Haemonetics(HAE) - 2026 Q1 - Quarterly Results

Executive Summary & Highlights 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 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 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] GAAP Financial Results This section details Haemonetics' first quarter fiscal 2026 GAAP financial performance, including revenue, profitability, and earnings per share Revenue Performance (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 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 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) 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 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] Operating Expenses & Income 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] Net Income & EPS 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] Adjusted Financial Results 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 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 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 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 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 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] Adjusted Operating Expenses & Income 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] Adjusted Net Income & EPS 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] Balance Sheet and Cash Flow This section provides an overview of Haemonetics' balance sheet and cash flow performance for the first quarter of fiscal 2026 Balance Sheet Overview 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] Cash Flow Analysis 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 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] Free Cash Flow 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] Fiscal 2026 Guidance This section outlines Haemonetics' financial guidance for fiscal year 2026, covering revenue, profitability, and cash flow Revenue Guidance 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 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 This section provides essential company information, including its mission, forward-looking statements, and the use of non-GAAP financial measures About Haemonetics 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] - Their innovative solutions address critical medical needs, including hospital technologies, end-to-end plasma collection technologies, and products for blood component collection[13] Forward-Looking Statements 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] - 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] Management's Use of Non-GAAP Measures 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] - 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] - 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] Unaudited Financial Statements & Reconciliations 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 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 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 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 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 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% |