majority stake joint-venture partner in TerraSource Holdings, LLC (“TerraSource”), completed the divestiture of its 46% interest in TerraSource to Astec Industries for $245.0. The sale included proceeds to the Company of $116.7, including post-closing adjustments. During the twelve months ended September 30, 2025, the Company recorded a pre-tax gain of $68.1. During the years ended September 30, 2025, 2024, and 2023, Hillenbrand’s consolidated results included its proportionate share of TerraSource’s net income and the TerraSource equity method investment was recorded on the Consolidated Balance Sheet as of September 30, 2024.

See Note 4 for additional discussion related to equity method investment activity during the year ended September 30, 2025.

Pension and Other Postretirement Plans, Pensions, Policy

Pension benefit plans — The Company sponsors retirement benefit plans covering a select number of our employees located outside the U.S. The funded status of the Company’s retirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at September 30, the measurement date. For defined benefit retirement plans, the benefit obligation is the projected benefit obligation (“PBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain key assumptions that require significant judgment, including, but not limited to, estimates of discount rates, expected return on plan assets, rate of compensation increases, interest rates and mortality rates. The Company recognizes the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. The remaining components of net pension (benefit) costs are recorded ratably on a quarterly basis.

Treasury stock

Treasury stock consists of the Company’s common shares that have been issued but subsequently reacquired.  The Company accounts for treasury stock purchases under the cost method.  When these shares are reissued, the Company uses an average-cost method to determine cost.  Proceeds in excess of cost are credited to additional paid-in capital.

There were no shares repurchased during the years ended September 30, 2025, 2024 and 2023. During the years ended September 30, 2025, 2024, and 2023, there were shares of approximately 300,000, 300,000, and 1,000,000, respectively, issued from treasury stock under stock compensation programs.

Preferred stock

Preferred stock — The Company has authorized 1,000,000 shares of preferred stock (no par value), of which no shares were issued or outstanding at September 30, 2025 and 2024.

Accumulated other comprehensive loss

Accumulated other comprehensive loss — Includes all changes in Hillenbrand shareholders’ equity during the period except those that resulted from investments by or distributions to shareholders. Accumulated other comprehensive loss was comprised of the following amounts as of:

Revenue recognition

Revenue recognition — Net revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services and is recognized when performance obligations are satisfied under the terms of contracts with customers.

A performance obligation is deemed to be satisfied by the Company when control of the product or service is transferred to the customer. The transaction price of a contract, or the amount the Company expects to receive upon satisfaction of the performance obligation, is determined by reference to the contract’s terms and includes adjustments, if applicable, for any variable consideration, such as sales discounts. The majority of sales discounts are included on the invoice to the customer and therefore, involved no estimation. If an estimate is required, these allowances are determined using the expected value method, which is typically based upon historical rates.

The timing of revenue recognition for the contract’s performance obligation is either over time or at a point in time. We recognize revenue over time for contracts that have an enforceable right to collect payment for performance completed to date upon customer cancellation and provide one or more of the following: (i) service over a period of time, (ii) highly customized equipment, or (iii) parts which are highly engineered and have no alternative use. Net revenue generated from standard equipment and highly customized equipment or parts contracts without an enforceable right to payment for performance completed to date, as well as net revenue from non-specialized parts sales, is recognized at a point in time.

We use the input method of “cost-to-cost” to recognize net revenue over time. Accounting for these contracts involves management judgment in estimating total contract revenue and cost. Contract revenue is largely determined by negotiated contract prices and quantities. Contract costs are incurred over longer periods of time and, accordingly, the estimation of these costs requires judgment. We measure progress based on costs incurred to date relative to total estimated cost at completion. Incurred cost represents work performed, which corresponds with, and we believe thereby best depicts, the transfer of control to the customer. Contract costs include labor, material, and certain overhead expenses. Cost estimates are based on various assumptions to project the outcome of future events, including the complexity and length of the work to be performed, the cost of materials, and the performance of suppliers and subcontractors. Significant factors that influence these estimates include inflationary trends, technical and schedule risk, internal performance trends, business volume assumptions, and anticipated labor agreements. Net revenue and cost estimates are regularly monitored and revised based on changes in circumstances. Anticipated losses on long-term manufacturing contracts are recognized immediately when such losses become evident, which is rare. We maintain financial controls over the customer qualification, contract pricing, and estimation processes designed to reduce the risk of contract losses.

Standalone service net revenue is recognized either over time proportionately over the period of the underlying contract or as invoiced, depending on the terms of the arrangement. Standalone service net revenue is not material to the Company.

