Core Insights - Haemonetics Corporation is identified as one of the most oversold healthcare stocks in 2025, focusing on blood and plasma management technologies to enhance healthcare efficiency through innovative medical devices [1] Group 1: Product Launch and Innovation - In 2025, Haemonetics launched the PerQseal Elite vascular closure system, which received European CE Mark approval. This device is fully bioresorbable and sutureless, designed for large-bore vascular access sites used in procedures like TAVR and EVAR [2] - The PerQseal Elite device deploys from inside the vessel, leaving no residual materials, thus restoring the vessel to its natural state and improving procedural control. This launch reflects a trend towards minimally invasive, bioresorbable devices that enhance patient outcomes and procedural efficiency [2] Group 2: Financial Performance - Haemonetics reported its first-quarter fiscal 2026 results on August 7, 2025, with an earnings per share (EPS) of $1.10, exceeding analyst estimates by $0.09. However, revenue declined by 4.4% year-over-year to $321.39 million [3] - Despite the revenue decline, the company demonstrated resilience in profitability and operational performance, indicating its capability to navigate challenging market conditions [3] Group 3: Leadership and Strategic Focus - In early 2025, Haemonetics made strategic leadership appointments, including Frank Chan as Executive Vice President and Chief Operating Officer, and Roy Galvin as Executive Vice President and Chief Commercial Officer. These appointments aim to strengthen operational excellence and expand commercial reach [4]

Core Insights - The focus is on producing objective, data-driven research primarily about small- to mid-cap companies, which are often overlooked by many investors [1] Group 1 - The analysis occasionally includes large-cap companies to provide a broader perspective on equity markets [1]

Core Insights - Haemonetics' international operations are crucial for assessing its financial resilience and growth prospects, especially in a tightly interconnected global economy [2][3] - The company's total revenue for the quarter ended June 2025 was $321.39 million, reflecting a year-over-year decline of 4.4% [4] International Revenue Breakdown - Japan generated $13.65 million in revenue, accounting for 4.3% of total revenue, which was a surprise decline of 14.62% compared to the expected $15.99 million [5] - The Rest of Asia contributed $21.65 million, representing 6.7% of total revenue, with a surprise decline of 7.55% from the expected $23.42 million [6] - Europe accounted for $40.88 million, or 12.7% of total revenue, with a surprise decline of 10.32% from the anticipated $45.59 million [7] Revenue Forecasts - Analysts expect Haemonetics to report $321.11 million in total revenue for the current fiscal quarter, indicating a decline of 7.1% from the previous year [8] - For the full year, total revenue is projected to be $1.3 billion, down 4.2% from the previous year, with Japan, Rest of Asia, and Europe expected to contribute 5.4% ($70.72 million), 8.3% ($108 million), and 13.9% ($181.38 million) respectively [9] Market Dynamics - The reliance on foreign markets presents both opportunities and challenges for Haemonetics, necessitating close monitoring of international revenue trends to project future performance [10] - The company's stock has seen a significant decline of 28.5% over the past four weeks, contrasting with a 2.7% increase in the S&P 500 [13]

Group 1 - Haemonetics Corp reported quarterly earnings of $1.10 per share, exceeding the analyst consensus estimate of $1.02 per share [1] - The company reported quarterly sales of $321.394 million, surpassing the analyst consensus estimate of $305.115 million [1] - Haemonetics affirmed FY2026 adjusted EPS guidance of $4.70 to $5.00 [1] - Haemonetics shares closed at $55.63 on the day of the earnings announcement [1] Group 2 - JP Morgan analyst downgraded Haemonetics from Overweight to Neutral and lowered the price target from $85 to $62 [4] - Mizuho analyst maintained an Outperform rating on Haemonetics but lowered the price target from $90 to $70 [4] - Barrington Research analyst also maintained an Outperform rating while lowering the price target from $95 to $86 [4]

Core Insights - Haemonetics reported revenue of $321.39 million for the quarter ended June 2025, reflecting a year-over-year decline of 4.4% [1] - The earnings per share (EPS) for the same period was $1.10, compared to $1.02 a year ago, indicating an increase [1] - The reported revenue exceeded the Zacks Consensus Estimate of $303.28 million by 5.97%, while the EPS surpassed the consensus estimate of $1.01 by 8.91% [1] Revenue Breakdown - Plasma segment net revenues were $129.9 million, exceeding the average estimate of $113.65 million by three analysts, but showing a year-over-year decline of 4.4% [4] - Hospital segment net revenues reached $139.66 million, slightly below the average estimate of $144.4 million, with a year-over-year increase of 4.2% [4] - Blood Center segment net revenues were $51.84 million, surpassing the average estimate of $46.38 million, but reflecting a significant year-over-year decline of 21.8% [4] Stock Performance - Haemonetics shares have returned -2.3% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported revenue of $321 million, down 4% due to a $52 million impact from portfolio transitions, but up 13% organically excluding CSL [8][16] - Adjusted EPS grew 8% to $1.10, driven by strong growth in the base business and share buybacks [8][19] - Adjusted gross margin reached 60.8%, up 550 basis points year over year, supported by technology benefits and a favorable product mix [18][19] Business Line Data and Key Metrics Changes - The hospital business generated $140 million in revenue, up 4% reported and organically, with Blood Management Technologies growing 14% [10][12] - Plasma revenue was $130 million, down 4% reported but up 29% organically, driven by technology upgrades and a one-time revenue benefit from a software agreement [12][14] - Interventional technologies declined 7% due to tough comparisons from prior year OEM destocking [11][12] Market Data and Key Metrics Changes - The U.S. plasma collection volume grew in the low single digits, with expectations for modest recovery in the back half of the fiscal year [13][82] - The company maintains an 80% market share in plasma DMS software, reinforcing its competitive position [13][30] Company Strategy and Development Direction - The company is focused