Haemonetics (HAE) Q1 2025 earnings summary

Executive summary

• First quarter revenue reached $336.2 million, up 8% year-over-year, driven by strong Hospital segment growth and recent acquisitions.

• Adjusted EPS was $1.02, down 2.9% year-over-year; GAAP EPS was $0.74, down 7.5%.

• Operating income declined 25.9% to $39.8 million, mainly due to higher costs from acquisitions and integration.

• Completed acquisitions of Attune Medical and OpSens, expanding the Hospital business in electrophysiology and interventional cardiology.

• Issued $700 million in convertible notes to refinance debt and fund acquisitions.

Financial highlights

• Adjusted gross margin was 55.3%, up 110 bps year-over-year; GAAP gross margin was 52.0%, down from 53.7%.

• Adjusted operating expenses rose 17% to $114.9 million, mainly due to acquisitions and growth investments.

• Adjusted operating income was $71 million (21.1% margin), up 1% year-over-year.

• Adjusted net income was $52.4 million, down 2.4% year-over-year.

• Cash on hand at quarter-end was $344.4 million, up $165.6 million since fiscal year-end.

Outlook and guidance

• FY 2025 reported revenue growth expected at 5%-8%, organic growth flat to 3%.

• Hospital reported revenue growth expected at 27%-32%, organic growth at 13%-16%.

• Adjusted operating margin guidance for FY 2025 is 23%-24%; adjusted EPS guidance is $4.45-$4.75.

• Free cash flow guidance remains $130-$180 million for FY 2025.

• Management expects continued growth in the Hospital segment, supported by acquisitions and product launches.