Haemonetics Corporation (HAE) Q3 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights strong financial performance with increased EPS and free cash flow, alongside positive guidance revisions. The Plasma business shows robust growth, and the Vivasure acquisition is expected to enhance market leadership. Despite some concerns about margin declines and IVT performance, management's confidence in future growth and strategic initiatives, including share buybacks and acquisitions, supports a positive sentiment. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
Key Financial Performance
Third quarter revenue $339 million, bringing year-to-date revenue to $988 million. Reported revenue reflects the $153 million impact of last year's portfolio transitions. Organic growth ex-CSL was 8% in the quarter and 10% year-to-date.
Adjusted earnings per share Increased 10% in the quarter and 11% year-to-date to $1.31 and $3.67 per share, respectively. This underscores the quality and durability of earnings.
Hospital revenue $144 million in the third quarter and $429 million year-to-date, down 1% in the quarter and up 2% year-to-date organically. Blood Management Technologies grew 8% in the quarter and 11% year-to-date, driven by hemostasis management and TEG 6s disposable sales.
Interventional Technology revenue Declined 12% in the quarter and 8% year-to-date, primarily due to softness in esophageal cooling and OEM-related headwinds in sensor-guided technologies.
Plasma revenue $139 million, up 3% on a reported basis. Organic growth excluding CSL was 20% in the quarter and 22% year-to-date, driven by share gains, collection volume, and innovation benefits.
Blood Center revenue $57 million in the quarter and $165 million year-to-date, growing 3% in the quarter and 4% year-to-date organically, driven by international Plasma demand and market leadership.
Adjusted gross margin 60.2% in the third quarter and 60.5% year-to-date, representing increases of 250 and 390 basis points, respectively, driven by NexSys with Persona Technology and divestitures.
Adjusted operating expenses $115 million in the third quarter, up 3%, reflecting performance-based compensation adjustments and R&D investments. Year-to-date expenses were $343 million, slightly above $339 million last year.
Adjusted operating income Flat at $89 million in the third quarter, with a 60 basis point margin expansion to 26.3%. Year-to-date, income increased 4% to $254 million, with a 200 basis point margin expansion to 25.7%.
Adjusted net income Increased 2% to $61 million in the third quarter and 3% year-to-date to $175 million.
Adjusted EPS Rose 10% to $1.31 in the quarter and 11% year-to-date to $3.67, benefiting from share buybacks and FX.
Free cash flow $74 million in the third quarter and $165 million year-to-date, a threefold increase versus the prior year, driven by normalized capital intensity and disciplined working capital management.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
NexSys and TEG: Delivered outsized growth driven by sustained share gains, innovation-based pricing, and durable end market demand.
TEG 6s disposable sales: Rapid adoption and account conversions with the global heparanase neutralization cartridge, strengthening global leadership.
MVP XL and PerQseal Elite: Anticipated MVP XL label expansion and U.S. launch of PerQseal Elite expected to drive growth in FY '27.
Plasma market: Franchise returned to growth with revenue of $139 million, up 3% on a reported basis. Organic growth ex-CSL was 20% in the quarter and 22% year-to-date.
Blood Center market: Revenue was $57 million in the quarter, growing 3% in the quarter and 4% year-to-date organically, driven by international Plasma demand.
Adjusted gross margin: Increased to 60.2% in the quarter and 60.5% year-to-date, driven by NexSys with Persona Technology and divestiture of the whole blood business.
Free cash flow: Generated $74 million in the quarter and $165 million year-to-date, leading to raised guidance of $200 million to $220 million for FY '26.
Portfolio transformation: Expanded adjusted operating margins by 770 basis points over 4 years, including 200 basis points year-to-date, reflecting a structurally improved business model.
Vivasure acquisition: Invested $61 million to strengthen the Interventional Technologies portfolio.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Interventional Technologies Revenue Decline: Interventional Technology revenue declined 12% in the quarter and 8% year-to-date, driven by softness in esophageal cooling, OEM-related headwinds in sensor-guided technologies, and procedural dynamics impacting growth.
