Executive Summary

Q3 FY25 delivered record margins with adjusted operating margin at 25.7% and adjusted EPS of $1.19, despite flat organic revenue; reported revenue was $348.5M (+3.7% YoY) and GAAP EPS was $0.74 .
Hospital led growth (+23.9% reported; +12.2% organic), driven by Interventional Technologies (+47.1% reported) and Blood Management Technologies (+10.2% reported) .
Guidance was lowered for FY25 revenue growth to 3–5% reported and 0–3% organic; adjusted EPS was tightened to $4.50–$4.70 and free cash flow cut to $120–$140M; adjusted operating margin set to ~24% .
Strategic actions/catalysts: Whole Blood divestiture completed (up to $67.8M proceeds) to improve mix and margins ; long-term contracts signed with BioLife and Grifols (call outperformance driver) .
Street consensus comparisons were unavailable due to S&P Global access limitations; note potential stock reaction catalysts include record margins, tightened EPS guide, and hospital momentum .

What Went Well and What Went Wrong

What Went Well

Record margin performance: adjusted operating margin hit 25.7% (+390 bps YoY) and adjusted gross margin 57.7% (+240 bps YoY), on portfolio mix and pricing .
Hospital outperformance: revenue +23.9% reported and +12.2% organic; Interventional Technologies +47.1% reported (+16.3% organic) with mid-20s growth in VASCADE MVP/MVP XL; Blood Management Technologies +10.2% .
Strategic positioning: CEO emphasized share gains and technology-led cost-per-liter reductions in Plasma, and confident long-term growth foundation; “record third-quarter margins” reflect plan execution .

What Went Wrong

Plasma softness: revenue declined 9.1% YoY (reported) and organic –9.1%, impacted by CSL U.S. disposables transition and temporary collection pullback; guidance reduced to –5% to –7% organic .
VASCADE (IC) pressure: core VASCADE (coronary/peripheral) underperformed amid increased competition and internal resourcing focus on structural heart/SavvyWire; management is reallocating resources to recover .
Free cash flow lowered: FY25 FCF guidance cut to $120–$140M (from $130–$180M) due to working capital/inventory dynamics; Q3 FCF $29.6M vs prior-year outflow .

Financial Results

Quarterly Trend vs Prior Quarters

Metric	Q1 FY25 (6/29/2024)	Q2 FY25 (9/28/2024)	Q3 FY25 (12/28/2024)
Revenue ($USD Millions)	$336.2	$345.5	$348.5
GAAP EPS ($)	$0.74	$0.66	$0.74
Adjusted EPS ($)	$1.02	$1.12	$1.19
Gross Margin (%)	52.0%	54.2%	55.5%
Operating Margin (%)	11.8%	15.0%	16.9%
Adjusted Gross Margin (%)	55.3%	56.7%	57.7%
Adjusted Operating Margin (%)	21.1%	24.2%	25.7%

Note: Earnings call rounded revenue to $349M and reported growth to 4%, versus press release figures of $348.5M and 3.7% .

YoY Comparison (Q3 FY25 vs Q3 FY24)

Metric	Q3 FY24 (12/30/2023)	Q3 FY25 (12/28/2024)
Revenue ($USD Millions)	$336.3	$348.5
GAAP EPS ($)	$0.61	$0.74
Adjusted EPS ($)	$1.04	$1.19
Gross Margin (%)	52.9%	55.5%
Operating Margin (%)	13.7%	16.9%
Adjusted Gross Margin (%)	55.3%	57.7%
Adjusted Operating Margin (%)	21.8%	25.7%

Segment Breakdown (Reported; $USD Millions)

Segment	Q1 FY25	Q2 FY25	Q3 FY25
Plasma	$135.9	$138.6	$134.2
Apheresis (Blood Center sub)	$49.1	$54.3	$55.4
Whole Blood (Blood Center sub)	$17.2	$14.2	$15.0
Blood Center Total	$66.2	$68.5	$70.3
Interventional Technologies (Hospital)	$63.0	$61.9	$63.3
Blood Mgmt Technologies (Hospital)	$71.0	$76.5	$80.7
Hospital Total	$134.0	$138.4	$144.0
Total Net Revenue	$336.2	$345.5	$348.5

