Haemonetics (HAE) investor relations material

Executive summary

• Q1 revenue was $321.4M, down 4.4% year-over-year due to portfolio transitions, but organic ex-CSL revenue grew 12.9%, with strong base business and margin expansion driving adjusted EPS up 7.8% to $1.10.

• Three core products (NEXUS, TEG, Vascade) contributed nearly 85% of revenue, with a focus on the U.S. market.

• Operating income rose 35.5% to $53.9M, aided by pricing, product mix, and lower restructuring costs.

• Portfolio transformation, including the Whole Blood divestiture and technology upgrades, improved profitability and resilience.

• Gross margin improved to 59.8% (GAAP) and 60.8% (adjusted), reflecting favorable pricing and product mix.

Financial highlights

• Adjusted operating income was $77.6M, up 9.2% year-over-year; adjusted operating margin reached 24.1%.

• Adjusted net income was $53M, up 2% year-over-year; adjusted diluted EPS was $1.11, up 8%.

• Free cash flow improved to $2.5M from a $17M outflow in the prior year, driven by better working capital management.

• Cash and cash equivalents at quarter-end were $292.9M; $750M available under revolving credit facility.

• Net income was $34M, down 11.3% year-over-year; GAAP EPS was $0.70.

Outlook and guidance

• Full-year guidance reaffirmed: 3%–6% reported revenue decline, 6%–9% organic growth ex-CSL, and adjusted EPS of $4.70–$5.00.

• Adjusted operating margin guidance of 26%–27%, with stronger margins expected in the second half.

• Free cash flow guidance of $160M–$200M, with conversion above 70% of adjusted net income.

• Plasma: 7%–10% reported revenue decline, but 11%–14% organic growth ex-CSL; hospital: 8%–11% reported and organic growth.

• Management focus remains on Plasma and Hospital segments for long-term growth.