Financial Data and Key Metrics Changes - Third quarter revenue was $339 million, bringing year-to-date revenue to $988 million, with reported revenue reflecting a $153 million impact from last year's portfolio transitions [5][6] - Adjusted earnings per share increased 10% in the quarter to $1.31 and 11% year-to-date to $3.67, indicating strong earnings quality and durability [6][16] - Adjusted gross margin was 60.2% in the third quarter, up 250 basis points year-over-year, and 60.5% year-to-date, up 390 basis points [13][14] - Free cash flow for the third quarter was $74 million, bringing year-to-date free cash flow to $165 million, representing a more than threefold increase compared to the prior year [17][18] Business Line Data and Key Metrics Changes - Hospital revenue was $144 million in the third quarter, down 1% but up 2% year-to-date organically, with strong performance in Blood Management Technologies offsetting softness in Interventional Technologies [6][9] - Blood Management Technologies grew 8% in the quarter and 11% year-to-date, driven by strong sales of TEG 6s disposables and the heparinase neutralization cartridge [6][7] - Interventional Technology revenue declined 12% in the quarter and 8% year-to-date, primarily due to softness in esophageal cooling and OEM-related headwinds [8][9] - Plasma revenue was $139 million, up 3% on a reported basis, with organic growth of 20% in the quarter and 22% year-to-date, driven by share gains and collection volume [9][10] Market Data and Key Metrics Changes - U.S. plasma collections grew in the low double digits in the third quarter, with the company holding approximately 50% global market share [10] - Blood Center revenue was $57 million in the quarter, growing 3% in the quarter and 4% year-to-date organically, driven by international plasma demand [10][11] Company Strategy and Development Direction - The company is focused on returning the Interventional Technologies franchise to sustainable growth in fiscal 2027, with targeted actions underway to strengthen execution [20][21] - The acquisition of Vivasure is expected to enhance the company's leadership in vascular closure, with a $300 million addressable market identified [43][46] - Capital allocation priorities include investing in organic growth, meeting debt obligations, and opportunistically returning cash to shareholders while maintaining balance sheet flexibility [22][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the plasma business, highlighting strong share gains and favorable market conditions [25][27] - The company anticipates continued margin expansion, although future increments may be smaller than those seen in fiscal 2026 [30][31] - Management remains optimistic about the growth potential in the vascular closure market, particularly with the anticipated MVP XL label expansion [38][59] Other Important Information - The company raised its full-year revenue guidance to a decline of 1%-3%, reflecting improved performance across Plasma, Blood Center, and Blood Management Technologies [11] - Adjusted operating income increased 4% year-to-date to $254 million, with adjusted operating margin expanding 200 basis points to 25.7% [15] Q&A Session Summary Question: Insights on plasma growth and sustainability - Management highlighted strong share gains and collection volume growth, indicating a favorable outlook for plasma in fiscal 2027 [25][27] Question: Margin expectations and challenges in the hospital business - Management acknowledged a sequential decline in adjusted operating margin but expressed confidence in overall margin expansion moving forward [30][31] Question: Updates on the IVT business and competition - Management noted that a significant portion of the decline in IVT was due to specific market dynamics, but they are confident in their strategy to return to growth [36][38] Question: Details on the Vivasure acquisition and market positioning - Management emphasized the strategic importance of Vivasure in enhancing their vascular closure portfolio and outlined a measured approach to its market launch [43][46] Question: Sustainability of blood center growth - Management indicated that while the blood center business has shown positive growth, it is subject to order timing and market conditions [79]

Haemonetics (NYSE:HAE) Q3 2026 Earnings call February 05, 2026 08:00 AM ET Company ParticipantsAndrew Cooper - DirectorAnthony Petrone - Managing Director of Equity ResearchChris Simon - President and CEOJames D'Arecca - CFOJoanne Wuensch - Managing DirectorMarie Thibault - Managing DirectorOlga Guyette - VP of Investor Relations and TreasuryConference Call ParticipantsDavid Rescott - Senior Research AnalystMichael Petusky - Managing Director and Senior Research AnalystMike Matson - Senior AnalystRohin Pate ...