KPIs

KPI	Q1 FY25	Q2 FY25	Q3 FY25
Cash from Operations ($USD Millions)	($27.4)	$48.8	$43.8
Free Cash Flow ($USD Millions)	($16.9)	$37.0	$29.6
Cash & Cash Equivalents ($USD Millions)	$344.4	$299.3	$320.8
Adjusted Net Income ($USD Millions)	$52.4	$57.3	$60.3

Non-GAAP adjustments in Q3 included amortization of acquired intangibles, fair value inventory step-up, restructuring, digital transformation, write-downs, MDR/IVDR compliance, and related tax effects; adjusted EPS reconciled to $1.19 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Plasma Revenue Growth (Reported)	FY25	(3–6)%	(5–7)%	Lowered
Plasma Revenue Growth (Organic)	FY25	(3–6)%	(5–7)%	Lowered
Blood Center Revenue Growth (Reported)	FY25	(4–7)%	(7–9)% decline	Lowered
Blood Center Revenue Growth (Organic)	FY25	(4–6)%	(2–4)% decline	Raised (less negative)
Hospital Revenue Growth (Reported)	FY25	26–31%	24–26%	Lowered
Hospital Revenue Growth (Organic)	FY25	14–17%	12–14%	Lowered
Total Company Revenue Growth (Reported)	FY25	5–8%	3–5%	Lowered
Total Company Revenue Growth (Organic)	FY25	1–4%	0–3%	Lowered
Adjusted Operating Margin	FY25	23–24%	~24%	Tightened (high end)
Adjusted EPS ($)	FY25	$4.45–$4.75	$4.50–$4.70	Tightened
Free Cash Flow ($USD Millions)	FY25	$130–$180	$120–$140	Lowered

Context: Whole Blood divestiture (closed Jan 14, 2025; up to $67.8M consideration) supports margin expansion and focus on higher-growth markets ; management expects 30–40 bps margin uplift from divestiture .

Earnings Call Themes & Trends

Topic	Q1 FY25 (Previous Mentions)	Q2 FY25 (Previous Mentions)	Q3 FY25 (Current Period)	Trend
Plasma collections & CSL transition	Strategy confidence; portfolio evolution; cost-per-liter focus	Strong execution; long-range plan; hospital-led mix	CSL impact ~$100M; sequential volume recovery ex-CSL; share gains (BioLife, Grifols); long-duration deals; mid/high single-digit fractionation growth through 2032	Recovering volumes ex-CSL; favorable long-term drivers
Hospital momentum (TEG 6S, Transfusion Mgmt)	Hospital +30.7%; innovation positioning	Hospital +30.9%; Interventional up; Blood Mgmt strong	Hemostasis mgmt +26% U.S.; EMEA strong; China weakness; Interventional +47% reported; mid-20s MVP/MVP XL growth	Sustained growth; geographic mix evolving
Vascular Closure mix (EP vs IC)	Early momentum noted	Continued growth; product mix	EP (MVP/MVP XL) mid-20s growth; VASCADE (IC) pressured by competition and resourcing; plans to refocus	EP strong; IC improving focus needed
Inventory/working capital and FCF	Cash outflow driven by inventory/settlements	FCF improved; inventories up	FCF guide lowered; inventory replenishment for NexSys and plasma finished goods; expected FCF improvement in FY26	Near-term FCF pressure; medium-term improvement expected
Regulatory/market dynamics (PFA, tariffs, China)	Broad macro risks cited	Macro/tariff policy risks cited	PFA disrupting Enzo ETM; plan to target RF use-cases; China HM reimbursement cuts; tariff exposure limited (no China manufacturing; Mexico/Canada mitigations)	Manageable headwinds with mitigation plans
Portfolio rationalization (Whole Blood sale)	N/A	N/A	Whole Blood sale closed; margin uplift; focus on winning markets	Mix improvement underway

