Haemonetics Corporation (HAE) reported robust financial performance in Q4 2025, delivering total revenue of $1.4 billion, representing a 4% growth year-over-year and a promising organic growth of 8% when excluding the impacts of the CSL divestiture and Whole Blood divestiture. This performance is attributed significantly to the hospital segment, now the largest business area, alongside significant recovery and margin expansion in the Plasma business. Management highlighted strong cash flow generation, with free cash flow growing 24% annually, underpinned by strategic initiatives aimed at optimizing the company's growth trajectory in the healthcare sector. Share buybacks totaling $150 million demonstrate confidence in future value creation and solidify the company's commitment to enhancing shareholder returns.
Key Performance Indicators
Revenue
330.60M
QoQ: -5.15% | YoY:-3.70%
Gross Profit
193.05M
58.39% margin
QoQ: -0.26% | YoY:12.50%
Operating Income
71.34M
QoQ: 20.85% | YoY:39.42%
Net Income
57.98M
QoQ: 54.64% | YoY:184.68%
EPS
1.17
QoQ: 56.00% | YoY:192.50%
Revenue Trend
Margin Analysis
Key Insights
Total Revenue: **$1.4 billion**, up 4% YoY
Organic Growth Rate: **8%**, excluding CSL and Whole Blood impacts
Q4 Revenue trend shows a positive quarterly growth rate, enhancing the overall fiscal year outlook.
Gross Profit: **$193 million** (Gross Margin: **60.2%**), reflecting a YoY increase of 620 basis points.
Operating Income: **$82.3 million**, with a 24.9% Operating Margin, up 610 basis points YoY.
Financial Highlights
### Key Metrics Analysis Revenue Performance
- Total Revenue: $1.4 billion, up 4% YoY
- Organic Growth Rate: 8%, excluding CSL and Whole Blood impacts
- Q4 Revenue trend shows a positive quarterly growth rate, enhancing the overall fiscal year outlook.
Profitability Metrics
- Gross Profit: $193 million (Gross Margin: 60.2%), reflecting a YoY increase of 620 basis points.
- Operating Income: $82.3 million, with a 24.9% Operating Margin, up 610 basis points YoY.
- Net Income for the quarter is reported at $58 million, translating to an EPS of $1.17, up 192.5% YoY.
Cash Flow and Balance Sheet Health
- Free Cash Flow: $145 million, signifying a conversion ratio of 63% of adjusted net income.
- Cash at period end: $307 million with a net leverage ratio of approximately 2.52x EBITDA, indicating firm liquidity and financial flexibility.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
330.60M
-3.70%
-5.15%
Gross Profit
193.05M
12.50%
-0.26%
Operating Income
71.34M
39.42%
20.85%
Net Income
57.98M
184.68%
54.64%
EPS
1.17
192.50%
56.00%
Key Financial Ratios
currentRatio
1.62
grossProfitMargin
58.4%
operatingProfitMargin
21.6%
netProfitMargin
17.5%
returnOnAssets
2.37%
returnOnEquity
6.09%
debtEquityRatio
1.29
operatingCashFlowPerShare
$2.37
freeCashFlowPerShare
$2.05
priceToBookRatio
3.27
priceEarningsRatio
13.4
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Management Insights
- Chris Simon, CEO, emphasized: "We delivered solid earnings growth... In Plasma, we continue to expand margins and capture share as customers adopt our next-generation technologies, further reinforcing our position as the industry leader."
- James D'Arecca, CFO: "Our financial results reflect the continued evolution of our business. Fourth quarter adjusted operating income grew 27%, reinforcing margins driven by strategic actions."
- Management reiterated confidence in the future, with expectations for adjusted earnings per share in the range of $4.70 to $5.00 for fiscal 2026, reflecting sustained growth initiatives.
### Key Themes
- Growth Trajectory: Significant revenue growth is supported through effective market positioning in plasma technology and hospital solutions.
"Our industry-leading NexSys, TEG, and VASCADE technologies continue to propel our growth in attractive markets..." - Chris Simon
— Chris Simon
"We expect Plasma revenue to decline on a reported basis, but organic growth ex-CSL is expected to be 11% to 14%." - James D'Arecca
— James D'Arecca
Forward Guidance
### Forward Guidance
Management appears confident regarding the fiscal year 2026 outlook, anticipating seasonal intrinsic growth. Key drivers include:
- **Revenue Guidance**: Projected reported revenue growth of **6% to 9%** organically, with anticipated revenue of **$1.3 billion.**
- **Operating Margin**: Expected margin improvement to **26% to 27%**, driven by increased operational efficiencies and a shift towards higher-margin products.
- **Plasma Segment Recovery**: Plasma revenue expected to decline on a reported basis due to CSL transition but anticipates organic growth of **11% to 14%**, highlighting strategic share gains post-transition.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
HAE Focus
58.39%
21.60%
6.09%
13.40%
MMSI
48.70%
10.30%
2.03%
50.65%
ANGO
50.60%
-8.18%
-6.54%
-4.74%
ATR
38.80%
14.20%
4.08%
25.88%
NVST
57.10%
9.08%
0.04%
693.23%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, Haemonetics Corporation is on a solid trajectory, underpinned by effective strategic initiatives and robust execution. Investors should consider the company’s potential for growth in both domestic and international markets while remaining cognizant of the ongoing operational transitions and competitive challenges in the evolving medical technology landscape. Additionally, the sustained emphasis on managing costs and enhancing margins points to a favorable risk-reward profile for investors inclined towards growth-oriented healthcare assets.
Key Investment Factors
Growth Potential
Haemonetics demonstrates strong growth potential with its concentration on Plasma and Hospital technologies, targeting robust market share and enhanced service delivery to drive continued financial outperformance.
Profitability Risk
Risks include reliance on successful management of the CSL transition and continued operational execution amid macroeconomic headwinds affecting supply chains and raw materials.
Financial Position
The company's strong cash position exceeding **$300 million** facilitates continued investment in R&D, acquisitions, and shareholder returns without overleveraging.
SWOT Analysis
Strengths
Strong brand positioning in the healthcare sector
Robust product portfolio with industry-leading technologies like NexSys and TEG
Solid free cash flow generation and balance sheet flexibility
Weaknesses
Challenges with declining revenue in Plasma and Blood Center segments due to divestitures
Potential operational disruptions due to market transitions
Opportunities
Increasing demand for plasma-derived therapies
Expanding into new geographical markets and enhancing international operations
Growth in the vascular closure market with emerging technologies
Threats
Regulatory pressures and trade tariffs that may impact cost structures
Competitive pressures from leading global healthcare companies