Contract balances

The Company often requires an advance deposit based on the terms and conditions of contracts with customers for many of its contracts. Payment terms generally require an upfront payment at the start of the contract, and the remaining payments during the contract or within a certain number of days of delivery. Typically, net revenue is recognized within one year of receiving an advance deposit. For certain contracts within the Advanced Process Solutions reportable operating segment where an advance payment is received greater than one year from expected net revenue recognition, or a portion of the payment due extends beyond one year, the Company has determined it does not constitute a significant financing component.

The timing of revenue recognition, billings, and cash collections can result in trade receivables, advance payments, and billings in excess of net revenue recognized. Customer receivables include amounts billed and currently due from customers and are

included in trade receivables, net, as well as unbilled amounts (contract assets) which are included in receivables from long-term manufacturing contracts on the Consolidated Balance Sheets. Amounts are billed in accordance with contractual terms or as work progresses in accordance with contractual terms. Unbilled amounts arise when the timing of billing differs from the timing of net revenue recognized, such as when contract provisions require specific milestones to be met before a customer can be billed. Unbilled amounts primarily relate to performance obligations satisfied over time when the cost-to-cost method is used and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to payment in accordance with contractual terms. Unbilled amounts are recorded as a contract asset when the net revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract.

Advance payments and billings in excess of net revenue recognized are included in liabilities from long-term manufacturing contracts and advances on the Consolidated Balance Sheets. Advance payments and billings in excess of net revenue recognized represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements, including those with performance obligations satisfied over time. Billings in excess of net revenue recognized primarily relate to performance obligations satisfied over time when the cost-to-cost method is used and revenue cannot yet be recognized as the Company has not completed the corresponding performance obligation. Contract liabilities become unrecognized when net revenue is recognized and the performance obligation is satisfied.

The balance in receivables from long-term manufacturing contracts at September 30, 2025 and 2024 was $278.8 and $302.7, respectively. The change was driven by the impact of net revenue recognized prior to billings. The balance in the liabilities from long-term manufacturing contracts and advances at September 30, 2025 and 2024 was $241.9 and $315.2, respectively, and consists primarily of cash payments received or due in advance of satisfying performance obligations. Substantially all of the liabilities from long-term manufacturing contracts and advances at September 30, 2024 and 2023, were recognized as net revenue during the years ended September 30, 2025 and 2024. During the years ended September 30, 2025, 2024, and 2023, the adjustments related to performance obligations satisfied in previous periods were immaterial.

Costs incurred to obtain a customer contract are not material to the Company. The Company elected to apply the practical expedient to not capitalize contract costs to obtain contracts with a duration of one year or less, which are expensed as incurred.

Cost of goods sold

Cost of goods sold consists primarily of purchased material costs, fixed manufacturing expense, variable direct labor, and overhead costs.  It also includes costs associated with the distribution and delivery of products.

Research and development costs

Research and development costs are expensed as incurred as a component of selling, general and administrative expenses and were $34.1, $36.7, and $25.4 for the years ended September 30, 2025, 2024, and 2023, respectively.

Warranty costs

Warranty costs — The Company records the estimated warranty cost of a product at the time net revenue is recognized.  Warranty expense is accrued based upon historical information and may also include specific provisions for known conditions.  Warranty obligations are affected by actual product performance and by material usage and service costs incurred in making product corrections. The Company’s warranty provision takes into account the best estimate of amounts necessary to settle future and existing claims on products sold. The Company engages in extensive product quality programs and processes in an effort to minimize warranty obligations, including active monitoring and evaluation of the quality of component suppliers.  Warranty reserves were $46.0 and $47.9 as of September 30, 2025 and 2024, respectively. Warranty costs are recorded as a component of cost of goods sold and were $12.3, $19.4, and $15.2 during the years ended September 30, 2025, 2024, and 2023, respectively.

Income taxes

Income taxes — The Company establishes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Consolidated Financial Statements. Deferred tax assets and liabilities are determined in part based on the differences between the accounting treatment of tax assets and liabilities under GAAP and the tax basis of assets and liabilities using statutory tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in statutory tax rates on deferred tax assets and liabilities is recognized in consolidated net income in the period that includes the enactment date. The Company asserts that a portion of the cash at certain foreign subsidiaries represents earnings considered to be permanently reinvested for which deferred taxes have not been recorded in the Consolidated Financial Statements, as the Company does not intend, nor does the Company foresee a need, to repatriate these funds. The Company provides deferred taxes for the portion of the cash at the foreign subsidiaries for which it does not assert permanent reinvestment of these funds. The Company continues to actively evaluate its global capital deployment and cash needs.

