HAE — Haemonetics Corporation

Haemonetics Corporation (HAE) Q3 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: Q3 revenue was $339 million, with year-to-date revenue at $988 million. Adjusted earnings per share (EPS) rose 10% to $1.31 for the quarter and 11% to $3.67 year-to-date.
• Organic Growth: Excluding CSL, organic growth was 8% for Q3 and 10% year-to-date.
• Adjusted Gross Margin: Improved to 60.2% in Q3, up 250 basis points year-over-year.
• Free Cash Flow: Generated $74 million in Q3, totaling $165 million year-to-date, with a free cash flow conversion of 121% in Q3.
• Debt: Total debt stood at approximately $1.2 billion, with a net leverage ratio of 2.37 times EBITDA.

2. Strategic Updates and Business Highlights

• Product Performance: Strong growth in Blood Management Technologies (BMT) driven by TEG 6s disposable sales and hemostasis management. Hospital revenue was $144 million in Q3, down 1% but up 2% organically year-to-date.
• Plasma Segment: Plasma revenue reached $139 million, up 3% reported and 20% organically, driven by share gains and increased collection volumes.
• Interventional Technologies: Revenue declined 12% in Q3, primarily due to softness in esophageal cooling and OEM-related challenges. However, there are expectations for recovery in FY 2027.
• Acquisition of VIVUSHORE: Aimed at enhancing the interventional technologies portfolio, with a planned launch in FY 2027.

3. Forward Guidance and Outlook

• Revenue Guidance: Full-year reported revenue guidance revised to a decline of 1% to 3%, improved from a prior range of 1% to 4%. Organic growth guidance (ex CSL) raised to 8% to 10%.
• Adjusted EPS Guidance: Expected to be in the range of $4.90 to $5.00 for fiscal 2026.
• Free Cash Flow Guidance: Increased to $200 million to $220 million from $170 million to $210 million previously.

4. Challenges and Points of Concern

• Interventional Technologies Decline: Notable 12% decline in revenue for the segment, with specific challenges in esophageal cooling and competitive pressures affecting growth.
• Hospital Business Softness: Although there is a forecast for growth, the hospital segment faces ongoing challenges, particularly in interventional technologies.
• Margin Pressure: Adjusted operating margin was flat at 26.3% in Q3, with expectations for smaller increments in margin improvement in the future.

5. Notable Q&A Insights

• Plasma Market Dynamics: Management expressed confidence in plasma growth, attributing it to share gains and collection volume increases, while remaining cautious about future guidance tied to factors outside their control.
• IVT Recovery Plans: Management is focused on returning the interventional technologies segment to growth, emphasizing the importance of the MVP XL label expansion and strategic sales initiatives.
• VIVUSHORE Acquisition: The acquisition is seen as a strategic move to enhance their vascular closure capabilities, with a focus on a measured product launch.
• Competitive Landscape: Management acknowledged competitive pressures but expressed optimism about their product's differentiation and the effectiveness of their sales strategy in regaining market share.

Overall, Haemonetics reported strong financial performance in Q3 2026, with significant growth in plasma and blood management technologies, while facing challenges in interventional technologies. The company is optimistic about future growth driven by strategic initiatives and product launches.