Haemonetics Corporation (HAE) Q1 2027 Earnings Call Summary

1Key Financial Results and Metrics

Revenue:: $339 million, up 6% both reported and organic year-over-year.

Adjusted Earnings Per Share (EPS):: Increased 4% to $1.14.

Gross Margin:: 60.4%, down 40 basis points year-over-year; adjusted gross margin expanded when excluding prior year software benefits.

Operating Expenses:: Increased 7% to $126 million, driven by higher personnel costs and the Vivasure Medical acquisition.

Operating Cash Flow:: $52 million, approximately three times the prior year; free cash flow conversion reached 75% of adjusted net income.

Net Leverage Ratio:: Approximately 2.69x EBITDA; $223 million in cash on hand.

2Strategic Updates and Business Highlights

Core Platforms Performance:: All three core platforms (MedSurg, Blood Management Technologies, and Interventional Technologies) contributed to growth.

MedSurg:: Revenue increased 6% to $148 million, driven by growth in both franchises.

Blood Management Technologies:: Grew 8% organically, with strong performance in Hemostasis and Transfusion Management.

Interventional Technologies:: Returned to growth with 3% organic growth, led by Vascular Closure products.

Product Innovations:: The Persona PLUS rollout is enhancing plasma collection efficiency, with early adopters reporting yield improvements over 5%.

Board Addition:: Dr. Martin Madaus joined the Board, bringing extensive experience in healthcare transformation.

3Forward Guidance and Outlook

Fiscal 2027 Revenue Growth Guidance:: Increased to 5% to 8% reported and 4% to 7% organic growth.

Apheresis Revenue Guidance:: Raised to low to mid-single-digit growth, reflecting first quarter outperformance.

Adjusted Operating Margin:: Expected to expand by 50 to 100 basis points for the fiscal year.

4Bad News, Challenges, or Points of Concern

Gross Margin Pressure:: Although adjusted gross margin expanded, gross margin was impacted by a prior year software benefit.

Operating Margin Decline:: Adjusted operating margin decreased 70 basis points year-over-year; sequential decline attributed to lower MedSurg revenue and external cost pressures.

Competitive Pressures:: Challenges in the Sensor-Guided Technologies segment, with some backsliding in OEM business.

Market Volatility:: External cost pressures from tariffs and inflation are anticipated to impact margins.

5Notable Q&A Insights

IVT Growth Dynamics:: The return to growth in Interventional Technologies was attributed to improved market conditions and effective commercial execution.

Plasma Market Performance:: The strong plasma revenue growth was attributed to share gains and the successful rollout of Persona PLUS, despite a difficult software comparison from the prior year.

Capital Equipment Budgets:: No significant pressures were observed in hospital capital equipment budgets, particularly for TEG placements.

Future M&A Activity:: Management indicated a focus on organic growth and capital allocation rather than pursuing M&A at this time. This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, and notable insights from the Q1 2027 earnings call for Haemonetics Corporation.