on strengthening its core products: plasma, hemostasis management, and vascular closure, which are expected to drive revenue growth and margin expansion [23][24] - Strategic initiatives include leadership additions, organizational realignment, and targeted commercial initiatives to enhance execution in interventional technologies [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, with expectations for low double-digit compounded annual growth in revenue and mid-20s adjusted EPS CAGR [22][23] - The company anticipates stronger cash generation and reaffirmed full-year free cash flow guidance of $160 million to $200 million [21][22] Other Important Information - The company completed $225 million in share buybacks last year and has authorized a new $500 million program for the next three years [75] - The adjusted income tax rate was 24.9% in the quarter, up from 19.9% the previous year, reflecting lower benefits from performance share vestings [19] Q&A Session Summary Question: Can you provide details on the drivers of strong plasma performance? - Management highlighted innovation in pricing and share gains, with half of the 29% growth attributed to a software agreement [28][30] Question: What is the growth rate for MVP and MVP XL in vascular closure? - MVP and MVP XL saw roughly 6% growth, with challenges noted in the legacy Vascade product [34][36] Question: What is the outlook for U.S. plasma collections? - Management indicated a possibility of low single-digit growth in the back half of the year, with ongoing share gains expected [82][84] Question: How is the company addressing increased competition in interventional technologies? - The company is enhancing its sales and marketing efforts, reorganizing teams, and focusing on execution to regain competitiveness [71][72] Question: What is the company's appetite for further M&A? - Management stated that M&A is off the table in the near term, focusing instead on improving existing business performance [76]

Financial Data and Key Metrics Changes - The company reported revenue of $321 million, down 4% due to a $52 million impact from portfolio transitions, but up 13% organically excluding CSL [6][14] - Adjusted EPS grew 8% to $1.01, driven by strong growth in the base business and share buybacks [6][18] - Adjusted gross margin reached 60.8%, up 550 basis points year over year, benefiting from technology and price initiatives [16][18] Business Line Data and Key Metrics Changes - The hospital business generated $140 million in revenue, up 4% reported and organically, with Blood Management Technologies growing 14% [8][11] - Plasma revenue was $130 million, down 4% reported but up 29% organically, driven by technology upgrades and a one-time software agreement [11][12] - Blood center revenue declined 22% to $52 million due to the divestiture of the whole blood business, but organic revenue grew 4% [13][14] Market Data and Key Metrics Changes - The U.S. plasma collection volume growth was in the low single digits, with expectations for a modest recovery in the second half of the fiscal year [12][81] - The vascular closure market is projected to grow in the high single digits, with the company experiencing temporary softness in interventional technologies [46][48] Company Strategy and Development Direction - The company aims for low double-digit compounded annual growth in revenue and mid-20s adjusted EPS CAGR, focusing on three key products: plasma, hemostasis management, and vascular closure [21][22] - A strategic emphasis on cash flow and operational efficiency is in place, with plans to strengthen the interventional technologies franchise through leadership changes and targeted initiatives [23][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting financial objectives, citing strong demand for immunoglobulins and ongoing share gains in the plasma market [22][82] - The company anticipates stronger cash generation and reaffirmed full-year free cash flow guidance of $160 million to $200 million [20][21] Other Important Information - The company is navigating $153 million in planned portfolio transitions while maintaining a focus on core products to drive organic growth [14][21] - The adjusted income tax rate was 24.9% for the quarter, reflecting lower benefits from performance share vestings [18] Q&A Session Summary Question: Can you provide details on the drivers of strong plasma performance? - Management highlighted ongoing price benefits from technology and significant share gains, with half of the 29% growth attributed to a software agreement [25][27][28] Question: What was the growth rate for MVP and MVP XL in vascular closure? - MVP and MVP XL saw roughly 6% growth, with challenges noted in the legacy Vascade product [31][32] Question: What is the outlook for U.S. plasma collections? - Management indicated a possibility of low single-digit growth in the back half of the year, with ongoing productivity gains expected to support this [78][81] Question: How does the company plan to address competition in interventional technologies? - The company is enhancing its sales and marketing efforts, reorganizing teams, and focusing on execution to regain competitiveness [70][72] Question: What is the company's appetite for further M&A? - Management stated that M&A is off the table in the near term, focusing instead on executing current strategies and improving performance [73][75]

Core Viewpoint - Haemonetics reported quarterly earnings of $1.1 per share, exceeding the Zacks Consensus Estimate of $1.01 per share, and showing a slight increase from $1.02 per share a year ago [1][2]. Financial Performance - The earnings surprise for the quarter was +8.91%, with the company also surpassing earnings expectations in the previous quarter by +1.64% [2]. - Revenues for the quarter ended June 2025 were $321.39 million, which was 5.97% above the Zacks Consensus Estimate, although it represented a decline from $336.17 million in the same quarter last year [3]. Stock Performance - Haemonetics shares have declined approximately 3% since the beginning of the year, contrasting with a 7.9% gain in the S&P 500 [4]. - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [7]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.16, with projected revenues of $321.11 million, and for the current fiscal year, the EPS estimate is $4.89 on revenues of $1.3 billion [8]. - The outlook for the Medical - Products industry, where Haemonetics operates, is currently in the bottom 37% of Zacks industries, which may impact stock performance [9].

