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Haemonetics Corp (HAE)

Business Summary

Haemonetics is a global medical technology company dedicated to improving the quality, effectiveness and efficiency of health care. The company operates in three principal reporting segments: Plasma, Blood Center, and Hospital. The Plasma segment focuses on the collection of source plasma for pharmaceutical manufacturers using apheresis devices and software solutions. The Blood Center segment offers products and technologies to help blood centers optimize blood collections, improve donor safety, enhance yields and control costs. The Hospital segment is comprised of Interventional Technologies, which includes Vascular Closure, Sensor-Guided Technologies and Esophageal Protection product lines, and Blood Management Technologies, which includes Hemostasis Management, Cell Salvage and Transfusion Management product lines. The company believes that Plasma and Hospital have the greatest growth potential and are well positioned to drive long-term value, while Blood Center operates in more challenging markets.

The company faces intense competition across its product lines. In the automated plasma collection market, it principally competes with Fresenius' Fenwal Aurora and Aurora Xi device product lines and Terumo BCT's Rika device. In the Blood Center market, its MCS brand apheresis equipment competes with products from Terumo BCT and Fresenius. In the Hospital segment, main competitors in vascular access closure include Terumo BCT, Abbott Laboratories, Cordis, and Teleflex. In hemostasis management, the TEG analyzer competes with other viscoelastic testing systems including ROTEM analyzers, the VerifyNow System and HemoSonics Quantra. In the advanced viscoelastic testing segment, Haemonetics is the global market leader. The company's competitive advantages include brand recognition, product quality, safety, cost effectiveness, and continual documentation of clinical performance.

The company generates revenue through the sale of medical devices, disposables, software, and services across its three segments. Revenue from product sales is recorded at the net sales price, which includes estimates of variable consideration related to rebates, product returns and volume discounts. The majority of the company's performance obligations related to product sales are satisfied at a point in time upon shipment or delivery to the customer. The company also enters into software licensing arrangements and recognizes revenue from perpetual licenses and related customization services over time. The company places equipment at customer sites, retaining ownership, and recovers the cost of providing the equipment from the sale of its disposables. In fiscal 2026, the ten largest customers accounted for approximately 44% of net revenues, and one Plasma customer accounted for approximately 13% of total net revenues.

The Plasma segment includes plasma collection devices and disposables, donor management software and supporting software solutions sold to plasma customers. Plasma revenue was $524.456 million in fiscal 2026, representing 39.3% of total revenue. The segment's NexSys PCS plasmapheresis collection system and related disposables are key products. The company also offers a portfolio of integrated information technology platforms including NexLynk DMS donor management system and Donor360 tools. In the fourth quarter of fiscal 2026, the company received FDA 510(k) clearance for the NexSys PCS Plasma Collection System with Persona PLUS technology, which enables on average a mid-single digit percent increase of plasma per donation over Persona. The company has completed conversion of its U.S. customers to Express Plus and Persona technologies as of the end of fiscal 2026.

The Hospital segment is comprised of Interventional Technologies and Blood Management Technologies. Hospital revenue was $588.304 million in fiscal 2026, representing 44.1% of total revenue. Interventional Technologies includes Vascular Closure products such as the VASCADE family and PerQseal Elite large bore closure system, Sensor-Guided Technologies including OptoWire and SavvyWire, and Esophageal Protection including the ensoETM system. Blood Management Technologies includes Hemostasis Management with the TEG 6s system, Cell Salvage with the Cell Saver Elite + system, and Transfusion Management with SafeTrace Tx and BloodTrack software. The Blood Center segment revenue was $221.267 million in fiscal 2026, representing 16.6% of total revenue. The Blood Center segment includes the MCS brand apheresis equipment and the ACP automated cell processor.