Vascular Closure Revenue Decline: Vascular closure revenue declined 4% in the quarter, influenced by prior share loss, order timing in large accounts, and shifts in procedural dynamics.
Hospital Business Growth Challenges: Hospital business growth is expected at the low end of the prior guidance range due to softness in Interventional Technologies and lower-growth coronary and peripheral procedures.
Portfolio Rationalization Impact: Ongoing portfolio rationalization continues to impact Blood Center revenue, though partially offset by international Plasma demand.
Vivasure Acquisition Dilution: The Vivasure acquisition is expected to cause modest near-term dilution as investments are made ahead of a planned commercial launch in fiscal 2027.
Interest and Tax Headwinds: Incremental interest expense and a step-up in the adjusted income tax rate are expected to be headwinds in the fourth quarter.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Full Year Revenue Guidance: The company has raised its full-year revenue guidance, now expecting a decline of 1% to 3%, an improvement from the previous guidance of a 1% to 4% decline. Organic revenue guidance ex-CSL has been increased to a range of 8% to 10%, up from 7% to 10%.
Hospital Business Growth: The hospital business is now expected to deliver reported and organic growth of approximately 4%, at the low end of the prior 4% to 7% range.
Plasma Business Growth: Plasma organic growth excluding CSL is projected at 17% to 19%, up from the previous 14% to 17%. The company anticipates upcoming innovation in FY '27 to further strengthen its competitive advantage.
Blood Center Revenue Guidance: Full-year Blood Center reported revenue guidance has been raised to a decline of 16% to 18%, from 17% to 19%. Organic growth is now expected to be 1% to 3%, up from flat.
Adjusted Operating Margin: The company expects adjusted operating margins for the full year to be approximately 26% to 27%, supported by margin tailwinds across the portfolio.
Adjusted EPS Guidance: Adjusted EPS for fiscal '26 is now expected to be in the range of $4.90 to $5.00 per share, reflecting strong performance and the acquisition of Vivasure.
Free Cash Flow Guidance: Free cash flow guidance for fiscal '26 has been raised to $200 million to $220 million, up from $170 million to $210 million. Full-year free cash flow conversion is expected to exceed 80%.
Interventional Technologies Outlook: The company expects the Interventional Technologies segment to return to growth in FY '27, supported by the anticipated MVP XL label expansion and the U.S. launch of PerQseal Elite.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Buyback: Haemonetics repurchased approximately 360,000 shares of its stock for $25 million subsequent to the third quarter. Earlier in the fiscal year, the company deployed $75 million towards share repurchases.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What factors contributed to the strong performance in the Plasma business this quarter?
A:The strong performance in the Plasma business was attributed to a combination of share gains, price benefits from new technology, and collection volume growth. Share gains came from both direct competitors and customers gaining share from their competitors using the company's technology. Collection volume grew double digits in both the U.S. and internationally.
Q:What is the outlook for Plasma in fiscal year '27?
A:Management is confident in Plasma's ability to contribute to overall growth. Early discussions with customers indicate enthusiasm for the environment, including end market demand and collections growth. Detailed guidance for FY '27 will be provided in May.
Q:Why did adjusted operating margins decline sequentially this quarter?
A:The decline in adjusted operating margins was due to incremental expenses, a slower hospital business, and performance-based compensation increments. Despite this, Plasma's strong performance offset some of the impact.
Q:What is the long-term outlook for margin expansion?
A:Management expects smaller increments in margin improvement going forward, with operating margin improvements in the range of 50 to 100 basis points. The company remains focused on disciplined expense management and leveraging strong-performing segments like Plasma.
Q:What is the status of the IVT business and its return to growth?
A:The IVT business experienced a 12% decline this quarter, with 70% of the decline attributed to esophageal cooling and OEM agreement leveling. Management is confident in the strategy and team to return the business to growth in FY '27. The MVP XL label expansion is expected to play a significant role in recovery.
