Haemonetics(HAE) - 2025 Q4 - Annual Results

Financial Performance Summary Haemonetics reported increased FY2025 revenue and adjusted EPS, driven by profitability and strategic growth Q4 & Fiscal 2025 Highlights For fiscal 2025, Haemonetics reported a 4% increase in total revenue to $1.361 billion, with a 1% organic growth, achieving a significant increase in profitability with fiscal 2025 adjusted EPS rising to $4.57, while the fourth quarter saw a revenue decrease of 4% to $331 million primarily due to divestitures and a major plasma customer contract transition Q4 & Fiscal 2025 Key Financial Metrics | Metric | 4th Quarter 2025 | Fiscal 2025 | | :--- | :--- | :--- | | Revenue | $331 million (-4%) | $1.361 billion (+4%) | | Organic Revenue Growth | —% | 1% | | GAAP EPS (Diluted) | $1.17 | $3.31 | | Adjusted EPS (Diluted) | $1.24 | $4.57 | | Cash Flow from Operations | $117 million | $182 million | | Free Cash Flow | $95 million | $145 million | CEO Commentary CEO Chris Simon highlighted the company's solid earnings growth in fiscal 2025, emphasizing record margin expansion and strong cash flow, noting that key technologies like NexSys, TEG, and VASCADE are driving growth and the company is on track to meet its long-range plan goals in fiscal 2026 - The CEO emphasized strong performance in FY2025, citing record margin expansion and robust cash flow as indicators of business health[3] - Growth is being propelled by industry-leading technologies: NexSys, TEG, and VASCADE[3] - The company is on schedule to achieve all goals of its four-year long-range plan in the upcoming fiscal year 2026[3] Detailed Financial Analysis Q4 and FY2025 analysis reveals strong Hospital growth and margin expansion, offsetting other segment declines Q4 FY2025 Performance (GAAP) In Q4 FY2025, GAAP revenue decreased by 3.7% to $330.6 million, driven by declines in Plasma and Blood Center, partially offset by strong 12.2% growth in the Hospital segment, with gross margin significantly improving to 58.4% from 51.2% year-over-year, and operating income surging 138.2% to $71.3 million, primarily due to lower restructuring costs and a gain from the remeasurement of contingent consideration Q4 FY2025 GAAP Revenue by Business Unit | Business Unit | Revenue ($ millions) | Growth vs. Q4 FY2024 | | :--- | :--- | :--- | | Plasma | $126.7 | (9.1)% | | Blood Center | $56.0 | (22.2)% | | Hospital | $147.9 | 12.2% | | Total Net Revenue | $330.6 | (3.7)% | - Gross margin increased to 58.4% in Q4 FY2025 from 51.2% in Q4 FY2024, driven by volume growth in high-margin Hospital products, pricing benefits, and lower restructuring costs[5][6] - Operating income for Q4 FY2025 was $71.3 million (21.6% margin), a substantial increase from $29.9 million (8.7% margin) in the prior year, helped by lower operating expenses[6] - Net income for Q4 FY2025 was $58.0 million, or $1.17 per diluted share, compared to $20.4 million, or $0.40 per diluted share, in Q4 FY2024[6] Q4 FY2025 Performance (Adjusted) On an adjusted basis, Q4 FY2025 organic revenue saw a slight decrease of 0.2%, mainly due to the CSL U.S. disposables business transition in the Plasma segment, but the Hospital segment showed strong organic growth of 8.9%, with adjusted gross margin expanding by 620 basis points to 60.2%, and adjusted operating margin growing by 610 basis points to 24.9%, leading to a 37.8% increase in adjusted EPS to $1.24 Q4 FY2025 Organic Revenue Growth by Business Unit | Business Unit | Organic Growth vs. Q4 FY2024 | | :--- | :--- | | Plasma | (8.9)% | | Blood Center | (0.2)% | | Hospital | 8.9% | | Total Net Revenue | (0.2)% | - Adjusted gross margin increased to 60.2%, up 620 basis points YoY, due to volume growth in higher-margin Hospital products and pricing benefits[7] - Adjusted operating income rose 27.5% to $82.3 million, with the adjusted operating margin reaching 24.9%[8] - Adjusted net income increased 33.8% to $61.6 million, resulting in adjusted EPS of $1.24, up 37.8% YoY[9] Full-Year FY2025 Performance by Business Unit For the full fiscal year 2025, total reported revenue grew 4.0% to $1.36 billion, driven by a strong 23.7% increase