Haemonetics(US:HAE)2025-11-06 11:01Revenue Performance - Second quarter fiscal 2026 revenue was $327.3 million, a decrease of 5.3% compared to the same period in fiscal 2025[2] - Organic revenue declined 1.8%, while organic ex-CSL revenue increased by 9.4% year-over-year[4] - Net revenues for the three months ended September 27, 2025, were $327.3 million, a decrease of 5.3% compared to $345.5 million for the same period in 2024[23] - Plasma revenue decreased by 9.5% to $125.4 million for the three months ended September 27, 2025, while organic growth excluding CSL was down 10.1%[25] Earnings and Profitability - Adjusted earnings per diluted share rose to $1.27, up 13.4% compared to the second quarter of fiscal 2025[7] - Adjusted operating income for the second quarter was $87.3 million, reflecting a 4.5% increase compared to the prior year[5] - Net income for the three months ended September 27, 2025, was $38.7 million, reflecting a 14.3% increase from $33.8 million in the prior year[23] - Gross profit increased by 3.9% to $194.7 million for the three months ended September 27, 2025, compared to $187.4 million in the prior year[23] - Adjusted net income for the three months ended September 27, 2025, was $19,769, resulting in an adjusted diluted earnings per share of $1.27[31] Cash Flow and Financial Position - Cash flow from operating activities was $111.3 million, an increase of 128.0% year-over-year, while free cash flow reached $88.7 million, up 139.6%[9] - Cash on hand as of September 27, 2025, was $296.4 million, a decrease of $10.3 million since the end of fiscal 2025[8] - Total current assets decreased to $899.7 million as of September 27, 2025, from $934.9 million as of March 29, 2025[27] - The company’s cash and cash equivalents were $296.4 million as of September 27, 2025, down from $306.8 million[27] - Net cash provided by operating activities increased significantly to $128,716 from $21,402 year-over-year[30] - Free cash flow for the six months ended September 27, 2025, was $91,214, up from $20,110 in the prior year[30] Guidance and Projections - The company updated its fiscal 2026 guidance, projecting total revenue growth of -1% to 4%[11] - The adjusted operating margin guidance remains at 26% to 27%, with adjusted earnings per diluted share guidance raised to $4.80 to $5.00[11] Operating Expenses and Investments - Research and development expenses increased by 5.2% to $14.9 million for the three months ended September 27, 2025, compared to $14.1 million in the prior year[23] - Operating expenses for the three months ended September 27, 2025, were $136,253, compared to $135,740 for the same period in 2024, showing a marginal increase[31] - Operating expenses for the six months ended September 27, 2025, were $274,625,000, slightly down from $270,908,000 in the same period of FY25, showing a decrease of 1.0%[32] - The company incurred $10,409,000 in digital transformation costs during the six months ended September 27, 2025[32] - Integration and transaction costs amounted to $4,202,000 for the six months ended September 27, 2025, compared to $13,205,000 in the same period of FY25, indicating a significant reduction[32] Debt and Assets - Long-term debt remained stable at $920.4 million as of September 27, 2025, compared to $921.2 million in the previous period[27] - The cash and cash equivalents at the end of the period were $296,426, slightly down from $299,283 at the end of the same period in 2024[30] Profit Margins - The gross margin improved to 60.5%, up 380 basis points from the previous year, driven by pricing benefits and Plasma share gains[4] - The company reported a gross profit margin of 59.5% for the three months ended September 27, 2025, compared to 54.2% in the same period last year[23] - The adjusted gross profit margin for the six months ended September 27, 2025, was 60.6%, compared to 56.0% for the same period in FY25, reflecting an improvement of 4.6 percentage points[32]