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HAEMONETICS CORP (HAE)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 delivered a clean beat on revenue and adjusted EPS: revenue $321.4M (-4.4% YoY) vs consensus ~$304.6M; adjusted EPS $1.10 (+7.8% YoY) vs consensus ~$1.02. GAAP diluted EPS was $0.70; adjusted gross margin expanded to 60.8% (+550 bps YoY). The company reaffirmed full-year FY26 guidance (Adjusted EPS $4.70–$5.00; adjusted operating margin 26–27%; FCF $160–$200M). *
  • Plasma showed strong organic ex‑CSL growth (+29% YoY) aided by share gains and a one‑time software license renegotiation; Hospital grew 4% with Hemostasis Management strong (+22% in the U.S.). Blood Center declined as expected on Whole Blood divestiture.
  • Margin trajectory remains a key positive: adjusted gross margin 60.8% (+550 bps YoY), adjusted operating margin 24.1% (+300 bps YoY); CFO flagged a 210 bps one‑time gross margin benefit from the plasma software agreement, with mix and price driving sustained margin expansion.
  • Management catalysts: plasma share conversions and price benefits, continued TEG adoption, and execution improvements in Vascular Closure. Guidance maintained despite portfolio transitions ($52M Q1 headwind: ~$35M CSL disposables and ~$17M Whole Blood).

What Went Well and What Went Wrong

What Went Well

  • Plasma leadership reinforced: “Our plasma franchise is stronger than it has ever been… larger, faster growing, increasingly more profitable and more diversified,” with ~80% U.S. DMS software share supported by NexLink integration.
  • Hospital momentum: Hemostasis Management delivered 22% growth overall and 27% in the U.S., driven by TEG 6s adoption and the heparinase neutralization cartridge; Hospital revenue was $139.7M (+4% YoY).
  • Margin expansion and disciplined execution: adjusted gross margin 60.8% (+550 bps YoY); adjusted operating margin 24.1% (+300 bps YoY). “We are reaffirming our fiscal 2026 adjusted operating margin guidance of 26% to 27%.”

What Went Wrong

  • Interventional Technologies softness: revenue declined ~7% YoY, with temporary pressures in esophageal cooling and OEM destocking; Vascular Closure grew ~3% (below market), with legacy products showing continued softness.
  • Blood Center down sharply YoY: revenue $51.8M (-21.7%) due to Whole Blood divestiture; organic growth +4.4% masks reported decline.
  • Higher tax rate impacted GAAP EPS: Q1 FY26 GAAP tax rate 25% vs 18% prior year; GAAP diluted EPS $0.70 vs $0.74 in Q1 FY25.

Financial Results

Consolidated Performance vs prior quarters and estimates

MetricQ3 FY25Q4 FY25Q1 FY26Q1 FY26 Consensus
Revenue ($USD Millions)$348.5 $330.6 $321.4 $304.6*
Diluted EPS (GAAP) ($)$0.74 $1.17 $0.70 —
Adjusted EPS ($)$1.19 $1.24 $1.10 $1.02*
Gross Margin % (GAAP)55.5% 58.4% 59.8% —
Adjusted Gross Margin %57.7% 60.2% 60.8% —
Operating Margin % (GAAP)16.9% 21.6% 16.8% —
Adjusted Operating Margin %25.7% 24.9% 24.1% —
Net Income ($USD Millions)$37.5 $58.0 $34.0 —

Values retrieved from S&P Global for consensus estimates.*

Segment Breakdown (reported)

Business Unit ($USD Millions)Q3 FY25Q4 FY25Q1 FY26
Plasma$134.2 (-9.1% YoY) $126.7 (-9.1% YoY) $129.9 (-4.4% YoY)
Blood Center$70.3 (-2.8% YoY) $56.0 (-22.2% YoY) $51.8 (-21.7% YoY)
Hospital$144.0 (+23.9% YoY) $147.9 (+12.2% YoY) $139.7 (+4.2% YoY)
Total Net Revenue$348.5 (+3.7% YoY) $330.6 (-3.7% YoY) $321.4 (-4.4% YoY)

KPIs

KPIQ1 FY26
Organic revenue growth %+0.5%
Organic ex‑CSL revenue growth %+12.9%
Adjusted operating income ($M)$77.6
Cash from Operations ($M)$17.4
Free Cash Flow ($M)$2.5
Cash and Equivalents ($M)$292.9

