Sign in
HC

HAEMONETICS CORP (HAE)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY26 delivered a clean beat on both top-line and adjusted EPS: revenue $327.3M vs $311.5M consensus and adjusted EPS $1.27 vs $1.11 consensus; EBITDA was slightly below consensus as mix and investments offset high gross margin expansion . Values marked with * in estimate tables are from S&P Global.
  • Gross margin and adjusted operating margin expanded materially (59.5% GAAP GM; 60.5% adjusted GM; 26.7% adjusted OI margin), driven by pricing, plasma share gains, and favorable mix across segments .
  • Guidance raised for total company revenue decline to (1–4)% from (3–6)% and Organic ex‑CSL to 7–10% from 6–9%; adjusted EPS raised to $4.80–$5.00 and FCF to $170–$210M; hospital growth lowered to 4–7% on IVT softness, while plasma and blood center outlooks improved .
  • Cash generation surged: operating cash flow $111.3M and FCF $88.7M in the quarter, enabling $75M of share repurchases under a $500M program; management highlighted continued leverage to buybacks and debt reduction .

What Went Well and What Went Wrong

  • What Went Well

    • “Disciplined execution and increasingly profitable growth,” with adjusted EPS up 13% YoY to $1.27 and record adjusted operating margin of 26.7% .
    • Plasma strength ex‑CSL: organic revenue +18.6% in Q2 on share gains, innovation pricing and growing collections; management raised plasma outlook and reiterated end-market IG demand strength .
    • Blood Management Technologies continued double-digit growth on TEG adoption and the heparinase neutralization (HN) cartridge launch, now expanding into EMEA and Japan .

  • What Went Wrong

    • Interventional Technologies (IVT) declined 5% reported and 6% YTD, pressured by esophageal cooling amid PFA adoption and softness in legacy VASCADE; hospital guidance trimmed to reflect low/no IVT contribution this year .
    • EBITDA modest miss vs consensus despite gross margin strength, as mix and targeted R&D/commercial investments offset some flow-through .
    • Ongoing competitive intensity and execution challenges in vascular closure require salesforce and account-management upgrades before above-market growth resumes; management remains prudent in near-term guidance .

Financial Results

MetricQ2 2025Q1 2026Q2 2026
Revenue ($USD Millions)$345.5 $321.4 $327.3
GAAP Gross Margin %54.2% 59.8% 59.5%
GAAP Operating Income ($M)$51.7 $53.9 $58.5
GAAP Operating Margin %15.0% 16.8% 17.9%
GAAP Diluted EPS$0.66 $0.70 $0.81
Adjusted Gross Margin %56.7% 60.8% 60.5%
Adjusted Operating Income ($M)$83.5 $77.6 $87.3
Adjusted Operating Margin %24.2% 24.1% 26.7%
Adjusted Diluted EPS$1.12 $1.10 $1.27

Actual vs Consensus (Q2 2026):

MetricConsensus*Actual
Revenue ($USD Millions)$311.5*$327.3
Adjusted EPS ($)$1.11*$1.27
EBITDA ($USD Millions)$98.4*$97.1

Segment Breakdown (Q2 2026 vs Q2 2025):

SegmentRevenue Q2 2025 ($M)Revenue Q2 2026 ($M)Reported Growth YoYOrganic ex‑CSL YoY
Plasma$138.6 $125.4 (9.5)% +18.6%
Blood Center$68.5 $56.5 (17.6)% +3.9%
Interventional Technologies$61.9 $59.1 (4.6)% (5.0)%
Blood Management Technologies$76.5 $86.4 +13.0% +12.2%
Hospital (Total)$138.4 $145.5 +5.1% +4.5%
Total Company$345.5 $327.3 (5.3)% (1.8)%

Key KPIs:

KPIQ2 2026Q2 2025YTD FY26
Cash from Ops ($M)$111.3 $48.8 (implied delta, see table) $128.7
Free Cash Flow ($M)$88.7 $37.0 (implied delta, see table) $91.2
Cash & Equivalents ($M)$296.4 N/AN/A
Share Repurchases ($M)$75.0 and 1,430,579 shares N/AN/A
Adjusted Tax Rate %24.7% 25.1% 24.8% (YTD)
Diluted Shares (000s)47,664 51,240 48,009 (YTD)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Plasma Reported GrowthFY26(7–10)% (4–7)% Raised
Plasma Organic GrowthFY26(7–10)% (4–7)% Raised
Plasma Organic ex‑CSLFY2611–14% 14–17% Raised
Blood Center Reported GrowthFY26(23–26)% (17–19)% Raised
Blood Center Organic GrowthFY26(4–6)% (1)–1% Raised
Hospital Reported GrowthFY268–11% 4–7% Lowered
Hospital Organic GrowthFY268–11% 4–7% Lowered
Total Company Reported GrowthFY26(3–6)% (1–4)% Raised
Total Company Organic GrowthFY26(2)–1% (1)–2% Raised
Total Company Organic ex‑CSLFY266–9% 7–10% Raised
Adjusted Operating MarginFY2626–27% 26–27% Maintained
Adjusted EPSFY26$4.70–$5.00 $4.80–$5.00 Raised
Free Cash Flow ($M)FY26$160–$200 $170–$210 Raised
FCF/Adjusted Net IncomeFY26>70% >70% Maintained

