Financial Data and Key Metrics Changes - Second quarter revenue was $327 million, reflecting a 5% reported revenue decline, while year-to-date revenue was $649 million, also down 5% [4] - Adjusted EPS increased 13% in the quarter to $1.27 and 11% year-to-date to $2.36 [16] - Adjusted gross margin reached 60.5% in the second quarter, up 380 basis points year-over-year [12] - Adjusted operating income increased 5% in the second quarter to $87 million, with adjusted operating margin expanding 250 basis points to 26.7% [15] Business Line Data and Key Metrics Changes - Hospital revenue was $146 million in the second quarter, up 5% on a reported basis and 4% organic [5] - Blood management technologies grew 12% in the quarter and 13% year-to-date, driven by hemostasis management [5] - Plasma revenue was $125 million in the quarter, down 10% on a reported basis, but organic revenue grew 19% [8] - Blood center reported revenue declined 18% in the quarter, but organic revenue grew 4% [10] Market Data and Key Metrics Changes - U.S. plasma collections grew in the high single digits, while European collections continued to grow in double digits [9] - The company raised its full-year plasma revenue guidance to a decline of 4%-7% or 14%-17% organic growth excluding CSL [9] - Hospital revenue growth guidance was updated to 4%-7%, reflecting sustained growth in blood management technologies [8] Company Strategy and Development Direction - The company is focused on advancing its portfolio and transformation to sustain momentum beyond its long-range plan [4] - Strategic priorities include meeting debt obligations, returning excess cash to shareholders, and advancing targeted investments in growth products [20] - The company aims to strengthen execution in interventional technologies to accelerate growth and margin expansion beyond FY 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustained robust growth of the plasma therapeutics market, particularly immunoglobulins [9] - The company anticipates continued margin expansion in the second half of the fiscal year [16] - Management highlighted the importance of disciplined execution and a high-performance culture in driving long-term value creation [20] Other Important Information - The company raised its full-year revenue guidance from a reported decline of 3%-6% to a decline of 1%-4% [11] - Free cash flow guidance was raised to $170-$210 million, with a commitment to maintain a free cash flow to adjusted net income ratio in excess of 70% [18] - The company ended the quarter with $296 million in cash and total debt of $1.2 billion [18] Q&A Session Summary Question: What are the assumptions for collections growth in the second half? - Management indicated that the second quarter was driven by share gains, innovation pricing, and collections volume growth, with high single-digit growth in the U.S. and double-digit growth in Europe expected to continue [23][24] Question: Can you provide an update on IVT commercial efforts? - Management noted that hospital business was the largest contributor to margin expansion, with a focus on blood management technologies and actions to regain growth momentum in IVT [26][27] Question: How is the launch of the HN cartridge going in EMEA and Japan? - Management expects the launch to be a significant source of sustainable double-digit growth, although market dynamics differ from the U.S. [54][56] Question: What is the outlook for the Vascade business? - Management expressed confidence in regaining share in the competitive market, with ongoing initiatives to strengthen the sales force and improve market acceptance [40][45] Question: How will share repurchases impact EPS? - Management indicated that share repurchases contributed a few cents to EPS, and they aim to keep dilution in check while being opportunistic with capital deployment [39][71]

Financial Data and Key Metrics Changes - The company reported revenue of $321 million, down 4% due to a $52 million impact from portfolio transitions, but up 13% organically excluding CSL [8][16] - Adjusted EPS grew 8% to $1.10, driven by strong growth in the base business and share buybacks [8][19] - Adjusted gross margin reached 60.8%, up 550 basis points year over year, supported by technology benefits and a favorable product mix [18][19] Business Line Data and Key Metrics Changes - The hospital business generated $140 million in revenue, up 4% reported and organically, with Blood Management Technologies growing 14% [10][12] - Plasma revenue was $130 million, down 4% reported but up 29% organically, driven by technology upgrades and a one-time revenue benefit from a software agreement [12][14] - Interventional technologies declined 7% due to tough comparisons from prior year OEM destocking [11][12] Market Data and Key Metrics Changes - The U.S. plasma collection volume grew in the low single digits, with expectations for modest recovery in the back half of the fiscal year [13][82] - The company maintains an 80% market share in plasma DMS software, reinforcing its competitive position [13][30] Company Strategy and Development Direction - The company is focused on strengthening its core products: plasma, hemostasis management, and vascular closure, which are expected to drive revenue growth