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HAEMONETICS CORP (HAE)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 modest top-line decline but strong profitability: revenue $330.6M (-3.7% y/y) with adjusted gross margin 60.2% (+620 bps) and adjusted EPS $1.24 (+37.8% y/y); GAAP EPS $1.17 . Versus consensus, HAE delivered a slight beat on revenue ($330.6M vs $329.4M*) and adjusted EPS ($1.24 vs $1.22*) .
  • FY2026 outlook embeds portfolio transition headwinds yet continued margin expansion: total reported revenue -3% to -6% (organic -2% to +1%); adjusted operating margin 26–27%; adjusted EPS $4.70–$5.00; FCF $160–$200M .
  • Mix and pricing drove margins; Whole Blood divestiture and CSL transition are dilutive to reported revenue but accretive to margins; Hospital remains the growth engine (+12% y/y in Q4) while Plasma ex-CSL grew double-digits but reported -9% due to CSL transition .
  • Capital allocation and cost actions: completed $150M ASR (2.386M shares) and authorized a new $500M buyback; announced market/regional alignment initiative targeting ~$30M annualized savings with ~$20M charges through FY2027 .
  • Potential stock catalysts: sustained margin expansion and Hospital momentum; execution of Plasma share gains (ex-CSL), tariff mitigation, and progress on VASCADE MVP XL label/penetration; clarity on FY2026 cadence and potential Vivasure option decision .

What Went Well and What Went Wrong

What Went Well

  • Margin expansion and EPS beat: Adjusted gross margin 60.2% (+620 bps y/y) and adjusted operating margin 24.9% (+610 bps y/y) drove adjusted EPS $1.24 (up 37.8% y/y). “We delivered solid earnings growth ... record margin expansion and strong cash flow...” — CEO .
  • Hospital strength: Q4 Hospital revenue $147.9M (+12.2% y/y), with Interventional Technologies +21.2% (MVP/MVP XL) and Blood Management Technologies +5.7% (TEG) .
  • Capital returns and FY26 margin guidance: $150M ASR completed; new $500M authorization; FY26 adjusted operating margin guided to 26–27% with adjusted EPS $4.70–$5.00, underscoring confidence in long-range plan .

What Went Wrong

  • Reported revenue declined on portfolio transitions: Q4 revenue -3.7% y/y; Plasma -9.1% and Blood Center -22.2%, mainly from CSL U.S. disposables transition and Whole Blood divestiture .
  • VASCADE “base” softness: Management flagged drag in legacy VASCADE (PCI) amid increased competition and internal resource focus; efforts underway to refocus sales execution in IC .
  • Esophageal Protection headwinds from PFA and OEM destocking; Sensor Guided Technologies still building — management is “calling that flat” for FY26 to be balanced on expectations .

Financial Results

Quarterly Results vs Prior Periods and Consensus

MetricQ2 FY2025 (oldest)Q3 FY2025Q4 FY2025 (newest)Q4 FY2025 Consensus*Beat/Miss
Revenue ($M)$346 $349 $330.6 $329.4*Beat
Adjusted EPS ($)$1.12 $1.19 $1.24 $1.22*Beat
Adjusted Gross Margin (%)56.7% 57.7% 60.2% n/an/a
Adjusted Operating Margin (%)24.2% 25.7% 24.9% n/an/a
  • Consensus values marked with “*”. Values retrieved from S&P Global.

Q4 FY2025 GAAP and Adjusted Highlights

MetricQ4 FY2025Q4 FY2024YoY
Revenue ($M)$330.6 $343.3 -3.7%
GAAP Gross Margin (%)58.4% 51.2% +720 bps
GAAP Operating Income ($M)$71.3 $29.9 +138.2%
GAAP EPS ($)$1.17 $0.40 +192.5%
Adjusted Gross Margin (%)60.2% 54.0% +620 bps
Adjusted Operating Margin (%)24.9% 18.8% +610 bps
Adjusted EPS ($)$1.24 $0.90 +37.8%

Segment Breakdown – Q4 FY2025

SegmentRevenue ($M)Reported GrowthOrganic Growth
Plasma$126.7 -9.1% -8.9%
Blood Center$56.0 -22.2% -0.2%
Hospital$147.9 +12.2% +8.9%
Total$330.6 -3.7% -0.2%
  • Commentary: Plasma ex-CSL grew ($$) but reported down due to CSL U.S. disposables transition; Hospital strength driven by Vascular Closure (MVP/MVP XL) and TEG. Management noted Plasma ex-CSL +11% in Q4, and continued adoption of Nexus with Persona/Express Plus .

