Core Insights - Haemonetics reported third-quarter revenue of $339 million, with a year-to-date revenue of $1.1 billion, reflecting a 1% decline in organic revenue for the quarter but a 2% increase year to date, driven by growth in Blood Management Technologies (BMT) and offset by declines in Interventional Technologies (IVT) [1][4][6] Financial Performance - Adjusted earnings per share (EPS) increased by 10% to $1.31 in the quarter and 11% year to date to $3.67, with full-year adjusted EPS guidance raised to $4.90 to $5.00 per share [2][5] - The company raised its fiscal 2026 revenue guidance to a decline of 1% to 3% (previously 1% to 4%) and increased organic revenue guidance excluding CSL to growth of 8% to 10% (previously 7% to 10%) [2][6] Segment Performance - BMT grew 8% in the quarter and 11% year to date, driven by strong sales in hemostasis management and the adoption of new products like the TEG 6s disposable and heparinase neutralization cartridge [7][11] - IVT revenue declined 12% in the quarter and 8% year to date, primarily due to weaknesses in esophageal cooling and OEM-related challenges [6][8] Cash Flow and Margins - The company generated $74 million in free cash flow for the quarter, with year-to-date free cash flow reaching $165 million, and raised full-year free cash flow guidance to $200 million to $220 million [16][17] - Adjusted gross margin was reported at 60.2% for the quarter, reflecting a 250 basis point improvement year over year, attributed to technology adoption and divestitures [14][15] Strategic Initiatives - Haemonetics acquired Vivasure for $61 million, enhancing its vascular closure portfolio and targeting a market estimated at $300 million [19] - The company emphasized ongoing share gains and pricing benefits from new technology rollouts, with collection volumes exceeding seasonal expectations [17]

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]