Haemonetics (HAE) Q4 2025 earnings summary

Executive summary

• Achieved solid earnings growth in FY2025, with total revenue reaching $1.4 billion, up 4% reported and 1% organic; Hospital became the largest business, driving double-digit growth in blood management and interventional technology franchises.

• Adjusted earnings per diluted share for FY2025 were $4.57, up from $3.96 in FY24; Q4 adjusted EPS was $1.24, up 39%.

• Record margin expansion and strong cash flow highlighted, with robust portfolio transformation and technology adoption.

• Divested whole blood business in January 2025, focusing on high-value plasma apheresis and hospital segments.

• Completed $300 million share repurchase program; new $500 million buyback authorization over three years.

Financial highlights

• Adjusted gross margin for Q4 was 60.2%, up 620 bps YoY; FY2025 adjusted gross margin was 57.4%, up 300 bps.

• Q4 adjusted operating income grew 27% to $82.3 million (24.9% margin); FY2025 adjusted operating income grew 18% to $326.3 million (24% margin).

• Q4 adjusted net income was $61.6 million, up 34%; adjusted EPS was $1.24, up 39%. FY2025 adjusted net income was $231.5 million, up 14%; adjusted EPS was $4.57, up 15%.

• Free cash flow grew 24% to $145 million; cash flow from operating activities for FY25 was $181.7 million.

• Ended FY2025 with $307 million in cash, net leverage ratio at 2.52x EBITDA.

Outlook and guidance

• FY2026 reported revenue expected to decline 3%-6% due to whole blood divestiture, CSL transition, and liquids business exit; $153 million headwind.

• Organic revenue growth expected at 6%-9% in FY2026, with Hospital segment guidance at 8%-11%.

• Adjusted operating margin guidance for FY2026 is 26%-27%; adjusted EPS expected between $4.70 and $5.00.

• Free cash flow guidance for FY2026 is $160-$200 million, with conversion ratio above 70%.

• Adjusted tax rate to rise to ~24.5% in FY2026.