Haemonetics Q4 and Fiscal Year 2025 Results: Strong Margin Growth Despite Revenue Dip; FY26 Outlook Issued

Q4 Fiscal 2025 Highlights (Ended March 29, 2025):
• Revenue: $331 million, down 3.7% year-over-year
o Plasma down 9.1%
o Blood Center down 22.2% (impacted by Whole Blood divestiture)
o Hospital up 12.2%, driven by Interventional Technologies
• EPS: $1.17 (GAAP), $1.24 (adjusted), up 192.5% and 37.8% respectively
• Gross Margin: 58.4% GAAP (+7.2 pts YoY), 60.2% adjusted
• Operating Margin: 21.6% GAAP, 24.9% adjusted
• Net Income: $58 million GAAP, $62 million adjusted
• Free Cash Flow: $95 million

Fiscal Year 2025 Highlights:
• Revenue: $1.36 billion, up 4%
o Organic growth: 1%
o Hospital up 24% overall (9.9% organic)
• EPS: $3.31 (GAAP), $4.57 (adjusted)
• Net Income: $168 million GAAP, up 42.6%
• Free Cash Flow: $145 million, up from $117 million in FY24
• Cash Balance: $307 million (up $128 million YoY)

Capital Allocation:
• Completed $300M share repurchase program in Q4
• Authorized new $500M buyback through 2028
• Emphasis on internal investment and strategic acquisitions

FY26 Guidance:
• Revenue Growth:
o Total reported: (3%) to (6%)
o Organic: (2%) to 1%
o Plasma: (7%) to (10%) (excluding CSL: 11% to 14%)
o Hospital: 8% to 11%
• Adjusted Operating Margin: 26% to 27%
• Adjusted EPS: $4.70 to $5.00
• Free Cash Flow: $160M to $200M

Haemonetics expects continued growth in high-margin Hospital segments while navigating Plasma headwinds, especially from the completed CSL transition. Profitability remains strong due to improved product mix, pricing, and operational efficiency.

Haemonetics Corporation announced the appointment of Frank W. Chan, Ph.D., as Executive Vice President and Chief Operating Officer, effective April 7, 2025. Mr. Chan will oversee research and development, regulatory affairs, and global manufacturing and supply chain functions, reporting directly to CEO Christopher A. Simon. Mr. Chan brings over 25 years of leadership experience in the medical device and healthcare technology sectors, most recently serving as President of the Acute Care & Monitoring business at Medtronic.

As part of his compensation, Mr. Chan will receive an annual base salary of $550,000, a target annual bonus of 80% of his salary, and a long-term incentive equity award valued at $1.6 million. He will also receive a $350,000 sign-on bonus, with repayment conditions tied to tenure.

Additionally, Haemonetics announced the promotion of Roy Galvin, President of Global Plasma and Blood Center, to Executive Vice President and Chief Commercial Officer, where he will oversee the commercialization of the company's full product portfolio. Stewart Strong, President of Global Hospital, will remain in his current role until April 1, 2025, before transitioning to an advisory position.

A press release detailing these leadership changes was issued on March 3, 2025.

Haemonetics Corporation announced its third quarter and year-to-date fiscal 2025 results, showcasing steady revenue growth and improved profitability. For the third quarter, revenue increased 4% to $349 million, with organic revenue growth of 2%, excluding currency fluctuations and recent acquisitions. Diluted earnings per share (EPS) were $0.74, while adjusted diluted EPS rose to $1.19, reflecting strong operational performance. Year-to-date revenue grew 7% to $1.03 billion, with adjusted diluted EPS reaching $3.32. Operating cash flow for the quarter was $44 million, with free cash flow at $30 million, contributing to a year-to-date operating cash flow of $65 million and free cash flow of $50 million.

CEO Chris Simon highlighted the company’s record third-quarter margins and the success of its long-range plan in driving profitable growth. Haemonetics is gaining market share, leveraging its differentiated technologies, and evolving its portfolio to further expand margins. Despite external market challenges, the company remains confident in its foundation for sustained long-term growth. Haemonetics also updated its fiscal 2025 guidance, reflecting its strong performance and strategic focus on innovation and operational efficiency.