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) For the quarter ended June 28, 2025, Haemonetics reported net revenues of $321.4 million, a decrease from $336.2 million year-over-year, while gross profit increased to $192.2 million (59.8% margin) and operating income grew significantly to $53.9 million [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company reported net revenues of $321.4 million, gross profit of $192.2 million, operating income of $53.9 million, and net income of $34.0 million for the quarter ended June 28, 2025 Consolidated Statements of Income (Unaudited, in thousands) | Financial Metric | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | | :--- | :--- | :--- | | **Net Revenues** | $321,394 | $336,172 | | **Gross Profit** | $192,244 | $174,924 | | **Operating Income** | $53,872 | $39,756 | | **Net Income** | $34,031 | $38,373 | | **Diluted EPS** | $0.70 | $0.74 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, total assets were $2.46 billion, with cash and equivalents at $292.9 million and total stockholders' equity at $882.3 million Consolidated Balance Sheet Highlights (Unaudited, in thousands) | Balance Sheet Item | June 28, 2025 | March 29, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $292,898 | $306,763 | | Total current assets | $913,160 | $934,975 | | **Total Assets** | **$2,462,094** | **$2,450,948** | | Total current liabilities | $531,407 | $578,113 | | Long-term debt | $920,833 | $921,230 | | **Total Stockholders' Equity** | **$882,300** | **$820,836** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated $17.4 million in cash, while investing activities used $33.0 million and financing activities used $2.4 million, resulting in a net cash decrease of $13.9 million Consolidated Statements of Cash Flows (Unaudited, in thousands) | Cash Flow Activity | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $17,395 | $(27,421) | | Net cash used in investing activities | $(33,000) | $(139,197) | | Net cash (used in) provided by financing activities | $(2,442) | $333,692 | | **Net Change in Cash and Cash Equivalents** | **$(13,865)** | **$165,629** | [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Financial%20Statements) Key notes detail recent acquisitions of Attune Medical and OpSens, the divestiture of the Whole Blood product line, and ongoing restructuring initiatives, alongside the issuance of $700 million in convertible senior notes and segment revenue performance - Completed the acquisition of Attune Medical on April 1, 2024, for a net purchase price of **$176.2 million**, expanding the Hospital business unit's presence in electrophysiology[21](index=21&type=chunk)[22](index=22&type=chunk) - Completed the divestiture of the Whole Blood product line to GVS, S.p.A on January 13, 2025, for **$43.3 million** in upfront cash and up to **$22.5 million** in contingent consideration[36](index=36&type=chunk)[37](index=37&type=chunk) - In May 2025, a new market and regional alignment initiative was approved to improve operational performance and reduce costs, incurring **$2.8 million** in related costs during the quarter[49](index=49&type=chunk) - In May 2024, the company issued **$700.0 million** of 2.5% convertible senior notes due 2029, with net proceeds used to repay the revolving credit facility, repurchase a portion of the 2026 Notes, and fund capped call transactions[77](index=77&type=chunk) Net Revenues by Reportable Segment (in thousands) | Segment | Q1 FY2026 (ended June 28, 2025) | Q1 FY2025 (ended June 29, 2024) | | :--- | :--- | :--- | | Plasma | $129,897 | $135,910 | | Blood Center | $51,839 | $66,245 | | Hospital | $139,658 | $134,017 | | **Total Net Revenues** | **$321,394** | **$336,172** | [Management's Discussion and Analysis (MD&A)](index=33&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 4.4% decrease in net revenues to $321.4 million, primarily due to lower Plasma sales and the Whole Blood divestiture, offset by Hospital segment growth, while operating income increased 35.5% to $53.9 million due to favorable pricing and product mix [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Total net revenues decreased 4.4% (4.9% in constant currency), driven by declines in Plasma and Blood Center segments, partially offset by Hospital revenue growth, while gross profit margin significantly improved from 52.0% to 59.8% due to pricing and product mix Net Revenues by Business Unit (YoY Growth) | Business Unit | Q1 FY2026 Revenue | Reported Growth | Constant Currency Growth | | :--- | :--- | :--- | :--- | | Plasma | $129.9M | (4.4)% | (4.7)% | | Blood Center | $51.8M | (21.7)% | (22.8)% | | Hospital | $139.7M | 4.2% | 3.8% | | **Total** | **$321.4M** | **(4.4)%** | **(4.9)%** | - The decrease in Plasma revenue was driven by lower sales volumes in North America, primarily related to the previously announced customer transition of CSL Plasma[150](index=150&type=chunk) - The decrease in Blood Center revenue was primarily driven by the divestiture of the Whole Blood product line in January 2025[151](index=151&type=chunk) - Gross profit increased by **9.9%** (**8.7%** constant currency), with the margin expanding to **59.8%** from **52.0%** YoY, driven by pricing benefits, product mix, and