Haemonetics Reports Positive Earnings Call with Growth Highlights

Haemonetics ((HAE)) has held its Q2 earnings call. Read on for the main highlights of the call.

Haemonetics Corporation’s recent earnings call conveyed a generally positive sentiment, underscored by significant growth in organic revenue, adjusted EPS, and gross margin expansion. The company highlighted robust performance in its Plasma and Blood Management Technologies, which contributed to strong cash generation and an increase in free cash flow guidance. Despite a decline in overall revenue due to portfolio transitions and challenges in Interventional Technologies, the call maintained an optimistic outlook on future growth and profitability.

Growth in Organic Revenue

Haemonetics reported impressive growth in organic revenue, excluding portfolio transitions. The company achieved a 9% increase in the quarter and an 11% rise year-to-date, showcasing its ability to maintain strong performance despite external challenges.

Adjusted EPS Increase

The earnings call revealed a 13% increase in adjusted EPS for the quarter and an 11% rise year-to-date, reaching $1.27 and $2.36, respectively. This growth reflects the company’s effective cost management and strategic initiatives.

Plasma Revenue Growth

Organic revenue for Plasma showed remarkable growth, with a 19% increase in the quarter and a 23% rise year-to-date. This was driven by share gains and innovation, highlighting Haemonetics’ competitive edge in the market.

Record Gross Margin Expansion

Haemonetics achieved a record gross margin expansion, with adjusted gross margin reaching 60.5% in the quarter and 60.6% year-to-date. This was driven by technology adoption and a favorable product mix, underscoring the company’s operational efficiency.

Strong Operating Cash Flow

The company reported strong operating cash flow of $111 million in the quarter, up 128% year-over-year, and $129 million year-to-date. This indicates robust cash generation and financial health.

Increased Free Cash Flow Guidance

Haemonetics raised its full-year free cash flow guidance to a range of $170 million to $210 million, emphasizing its strong cash discipline and capital stewardship.

Blood Management Technologies Growth

Revenue from Blood Management Technologies increased by 12% in the quarter and 13% year-to-date, supported by advancements in hemostasis and transfusion management.

Overall Revenue Decline

Despite strong organic growth, the company reported a 5% decline in second-quarter revenue to $327 million, attributed to portfolio transitions.

Interventional Technologies Decline

Interventional Technologies faced challenges, with a 5% revenue decline in the quarter and a 6% decrease year-to-date, particularly in esophageal cooling.

Blood Center Revenue Decline

The Blood Center segment reported an 18% decline in revenue for the quarter and a 21% drop year-to-date, primarily due to the whole blood divestiture.

Forward-Looking Guidance

Haemonetics provided updated guidance reflecting strong performance across several segments. The company expects organic growth excluding CSL to rise by 7% to 10% and adjusted EPS to reach between $4.80 and $5.00 for the full year. Despite a reported revenue decline of 1% to 4%, the company remains focused on disciplined execution, strong cash generation, and strategic growth products to sustain momentum beyond fiscal 2026.

In conclusion, Haemonetics’ earnings call showcased a positive sentiment with significant achievements in organic revenue growth, adjusted EPS, and gross margin expansion. While facing challenges in certain segments, the company remains optimistic about its future growth and profitability, supported by strong cash generation and strategic focus on innovation.