Guidance Changes

MetricPeriodPrevious Guidance (as of Q4 FY25)Current Guidance (Q1 FY26)Change
Plasma reported revenueFY26(7–10)% (7–10)% Maintained
Plasma organic revenueFY26(7–10)% (7–10)% Maintained
Plasma organic ex‑CSLFY2611–14% 11–14% Maintained
Blood Center reported revenueFY26(23–26)% (23–26)% Maintained
Blood Center organic revenueFY26(4–6)% (4–6)% Maintained
Hospital reported revenueFY268–11% 8–11% Maintained
Hospital organic revenueFY268–11% 8–11% Maintained
Total Company reported revenueFY26(3–6)% (3–6)% Maintained
Total Company organic revenueFY26(2)–1% (2)–1% Maintained
Total Company organic ex‑CSLFY266–9% 6–9% Maintained
Adjusted operating marginFY2626–27% 26–27% Maintained
Adjusted EPSFY26$4.70–$5.00 $4.70–$5.00 Maintained
Free Cash FlowFY26$160M–$200M $160M–$200M Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY25 and Q4 FY25)Current Period (Q1 FY26)Trend
Plasma share gains & pricingContinued price benefits; plasma declined YoY but base technology upgrades ongoing . FY26 guide set at reported (7–10)% and organic ex‑CSL 11–14% .Organic ex‑CSL +29%; one‑time software license renegotiation ~half of growth; share gains ahead of schedule; U.S. collections flat, potential modest back‑half recovery .Improving execution; steady to better outlook ex‑CSL.
Hospital – TEG adoptionHospital strong; Interventional Tech benefited from acquisitions; FY26 hospital guide 8–11% .Hemostasis Mgmt +22% overall, +27% U.S.; HN cartridge is “watershed,” conversions from TEG 5k to 6s ongoing .Accelerating within BMT; sustained growth driver.
Interventional Technologies & Vascular ClosureInterventional Tech strong in Q3 FY25 due to acquired lines; execution focus implied .VC growth ~3%; softness executional not structural; leadership hires, bifurcated field force, strategic accounts capability .Near-term headwind; management plan to rebuild momentum.
Margin expansionRecord margins in FY25; adjusted GM 60.2% Q4; operating margin guidance 26–27% for FY26 .Adjusted GM 60.8%; 210 bps one‑time software benefit; margins to skew back‑half; EPS cadence ~45% H1/55% H2 .Positive trajectory; stronger H2.
Cash generation & leverageFY25 FCF $145M; cash $306.8M; new $500M buyback authorization .Q1 FCF $2.5M (seasonally low); reaffirm FY26 FCF $160–$200M; net leverage 2.53x; $750M revolver capacity .Strengthening through year; ample liquidity.
M&A/Capital allocation$150M ASR completed; new $500M authorization .M&A “off the table” near term; focus on execution; option with VIVUSHOR for potential structural heart product; capital deployed to retire 2026 converts .Execution-first; selective optionality only.

Management Commentary

  • “We reported revenue of $321,000,000 down 4% due to the anticipated $52,000,000 impact from portfolio transitions, but up 13% organically ex CSL.”
  • “Our plasma franchise is stronger than it has ever been… larger, faster growing, increasingly more profitable and more diversified.”
  • “Hemostasis management… delivered 22% growth overall and 27% growth in the U.S.”
  • “We are reaffirming our fiscal 2026 adjusted operating margin guidance of 26% to 27%.”
  • On Vascular Closure: “We view it as temporary, we view it as executional, we intend to solve it… we expect to regain momentum in 2026.”

Q&A Highlights

  • Plasma drivers and contribution: ~half of 29% organic ex‑CSL growth from the renegotiated software agreement; solidifies ~80% U.S. DMS share; ongoing price and share gains contracted.
  • Margin cadence: 210 bps gross margin benefit from software in Q1; margins to hold near ~60% GM; EPS cadence ~45% front‑half / 55% back‑half.
  • Vascular Closure dynamics: MVP/MVP XL grew ~6%; below-market growth vs EP access site growth ~8.5%; executional fixes underway (leadership, bifurcated teams, strategic accounts, sales enablement).
  • TEG runway: HN cartridge impact in “early innings”; ~50% conversion of TEG 5k to TEG 6s; U.S. ~70% of TEG performance; EMEA HN cartridge pending regulatory release.
  • Capital allocation and M&A: focus on execution; consider exercising option with VIVUSHOR for PertuCl Elite; plan to retire remaining ~$300M 2026 converts at maturity.

Estimates Context

  • Q1 FY26 vs consensus: Revenue $321.4M vs ~$304.6M (beat by ~$16.8M); Adjusted EPS $1.10 vs ~$1.02 (beat by $0.08). EBITDA roughly in line ($93.7M). Values retrieved from S&P Global.* *
  • Implications: Street models likely raise FY26 margin assumptions given +550 bps adjusted GM and stable price/mix tailwinds; Interventional Tech execution may temper Hospital uplift near term until trends improve.

Key Takeaways for Investors

  • Clear beat on revenue and adjusted EPS with strong margin expansion; guidance reaffirmed—supports estimate revisions higher on profitability. *
  • Plasma ex‑CSL growth (+29%) and software agreement strengthen leadership; expect continued share conversions to drive FY26 plasma organic ex‑CSL 11–14%.
  • Hospital resilience via TEG/Hemostasis offsetting Interventional softness; VC execution plan is the near‑term swing factor for sentiment.
  • Margin trajectory intact with H2 skew; watch Q2→Q3 operating margin step‑up and GM sustainability post one‑time software benefit.
  • FCF to build through FY26 (reaffirmed $160–$200M); ample liquidity and planned convert retirement reduce balance sheet risk.
  • Tactical: Positive setup on margin/TEG/plasma themes; any evidence of VC reacceleration or EMEA HN cartridge clearance could be upside catalysts.
  • Risk checks: Blood Center declines (divestiture), higher tax rate, executional competition in VC; monitor cadence and market dynamics in U.S. plasma collections.

Values retrieved from S&P Global for consensus estimates.*