KPIs and Cash Flow

KPIQ4 FY2025FY2025
Cash from Ops ($M)$117 $181.7
Free Cash Flow ($M)$95 $144.6
Cash & Equivalents ($M)—$306.8 (3/29/25)
Share Repurchase$150M ASR; 2,386,131 shares; new $500M auth —

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue Growth (Reported)FY2026n/a-3% to -6% New
Total Revenue Growth (Organic)FY2026n/a-2% to +1% New
Plasma (Reported)FY2026n/a-7% to -10% New
Plasma (Organic)FY2026n/a+11% to +14% ex-CSL New
Blood Center (Reported)FY2026n/a-23% to -26% New
Blood Center (Organic)FY2026n/a-4% to -6% New
Hospital (Reported/Organic)FY2026n/a+8% to +11% New
Adjusted Operating MarginFY2026n/a26%–27% New
Adjusted EPSFY2026n/a$4.70–$5.00 New
Free Cash FlowFY2026n/a$160M–$200M New
Adjusted Tax RateFY2026n/a~24.5% New
Restructuring SavingsPost-FY2026n/a~$30M annualized; ~$20M charges through FY2027 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 FY2025, Q3 FY2025)Current Period (Q4 FY2025)Trend
Plasma collections & CSL transitionQ2: Plasma -3% reported; ex-CSL growth via pricing/tech; reaffirmed ~-$100M CSL; upgrades completing FY25 . Q3: Plasma -9% reported; ex-CSL growth; share gains at BioLife/Grifols; JRC win; FY25 Plasma -5% to -7% .Q4: Plasma -9.1% reported; ex-CSL +11% in Q4; FY26 Plasma organic ex-CSL +11–14%; volumes flat 1H with modest 2H rebuild .Improving ex-CSL; reported pressured; cadence 2H weighted.
Hospital momentum (TEG, VASCADE)Q2: Hospital +31% reported; TEG U.S. +35%; MVP XL launch; XL expected high-20s growth 2H . Q3: Hospital +24% reported; VASCADE MVP/MVP XL mid-20s; base VASCADE headwinds .Q4: Hospital +12.2% reported; MVP/MVP XL +28% in EP; Japan uptake; base VASCADE remains focus to return to growth .Solid; mix favors margins; execution focus in PCI.
Sensor Guided & Esophageal ProtectionQ2: Progress but slower ramp; Enso ETM impacted by PFA; SGW “go slow to go far” . Q3: SGW new accounts doubling Q/Q; Enso ETM flat FY26 outlook .Q4: Continued build; OEM destocking persists; balanced FY26 expectations .Gradual; neutral near term.
Tariffs/macroQ2: FX headwind; no tariff specifics . Q3: Discussed tariff exposure mitigants (U.S./USMCA manufacturing) .Q4: Modeled up to ~$0.20 EPS impact annualized; midpoint includes ~half; mitigation underway .Manageable; embedded in guide.
ChinaQ2: Hospital (TEG) pricing/reimbursement challenges . Q3: China remains headwind; minimal exposure .Q4: Continued caution; offset via U.S./EMEA .Persisting headwind; offset elsewhere.
Capital allocationQ2: $75M ASR; capacity for buybacks/M&A . Q3: New $500M authorization contemplated .Q4: Completed $150M ASR; new $500M authorization approved .Accretive capital returns sustained.