On January 9, 2026, the company acquired all of the outstanding equity interests of Vivasure Medical Limited for a net purchase price of $164.4 million , which included $60.2 million paid in cash at closing and the fair value of contingent consideration of $20.7 million . In April 2025, the Board approved a three-year share repurchase program authorizing the repurchase of up to $500.0 million of common stock through April 2028. During fiscal 2026, the company repurchased $175.0 million of its common stock. On March 2, 2026, the company repaid in full at maturity its outstanding 2026 Notes for an aggregate amount of $300.0 million in cash. In May 2025, the Board approved the ongoing market and regional alignment initiative, a company-wide restructuring initiative designed to improve operational performance and reduce costs.

Net revenues decreased 2.0% during fiscal 2026 as compared with fiscal 2025, from $1,360.824 million to $1,334.027 million . Gross profit increased 5.2% to $787.586 million from $748.958 million . Operating income decreased 29.3% to $156.734 million from $221.817 million . Net income decreased 42.0% to $97.308 million from $167.679 million . Diluted earnings per share decreased 38.1% to $2.05 from $3.31 . The decrease in net revenues was driven by prior year portfolio transitions in Plasma and Blood Center, partially offset by an increase in Hospital. Operating income decreased primarily due to the impairment of intangible assets related to Attune Medical.

Business Outlook & Financial Sufficiency

The company believes that Plasma and Hospital have the greatest growth potential and are well positioned to drive long-term value. In the Plasma segment, the company continues to invest in technology that lowers the overall cost to collect plasma while maintaining high standards of quality and safety. The company expects to pursue further regulatory clearances for additional enhancements to the overall product offering. In the Hospital segment, the company's PerQseal Elite large bore closure system has received CE Mark in Europe for arterial and venous indications, and the company has submitted a premarket approval application to the FDA for an arterial indication in the United States. The company believes PerQseal Elite complements and expands its Vascular Closure portfolio into the large bore market.

The company's Hospital business has two distinct franchises, Interventional Technologies and Blood Management Technologies, both of which have a leading market position. In the Hemostasis Management market, the TEG 6s system is approved for a broader set of indications outside of the U.S., including Europe, Australia and Japan. The company continues to pursue a broader set of indications for TEG 6s in the U.S. In the Transfusion Management market, SafeTrace Tx's leading market share continues in the U.S. and has expanded into the United Kingdom. The company's strategic investment in sensor-guided technologies positions it to capitalize on trends in both high-growth and mature markets while expanding its global market presence through initiatives such as receiving CE Mark for its SavvyWire.

The company has implemented various cost reduction initiatives to align its cost structure with its operations and ongoing portfolio rationalization activities. During the first quarter of fiscal 2026, the Board of Directors approved the ongoing market and regional alignment initiative, a company-wide restructuring initiative designed to improve operational performance and reduce costs by directing the company's resources toward the markets and geographies that offer the greatest growth and portfolio advancement opportunities. During fiscal 2026, the company incurred restructuring and restructuring related costs of $5.1 million under this initiative. Total cumulative charges under this initiative are $5.6 million as of March 28, 2026.

The company's primary consumable manufacturing operations are located in North America and Malaysia. Contract manufacturers supply component sets according to the company's specifications, with component sets manufactured in Japan, Singapore, Thailand, Indonesia and the Philippines. The company's capital equipment is principally manufactured in Malaysia, Australia and the U.S. The company has experienced increased levels of unpredictability in the supply of certain raw materials and components used in the manufacturing of its products. The company is in the process of implementing a new global enterprise resource planning system. As of March 28, 2026, other long-term assets included approximately $62.4 million of capitalized implementation costs related to this new system.

Research and development expenses were $59.766 million in fiscal 2026, representing 4.5% of net revenues. Capital expenditures were $32.8 million in fiscal 2026. In April 2025, the Board approved a three-year share repurchase program authorizing the repurchase of up to $500.0 million of common stock through April 2028. As of March 28, 2026, the total remaining authorization for repurchases of the company's common stock under the 2025 share repurchase program was $325.0 million . The company has not historically paid cash dividends and does not currently anticipate paying cash dividends in the future.