FORWARD LOOKING STATEMENTS FOURTH QUARTER 2025 EARNINGS AND 2026 OUTLOOK JANUARY 29, 2026 We describe many of the trends and other factors that drive our business and future results in this presentation. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including statements related to the proposed separation of Automation and Aerospace Technologies and the planned sale of the Productivity Solutions and ...

Financial Data and Key Metrics Changes - In Q4 2025, worldwide sales reached $24.6 billion, a 7.1% increase despite a 650 basis point headwind from Stelara [17] - For the full year 2025, worldwide sales were $94.2 billion, reflecting a 5.3% increase, with U.S. growth at 6.9% and international growth at 3.4% [18] - Net earnings for Q4 were $5.1 billion, with diluted earnings per share at $2.10, compared to $1.41 a year ago [18] - Full year 2025 net earnings were $26.8 billion, with diluted earnings per share at $11.03, significantly up from $5.79 the previous year [19] Business Line Data and Key Metrics Changes - Innovative Medicine reported Q4 sales of $15.8 billion, a 7.9% increase, with notable growth in oncology and immunology [20] - In oncology, Darzalex grew 24.1%, while Carvykti achieved sales of $555 million with a growth of 63.2% [20] - Immunology saw Tremfya grow 65.4%, while Stelara declined 48.6% due to biosimilar competition [21] - MedTech sales for the year were $34 billion, with operational growth of 5.4%, driven by cardiovascular and surgical segments [13] Market Data and Key Metrics Changes - U.S. sales growth was 7.5% in Q4, while international sales grew by 6.6% [17] - The cardiovascular segment delivered 15% operational sales growth, with Abiomed and Shockwave showing strong performance [13] - Surgical vision grew 10.8%, driven by new product innovations and demand for premium intraocular lenses [24] Company Strategy and Development Direction - The company plans to separate its orthopedics business by mid-2027, focusing on high-growth areas [30] - Investments of over $32 billion in R&D and M&A were made in 2025, including acquisitions of Intra-Cellular Therapies and HALDA Therapeutics [6] - The company aims for double-digit growth by the end of the decade, supported by a strong portfolio and pipeline [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving faster growth in 2026 compared to 2025, with a line of sight to double-digit growth [6] - The company anticipates operational sales growth in 2026 to be between 5.7% and 6.7%, with a midpoint of $100 billion [31] - Management highlighted the strength of their portfolio and pipeline as key drivers for future growth [41] Other Important Information - The company ended 2025 with approximately $20 billion in cash and marketable securities, and $48 billion in debt [30] - A net interest expense of $300 million to $400 million is expected for 2026 [33] - The effective tax rate is projected to be between 17.5% and 18.5% for 2026 [34] Q&A Session Summary Question: Overview of growth prospects and key levers for double-digit growth - Management highlighted the strength of the portfolio and pipeline, focusing on oncology, immunology, and MedTech as key growth areas [40][41] Question: MedTech market dynamics and growth expectations - Management does not expect the loss of ACA subsidies to materially impact MedTech performance, with a focus on clinical capacity driving growth [48] Question: Margin progression and relationship to top-line growth - Management indicated that margin improvements will align with sales growth, with expectations for at least 50 basis points of improvement in 2026 [55] Question: Vision care market health and performance - Management noted strong underlying demand in the contact lens category, with robust growth driven by new product launches [58][59]