Q:What is the significance of the Vivasure acquisition?
A:The Vivasure acquisition and its PerQseal Elite product are expected to extend leadership in vascular closure, targeting a $300 million addressable market. The product is anticipated to launch in 2027, with a stepwise approach to ensure long-term success.
Q:How does the company plan to deploy capital?
A:The company prioritizes organic growth, debt reduction, and share buybacks in the near term. Longer-term plans include additional M&A opportunities like Vivasure, contingent on restoring IVT execution.
Q:What is the outlook for Plasma collection market growth?
A:Management believes the Plasma collection market is in a growth phase, driven by strong end market demand for immunoglobulin-based therapies. They are cautious about including volume growth in guidance but remain optimistic about the market's trajectory.
Q:What is the impact of PFA on the vascular closure market?
A:The adoption of PFA has disrupted the vascular closure market, affecting access site numbers and sizing. However, management expects the market to stabilize and return to mid-teens growth rates as PFA adoption levels out.
Q:What is the status of the SavvyWire product?
A:The SavvyWire product faced headwinds due to OEM agreement leveling but is expected to align with the growth of the underlying pump market. The structural heart segment of the product shows promise for driving growth in FY '27.
Q:What is the outlook for the Blood Center business?
A:The Plasma apheresis segment of the Blood Center business is expected to drive growth, while the platelet and red cell apheresis segment remains stagnant. Management will evaluate the business's long-term growth potential before providing FY '27 guidance.
Q:What is driving the bullish forecast for the hospital segment in fiscal Q4?
A:The bullish forecast is driven by strong performance in blood management technologies, particularly TEG, and the beginning of stabilization in the IVT business. Investments in competitive territories and corporate accounts are also expected to contribute.
Q:What progress has been made in addressing issues in vascular closure accounts?
A:Management has strengthened the commercial team and corporate accounts presence, leading to improved execution and win rates. They are optimistic about returning IVT to growth, particularly in vascular closure.
Q:Review of Unclear Management Responses
A:Management avoided providing specific guidance on Plasma collection volume growth for FY '27, citing a focus on factors they can directly control. They also did not provide a clear timeline for the MVP XL label expansion or detailed financial aspects of the Vivasure acquisition.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Blood Center
CSL date
Cash
Interventional Technologies
MVP
NexSys
TEG
Technology
Vivasure
acquisition
adoption
blood
cash flow
date increase
date margin
date result
date share
decline
divestiture
ex CSL
flow cash
flow conversion
flow date
headwind
income date
indication
item
launch
portfolio
product
share date
share gain
softness
tax rate
technology
transition
HAE Transcript
Haemonetics Corporation (HAE) Presents at Goldman Sachs 47th Annual Global Healthcare Conference 2026 Transcript
Neutral6-8
Haemonetics Corporation (HAE) Presents at Bank of America Global Healthcare Conference 2026 Transcript
Neutral5-12
Haemonetics Corporation (HAE) Q4 2026 Earnings Call Transcript
Positive5-8
The earnings call summary indicates positive sentiment with raised revenue guidance, improved organic growth projections, and an increase in adjusted EPS. Despite a slight decline in Q4 operating margins, the full-year margin improved. The Q&A section highlighted strong plasma market growth and potential upside from Persona PLUS. While there are concerns over tariffs and plasma growth, the overall outlook remains optimistic. Given the market cap of approximately $4.2 billion, the stock price is likely to react positively, falling within the 2% to 8% range over the next two weeks.
Haemonetics Corporation (HAE) Q3 2026 Earnings Call Transcript
Positive2-5
The earnings call highlights strong financial performance with increased EPS and free cash flow, alongside positive guidance revisions. The Plasma business shows robust growth, and the Vivasure acquisition is expected to enhance market leadership. Despite some concerns about margin declines and IVT performance, management's confidence in future growth and strategic initiatives, including share buybacks and acquisitions, supports a positive sentiment. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
HAE Slides
HAE Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
