Haemonetics Corporation (HAE) Q4 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
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.
Key Financial Performance
Q4 2026 Revenue $346 million, up 5% reported and 9% organic ex-CSL. Growth driven by plasma and TEG momentum, margin expansion, and leadership in end markets.
Adjusted EPS (Q4 2026) $1.29, up 4% year-over-year. Reflects improved adjusted earnings and higher adjusted margins.
Full Fiscal Year 2026 Revenue $1.3 billion. Includes $153 million of nonrecurring revenue from portfolio transitions.
Adjusted EPS (Full Fiscal Year 2026) $4.96 per share, up 9% year-over-year. Driven by disciplined capital allocation and offsetting portfolio transitions.
Hospital Revenue (Q4 2026) $160 million, up 8% reported and 7% organic. Growth supported by blood management technologies.
Hospital Revenue (Full Fiscal Year 2026) $588 million, up 4% reported and organic. Growth driven by blood management technologies.
Blood Management Technologies Revenue (Q4 2026) Growth of 21% in the quarter and 14% for the year. Driven by TEG 6s, higher disposable utilization, and European momentum.
Interventional Technologies Revenue (Q4 2026) Declined 10% in the quarter and 9% for the full year. Decline due to share loss in EP and evolving procedure dynamics.
Plasma Revenue (Q4 2026) $130 million, up 3% reported and 13% organic ex-CSL. Growth driven by category leadership and innovation.
Plasma Revenue (Full Fiscal Year 2026) $524 million, down 2% reported but up 20% organic ex-CSL. Growth supported by global plasma collections and share gains.
Blood Center Revenue (Q4 2026) $56 million, up 1% reported and 6% organic. Growth driven by plasma demand and U.S. red cell collections.
Blood Center Revenue (Full Fiscal Year 2026) $221 million, down 15% reported but up 5% organic. Decline due to whole blood divestiture.
Adjusted Gross Margin (Q4 2026) 59.7%, down 50 basis points year-over-year. Decline due to absence of prior year CSL shortfall payment and tariffs.
Adjusted Gross Margin (Full Fiscal Year 2026) 60.3%, up 280 basis points. Growth driven by portfolio transformation and strong plasma and blood management technologies.
Adjusted Operating Expenses (Q4 2026) $122 million, up 5% year-over-year. Increase due to Vivasure acquisition, tariffs, and higher performance-based compensation.
Adjusted Operating Expenses (Full Fiscal Year 2026) $465 million, up 2%. Increase driven by R&D investments, Vivasure acquisition, and compensation.
Adjusted Operating Margin (Q4 2026) 24.4%, down 50 basis points year-over-year. Decline due to gross margin dynamics and higher expenses.
Adjusted Operating Margin (Full Fiscal Year 2026) 25.4%, up 140 basis points. Growth driven by portfolio transformation and operating leverage.
Adjusted Tax Rate (Q4 2026) 24.8%, up from 22.2% in the prior year. Increase due to higher tax expenses.
Adjusted Tax Rate (Full Fiscal Year 2026) 24.8%, up from 23.2% in the prior year. Increase due to higher tax expenses.
Free Cash Flow (Q4 2026) $45 million, down year-over-year due to timing of income taxes and accounts receivable.
Free Cash Flow (Full Fiscal Year 2026) $210 million, up $65 million year-over-year. Growth driven by better working capital management and less CapEx.
Cash Balance (End of Fiscal Year 2026) $245 million. Reflects share repurchases, Vivasure acquisition, and funding organic growth.
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Operating Highlights
Persona PLUS: Received U.S. FDA clearance, enhances percent yield by mid-single digits, supported by a large randomized clinical trial of over 30,000 donations. Multiple adoptions underway.
VASCADE MVP XL: Expanded indication in the U.S., submission to expand the label in Japan.
PerQseal Elite: Anticipated release, currently undergoing FDA review.