Core Insights - The medical technology (medtech) sales for 2025 are projected to reach $33.79 billion, reflecting a year-over-year growth of 6.1% [1] - The cardiovascular segment of Johnson & Johnson (J&J) is a significant driver of this growth, with sales totaling $8.93 billion and a year-over-year increase of 15.8% [1][4] - The orthopedic segment, in contrast, has shown minimal growth of 1.1% year over year [1] Group 1: Cardiovascular Business Performance - J&J's cardiovascular business, which includes units like Abiomed and Shockwave Medical, experienced double-digit growth year over year, making it the only medtech unit to achieve such growth [2] - The strong performance in the cardiovascular segment is part of J&J's strategy to focus on higher growth markets, leading to the decision to separate from its orthopedics segment [2] Group 2: Portfolio Transformation and Future Outlook - Tim Schmid, J&J's worldwide chairman of medtech, indicated that the transformation of the portfolio is effective, with nearly 50% of J&J's medtech assets now in higher growth markets, up from 20% in 2018 [3] - This percentage is expected to exceed 70% following the orthopedic separation, suggesting a positive outlook for the company's future growth [3] Group 3: Electrophysiology Segment - J&J's electrophysiology unit reported a year-over-year sales growth of 7%, totaling $5.63 billion, although growth has slowed in the fourth quarter compared to earlier quarters [5] - The Varipulse PFA system has been utilized in nearly 40,000 patients with atrial fibrillation, indicating significant adoption, and J&J plans to release a new PFA catheter annually through the end of the decade [6] - Schmid emphasized that electrophysiology remains a priority for J&J, as the company aims to remain competitive in the face of increasing competition, particularly in pulsed field ablation (PFA) [6]

Core Viewpoint - Modiv Industrial, Inc. is focused on increasing shareholder value through higher dividends and share prices, with a commitment to improving Adjusted Funds from Operations (AFFO) as a key metric for financial health [2][3][8] Financial Performance - The company has achieved over $2 million in additional AFFO through contractual rent increases, expense reductions, and asset recycling, leading to a $0.03 increase in the annual dividend to $1.20 per share [3][22] - The current monthly distribution of $0.10 per share reflects an annualized yield of 8.15% based on a closing price of $14.72 [22] Portfolio Transformation - Modiv's portfolio transformation began over five years ago, reducing non-industrial exposure from approximately 50% office and 40% industrial to a more focused industrial portfolio [5] - Recent sales include an office asset in Issaquah, WA, and a vacant asset in St. Paul, MN, for $4.1 million, with plans to sell additional office and legacy industrial assets [5][6] - The company aims to recycle a minimum of twelve assets within 18 to 24 months to maximize AFFO and improve its balance sheet [6][10] Strategic Focus - The company will maintain a disciplined approach to expense control and contractual rent increases while accelerating asset recycling to enhance shareholder value [4][10] - Modiv has opted not to raise capital at current low share prices to avoid dilutive equity, focusing instead on internal growth and maximizing existing resources [9][11] Leadership Changes - The Chief Financial Officer, Ray Pacini, will resign after the filing of the 2025 10-K, transitioning to an Executive Vice President role, with John Raney appointed as the new CFO [19][20] Future Outlook - The company has secured an extension on its term loan maturity to July 2028, providing time to complete its transformation and refinance debt [15] - Plans to retire preferred equity using asset recycling proceeds are expected to further enhance AFFO per share and strengthen the balance sheet [16][17]

Core Thesis - Driven Brands Holdings Inc. (DRVN) is positioned for significant upside following a strategic portfolio transformation, particularly after divesting its U.S. car wash business, which has allowed the company to focus on high-margin maintenance and repair services [2][4][5] Financial Performance - As of January 12th, DRVN's share price was $15.70, with trailing and forward P/E ratios of 114.64 and 11.25 respectively, indicating a potential undervaluation compared to peers [1] - The divestiture has simplified operations and redirected capital towards the rapidly growing Take 5 Oil Change brand, which is gaining market share in the oil change sector [3] Operational Strategy - The company’s mature franchise brands, including Meineke, Maaco, and CARSTAR, provide stable, recurring revenue from non-discretionary maintenance services, supporting growth investments [3] - The balance sheet reset has improved leverage and cash conversion, positioning DRVN for multiple re-ratings and potential asset sales that could further enhance shareholder value [4][5] Growth Potential - Roark Capital, the majority owner with a 61% stake, is motivated to realize value after a long-term hold, aligning interests towards value creation [5] - The accelerating growth of Take 5 and a more resilient portfolio mix suggest that DRVN is trading at a discount to peers, with a price target of approximately $29.50, representing over 100% upside from current levels [5]