decreased restructuring and inventory step-up costs[153](index=153&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $292.9 million in cash and $750 million available under its revolving credit facility, with a new $500 million share repurchase program authorized and operating cash flow significantly improving to $17.4 million Key Liquidity Indicators (in thousands) | Metric | June 28, 2025 | March 29, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $292,898 | $306,763 | | Availability under revolving credit facility | $750,000 | $750,000 | | Working capital | $381,753 | $356,862 | | Net debt position | $(931,884) | $(918,025) | - A new three-year share repurchase program was approved in April 2025, authorizing the repurchase of up to **$500.0 million** of common stock through April 2028[140](index=140&type=chunk)[171](index=171&type=chunk) - Net cash provided by operating activities increased by **$44.8 million** year-over-year, driven by higher net income before non-cash gains and improved working capital management[175](index=175&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from foreign exchange rates, interest rates, credit concentration, and investments, which are managed through hedging programs and careful monitoring of customer and investment portfolios - Primary foreign currency exposures relate to sales in Japanese Yen, Euro, and Chinese Yuan, managed through forward contracts to hedge anticipated cash flows over a rolling 18-month horizon[185](index=185&type=chunk)[187](index=187&type=chunk) - Interest rate risk is associated with the **$243.8 million** outstanding on the senior unsecured term loan, mitigated by two active interest rate swap agreements with a notional value of **$203.2 million**[190](index=190&type=chunk) - Credit risk is concentrated with several large customers in the Plasma business unit and with government-owned healthcare systems in certain international markets[191](index=191&type=chunk) - As of June 28, 2025, the company holds **$80.9 million** in strategic investments in privately held entities, classified as other long-term assets and subject to investment risk[193](index=193&type=chunk) [Controls and Procedures](index=43&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 28, 2025, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of June 28, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[194](index=194&type=chunk) - No changes occurred in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[195](index=195&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=44&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in patent infringement litigation, including a complaint filed by Knoninklijke Philips N.V. against OpSens and Haemonetics' own complaints against Terumo BCT and Fresenius Kabi USA LLC - A complaint was filed by Knoninklijke Philips N.V. against the company's subsidiary OpSens, alleging patent infringement related to interventional cardiology systems[115](index=115&type=chunk) - The company filed complaints against Terumo BCT and Fresenius Kabi USA LLC, alleging infringement of its intellectual property rights related to donor-centric blood plasma collection patents[116](index=116&type=chunk) [Risk Factors](index=44&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended March 29, 2025 - No material changes from the Risk Factors disclosed in the Annual Report on Form 10-K for the fiscal year ended March 29, 2025[197](index=197&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of fiscal 2026, the company repurchased 363,886 shares, completing the $150.0 million accelerated share repurchase (ASR) agreement and fully funding the $300.0 million authorization under the 2022 share repurchase program Issuer Purchases of Equity Securities (Q1 FY2026) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | March 30 – April 26, 2025 | 363,886 | Not specified in table | | **Total** | **363,886** | **N/A** | - In April 2025, the company completed a **$150.0 million** accelerated share repurchase (ASR) agreement, fully funding the **$300.0 million** authorization under its 2022 share repurchase program[198](index=198&type=chunk) [Exhibits](index=45&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, compensation plans, and required certifications by the CEO and CFO under the Sarbanes-Oxley Act - Exhibits filed include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, and XBRL data files[203](index=203&type=chunk)