The company faces several headwinds and constraints. The global macroeconomic environment has continued to present challenging conditions and uncertainty, including around inflation, tariffs, interest rates, monetary policy, exchange rates and geopolitical developments. The U.S. government implemented substantial changes to U.S. trade policies, including increased tariffs and changes to multilateral trade agreements. The company has experienced increased levels of unpredictability in the supply of certain raw materials and components used in the manufacturing of its products. In the Blood Center market, declining transfusion rates in mature markets due to more minimally invasive procedures and intensified competition in multi-unit collection technology have negatively impacted growth.

The company's international operations are subject to geopolitical events, economic volatility, violations of anti-corruption laws, export and import restrictions and tariffs, decisions by local regulatory authorities and the laws and medical practices in foreign jurisdictions. The company markets and sells its products in approximately 90 countries and has distributors in approximately 87 of these countries. In fiscal 2026, international revenues accounted for 26.4% of total revenues. The company is exposed to fluctuations in currency exchange rates, which could adversely affect its cash flows and results of operations. The company's primary foreign currency exposures relate to sales denominated in Japanese Yen, Euro and Chinese Yuan.

Management Sentiments & Priorities

Management's message emphasizes that the company is a global medical technology company dedicated to improving the quality, effectiveness and efficiency of health care. Management believes that Plasma and Hospital have the greatest growth potential and are well positioned to drive long-term value. The strategic priorities for the period ahead include focusing on innovation and new product development, particularly in the Plasma and Hospital portfolios. Management has implemented a market and regional alignment initiative designed to improve operational performance and reduce costs by directing the company's resources toward the markets and geographies that offer the greatest growth and portfolio advancement opportunities. The company's forward-looking statements reflect management's assumptions, views, plans, objectives and projections about the future, including expectations regarding future operations, expected operating results and financial performance, the company's strategy for growth, product development and commercialization, regulatory approvals, impacts of acquisitions or dispositions, impacts of share repurchases, and market position and expenditures.

Financial Details

Total net revenues were $1,334.027 million in fiscal 2026, compared to $1,360.824 million in fiscal 2025. Net income was $97.308 million in fiscal 2026, compared to $167.679 million in fiscal 2025. Diluted earnings per share was $2.05 in fiscal 2026, compared to $3.31 in fiscal 2025. Gross profit was $787.586 million in fiscal 2026, compared to $748.958 million in fiscal 2025, representing 59.0% and 55.0% of net revenues, respectively. Operating income was $156.734 million in fiscal 2026, compared to $221.817 million in fiscal 2025. Net cash provided by operating activities was $293.221 million in fiscal 2026, compared to $181.725 million in fiscal 2025. As of March 28, 2026, the company had cash and cash equivalents of $245.440 million and total debt of $1,224.580 million , resulting in a net debt position of $979.140 million . The company recorded an impairment of intangible assets of $86.546 million in fiscal 2026, which reduced operating income. The Plasma segment reported revenue of $524.456 million , the Blood Center segment reported revenue of $221.267 million , and the Hospital segment reported revenue of $588.304 million in fiscal 2026.

Risk Factors

The company faces intense competition from larger global companies such as Terumo BCT, Fresenius SE & Co. KGaA, and Abbott Laboratories, which have significant financial and marketing resources. A material reduction in purchasing from or loss of a significant customer could adversely affect the business, as in fiscal 2026 the ten largest customers accounted for approximately 44% of net revenues and one Plasma customer accounted for approximately 13% of total net revenues. The company has a significant amount of debt, including $700.0 million aggregate principal amount of convertible notes due 2029 and $239.1 million outstanding under the senior unsecured term loan as of March 28, 2026, which may decrease business flexibility and access to capital. The company is subject to extensive regulation by the FDA and similar non-U.S. regulatory agencies, and failure to comply could result in product recalls, seizures, or suspension of manufacturing. The company's international operations expose it to currency fluctuations, as 26.4% of fiscal 2026 revenues were generated outside the U.S., and to geopolitical risks including tariffs and trade policy changes.

