Haemonetics (HAE) Q3 2025 earnings summary

Executive summary

• Third quarter revenue reached $349 million, up 4% reported and 3.7% year-over-year, with adjusted EPS up 14.4% to $1.19 and net income up 20% to $37.5 million.

• Margin expansion and earnings growth reflect successful execution of the long-range plan, strong Hospital segment growth, and recent acquisitions, despite external challenges in Plasma and China.

• Portfolio transformation, including the divestiture of the Whole Blood business and acquisition of Attune Medical, is aligning resources to higher-margin, higher-growth opportunities.

• Updated fiscal 2025 guidance: reported revenue growth of 3%-5%, organic growth flat to 3%, and adjusted EPS range tightened to $4.50-$4.70.

• Cash on hand at quarter-end was $320.8 million, up $142 million since fiscal year start, supported by debt transactions and share repurchases.

Financial highlights

• Adjusted gross margin for Q3 was 57.7%, up 240 bps year-over-year; operating margin rose to 16.9% (up 3.2 pts), and adjusted operating margin was 25.7%.

• Adjusted net income for Q3 was $60.3 million, up 13% year-over-year; adjusted EPS was $1.19, up 14.4%.

• Free cash flow for the first nine months was $49.7 million, down from $62.3 million year-over-year, due to higher inventory and digital transformation costs.

• Cash and cash equivalents at quarter end were $320.8 million; working capital was $752.6 million; current ratio was 4.0.

• Net debt position was $(904.0)M; long-term debt increased to $1.22 billion from $798 million at prior fiscal year-end.

Outlook and guidance

• Fiscal 2025 reported revenue growth guidance revised to 3%-5%, organic growth flat to 3%.

• Adjusted operating margin guidance raised to approximately 24%; adjusted EPS guidance narrowed to $4.50-$4.70.

• Free cash flow guidance updated to $120 million-$140 million for fiscal 2025.

• Plasma organic revenue guidance updated to a 5%-7% decline, reflecting CSL transition; anticipated $100M in sales to CSL for fiscal 2025.

• Hospital revenue guidance updated to 24%-26% reported and 12%-14% organic growth.