and margin expansion [23][24] - Strategic initiatives include leadership additions, organizational realignment, and targeted commercial initiatives to enhance execution in interventional technologies [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, with expectations for low double-digit compounded annual growth in revenue and mid-20s adjusted EPS CAGR [22][23] - The company anticipates stronger cash generation and reaffirmed full-year free cash flow guidance of $160 million to $200 million [21][22] Other Important Information - The company completed $225 million in share buybacks last year and has authorized a new $500 million program for the next three years [75] - The adjusted income tax rate was 24.9% in the quarter, up from 19.9% the previous year, reflecting lower benefits from performance share vestings [19] Q&A Session Summary Question: Can you provide details on the drivers of strong plasma performance? - Management highlighted innovation in pricing and share gains, with half of the 29% growth attributed to a software agreement [28][30] Question: What is the growth rate for MVP and MVP XL in vascular closure? - MVP and MVP XL saw roughly 6% growth, with challenges noted in the legacy Vascade product [34][36] Question: What is the outlook for U.S. plasma collections? - Management indicated a possibility of low single-digit growth in the back half of the year, with ongoing share gains expected [82][84] Question: How is the company addressing increased competition in interventional technologies? - The company is enhancing its sales and marketing efforts, reorganizing teams, and focusing on execution to regain competitiveness [71][72] Question: What is the company's appetite for further M&A? - Management stated that M&A is off the table in the near term, focusing instead on improving existing business performance [76]

Financial Data and Key Metrics Changes - The company reported revenue of $321 million, down 4% due to a $52 million impact from portfolio transitions, but up 13% organically excluding CSL [6][14] - Adjusted EPS grew 8% to $1.01, driven by strong growth in the base business and share buybacks [6][18] - Adjusted gross margin reached 60.8%, up 550 basis points year over year, benefiting from technology and price initiatives [16][18] Business Line Data and Key Metrics Changes - The hospital business generated $140 million in revenue, up 4% reported and organically, with Blood Management Technologies growing 14% [8][11] - Plasma revenue was $130 million, down 4% reported but up 29% organically, driven by technology upgrades and a one-time software agreement [11][12] - Blood center revenue declined 22% to $52 million due to the divestiture of the whole blood business, but organic revenue grew 4% [13][14] Market Data and Key Metrics Changes - The U.S. plasma collection volume growth was in the low single digits, with expectations for a modest recovery in the second half of the fiscal year [12][81] - The vascular closure market is projected to grow in the high single digits, with the company experiencing temporary softness in interventional technologies [46][48] Company Strategy and Development Direction - The company aims for low double-digit compounded annual growth in revenue and mid-20s adjusted EPS CAGR, focusing on three key products: plasma, hemostasis management, and vascular closure [21][22] - A strategic emphasis on cash flow and operational efficiency is in place, with plans to strengthen the interventional technologies franchise through leadership changes and targeted initiatives [23][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting financial objectives, citing strong demand for immunoglobulins and ongoing share gains in the plasma market [22][82] - The company anticipates stronger cash generation and reaffirmed full-year free cash flow guidance of $160 million to $200 million [20][21] Other Important Information - The company is navigating $153 million in planned portfolio transitions while maintaining a focus on core products to drive organic growth [14][21] - The adjusted income tax rate was 24.9% for the quarter, reflecting lower benefits from performance share vestings [18] Q&A Session Summary Question: Can you provide details on the drivers of strong plasma performance? - Management highlighted ongoing price benefits from technology and significant share gains, with half of the 29% growth attributed to a software agreement [25][27][28] Question: What was the growth rate for MVP and MVP XL in vascular closure? - MVP and MVP XL saw roughly 6% growth, with challenges noted in the legacy Vascade product [31][32] Question: What is the outlook for U.S. plasma collections? - Management indicated a possibility of low single-digit growth in the back half of the year, with ongoing productivity gains expected to support this [78][81] Question: How does the company plan to address competition in interventional technologies? - The company is enhancing its sales and marketing efforts, reorganizing teams, and focusing on execution to regain competitiveness [70][72] Question: What is the company's appetite for further M&A? - Management stated that M&A is off the table in the near term, focusing instead on executing current strategies and improving performance [73][75]