Haemonetics (HAE) Q3 2025 earnings summary

Executive summary

• Third quarter revenue reached $349 million, up 4% reported and 3.7% year-over-year, driven by strong Hospital segment growth and recent acquisitions, while Plasma and Blood Center revenues declined.

• Adjusted EPS for Q3 was $1.19, up 14% year-over-year; net income was $37.5 million, up 20%.

• Margin expansion and earnings growth were supported by portfolio transformation, technology upgrades, and divestiture of the Whole Blood business.

• Operating income increased 28.4% for the quarter, reflecting operating leverage, lower compensation, and gains from asset sales.

• All business units contributed to profitability despite external challenges, including plasma collection slowdowns and market headwinds in China.

Financial highlights

• Adjusted gross margin for Q3 was 57.7%, up 240 bps year-over-year; operating margin was 16.9%, with adjusted operating margin at 25.7%.

• Adjusted net income for Q3 was $60.3 million, up 13%, and adjusted EPS was $1.19, up 14% year-over-year.

• Cash on hand at quarter end was $320.8 million, up $142 million since fiscal year start, mainly due to debt financing.

• Cash provided by operating activities for the first nine months was $65.2 million, with free cash flow at $49.7 million, both down year-over-year due to higher inventory and timing of payments.

• Quarterly net income was $37.5 million (+20% YoY); diluted EPS: $0.74 (+21.3% YoY).

Outlook and guidance

• Fiscal 2025 revenue guidance revised to 3%-5% growth reported and flat to 3% organic; Hospital segment expected to grow 24%-26% reported and 12%-14% organic.

• Adjusted operating margin guidance raised to approximately 24% for fiscal 2025; adjusted EPS guidance tightened to $4.50-$4.70.

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

• Organic plasma revenue guidance updated to a 5%-7% decline, including ~$100 million impact from CSL U.S. disposables.

• Reported revenue guidance for Blood Center updated to a 7%-9% decline, organic decline to 2%-4%.