in the Hospital business, which benefited from acquisitions and 12.4% organic growth, offsetting declines in Plasma (-6.0%) and Blood Center (-7.8%), the latter impacted by the Whole Blood product line divestiture FY2025 Revenue Performance by Business Unit | Business Unit | FY2025 Revenue ($M) | Reported Growth | Organic Growth | | :--- | :--- | :--- | :--- | | Plasma | $535.4 | (6.0)% | (5.9)% | | Blood Center | $261.1 | (7.8)% | (1.5)% | | Hospital | $564.3 | 23.7% | 12.4% | | Total Net Revenue | $1,360.8 | 4.0% | 1.4% | Capital Allocation & Balance Sheet The company strengthened its balance sheet, completing a $300M share repurchase and authorizing a new $500M program Share Repurchase Program Haemonetics completed its $300 million share repurchase program, buying back 2.39 million shares, and subsequently the Board of Directors approved a new, larger three-year program authorizing the repurchase of up to $500 million of common stock to offset equity grant dilution and support long-term growth plans - The company completed its previously announced $300 million share repurchase program, having repurchased a total of 2,386,131 shares[10] - In April 2025, the Board of Directors approved a new share repurchase authorization of up to $500 million over the next three years[11] Balance Sheet and Cash Flow The company ended fiscal 2025 with a strengthened balance sheet, with cash on hand increasing by $128.0 million to $306.8 million, while cash flow from operations remained stable at $181.7 million, and free cash flow for the year increased to $144.6 million from $117.3 million in the prior year, aided by proceeds from asset sales Key Balance Sheet Items (as of March 29, 2025) | Account | FY2025 ($ thousands) | FY2024 ($ thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $306,763 | $178,800 | | Total current assets | $934,975 | $768,903 | | Total assets | $2,450,948 | $2,195,591 | | Total current liabilities | $578,113 | $300,383 | | Long-term debt | $921,230 | $797,564 | | Total stockholders' equity | $820,836 | $959,959 | Fiscal Year Cash Flow Summary | Metric | Fiscal 2025 | Fiscal 2024 | | :--- | :--- | :--- | | Cash Flow from Operations | $181.7 million | $181.8 million | | Free Cash Flow | $144.6 million | $117.3 million | - The company ended fiscal 2025 with a strengthened balance sheet, with cash on hand increasing by $128.0 million to $306.8 million[29] - Cash flow from operations remained stable at $181.7 million, while free cash flow for the year increased to $144.6 million from $117.3 million in the prior year, aided by proceeds from asset sales[14][31] Fiscal 2026 Outlook Fiscal 2026 guidance anticipates reported revenue decline due to divestitures, offset by strong organic growth and margin expansion Revenue Guidance For fiscal 2026, Haemonetics projects a reported revenue decline of 3-6%, heavily influenced by the divestiture of the Whole Blood business and the CSL plasma contract transition, however, organic revenue is guided to be between -2% and +1%, and excluding the CSL impact, organic growth is expected to be a strong 6-9%, led by 11-14% growth in Plasma and 8-11% in Hospital Fiscal 2026 Revenue Growth Guidance | Category | Plasma | Blood Center | Hospital | Total Company | | :--- | :--- | :--- | :--- | :--- | | Reported Growth | (7 – 10%) | (23 – 26%) | 8 – 11% | (3 – 6%) | | Organic Growth | (7 – 10%) | (4 – 6%) | 8 – 11% | (2) – 1% | | Organic, ex-CSL | 11 – 14% | (4 – 6%) | 8 – 11% | 6 – 9% | Profitability and Cash Flow Guidance The company anticipates continued margin expansion and strong earnings in fiscal 2026, guiding for an adjusted operating margin of 26-27% and adjusted earnings per diluted share between $4.70 and $5.00, with free cash flow expected to be in the range of $160 million to $200 million Fiscal 2026 Adjusted Profitability and Cash Flow Guidance | Metric | Guidance Range | | :--- | :--- | | Adjusted Operating Margin | 26 – 27% | | Adjusted EPS | $4.70 – $5.00 | | Free Cash Flow | $160M – $200M | Appendix: Financial Statements This appendix provides comprehensive unaudited financial statements, including income, balance sheets, cash