Group 1: Quantum Computing Sector - Quantum computing emerged as a significant investment narrative in 2025, with investors focusing on specialized stocks like IonQ, which experienced substantial price fluctuations [1] - Honeywell International, valued at $125 billion, is also involved in the quantum computing sector, despite being perceived primarily as a traditional industrial company [1][3] - Honeywell owns a majority stake in Quantinuum, a leading firm in quantum computing technology, which has a notable efficiency advantage by requiring only two physical qubits to create one logical qubit [3][5] Group 2: Honeywell's Business Transformation - Honeywell is undergoing a comprehensive portfolio transformation aimed at unlocking shareholder value as it prepares for 2026 [6] - The company plans to split into three distinct entities, with the Advanced Materials division recently rebranded as Solstice Advanced Materials [7] - The Aerospace division, post-spin-off, is expected to become one of the largest pure-play aerospace suppliers, boasting a $39 billion backlog and a book-to-bill ratio of 1.2, indicating strong demand [8]

Core Insights - Park Hotels & Resorts Inc. has made significant progress in its strategic priority to reshape its portfolio by divesting underperforming Non-Core hotels, with eight Non-Core hotels expected to generate approximately $198 million in gross proceeds at an average multiple of nearly 43x [4][6] - The company anticipates accelerating its Non-Core disposition strategy over the next 12 months, aiming to own one of the highest quality hotel portfolios in the sector, with an expected Comparable RevPAR of $218 [4] - Year-to-date, the company has sold or entered into agreements for five Non-Core hotels, with closed transactions including the sale of the 316-room Hyatt Centric Fisherman's Wharf and a joint venture interest in the 559-room Capital Hilton DC [6] Operational Highlights - The estimated 2025 average RevPAR and Adjusted Hotel EBITDA margin for the eight Non-Core hotels is projected to be $124 and 7%, respectively [6] - Preliminary November Comparable RevPAR increased approximately 2%, driven by strong results in Hawaii, New York, Denver, and Orlando, with increases of approximately 19%, 10%, 8%, and 6% respectively [6] - The Hilton Hawaiian Village Waikiki Beach Resort hotel in Honolulu reported significant RevPAR increases of 20% and 26% in October and November, contributing approximately 300 basis points to the portfolio's Comparable RevPAR growth [6] Company Overview - Park Hotels & Resorts is one of the largest publicly-traded lodging REITs, with a diverse portfolio of 37 premium-branded hotels and resorts, totaling approximately 24,000 rooms located primarily in prime city center and resort locations [9]

Core Thesis - Crane Company has undergone a significant transformation by focusing on high-return businesses and shedding non-core assets, leading to a balanced portfolio in aerospace & defense and process flow technologies [2][3] Financial Performance - The company has achieved over 20% organic EPS growth, driven by value-based pricing, strong aerospace market conditions, and disciplined capital allocation [3] - Management has maintained a net leverage of just 1x while achieving high returns on invested capital [3] - Recent acquisitions have resulted in 17-18% revenue growth and 48-60% EBITDA expansion within the first year, including a major acquisition for $1.1 billion expected to be at least 10% EPS accretive over several years [3] Market Position and Growth - Crane Company operates in high-margin, mission-critical sectors with leading market positions, experiencing organic growth rates of 12-13% in aerospace & defense and 3-5% in process flow technologies [3] - The company is well-positioned for 15-20% internal rates of return (IRRs) over the next several years, with potential for further upside through strategic separation or acquisition [4] Valuation and Investment Appeal - Trading at a 2026 free cash flow yield of over 4% and a P/E ratio of 24x, compared to peer averages of 3.5% FCF yield and 36x P/E, Crane Company presents compelling risk-adjusted returns [4] - The combination of disciplined execution, financial flexibility, and strategic options makes Crane Company an attractive investment opportunity with both near-term and long-term upside [4]