Haemonetics (HAE) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic overview and portfolio evolution

• Leadership in plasma apheresis, a $1B market with mid-single digit growth and robust cash flow.

• Diversified into MedSurg markets and prioritized high-growth areas such as plasma, blood management, and interventional technologies, while rationalizing legacy segments.

• Three core platforms—plasma, blood management, and interventional technologies—now generate most revenue, with 75% of revenue U.S.-based, providing a buffer against geopolitical and macroeconomic risks.

• Portfolio transitions and optimization have created a high-margin, recurring revenue base with improved operating leverage.

• Emphasis on diversification across business segments, customers, geographies, and business models, alongside sustainability in economic, societal, and environmental areas.

Financial performance and long-range plan (LRP)

• Achieved 8% total revenue CAGR and 13% organic revenue CAGR (excluding major customer transition and divestitures), with recurring revenue comprising up to 94% of total revenue.

• Operating income margin improved by 770 basis points, reaching 26.3% in the latest quarter and projected at 26-27% in FY'26.

• Adjusted EPS compounding at 17%, rising from $2.58 in FY'22 to a projected $4.90 in FY'26, supported by pricing, productivity, and revenue mix.

• Free cash flow conversion at 92%, with FY'26 guidance for free cash flow between $170M and $210M.

• ROIC increased from ~6.7% in FY'22 to ~11% in Q2 YTD FY'26, reflecting a focus on value creation and efficient capital deployment.

Core product platforms and market leadership

• NexSys PCS leads plasma collection with over 50% market share and strong customer engagement, supported by integrated solutions that reduce cost per liter and enhance donor experience.

• NexLynk DMS holds 80% U.S. market share, enhancing productivity and operational visibility.

• TEG 6s is the standard in viscoelastic testing, with 45% global share, double-digit growth, and a strong pipeline for international expansion.

• Vascade family dominates vascular closure in electrophysiology, targeting a $600M serviceable market, with portfolio expansion through the Vivasure acquisition.

• Recent Vivasure acquisition expands into large bore closure, a $300M market, with PerQseal Elite under FDA review and category leadership from 5F to 22F.