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Fair Value Measurements
 3 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
 
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date.  The authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.  Observable inputs are from sources independent of the Company.  Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability, developed based upon the best information available in the circumstances.  The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  The hierarchy is broken down into three levels:
 
Level 1:Inputs are quoted prices in active markets for identical assets or liabilities.
Level 2:Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.
Level 3:Inputs are unobservable for the asset or liability.
 
See the section below titled “Valuation techniques” for further discussion of how Hillenbrand determines fair value for certain assets and liabilities.
Carrying Value at December 31, 2025
Fair Value at December 31, 2025
Using Inputs Considered as:
 Level 1Level 2Level 3
Assets:    
Cash and cash equivalents$173.1 $173.1 $— $— 
DPP receivables4.7 — 4.7 — 
Restricted cash0.6 0.6 — — 
Restricted cash for benefit plan contributions24.6 24.6 — — 
Investments in rabbi trust6.9 6.9 — — 
Derivative instruments12.4 — 12.4 — 
Liabilities:
Revolving credit facility283.5 — 283.5 — 
$175 term loan
172.8 — 172.8 — 
€240 term loan
278.7 — 278.7 — 
$350 senior unsecured notes
350.0 350.6 — — 
$500 senior unsecured notes
500.0 512.2 — — 
Derivative instruments82.8 — 82.8 — 
Contingent consideration12.3 — — 12.3 
 
 
Carrying Value at September 30, 2025
Fair Value at September 30, 2025
Using Inputs Considered as:
 Level 1Level 2Level 3
Assets:    
Cash and cash equivalents$164.8 $164.8 $— $— 
DPP receivables3.7 — 3.7 — 
Restricted cash0.6 0.6 — — 
Restricted cash for benefit plan contributions26.0 26.0 — — 
Investments in rabbi trust6.2 6.2 — — 
Derivative instruments12.5 — 12.5 — 
Liabilities:    
Revolving credit facility225.0 — 225.0 — 
$175 term loan
175.0 — 175.0 — 
€240 term loan
281.3 — 281.3 — 
$350 senior unsecured notes
350.0 329.9 — — 
$500 senior unsecured notes
500.0 513.4 — — 
Derivative instruments81.3 — 81.3 — 
Contingent consideration14.2 — — 14.2 
Valuation techniques
 
•Cash and cash equivalents, restricted cash, restricted cash for benefit plan contributions, and investments in rabbi trust are classified within Level 1 of the fair value hierarchy. Financial instruments classified as Level 1 are based on quoted market prices in active markets. The types of financial instruments the Company classifies within Level 1 include most bank deposits, money market securities, and publicly traded mutual funds. The Company does not adjust the quoted market price for such financial instruments.
•The DPP receivables fair value is based on a discounted cash flow analysis (estimated amount expected to be received) using historical experience and inputs from similar programs, which include the estimated timing of payments and the credit quality of the underlying creditor. Significant changes in any of the inputs in isolation would not result in a materially different fair value estimate. Based on the short-term nature of the DPP receivables, typically 90 -120 days, they are classified as a level 2 measurement.
•The Company estimates the fair value of foreign currency derivatives using industry accepted models.  The significant Level 2 inputs used in the valuation of derivatives include spot rates, forward rates, and volatility.  These inputs were obtained from pricing services, broker quotes, and other sources.
•The fair values of the amounts outstanding under the Facility, $175 term loan, and €240 term loan approximate carrying value, as the Company believes their variable interest rate terms correspond to current market terms, and therefore, are classified within Level 2 of the fair value hierarchy.
•The fair values of the $350 senior unsecured notes, and $500 senior unsecured notes were based on quoted prices in active markets and are classified within Level 1 of the fair value hierarchy. The Company does not adjust the quoted market prices for such financial instruments.
•The contingent consideration reflects the estimated fair value of contingent future cash payments to the previous owners of Schenck Process Food and Performance Materials (“FPM”) for research and development tax credits that were generated by FPM prior to the acquisition date. The Company estimated the fair value of the contingent consideration based on the technical merits of the research and development tax credits using an internally developed analysis. The key inputs to this calculation include the nature of the research and development activities, personnel involved in the research and development activities, the level of research and development spend prior to acquisition by the Company, and interpretation of applicable tax law. The value of these credits is subject to audit by the tax authorities and to the closing of the statute of limitations for the year in which the tax credits are fully utilized, the timing of which is not able to be determined at this time, but we expect to extend several years. The inputs for the liability are unobservable, and therefore, are classified within Level 3 of the fair value hierarchy.

Derivative instruments

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 the fair value of the derivatives are recorded in other comprehensive (loss) income 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 $2.7 and $3.2 during the three months ended December 31, 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 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.
The aggregate notional value of the cross-currency swap agreements was $781.5 and $778.0 at December 31, 2025 and September 30, 2025, respectively. The aggregate notional value of the foreign currency exchange forward contract derivatives was $371.7 and $365.3 at December 31, 2025 and September 30, 2025, respectively. The derivatives are recorded at fair value in prepaid expenses and other current assets, other current liabilities, and other long-term liabilities in the Consolidated Balance Sheets.