Earnings Call Themes & Trends

TopicQ4 FY25 (Q-2)Q1 FY26 (Q-1)Q2 FY26 (Current)Trend
Plasma collections & share gainsGuidance: organic ex‑CSL +11–14%; collections expected to rebound modestly in 2H; share gains drive growth Organic ex‑CSL +29% (half from software license); reaffirmed plasma guide; share gains and pricing drive FY Ex‑CSL +18.6%; raised plasma outlook; U.S. collections high-single-digit, Europe double-digit; share gains primary driver Improving
TEG/HN cartridge adoptionU.S. strong; EMEA approval pending; significant TAM in viscoelastic testing Double-digit BMT growth; HN cartridge launch drives inflection; U.S. conversions from TEG 5000 to 6s HN launched in EMEA/Japan in Oct; BMT +12% Q2; sustainability emphasized Sustained strength
Interventional Technologies (IVT)Above-market EP growth in FY25; legacy VASCADE drag; reorg to focus on closure; prudent FY26 outlook Sales leadership changes; field bifurcation; executional issues; Japan PFA dynamics; cautious cadence IVT down 5%; decisive commercial actions; margin contribution intact; recovery expected beyond FY26 Stabilizing, rebuilding
Vivasure/large-bore closureOption referenced; timing post U.S. filings; synergy with closure & structural heart N/A“Near final”; PATCH trial impressive; FY27 event; $300M market; fully absorbable, suture-less Positive optionality
Tariffs/supply chainModeled ~$0.20 EPS impact; mitigation underway; limited revenue exposure given NA manufacturing N/AN/AManaged risk
Capital allocation$500M new buyback authorization; focus on organic growth, debt, opportunistic buybacks Strong liquidity; optionality for buybacks/debt paydown $75M ASR executed; shares ~47M; flexibility to continue Ongoing

Management Commentary

  • CEO: “Our second quarter results demonstrate disciplined execution and increasingly profitable growth across our business—growing cash flow, earnings and operating income while absorbing the impact from last year’s portfolio transitions.”
  • CFO: “Adjusted gross margin reached 60.5%… expansion was driven by continued adoption of Persona technology, price initiatives across the portfolio, and favorable product mix… adjusted operating margin expanding 250 bps YoY to a new record of 26.7%.”
  • CEO on plasma: “A stellar quarter… propelled by share gains, innovation pricing… and collections volume growth… high single-digit in the U.S., double-digit in Europe.”
  • CEO on IVT: “We remain confident in the strong clinical and economic differentiation of our vascular closure portfolio, and we are taking decisive actions to strengthen execution to accelerate growth.”

Q&A Highlights

  • Plasma trajectory: Management expects sustained collections improvement and continued share gains; guidance grounded in controllable factors (share, pricing), with ex‑CSL growth raised .
  • IVT turnaround: Detailed salesforce upgrades, account management tools, quota/comp realignment; green shoots in win-backs; prudent hospital guidance now assumes little/no IVT contribution near term .
  • BMT sustainability: HN cartridge seen as a watershed; double-digit growth viewed as sustainable with menu expansion and conversions ahead; EMEA/Japan rollout underway .
  • Vivasure: Acquisition option “near final”; differentiated large-bore closure product expected FY27 post FDA, synergistic with SavvyWire .
  • EPS/FCF guidance mechanics: Below-the-line items (tax/interest/FX and buybacks) added ~$0.06 to Q2 EPS; FY26 EPS raised to $4.80–$5.00; FCF raised to $170–$210M with >70% conversion .

Estimates Context

  • Q2 FY26 beats: Revenue $327.3M vs $311.5M consensus*; adjusted EPS $1.27 vs $1.11 consensus*; EBITDA $97.1M vs $98.4M consensus* (slight miss). Values marked * are from S&P Global.
  • Next quarter setup: Q3 FY26 consensus* EPS $1.25*; revenue $331.9M*; ongoing margin expansion and plasma share gains suggest upward bias to EPS estimates if IVT stabilization continues; note that management reaffirmed 26–27% adjusted OI margin .

Consensus details (S&P Global):

MetricQ2 2026Q3 2026
Primary EPS Consensus Mean1.11065*1.25033*
Revenue Consensus Mean ($)311,489,920*331,897,640*
EBITDA Consensus Mean ($)98,448,480*108,719,550*
Target Price Consensus Mean ($)84.55*84.55*
# of EPS Estimates11*11*
# of Revenue Estimates11*11*

Values marked * retrieved from S&P Global.

Key Takeaways for Investors

  • The print was high-quality: broad margin expansion and strong cash generation, with beats on revenue and adjusted EPS and a modest EBITDA miss that reflects strategic investment mix .
  • Guidance reset is constructive: total company revenue and Organic ex‑CSL raised; adjusted EPS and FCF ranges raised; hospital lowered to reflect prudent assumptions for IVT while BMT and plasma drive FY26 delivery .
  • Plasma remains the core growth engine: ex‑CSL growth strong on share gains and pricing; commentary supports sustained collections recovery, implying potential estimate revisions higher if momentum persists .
  • IVT is the swing factor: executional fixes underway; near-term growth de-risked in guidance; watch for sequential stabilization and Japan label progress as catalysts .
  • BMT has durable double-digit runway: HN cartridge expansion into EMEA/Japan plus U.S. conversions support sustained growth and high margin mix .
  • Capital deployment supports EPS: $75M Q2 buyback and sub‑50M share count trajectory, with flexibility for additional repurchases and debt reduction .
  • Trading lens: Positive setup into 2H on margins and cash, with beats and raised guidance as near-term catalysts; monitor IVT execution updates and plasma collections prints for further rerating.

Additional Notes

  • Non-GAAP adjustments: Adjusted EPS and margin exclude amortization, restructuring, digital transformation, inventory step-up, litigation, and other items per reconciliation tables .
  • Other Q2 press releases: Company posted availability of materials and webcast; no incremental financial disclosures beyond the 8‑K and transcript .
  • Prior quarter trend references cross-checked against Q1 FY26 8‑K and Q4 FY25 call for consistency in segment dynamics and guidance evolution .