TEG 6s: Sustained strength with higher disposable utilization, continued capital placements, and strong European momentum following the HN cartridge launch.
Plasma collections: Global expansion with high single-digit growth in U.S. plasma collections and double-digit growth in Europe. Supported by resilient immunoglobulin demand.
Blood management technologies: Delivered record quarter with 21% revenue growth in Q4 and 14% for the year. Strong European momentum and adoption of integrated solutions in transfusion management.
Adjusted gross margin: Expanded 280 basis points to 60.3% for the full year, driven by portfolio transformation and strong volume growth in plasma and blood management technologies.
Free cash flow: Generated $210 million for the full year, reflecting better working capital management and less CapEx.
Adjusted operating margin: Expanded 140 basis points to 25.4% for the year, reflecting structural improvement from portfolio transformation.
Portfolio transformation: Divested whole blood product line and exited certain liquid solutions products to focus on higher-margin markets.
Innovation agenda: Advanced with acquisitions like Vivasure and product developments such as Persona PLUS and PerQseal Elite.
Operational excellence: Scaled and automated manufacturing and supply chain capabilities, progressed ERP digital transformation, and built commercial and clinical infrastructure.
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Risk or Challenges
Interventional Technologies Revenue Decline: Revenue in interventional technologies declined 10% in the quarter and 9% for the full year, with vascular closure down 8%. This was attributed to share loss in the first quarter of fiscal 2026 and evolving procedure dynamics, including the impact of PFA on esophageal cooling.
OEM-Related Softness in Sensor-Guided Technologies: The company faced softness in sensor-guided technologies, which contributed to headwinds in fiscal 2026. This issue has been partially mitigated but remains a challenge.
Tariffs and Macro Cost Headwinds: Tariffs enacted earlier in the year and other macro cost headwinds negatively impacted adjusted gross margins and operating expenses.
Portfolio Rationalization in Blood Center: Ongoing portfolio rationalization efforts in the blood center segment are expected to remain a near-term headwind, with revenue projected to decline in the mid-single digits.
Higher Costs in Benefits Plan and Compensation: Higher-than-expected costs from the self-insured portion of the benefits plan and increased performance-based compensation added to operating expenses.
Regulatory and Product Development Risks: The fiscal year 2027 guidance excludes contributions from PerQseal Elite, which is still undergoing FDA review, indicating potential regulatory and product development risks.
Interest and Tax Increases: Higher interest and tax rates are expected to offset improvements in operating leverage and mix benefits, impacting adjusted EPS growth.
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Guidance & Outlook
Fiscal Year 2027 Revenue Growth: Projected revenue growth of 4% to 7% reported and 3% to 6% organic, adjusted for the extra week in FX.
Hospital Segment Growth: Mid-single-digit growth expected, driven by expansion of TEG 6s installed base and increased HN cartridge utilization in blood management technologies.
Interventional Technologies (IVT): Focus on translating improvements into consistent growth, supported by MVP XL label expansion. Guidance excludes any contribution from PerQseal Elite, currently under FDA review.
Plasma Segment Growth: Mid-single-digit growth outlook based on controllable drivers such as share gains, rollout of Persona PLUS, and modest collection volume growth. Upside potential if collection trends remain strong or adoption accelerates.
Blood Center Segment: Revenue expected to decline in the mid-single digits due to ongoing portfolio rationalization.
Adjusted Operating Margin: Expected to improve by 50 to 100 basis points year-over-year, driven by growth franchises, innovation, and operating leverage.
Adjusted EPS Growth: Expected to grow broadly in line with revenue, with improvements in operating leverage and mix benefits offset by higher interest and tax rates.
Free Cash Flow Conversion: Expected to be approximately 80%, reflecting disciplined working capital management and flexibility for growth investments, deleveraging, and share buybacks.
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Shareholder Return Plan
Share Buyback Program: The company deployed $175 million to repurchase over 3 million shares as part of its balanced capital allocation approach that supports both organic growth and shareholder returns.
