HAE Q3 Deep Dive: Margin Expansion and Portfolio Rationalization Drive Outperformance

Core Insights - Haemonetics reported Q3 CY2025 revenue of $327.3 million, a 5.3% decline year-on-year, but exceeded analyst estimates of $310.8 million [1][6] - The company achieved a non-GAAP profit of $1.27 per share, which was 14.3% above analysts' consensus estimates of $1.11 [1][6] - Adjusted EBITDA was $112.2 million, representing a 34.3% margin and a 14% beat against analyst expectations [6] Management Commentary - Management attributed the revenue outperformance to strong share gains in plasma collection solutions and sustained growth in Blood Management Technologies, alongside disciplined cost management [3][5] - CEO Chris Simon highlighted the results as a reflection of disciplined execution, strong core product growth, record margin expansion, and solid cash-converting earnings [3] - The hospital segment contributed significantly to operating margin improvement, driven by demand for viscoelastic testing and actions to address underperformance in interventional technologies [3] Future Outlook - Haemonetics updated its guidance, focusing on plasma share gains, new product launches, and continued cost discipline [4] - The company is rolling out its heparinase neutralization cartridge in Europe and Japan, with targeted investments to boost interventional technology growth, particularly in vascular closure [4] - Planned acquisition of Vivasure and further product pipeline expansion are seen as potential growth drivers beyond the current year [4] Financial Metrics - Operating margin improved to 17.9%, up from 15% in the same quarter last year [6] - Organic revenue fell by 1.8% year-on-year, outperforming analyst estimates of a 5.3% decline [6] - Market capitalization stands at $3.23 billion [6]