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Haemonetics reported a decrease in Q1 FY26 total revenue but achieved positive organic growth and increased adjusted diluted EPS and cash flow [First Quarter Fiscal 2026 Performance Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Performance%20Highlights) Haemonetics reported a decrease in total revenue for Q1 FY26 but achieved positive organic revenue growth and significant organic ex-CSL revenue growth, alongside an increase in adjusted diluted EPS and positive cash flow from operations and free cash flow | Metric | Q1 FY26 | | :----------------------------- | :-------- | | Revenue, decrease | $321 million, (4)% | | Organic revenue increase | 0.5% | | Organic ex-CSL revenue increase | 12.9% | | Earnings diluted share | $0.70 per | | Adjusted earnings diluted share | $1.10 per | | Cash flow from operating activities | $17 million | | Free cash flow | $2 million | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Chris Simon highlighted the company's continued margin expansion, sustained profitable growth, market share gains in Plasma, advancements in Hemostasis Management, and efforts to strengthen Vascular Closure, affirming the company's position to achieve long-range plan goals - CEO Chris Simon emphasized driving meaningful margin expansion, sustaining profitable growth, gaining share in Plasma, advancing Hemostasis Management, and strengthening commercial execution in Vascular Closure, positioning the company for its long-range plan goals[2](index=2&type=chunk) [GAAP Financial Results](index=1&type=section&id=GAAP%20Financial%20Results) This section details Haemonetics' first quarter fiscal 2026 GAAP financial performance, including revenue, profitability, and earnings per share [Revenue Performance (GAAP)](index=1&type=section&id=Revenue%20Performance%20(GAAP)) First quarter fiscal 2026 GAAP revenue decreased by 4.4% year-over-year to $321.4 million, primarily driven by significant declines in Blood Center and Plasma, partially offset by growth in Hospital [Consolidated Revenue](index=1&type=section&id=Consolidated%20Revenue%20(GAAP)) Consolidated GAAP net revenues for Q1 FY26 decreased by 4.4% year-over-year to $321.4 million | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | YoY Change | | :------------- | :-------- | :-------- | :--------- | | Net revenues | $321.4M | $336.2M | (4.4)% | [Revenue by Business Unit](index=1&type=section&id=Revenue%20by%20Business%20Unit%20(GAAP)) This section details GAAP revenue performance across Plasma, Blood Center, and Hospital business units for Q1 FY26 | Business Unit | Q1 FY26 Revenue (Millions) | YoY Growth | | :------------ | :-------------- | :--------- | | Plasma | $129.9M | (4.4)% | | Blood Center | $51.8M | (21.7)% | | Hospital | $139.7M | 4.2% | | Total net revenue | $321.4M | (4.4)% | [Profitability (GAAP)](index=1&type=section&id=Profitability%20(GAAP)) GAAP gross margin significantly improved to 59.8% in Q1 FY26, driven by pricing benefits, product mix, and decreased restructuring costs. Operating income increased substantially, despite higher R&D investments, while net income and diluted EPS saw a slight decrease due to a higher income tax rate [Gross Margin](index=2&type=section&id=Gross%20Margin%20(GAAP)) GAAP gross margin significantly improved to 59.8% in Q1 FY26, driven by pricing benefits and product mix | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :--------- | :-------- | :-------- | :--------- | | Gross margin | 59.8% | 52.0% | +7.8 pp | - Primary drivers for gross margin increase were pricing benefits across all business units, product mix, decreased restructuring costs from portfolio rationalization, and decreased amortization of fair value inventory step-up[5](index=5&type=chunk) [Operating Expenses & Income](index=2&type=section&id=Operating%20Expenses%20%26%20Income%20(GAAP)) GAAP operating income increased by 35.5% to $53.9 million in Q1 FY26, despite higher R&D investments | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | YoY Change | | :---------------- | :-------- | :-------- | :--------- | | Operating expenses | $138.4M | $135.2M | +2.4% | | Operating income | $53.9M | $39.8M | +35.5% | | Operating margin | 16.8% | 11.8% | +5.0 pp | - Increase in operating expenses was driven by increased investments in research and development[5](index=5&type=chunk) [Net Income & EPS](index=2&type=section&id=Net%20Income%20%26%20EPS%20(GAAP)) GAAP net income and diluted EPS decreased in Q1 FY26, primarily due to a higher income tax rate | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Income tax rate | 25% | 18% | +7 pp | | Net income | $34.0M | $38.4M | (11.3)% | | Diluted EPS | $0.70 | $0.74 | (5.4)% | - The income tax rate increased primarily due to lower benefits from performance share vestings[5](index=5&type=chunk) [Adjusted Financial Results](index=2&type=section&id=Adjusted%20Financial%20Results) This section presents Haemonetics' first quarter fiscal 2026 financial results on an adjusted (non-GAAP) basis, focusing on organic growth and profitability [Organic Revenue Growth](index=2&type=section&id=Organic%20Revenue%20Growth) Haemonetics achieved 0.5% total organic revenue growth and a strong 12.9% organic ex-CSL revenue growth in Q1 FY26. Plasma's organic ex-CSL growth was particularly robust at 29.3%, while Blood Center and Hospital also showed positive organic growth [Total Organic Revenue](index=2&type=section&id=Total%20Organic%20Revenue) Haemonetics achieved 0.5% total organic revenue growth and 12.9% organic ex-CSL revenue growth in Q1 FY26 | Metric | Q1 FY26 | | :---------------------- | :-------- | | Organic revenue increase | 0.5% | | Organic ex-CSL revenue increase | 12.9% | [Organic Revenue by Business Unit](index=2&type=section&id=Organic%20Revenue%20by%20Business%20Unit) This section details organic revenue growth for Plasma, Blood Center, and Hospital business units in Q1 FY26 | Business Unit | Organic Growth | Organic ex-CSL Growth | | :------------ | :------------- | :-------------------- | | Plasma | (4.3)% | 29.3% | | Blood Center | 4.4% | 4.4% | | Hospital | 3.8% | 3.8% | | Total net revenue | 0.5% | 12.9% | [Adjusted Profitability](index=2&type=section&id=Adjusted%20Profitability) Adjusted gross margin expanded by 550 basis points to 60.8% in Q1 FY26, driven by pricing and product mix. Adjusted operating income increased by 9.2%, leading to a 300 basis point improvement in adjusted operating margin. Adjusted net income and diluted EPS also grew, despite a higher adjusted income tax rate [Adjusted Gross Margin](index=2&type=section&id=Adjusted%20Gross%20Margin) Adjusted gross margin expanded by 550 basis points to 60.8% in Q1 FY26, driven by pricing and product mix | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :---------------- | :-------- | :-------- | :--------- | | Adjusted gross margin | 60.8% | 55.3% | +5.5 pp | - Primary drivers for the increase in adjusted gross margin percentage were pricing benefits across all business units and product mix[6](index=6&type=chunk) [Adjusted Operating Expenses & Income](index=2&type=section&id=Adjusted%20Operating%20Expenses%20%26%20Income) Adjusted operating income increased by 9.2% to $77.6 million in Q1 FY26, with a 300 basis point improvement in operating margin | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | YoY Change | | :---------------------- | :-------- | :-------- | :--------- | | Adjusted operating expenses | $117.8M | $114.9M | +2.4% | | Adjusted operating income | $77.6M | $71.0M | +9.2% | | Adjusted operating margin | 24.1% | 21.1% | +3.0 pp | - Increase in adjusted operating expenses was driven by increased investments in research and development[7](index=7&type=chunk) [Adjusted Net Income & EPS](index=2&type=section&id=Adjusted%20Net%20Income%20%26%20EPS) Adjusted net income and diluted EPS grew in Q1 FY26, despite an increase in the adjusted income tax rate | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | YoY Change | | :---------------------- | :-------- | :-------- | :--------- | | Adjusted income tax rate | 25% | 19.9% | +5.1 pp | | Adjusted net income | $53.2M | $52.4M | +1.7% | | Adjusted diluted EPS | $1.10 | $1.02 | +7.8% | - The adjusted income tax rate increased due to lower benefits from performance share vestings[7](index=7&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) This section provides an overview of Haemonetics' balance sheet and cash flow performance for the first quarter of fiscal 2026 [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) As of June 28, 2025, cash on hand decreased by $13.9 million since the end of fiscal 2025, primarily due to strategic investment outflows. Total assets slightly increased, while total current liabilities decreased | Metric | June 28, 2025 (Millions) | March 29, 2025 (Millions) | Change (Millions) | | :-------------------- | :-------------- | :--------------- | :------- | | Cash and cash equivalents | $292.9M | $306.8M | ($13.9M) | | Total assets | $2,462.1M | $2,450.9M | +$11.2M | | Total current liabilities | $531.4M | $578.1M | ($46.7M) | - The decrease in cash on hand was primarily driven by cash outflows for strategic investments[9](index=9&type=chunk) [Cash Flow Analysis](index=2&type=section&id=Cash%20Flow%20Analysis) Haemonetics generated $17.4 million in cash from operating activities and $2.5 million in free cash flow in Q1 FY26, a significant improvement year-over-year, mainly due to decreased cash outflows in working capital from lower inventory purchasing, and lower capital expenditures [Operating Activities Cash Flow](index=2&type=section&id=Operating%20Activities%20Cash%20Flow) Cash flow from operating activities significantly improved to $17.4 million in Q1 FY26, driven by decreased working capital outflows | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | Change (Millions) | | :-------------------------------- | :-------- | :-------- | :------- | | Cash flows from operating activities | $17.4M | ($27.4M) | +$44.8M | - The primary driver of increased cash provided by operating activities was decreased cash outflows in working capital, driven by lower inventory purchasing[10](index=10&type=chunk) [Free Cash Flow](index=2&type=section&id=Free%20Cash%20Flow) Free cash flow improved to $2.5 million in Q1 FY26, positively impacted by lower capital expenditures | Metric | Q1 FY26 (Millions) | Q1 FY25 (Millions) | Change (Millions) | | :------------- | :-------- | :-------- | :------- | | Free cash flow | $2.5M | ($16.9M) | +$19.4M | - Free cash flow was positively impacted by lower capital expenditures and additions to Haemonetics equipment[10](index=10&type=chunk) [Fiscal 2026 Guidance](index=4&type=section&id=Fiscal%202026%20Guidance) This section outlines Haemonetics' financial guidance for fiscal year 2026, covering revenue, profitability, and cash flow [Revenue Guidance](index=4&type=section&id=Revenue%20Guidance) Haemonetics reaffirmed its fiscal 2026 guidance for total GAAP revenue growth of (3)% to (6)% and organic revenue growth of (2)% to 1%. Organic ex-CSL revenue growth is projected to be 6% to 9% | Metric | FY26 Guidance Range | | :-------------------- | :------------------ | | Reported Total Revenue | (3)% – (6)% | | Organic Total Revenue | (2)% – 1% | | Organic, ex-CSL Total Revenue | 6% – 9% | | Business Unit | Reported Growth | Organic Growth | Organic, ex-CSL Growth | | :------------ | :-------------- | :------------- | :--------------------- | | Plasma | (7)% – (10)% | (7)% – (10)% | 11% – 14% | | Blood Center | (23)% – (26)% | (4)% – (6)% | (4)% – (6)% | | Hospital | 8% – 11% | 8% – 11% | 8% – 11% | [Profitability & Cash Flow Guidance](index=4&type=section&id=Profitability%20%26%20Cash%20Flow%20Guidance) The company reaffirmed its fiscal 2026 guidance for adjusted operating margin between 26% and 27%, adjusted diluted EPS between $4.70 and $5.00, and free cash flow between $160 million and $200 million | Metric | FY26 Guidance Range | | :-------------------------- | :------------------ | | Adjusted operating margin | 26% – 27% | | Adjusted earnings per diluted share | $4.70 – $5.00 | | Free cash flow | $160M – $200M | [Company Information & Disclosures](index=4&type=section&id=Company%20Information%20%26%20Disclosures) This section provides essential company information, including its mission, forward-looking statements, and the use of non-GAAP financial measures [About Haemonetics](index=4&type=section&id=ABOUT%20HAEMONETICS) Haemonetics is a global medical technology company focused on improving healthcare quality, effectiveness, and efficiency through innovative solutions in hospital technologies, plasma collection, and blood component collection for blood centers - Haemonetics is a global medical technology company dedicated to improving healthcare quality, effectiveness, and efficiency[13](index=13&type=chunk) - Their innovative solutions address critical medical needs, including hospital technologies, end-to-end plasma collection technologies, and products for blood component collection[13](index=13&type=chunk) [Forward-Looking Statements](index=5&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section clarifies that statements not describing historical facts are forward-looking, subject to risks and uncertainties, and not guarantees of future results. It lists various factors that could cause actual results to differ materially, including market demand, product development, competition, regulatory changes, and economic conditions - Forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and are based on current projections, plans, objectives, beliefs, expectations, estimates and assumptions, subject to risks and uncertainties[16](index=16&type=chunk) - Factors that may influence or contribute to the inaccuracy of forward-looking statements include availability and demand for products, ability to develop and market new products, competitive products and pricing, cybersecurity events, and regulatory uncertainties[16](index=16&type=chunk) [Management's Use of Non-GAAP Measures](index=5&type=section&id=MANAGEMENT%27S%20USE%20OF%20NON-GAAP%20MEASURES) Management uses non-GAAP financial measures to monitor performance, make business decisions, and set targets, considering them supplemental to GAAP results. The section defines specific non-GAAP adjustments, such as organic revenue growth and adjusted profitability metrics, and explains why forward-looking GAAP reconciliations are not provided - Management uses non-GAAP measures to monitor financial performance, make informed business decisions, establish budgets, and forecast future results, considering them supplemental to GAAP results[17](index=17&type=chunk) - Organic revenue growth excludes the impact of currency fluctuation, acquisitions, and divestitures. Organic ex-CSL revenue growth further excludes the impact of fiscal 2025 disposable sales to CSL Plasma[18](index=18&type=chunk) - Adjusted gross profit, operating expenses, operating income, net income, and EPS exclude restructuring costs, amortization of acquired intangible assets, acquisition/divestiture related costs, and other specific non-recurring items[18](index=18&type=chunk) [Unaudited Financial Statements & Reconciliations](index=7&type=section&id=Unaudited%20Financial%20Statements%20%26%20Reconciliations) This section presents the unaudited GAAP financial statements and reconciliations of non-GAAP measures for the first quarter of fiscal 2026 [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Unaudited)) This section presents the detailed unaudited GAAP income statement for the three months ended June 28, 2025, and June 29, 2024, showing net revenues, cost of goods sold, gross profit, operating expenses, operating income, interest, income before taxes, provision for income taxes, net income, and earnings per diluted share, along with corresponding profit margins | Metric | Three Months Ended 6/28/2025 (Thousands) | Three Months Ended 6/29/2024 (Thousands) | Inc/(Dec) % | | :---------------------------------- | :--------------------------- | :--------------------------- | :---------- | | Net revenues | $321,394 | $336,172 | (4.4)% | | Cost of goods sold | $129,150 | $161,248 | (19.9)% | | Gross profit | $192,244 | $174,924 | 9.9% | | Research and development | $16,261 | $14,449 | 12.5% | | Selling, general and administrative | $110,719 | $108,248 | 2.3% | | Amortization of acquired intangible assets | $11,392 | $12,471 | (8.7)% | | Total Operating expenses | $138,372 | $135,168 | 2.4% | | Operating income | $53,872 | $39,756 | 35.5% | | Interest and other (expense) income, net | ($8,703) | $6,957 | (225.1)% | | Income before provision for income taxes | $45,169 | $46,713 | (3.3)% | | Provision for income taxes | $11,138 | $8,340 | 33.5% | | Net income | $34,031 | $38,373 | (11.3)% | | Net income per common share assuming dilution | $0.70 | $0.74 | (5.4)% | | Gross profit margin | 59.8 % | 52.0 % | 7.8% | | Operating income margin | 16.8 % | 11.8 % | 5.0% | | Net income margin | 10.6 % | 11.4 % | (0.8)% | [Revenue Analysis by Business Unit](index=8&type=section&id=Revenue%20Analysis%20by%20Business%20Unit%20(Unaudited)) This table provides a detailed breakdown of revenue by business unit for Q1 FY26 and Q1 FY25, including reported growth, currency impact, acquisitions & divestitures impact, organic growth, and organic growth excluding CSL 2025 US disposable revenue, highlighting the significant impact of the CSL agreement on Plasma's reported and organic growth | Business Unit | 6/28/2025 Revenue (Thousands) | Reported growth | Currency impact | Acquisitions & Divestitures | Organic growth | 2025 CSL US Disposable Revenue | Organic growth, ex CSL | | :------------ | :---------------- | :-------------- | :-------------- | :-------------------------- | :------------- | :----------------------------- | :--------------------- | | Plasma | $129,897 | (4.4)% | 0.3% | (0.4)% | (4.3)% | (33.6)% | 29.3% | | Apheresis | $51,822 | 5.6% | 1.2% | —% | 4.4% | —% | 4.4% | | Whole Blood | $17 | (99.9)% | —% | (99.9)% | —% | —% | —% | | Blood Center | $51,839 | (21.7)% | 1.1% | (27.2)% | 4.4% | —% | 4.4% | | Hospital | $139,658 | 4.2% | 0.4% | —% | 3.8% | —% | 3.8% | | Total net revenues | $321,394 | (4.4)% | 0.5% | (5.4)% | 0.5% | (12.4)% | 12.9% | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) This section provides the unaudited condensed consolidated balance sheets as of June 28, 2025, and March 29, 2025, detailing assets (cash, receivables, inventories, property, intangibles, goodwill) and liabilities & stockholders' equity (debt, other liabilities, equity) | Asset/Liability | June 28, 2025 (Thousands) | March 29, 2025 (Thousands) | | :-------------------------- | :-------------- | :--------------- | | Cash and cash equivalents | $292,898 | $306,763 | | Total current assets | $913,160 | $934,975 | | Property, plant & equipment, net | $286,865 | $284,052 | | Intangible assets, net | $450,634 | $455,743 | | Goodwill | $607,299 | $604,269 | | Total assets | $2,462,094 | $2,450,948 | | Total current liabilities | $531,407 | $578,113 | | Long-term debt | $920,833 | $921,230 | | Stockholders' equity | $882,300 | $820,836 | | Total liabilities & stockholders' equity | $2,462,094 | $2,450,948 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This section presents the unaudited condensed consolidated statements of cash flows for the three months ended June 28, 2025, and June 29, 2024, detailing cash flows from operating, investing, and financing activities, along with a reconciliation of free cash flow | Cash Flow Activity | Three Months Ended 6/28/2025 (Thousands) | Three Months Ended 6/29/2024 (Thousands) | | :-------------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by (used in) operating activities | $17,395 | ($27,421) | | Net cash used in investing activities | ($33,000) | ($139,197) | | Net cash (used in) provided by financing activities | ($2,442) | $333,692 | | Net Change in Cash and Cash Equivalents | ($13,865) | $165,629 | | Cash and Cash Equivalents at End of Period | $292,898 | $344,429 | | Free cash flow | $2,478 | ($16,926) | [Reconciliation of Adjusted Measures](index=11&type=section&id=Reconciliation%20of%20Adjusted%20Measures%20for%20First%20Quarter%20of%20FY26%20and%20FY25%20(Unaudited)) This section provides a detailed reconciliation of GAAP financial measures to their corresponding adjusted (non-GAAP) measures for the first quarter of fiscal 2026 and 2025, covering gross profit, operating expenses, operating income, interest, income taxes, net income, and diluted EPS, outlining specific adjustments made for each period | Metric (Q1 FY26) | Reported (Thousands) | Adjustments (Thousands) | Adjusted (Thousands) | | :-------------------------- | :--------- | :---------- | :--------- | | Gross profit | $192,244 | $3,078 | $195,312 | | Operating expenses | $138,372 | ($20,612) | $117,760 | | Operating income | $53,872 | $23,680 | $77,552 | | Net income | $34,031 | $19,202 | $53,233 | | Earnings per diluted share | $0.70 | $0.40 | $1.10 | | Adjusted gross profit margin | | | 60.8% | | Adjusted operating margin | | | 24.1% | | Adjusted net income margin | | | 16.6% | | Metric (Q1 FY25) | Reported (Thousands) | Adjustments (Thousands) | Adjusted (Thousands) | | :-------------------------- | :--------- | :---------- | :--------- | | Gross profit | $174,924 | $11,045 | $185,969 | | Operating expenses | $135,168 | ($20,220) | $114,948 | | Operating income | $39,756 | $31,265 | $71,021 | | Net income | $38,373 | $13,993 | $52,366 | | Earnings per diluted share | $0.74 | $0.28 | $1.02 | | Adjusted gross profit margin | | | 55.3% | | Adjusted operating margin | | | 21.1% | | Adjusted net income margin | | | 15.6% |