Management Commentary

  • “Our industry-leading NexSys, TEG and VASCADE technologies continue to propel our growth in attractive markets, and we are on track to deliver all of the goals of our four-year long-range plan in fiscal 2026.” — CEO Chris Simon .
  • “Adjusted gross margin of 60.2%… driven by volume growth in hospital and improved and reshaped product mix… pricing benefits, including those tied to technology adoption.” — CFO James D’Arecca .
  • “Organic growth, ex-CSL is expected to be 11% to 14%, disproportionately driven by share gains… modest rebound in collections in the second half.” — CEO on Plasma FY26 .
  • “We expect adjusted operating margin to improve by 200 to 300 basis points, reaching 26% to 27% in fiscal '26… adjusted EPS $4.70 to $5.00.” — CFO .
  • “We are addressing [legacy VASCADE]. We think FY ‘26 will be a good opportunity for that leadership team to really address the market and get back to where we want them to be.” — CEO .

Q&A Highlights

  • Plasma trajectory and drivers: FY26 Plasma organic ex-CSL +11–14% largely from share gains and tech premium; volumes flat 1H with modest 2H improvement; strong long-term IG demand and fractionation capacity expansion underpin outlook .
  • Margin cadence and tariffs: FY26 adjusted OPM 26–27% mainly from mix and gross margin; tariffs modeled as up to ~$0.20 annualized EPS impact, partially embedded at midpoint; mitigation via supply chain diversification and USMCA footprint .
  • Vascular Closure focus: MVP/MVP XL growing high-20s in EP; base VASCADE (PCI) under pressure—dedicated field focus to restore growth; label expansion work for MVP XL underway to broaden indications .
  • SG&T and Enso ETM: SGW accounts growing with high retention; Enso ETM tempered by PFA; company “calling that flat” FY26 to stay balanced .
  • FY26 cadence: More back-half weighted for revenue/margin due to Plasma and IVT ramp; Q1 earnings modeled flattish to slightly positive y/y per CFO .

Estimates Context

  • Q4 FY2025 results vs S&P Global consensus: revenue $330.6M vs $329.4M* (beat); adjusted/normalized EPS $1.24 vs $1.22* (beat) .
  • FY2026 consensus: revenue ~$1.317B* and EPS ~$4.91* vs company guidance -3% to -6% reported revenue growth (off FY2025 base $1.361B) and adjusted EPS $4.70–$5.00, implying guidance brackets consensus on EPS and revenue .
  • Street likely to adjust mix assumptions: more confidence in margin expansion and Hospital trajectory, while trimming reported revenue for portfolio exits and CSL effects; attention on Plasma timing (1H vs 2H recovery) and tariff mitigation.
  • Values marked with “*” retrieved from S&P Global.
PeriodRevenue Consensus* ($)Revenue Actual/GuideEPS Consensus* ($)EPS Actual/Guide
Q4 FY2025329,383,610*330,599,000 1.22025*1.24 (adjusted)
FY20261,316,690,670*Reported growth -3% to -6% (implies ~$1.28–$1.32B off FY2025 $1.361B) 4.91412*$4.70–$5.00 (adjusted)
  • Values marked with “*” retrieved from S&P Global.

Key Takeaways for Investors

  • Mix-led margin story intact: Despite reported revenue headwinds from CSL and the Whole Blood divestiture, margin expansion remains powerful (Q4 adj GM 60.2%) with FY26 adj OPM guided to 26–27% .
  • Hospital is the growth engine: Sustained momentum in TEG and VASCADE MVP/XL, with label-progress and international expansion offering medium-term upside; execution in base VASCADE (PCI) is a key watch item .
  • Plasma ex-CSL resilient: Share gains and premium pricing from tech upgrades underpin FY26 organic +11–14% ex-CSL; cadence skews to 2H as customer productivity/yield gains annualize .
  • FY26 guide brackets consensus on EPS; reported revenue will reflect portfolio actions: Focus on quality of earnings and FCF ($160–$200M) versus headline revenue decline .
  • Tariff and China risks are managed/contained: Tariff impact embedded at midpoint; US/USMCA manufacturing footprint mitigates; China exposure small and offset by U.S./EMEA .
  • Capital returns and cost actions provide support: $500M buyback authorization and ~$30M annualized savings initiative add levers to offset transition headwinds .
  • Near-term trading angle: Emphasize momentum in margins and Hospital KPIs, watch for Plasma share conversion timing and MVP XL label progress; any upside on Plasma volumes or tariff relief could drive multiple expansion .
Note: Consensus figures marked with “*” are values retrieved from S&P Global.