References

  1. [1] Item 7, MD&A — Net Revenues by Business Unit
  2. [2] Item 1, Business — Plasma
  3. [3] Item 7, MD&A — Net Revenues by Business Unit
  4. [4] Item 1, Business — Hospital
  5. [5] Item 7, MD&A — Net Revenues by Business Unit
  6. [6] Item 1, Business — Blood Center
  7. [7] Item 7, MD&A — Recent Developments
  8. [8] Item 7, MD&A — Recent Developments
  9. [9] Item 7, MD&A — Recent Developments
  10. [10] Item 7, MD&A — 2025 Share Repurchase Program
  11. [11] Item 7, MD&A — 2025 Share Repurchase Program
  12. [12] Item 7, MD&A — Convertible Debt Repayment and Revolving Credit Facility Drawdown
  13. [13] Item 7, MD&A — Financial Summary
  14. [14] Item 7, MD&A — Financial Summary
  15. [15] Item 7, MD&A — Financial Summary
  16. [16] Item 7, MD&A — Financial Summary
  17. [17] Item 7, MD&A — Financial Summary
  18. [18] Item 7, MD&A — Financial Summary
  19. [19] Item 7, MD&A — Financial Summary
  20. [20] Item 7, MD&A — Financial Summary
  21. [21] Item 7, MD&A — Financial Summary
  22. [22] Item 7, MD&A — Financial Summary
  23. [23] Item 7, MD&A — Financial Summary
  24. [24] Item 7, MD&A — Financial Summary
  25. [25] Item 7, MD&A — Financial Summary
  26. [26] Item 7, MD&A — Financial Summary
  27. [27] Item 7, MD&A — Financial Summary
  28. [28] Item 7, MD&A — Market and Regional Alignment Initiative
  29. [29] Item 7, MD&A — Market and Regional Alignment Initiative
  30. [30] Item 8, Note 2 — Cloud computing implementation costs
  31. [31] Item 7, MD&A — Operating Expenses
  32. [32] Item 7, MD&A — Operating Expenses
  33. [33] Item 7, MD&A — Cash Flows
  34. [34] Item 7, MD&A — 2025 Share Repurchase Program
  35. [35] Item 7, MD&A — 2025 Share Repurchase Program
  36. [36] Item 7, MD&A — Foreign Exchange
  37. [37] Item 1A, Risk Factors
  38. [38] Item 1A, Risk Factors
  39. [39] Item 1A, Risk Factors
  40. [40] Item 1A, Risk Factors
  41. [41] Item 1A, Risk Factors
  42. [42] Item 8, Consolidated Statements of Income
  43. [43] Item 8, Consolidated Statements of Income
  44. [44] Item 8, Consolidated Statements of Income
  45. [45] Item 8, Consolidated Statements of Income
  46. [46] Item 8, Consolidated Statements of Income
  47. [47] Item 8, Consolidated Statements of Income
  48. [48] Item 8, Consolidated Statements of Income
  49. [49] Item 8, Consolidated Statements of Income
  50. [50] Item 7, MD&A — Financial Summary
  51. [51] Item 7, MD&A — Financial Summary
  52. [52] Item 8, Consolidated Statements of Income
  53. [53] Item 8, Consolidated Statements of Income
  54. [54] Item 8, Consolidated Statements of Cash Flows
  55. [55] Item 8, Consolidated Statements of Cash Flows
  56. [56] Item 8, Consolidated Balance Sheets
  57. [57] Item 8, Note 12 — Notes Payable and Long-Term Debt
  58. [58] Item 7, MD&A — Liquidity and Capital Resources
  59. [59] Item 8, Consolidated Statements of Income
  60. [60] Item 7, MD&A — Net Revenues by Business Unit
  61. [61] Item 7, MD&A — Net Revenues by Business Unit
  62. [62] Item 7, MD&A — Net Revenues by Business Unit

Analysis on 9/28/2026