The Company has a variety of deferred income tax assets in numerous tax jurisdictions. The recoverability of these deferred income tax assets is assessed periodically, and valuation allowances are recognized if it is determined that it is more likely than not that the benefits will not be realized. When performing this assessment, the Company considers the ability to carryback

losses to prior tax periods, future taxable income, the reversal of existing temporary differences, and tax planning strategies. The Company accounts for accrued interest and penalties related to unrecognized tax benefits in income tax expense.

Derivative financial instruments

Derivative financial instruments — The Company has hedging programs in place to manage its currency exposures.  The objectives of the Company’s hedging programs are to mitigate exposures in gross margin and non-functional-currency-denominated assets and liabilities. Under these programs, the Company uses derivative financial instruments to manage the economic impact of fluctuations in currency exchange rates.  These include foreign currency exchange forward contracts, which generally have terms up to 24 months. Additionally, the Company periodically enters into interest rate swaps to manage or hedge the risks associated with indebtedness and interest payments. The Company’s objectives in using these interest rate swaps are to add stability to interest expense and to manage exposure to interest rate movements.

Contracts designated as cash flow hedges for customer orders or intercompany purchases have an offsetting tax-adjusted amount in accumulated other comprehensive loss.  Foreign exchange contracts intended to manage foreign currency exposures within the Consolidated Balance Sheets have an offsetting amount recorded in selling, general and administrative expenses.  The cash flows from such hedges are presented in the same category in the Consolidated Statement of Cash Flows as the items being hedged.

Hillenbrand participates in cross-currency swap agreements aiming to hedge the variability in the movement of foreign currency exchange rates for its operations in Europe, while simultaneously lowering the Company’s overall borrowing costs. The maturity dates of these agreements range from 2027 to 2029. These agreements qualify for hedge accounting and accordingly the changes in fair value of the derivatives are recorded in other comprehensive income (loss) and remain in accumulated other comprehensive loss attributable to Hillenbrand in shareholders’ equity until the hedged item is recognized in earnings. We assess the effectiveness of cross-currency swap contracts using the spot method, and the difference between the interest rate received and paid under the cross-currency swap agreements is recorded in interest expense, net, in the Consolidated Statements of Operations. As a result of participating in these cross-currency swap agreements, Hillenbrand recorded a reduction in interest expense, net of $11.9 and $3.9 during the years ended September 30, 2025 and 2024, respectively. Hillenbrand presents the cross-currency swap agreements’ periodic settlements in operating activities in the Consolidated Statements of Cash Flows.

The Company measures all derivative instruments at fair value and reports them on the Consolidated Balance Sheets as assets or liabilities.  Changes in the fair value of derivatives are accounted for depending on the intended use of the derivative, designation of the hedging relationship, and whether or not the criteria to apply hedge accounting have been satisfied.  If a derivative is designated as a fair value hedge, the gain or loss on the derivative and the offsetting loss or gain on the hedged asset or liability are recognized in earnings. For derivative instruments designated as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss and reclassified to earnings in the same period that the hedged transaction affects earnings. The portion of the gain or loss that does not qualify for hedge accounting is immediately recognized in earnings.

The aggregate notional value of the cross currency swap agreements was $778.0 and $727.8 at September 30, 2025 and 2024, respectively. The aggregate notional value of the foreign currency exchange forward contract derivatives was $365.3 and $172.5 at September 30, 2025 and 2024, respectively. The carrying value of all of the Company’s derivative instruments at fair value resulted in assets of $12.5 and $19.0 (included in prepaid expenses and other current assets) and liabilities of $81.3 and $40.5 (included in other current liabilities and other long-term liabilities) at September 30, 2025 and 2024, respectively. See Note 13 for additional information on the fair value of the Company’s derivative instruments.

Financing Receivable

Other financial instruments —

Supply chain financing programs

The Company has agreements with third-party financial institutions to facilitate supply chain finance (“SCF”) programs. The SCF programs allow qualifying suppliers to sell their receivables, on an invoice level at the selection of the supplier, from the Company to the financial institutions and negotiate their outstanding receivable arrangements and associated fees directly with the financial institutions. Hillenbrand is not party to the agreements between the supplier and the financial institutions. The supplier invoices that have been confirmed as valid under the SCF programs require payment in full by the financial institutions to the supplier by the original maturity date of the invoice, or discounted payment at an earlier date as agreed upon with the supplier. The Company’s obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by a supplier’s participation in the SCF programs.