flows, and GAAP reconciliations Condensed Consolidated Statements of Income This section provides the detailed unaudited consolidated statements of income for the three months and full year ended March 29, 2025, compared to the prior year periods, including breakdowns of revenues, costs, expenses, and profitability margins Condensed Consolidated Statements of Income (Year Ended) | ($ thousands, except per share) | Year Ended 3/29/2025 | Year Ended 3/30/2024 | | :--- | :--- | :--- | | Net revenues | $1,360,824 | $1,309,055 | | Gross profit | $748,958 | $691,548 | | Operating income | $221,817 | $164,883 | | Net income | $167,679 | $117,558 | | Net income per share (diluted) | $3.31 | $2.29 | Revenue Analysis by Business Unit This section presents a detailed breakdown of revenue by business unit and product line for both the fourth quarter and the full fiscal year 2025, including reported growth, currency impact, acquisition/divestiture impact, and resulting organic growth rates Q4 Revenue Analysis by Business Unit ($ thousands) | Business Unit | Q4 FY2025 | Q4 FY2024 | Reported Growth | Organic Growth | | :--- | :--- | :--- | :--- | :--- | | Plasma | $126,736 | $139,479 | (9.1)% | (8.9)% | | Blood Center | $56,006 | $71,990 | (22.2)% | (0.2)% | | Hospital | $147,857 | $131,821 | 12.2% | 8.9% | | Total | $330,599 | $343,290 | (3.7)% | (0.2)% | Full Year Revenue Analysis by Business Unit ($ thousands) | Business Unit | FY2025 | FY2024 | Reported Growth | Organic Growth | | :--- | :--- | :--- | :--- | :--- | | Plasma | $535,431 | $569,535 | (6.0)% | (5.9)% | | Blood Center | $261,124 | $283,231 | (7.8)% | (1.5)% | | Hospital | $564,269 | $456,289 | 23.7% | 12.4% | | Total | $1,360,824 | $1,309,055 | 4.0% | 1.4% | Condensed Consolidated Balance Sheets This section provides the company's unaudited consolidated balance sheets as of March 29, 2025, compared to March 30, 2024, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets ($ thousands) | | As of 3/29/2025 | As of 3/30/2024 | | :--- | :--- | :--- | | Assets | | | | Total current assets | $934,975 | $768,903 | | Total assets | $2,450,948 | $2,195,591 | | Liabilities & Stockholders' Equity | | | | Total current liabilities | $578,113 | $300,383 | | Long-term debt | $921,230 | $797,564 | | Stockholders' equity | $820,836 | $959,959 | | Total liabilities & stockholders' equity | $2,450,948 | $2,195,591 | Condensed Consolidated Statements of Cash Flows This section details the company's cash flows from operating, investing, and financing activities for the fiscal years ended March 29, 2025, and March 30, 2024, and includes a reconciliation of free cash flow Condensed Consolidated Statements of Cash Flows (Year Ended, $ thousands) | | FY2025 | FY2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $181,725 | $181,751 | | Net cash used in investing activities | ($161,895) | ($322,389) | | Net cash provided by financing activities | $108,818 | $38,157 | | Net Change in Cash and Cash Equivalents | $127,963 | ($105,666) | | Free cash flow | $144,588 | $117,265 | Reconciliation of GAAP to Adjusted Measures This section provides detailed reconciliations of reported GAAP financial measures to non-GAAP adjusted measures for the fourth quarter and full fiscal years 2025 and 2024, itemizing adjustments for costs such as amortization, restructuring, and acquisitions to derive adjusted gross profit, operating income, net income, and EPS Q4 FY2025 Reconciliation of Net Income and EPS | ($ thousands, except per share) | Reported (GAAP) | Adjustments | Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Gross Profit | $193,050 | $6,017 | $199,067 | | Operating Income | $71,335 | $11,008 | $82,343 | | Net Income | $57,981 | $3,593 | $61,574 | | EPS (Diluted) | $1.17 | $0.07 | $1.24 | Full Year FY2025 Reconciliation of Net Income and EPS | ($ thousands, except per share) | Reported (GAAP) | Adjustments | Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Gross Profit | $748,958 | $32,805 | $781,763 | | Operating Income | $221,817 | $104,487 | $326,304 | | Net Income | $167,679 | $63,830 | $231,509 | | EPS (Diluted) | $3.31 | $1.26 | $4.57 |