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Key Q&A
Q:What were the U.S. collection volume trends for plasma in the quarter, and what is the outlook for FY '27?
A:FY '26 was a record year for plasma with double-digit growth in collection volume in the latter part of the year. For FY '27, the guidance includes 0% to 2% collection volume growth, with potential upside if collection volumes remain strong or Persona PLUS adoption accelerates.
Q:What is the status of the Persona PLUS rollout and its impact on pricing and contracts?
A:Persona PLUS offers an additional 5% yield benefit on top of the 10% from Persona. It has been well-received in the market, and while pricing is not explicitly included in the guidance, it is expected to contribute to mutual benefits and potential upside as contracts are finalized.
Q:What factors impacted Q4 operating margins, and what is the outlook for FY '27?
A:Q4 operating margins were impacted by higher tariffs, increased claims expense for self-insured medical plans, and stepped-up sales and marketing investments. For FY '27, operating margin expansion is expected to be driven by gross margin improvement, operating leverage, and favorable mix shifts, despite higher tariff costs and increased investments.
Q:What is the outlook for the hospital segment and interventional technology trajectory in FY '27?
A:The hospital segment is expected to see a return to growth, driven by vascular closure, SavvyWire, and the potential launch of PerQseal Elite. Investments have been made to position the team for strong performance, and FY '27 is seen as an inflection point for growth.
Q:What is the outlook for free cash flow conversion in FY '27?
A:Free cash flow conversion is expected to be 80% in FY '27, down from 89% in FY '26, primarily due to increased inventory levels and a conservative approach.
Q:What is the outlook for the plasma market, including competition and inventory levels?
A:The plasma market remains strong, with durable growth driven by primary and secondary immune deficiencies. IG therapy remains the standard of care, and competition from FcRn therapies like VYVGART is not expected to significantly impact IG demand. Inventory levels are seen as stable, with no major concerns for FY '27.
Q:What is the pathway to market and potential impact of PerQseal?
A:PerQseal has been submitted to the FDA and is under review. Launch expenses are included in the FY '27 guidance, but no revenue is included. The product is expected to be a meaningful offering for large-bore closure, with a TAM of $300 million.
Q:What are the assumptions for plasma growth in FY '27, and how might Persona PLUS impact collection volumes?
A:The guidance assumes 0% to 2% collection volume growth, with potential upside from Persona PLUS adoption. Previous yield rollouts have shown that higher yields can lead to reduced total collections, but the impact varies by customer.
Q:What is the seasonality and outlook for plasma collections in Q1 FY '27?
A:Q1 is typically the seasonally weakest quarter for plasma collections, but no significant disruptions are expected. The first quarter usually begins to build momentum, with stronger growth in Q2 and Q3.
Q:What is the status of Vivasure and its potential impact on FY '27?
A:Vivasure's PerQseal Elite is expected to launch later in FY '27, with all launch expenses included in the guidance. The product has received positive early signals, and the TAM is estimated at $300 million. The FY '27 guidance does not include any revenue from Vivasure.
Q:Review of Unclear Management Responses
A:Management avoided providing specific timelines for the FDA approval of PerQseal and did not offer detailed explanations for the potential impact of Persona PLUS on overall plasma collection volumes. Additionally, they did not clarify the exact reasons behind the slower plasma growth in Q4 FY '26 or provide a detailed breakdown of the tariff impact on margins.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
EP
FX
IVT
MVP XL
PerQseal Elite
Persona PLUS
TEG
Vivasure acquisition
XL label
adoption
approach
blood center
blood technology
cash flow
collection
dynamic
ex CSL
flow portfolio
fundamental
headwind
income
interest tax
momentum margin
note
plasma blood
plasma demand
portfolio transition
product
quality
tariff
technology PFA
HAE Transcript
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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.
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HAE Report
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