Management Commentary

“Our record third-quarter margins demonstrate our long-range plan is successfully driving profitable growth… while accelerating portfolio evolution for further margin expansion.” — CEO Chris Simon .
“Adjusted operating income…25.7% of revenue, a new company record…we are updating our fiscal ’25 adjusted operating margin guidance to…~24%.” — CFO James D’Arecca .
“We have signed new long-term agreements with BioLife and Grifols…centered around gaining market share through adoption of our winning technology…globally.” — CEO Chris Simon .
“We used this year to replenish our NexSys inventory…[and] plasma finished goods…shouldn’t recur and we’ll look to see improvements in free cash flow as we move forward.” — CFO James D’Arecca .

Q&A Highlights

Plasma dynamics: CSL transition tracking to ~$100M (70/30 1H/2H split); sequential volume growth ex-CSL; share gains; technology rollouts (Persona, Express Plus) to drive yield and cost per liter reductions .
Vascular Closure: EP strong (MVP/MVP XL mid-20s); core VASCADE (IC) pressured by competition and resourcing; management reallocating to improve IC; international growth positive (Japan), Europe slower due to reimbursement .
Guidance/FCF: Adjusted EPS tightened to $4.50–$4.70 and FCF reduced to $120–$140M; inventory build for NexSys and plasma finished goods drives near-term FCF weakness; improvement expected in FY26 .
Tariffs: No China manufacturing exposure; Mexico/Canada exposure primarily Blood Center/Interventional; mitigations include U.S. manufacturing expansions and pricing latitude where needed .
Strategic wins: Japanese Red Cross selected HAE as exclusive plasma collection supplier in head-to-head; impact expected from FY27 onward .

Estimates Context

Wall Street consensus (S&P Global) for Q3 FY25 revenue/EPS/EBITDA was unavailable due to access limits; therefore, explicit “vs estimates” comparisons cannot be provided at this time. We will update when S&P Global consensus data becomes accessible.

Key Takeaways for Investors

Margin story intact: Mix, pricing, and operational leverage drove record adjusted operating margin (25.7%); management reaffirmed ~24% for FY25 and targets high-20s longer term .
Hospital is the growth engine: Double-digit organic growth with strong Hemostasis Management and EP closure; continued momentum expected .
Plasma normalization ahead: Near-term headwinds from CSL and SOP changes; long-duration contracts and innovation (Persona, Express Plus) underpin medium-term share/margin expansion .
Portfolio focus: Whole Blood divestiture improves margin profile and execution focus in higher-growth, higher-margin segments .
FCF inflection potential: Inventory replenishment depressed FY25 FCF; CFO expects improvement into FY26 as inventories normalize .
Risk monitoring: IC competition, China HM reimbursement cuts, and potential Mexico/Canada tariff developments; mitigations in place (manufacturing diversification, pricing latitude) .
Actionable: Favor hospital-led earnings leverage and EP utilization expansion; watch for Plasma SOP adoption pace, tariff headlines, and updates on Vivasure PerQseal submission and IC commercial execution .

Additional Data and Cross-References

Balance Sheet/Cash: Cash $320.8M; long-term debt $1,219.8M; net leverage ~2.42x per CFO commentary .
Reconciliations/Adjustments: Detailed non-GAAP reconciliations provided in 8-K (Q3 EPS bridge to $1.19) .
Prior Quarter Context: Q2 FY25 revenue $345.5M (+8.6% YoY) with adjusted operating margin 24.2%; Q1 FY25 revenue $336.2M (+8.0% YoY) with adjusted operating margin 21.1% .
Whole Blood Sale Terms: $45.3M upfront cash, up to $22.5M earn-out over four years; assets include Covina, CA facility and related Tijuana, Mexico assets .

HAEMONETICS CORP (HAE)·Q3 2025 Earnings Summary