Haemonetics (HAE) Q2 2025 earnings summary

Executive summary

• Second quarter revenue reached $346 million, up 9% reported and 4% organically, with strong Hospital segment growth and recent acquisitions driving performance.

• Adjusted EPS for Q2 was $1.12, up 13% year-over-year; GAAP EPS was $0.66, with net income rising 35.8% to $33.8 million.

• Operating income increased 46.4% to $51.7 million, reflecting operating leverage and gains from asset sales.

• Completed acquisitions of Attune Medical and OpSens, expanding the Hospital business unit.

• Cash on hand at quarter-end was $299.3 million, up $120.5 million since fiscal year-end, mainly from debt transactions.

Financial highlights

• Q2 net revenues: $345.5M (+8.6% YoY); gross margin improved to 54.2% (GAAP) and 56.7% (adjusted), driven by volume, mix, and price.

• Adjusted operating income was $83.5 million (24.2% of revenue), up $15 million year-over-year.

• Free cash flow for the first half was $20.4 million, down from $84.8 million last year, due to higher working capital and inventory investments.

• Cash and cash equivalents: $299.3M as of September 28, 2024.

• Q2 cash flow from operations was $48.8M, down from $99.1M a year ago, due to higher inventory and receivables.

Outlook and guidance

• Total revenue growth for FY25 reaffirmed at 5%-8%; organic growth guidance raised to 1%-4% (from flat-3%).

• Plasma revenue expected to decline 3%-6% for FY25, including ~$100 million from CSL.

• Blood center revenue guidance updated to a 4%-6% decline (improved from 5%-7%).

• Hospital organic revenue growth guidance raised to 14%-17% (from 13%-16%).

• FY25 adjusted operating margin guidance reaffirmed at 23%-24%; adjusted EPS guidance at $4.45-$4.75; free cash flow $130-$180 million.