Haemonetics (NYSE:HAE) management struck an upbeat tone on its fiscal third-quarter 2026 earnings call, highlighting “outsized” growth in its NexSys plasma platform and TEG hospital blood management franchise, while acknowledging continued weakness in Interventional Technologies. The company reported third-quarter revenue of $339 million and raised full-year revenue, earnings, and free cash flow guidance, citing sustained share gains, innovation-based pricing, and improved cash generation.
Quarterly performance and updated outlook
CEO Chris Simon said the quarter reflected strong underlying performance despite the year-over-year impact of prior portfolio transitions, including the divestiture of the whole blood product line and the exit of certain liquid solution products. Reported revenue includes what management described as a $153 million impact from last year’s portfolio transitions. On an organic basis excluding CSL-related impacts, Haemonetics delivered 8% organic growth in the quarter and 10% year to date.
Management also increased full-year adjusted EPS guidance to $4.90 to $5.00 per share, which CFO James D’Arecca said reflects strong performance to date alongside the Vivasure acquisition.
Hospital segment: Blood management strength offsets IVT softness
Hospital revenue was $144 million in the third quarter and $429 million year to date. On an organic basis, revenue was down 1% in the quarter and up 2% year to date, as gains in Blood Management Technologies (BMT) were offset by declines in Interventional Technologies (IVT).
BMT grew 8% in the quarter and 11% year to date, driven by sustained double-digit growth in hemostasis management. Simon pointed to momentum from TEG 6s disposable sales and the “rapid adoption” of the global heparinase neutralization (HN) cartridge, which he said is accelerating account conversions and penetration. He also described runway to upgrade legacy TEG 5000 systems, increase TEG 6s device sales and utilization, and expand share within existing indications. The company recently launched the HN cartridge in EMEA and Japan, which management said expands international growth opportunities within a “$400 million-plus serviceable market.”
IVT revenue declined 12% in the quarter and 8% year to date. Management attributed most of the quarterly decline to softness in esophageal cooling amid accelerating pulsed field ablation (PFA) adoption, along with OEM-related headwinds in sensor-guided technologies. In Q&A, Simon said these two factors represented about 70% of the quarter’s decline in IVT, with “8.5 of the 12% decline” tied to esophageal cooling and the OEM portion of the SavvyWire business.
Within vascular closure, revenue fell 4% in the quarter. The company cited a 3% decline in MVP and MVP XL in electrophysiology and softness in VASCADE in lower-growth coronary and peripheral procedures. Simon said electrophysiology performance reflected prior share loss, order timing in several large accounts in December, and procedural dynamics shifting the addressable market in the near term. However, he reiterated confidence in IVT’s clinical and economic differentiation and said the company expects the segment to return to growth in fiscal 2027.
For the full year, Haemonetics now expects the hospital business to deliver reported and organic growth of approximately 4% at the low end of its prior 4% to 7% range, reflecting the IVT headwinds and the BMT strength. In response to analyst questions, Simon said the fourth-quarter hospital outlook depends on BMT carrying “well into the double digits,” along with “the beginnings of stabilization in IVT,” including some benefit from order timing and competitive win-backs.
Plasma acceleration and share-gain “trifecta”
Plasma revenue was $139 million, up 3% on a reported basis, with management noting it faced the “last remnants of customer transition headwinds.” On an organic basis excluding CSL, plasma grew 20% in the quarter and 22% year to date. Simon said roughly half of the quarterly growth came from share gains, with the remainder driven by collection volume and the “full annualization of innovation benefits.”
In describing the drivers, Simon outlined what he called a “trifecta” of price, share, and volume:
- Share gains: Management cited both direct share gains from competitors and gains by Haemonetics’ customers that are “enabled with the best technology.”
- Pricing/innovation benefits: Simon said the company is in the “final quarter” of annualizing price benefits tied to new technology rollouts.
- Collection volume: Management said collection volumes increased above seasonal expectations, with double-digit growth in the U.S. and internationally.
Simon said plasma fundamentals remain attractive due to durable immunoglobulin demand across a broad range of indications, adding that U.S. plasma collections grew in the low double digits in the third quarter. He emphasized that the company will provide more detailed fiscal 2027 guidance in May, but said early customer discussions suggest a favorable environment.
Haemonetics raised full-year reported plasma revenue guidance to a decline of 2% to 4% (from a decline of 4% to 7%) and increased organic revenue guidance excluding CSL to growth of 17% to 19% (from 14% to 17%). When asked about the sustainability of collection growth, Simon said the company “works backwards” from end-market demand and customer commentary, but also emphasized that volume is not directly controllable and is therefore not embedded in guidance.
Margins, cash flow, and Vivasure/PerQseal Elite preparation
Haemonetics reported continued margin expansion, with adjusted gross margin of 60.2% in the quarter and 60.5% year to date, up 250 and 390 basis points, respectively. D’Arecca attributed the improvement to adoption of NexSys PCS with Persona technology, the divestiture of the Whole Blood business, and expanding share in Plasma and Blood Management Technologies. Adjusted operating income was $89 million, flat year over year, while adjusted operating margin expanded 60 basis points to 26.3%.
Adjusted operating expenses were $115 million, up 3% year over year, which D’Arecca said was primarily due to higher performance-based compensation driven by consolidated outperformance, along with targeted R&D and innovation investment. For the full year, the company maintained adjusted operating margin guidance of approximately 26% to 27%, though D’Arecca said results may land toward the lower end due to Vivasure-related dilution and launch-timing expenses tied to PerQseal Elite.
Cash flow was a key theme of the call. The company generated $74 million of free cash flow in the quarter, bringing year-to-date free cash flow to $165 million. D’Arecca said operating cash flow was $94 million in the quarter and $222 million year to date, more than tripling the prior-year period. Free cash flow conversion was 121% of adjusted net income in the quarter and 95% year to date.
Haemonetics raised fiscal 2026 free cash flow guidance to $200 million to $220 million (from $170 million to $210 million) and said it expects full-year free cash flow conversion to exceed 80%.
Following quarter end, Haemonetics invested $61 million to acquire Vivasure and repurchased about 360,000 shares for $25 million. Cash on hand at quarter end was $363 million, up 18% since the start of the fiscal year, despite $75 million of share repurchases earlier in the year. Total debt was approximately $1.2 billion, and the company reported no borrowings under its $750 million revolver, with net leverage at 2.37x EBITDA.
On Vivasure, Simon said the acquisition strengthens the company’s vascular closure portfolio by extending its reach into large-bore procedures and structural heart, including TAVR and EVAR, with an addressable market he estimated at roughly $300 million, about two-thirds in the U.S. He said the company plans a measured, stepwise commercial approach in fiscal 2027 following FDA approval.
About Haemonetics (NYSE:HAE)
Haemonetics Corporation is a global provider of blood management solutions that support the collection, processing and transfusion of blood and blood products. The company’s offerings are designed to enhance patient safety and operational efficiency for blood centers, hospitals and plasma collection facilities. Haemonetics serves healthcare providers worldwide by delivering integrated systems, software and consumables that address critical needs throughout the continuum of blood management.
The company’s product portfolio includes automated apheresis and plasma collection systems, surgical blood salvage and coagulation monitoring devices, and pathogen reduction technologies.