All outstanding amounts related to suppliers participating in the SCF programs are recorded upon confirmation with the third-party financial institutions in trade accounts payable in the Consolidated Balance Sheets, and associated payments are included in cash used in operating activities in the Consolidated Statements of Cash Flows. The Company’s outstanding obligations included in trade accounts payable as of September 30, 2025 and 2024, were $13.7 and $16.0, respectively.

The roll forward of outstanding obligations confirmed as valid under the supplier finance program is as follows:

	Year Ended September 30, 2025
Beginning balance	$	16.0
Invoices confirmed during the year	60.4
Invoices settled during the year	(62.9)
Foreign currency translation adjustments	0.2
Ending balance	$	13.7

Trade receivables financing agreements

The Company sells a small percentage of its trade receivables to outside financial institutions in the normal course of business. These trade receivable financing agreements are accounted for as a true sale of assets under the provisions of Accounting Standards Codification (“ASC”) 860, Transfer and Servicing (“ASC 860”). During fiscal 2024, the Company executed an amendment of one of its trade receivables financing agreements (as amended, the “Amended Agreement”) with a financial institution. In accordance with ASC 860, this Amended Agreement is deemed a true sale, as the Company retains no rights or interest and has no obligations with respect to the trade receivables, and has no continuing involvement with the trade receivables once transferred to the financial institution. As part of the Amended Agreement, we receive the majority of the proceeds of the trade receivables sold to the financial institution upon sale in cash (level 1 fair value measurement) with the remaining portion of the proceeds held by the financial institution as a deferred purchase price (“DPP”) (level 2 fair value measurement) until the collection of the trade receivables sold. The DPP receivables are ultimately realized by the Company following the collection of the underlying trade receivables sold to the financial institution (typically within 90 - 120 days). As defined in the Amended Agreement, the financial institution is responsible for any credit risk associated with the sold trade receivables. There is no limit on the amount of trade receivables that can be sold under the Amended Agreement; however, all trade receivables must be accepted by the financial institution prior to sale.

Sales of trade receivables under the Agreement and other trade receivable factoring arrangements were $277.4, $250.0, and $25.4, and cash collections from customers on trade receivables sold were $280.4, $243.4 and $25.4 during the fiscal years ended September 30, 2025, 2024 and 2023, respectively. The Company acts as a servicer (collects customer cash on behalf of the financial institution) for one of its trade receivables factoring arrangements. The servicing fee associated with this trade receivables factoring arrangement was not material to the Company for the years ended September 30, 2025, 2024, and 2023. Amounts collected on behalf of the financial institution under this trade receivables factoring arrangement and owed to the financial institution were $4.2 and $3.1 at September 30, 2025 and 2024, respectively. The loss on the sale of trade receivables under the Amended Agreement and other trade receivables factoring arrangements was not material to the Company for the years ended September 30, 2025, 2024, and 2023. As of September 30, 2025 and 2024, trade receivables in the amount of $28.3 and $34.2, respectively, were sold to the financial institution and are not reflected in trade receivables in the Consolidated Balance Sheets.

The following roll forward summarizes the activity related to the DPP receivables:

	Year Ended September 30, 2025		Year Ended September 30, 2024
Beginning DPP receivables balance	$	6.7	$	—
Non-cash additions to DPP receivables	17.8		32.3
Cash collections on DPP receivables	(20.8)		(25.6)
Ending DPP receivables balance	$	3.7	$	6.7

Business acquisitions and related business acquisition and integration costs

Business acquisition and integration costs — Business acquisition and integration costs are expensed as incurred and are reported as a component of cost of goods sold and selling, general and administrative expenses depending on the nature of the cost.  The Company defines these costs to include finder’s fees, advisory, legal, accounting, valuation, and other professional or consulting fees, as well as travel associated with investigating opportunities (including acquisition and divestitures).  Business

acquisition and integration costs also include costs associated with acquisition tax planning, retention bonuses, and related integration costs.  These costs exclude the ongoing expenses of the Company’s business development department.

Restructuring costs

Restructuring costs may occur when the Company takes action to exit or significantly curtail a part of the Company’s operations or change the deployment of assets or personnel.  A restructuring charge can consist of an impairment or accelerated depreciation of affected assets, severance costs associated with reductions to the workforce, costs to terminate an operating lease or contract, and charges for legal obligations for which no future benefit will be derived.

Revenue Recognition, Deferred Revenue

Transaction price allocated to the remaining performance obligations

As of September 30, 2025, the aggregate amount of transaction price of remaining performance obligations, which corresponds to backlog, as defined in Part II, Item 7 of this Form 10-K, for the Company was $1,574.2. Approximately 74% of these remaining performance obligations are expected to be satisfied over the next twelve months, and the remaining performance obligations, primarily within one to three years.