Haemonetics Q2 Earnings Call Highlights

Key Points

• Haemonetics raised its fiscal 2027 outlook after Q2 organic revenue growth of 10%: it now expects 6%–9% organic revenue growth and 8%–11% reported growth. Adjusted EPS rose 6% to $1.35.
• The company cut its adjusted operating margin expansion forecast to 0–50 basis points from 50–100, citing investment and cost pressures. It plans to expand manufacturing capacity and buy devices to support an expanded CSL relationship, with elevated capital spending expected over the next two years.
• Haemonetics expects to complete the NexSys PCS with Persona PLUS rollout across CSL’s U.S. plasma centers before the end of 2027. Plasma revenue grew 18% organically in Q2, though CSL contributed minimally to that quarter’s result.

Haemonetics NYSE: HAE raised its fiscal 2027 revenue growth outlook after reporting double-digit organic growth in its second quarter, but lowered its operating margin expansion forecast as it invests to support an expanded relationship with plasma collector CSL.

The company reported 10% organic revenue growth for the quarter and 8% for the first half of the fiscal year. Adjusted earnings per share rose 6% to $1.35 in the quarter and 6% to $2.49 for the first half, Chief Executive Officer Chris Simon said on the earnings call.

Haemonetics now expects fiscal 2027 organic revenue growth of 6% to 9%, up from its prior forecast of 4% to 7%. It raised its reported revenue growth outlook to 8% to 11% from 5% to 8% and expects adjusted earnings per diluted share growth in line with the new reported revenue range.

At the same time, the company reduced its forecast for adjusted operating margin expansion to 0 to 50 basis points from 50 to 100 basis points. Chief Financial Officer James D'Arecca cited spending ahead of plasma share gains, higher performance-based compensation and continuing cost pressures.

CSL rollout drives investment plans

Simon said Haemonetics expects to complete the rollout of its NexSys PCS system with Persona PLUS to all of CSL's U.S. plasma centers before the end of calendar 2027. He said CSL will also use the company's updated software offerings.

The fiscal 2027 outlook includes completed CSL center conversions and those formally confirmed through the end of the fiscal third quarter. Simon said the company expects additional conversions in the fourth quarter but has not included them in guidance pending confirmation of specific plans. He declined to disclose customer-specific contract economics, citing confidentiality and competition.

Haemonetics' plasma revenue grew 18% organically in the second quarter and 13% in the first half, helped by prior share gains, collections growth and Persona PLUS adoption. D'Arecca said CSL contributed minimally to the second-quarter result.

The company raised its full-year apheresis organic revenue growth forecast to high single digits from low to mid-single digits. Simon said the outlook does not assume incremental revenue from second-half plasma collections growth. U.S. collections trended in the mid- to high-single digits during the quarter and first half, while collections outside the U.S. grew well into the double digits, he said.

D'Arecca said Haemonetics will need to expand manufacturing capacity and purchase additional devices, resulting in elevated capital expenditures over the next two years. He expects some ramp-up costs to be transitory, with greater fixed-cost absorption as volumes increase in fiscal 2028 and beyond.

MedSurg growth and product launches

MedSurg organic revenue grew 6% in both the quarter and first half. Blood Management Technologies grew 7% in the quarter, while Interventional Technologies grew 3%. Simon said vascular closure led the latter segment's performance, partially offset by a difficult prior-year comparison in esophageal cooling.

Haemonetics reaffirmed its forecast for mid-single-digit MedSurg organic revenue growth in fiscal 2027. Simon said recent product and regulatory milestones are not expected to contribute materially to revenue this year.

Those milestones include U.S. Food and Drug Administration approval for PerQseal Elite, a vascular closure product for large-bore procedures, and the launch of the PacePro guidewire. Simon said the products were in the early stages of launch and that the company would take a stepwise approach to PerQseal Elite, emphasizing physician education and training.

Margins and cash flow

Second-quarter adjusted gross margin rose approximately 140 basis points to 61.9%, including an approximately 200-basis-point benefit from tariff refunds and a 60-basis-point foreign exchange headwind. Excluding those two factors, gross margin was essentially flat, D'Arecca said.

Adjusted operating expenses rose 15% to $127.6 million in the quarter, reflecting growth investments, personnel costs and higher freight expenses. Adjusted operating margin fell 40 basis points to 26.3%. D'Arecca said second-half margin expansion is expected to be weighted toward the fourth quarter, in line with the anticipated revenue cadence.

First-half operating cash flow increased 40% to $180 million, while free cash flow rose approximately 57% to $143 million. Haemonetics ended the quarter with approximately $261 million in cash and estimated net leverage of approximately 2.5 times EBITDA, as defined in its credit agreement.

About Haemonetics (NYSE:HAE)

Haemonetics Corporation NYSE: HAE is a healthcare technology company that develops and supplies products and services for blood and plasma collection, processing, and management. Its solutions are used by blood and plasma collection organizations, hospitals, and other healthcare providers to support the efficient handling of blood components and improve patient care.

The company's offerings include automated plasma and blood-component collection systems, disposable collection sets, blood-processing equipment, and software designed to manage collection and transfusion-related operations.

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