Haemonetics Corporation (HAE) - Q1 Fiscal 2027 Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 27, 2026. Haemonetics Corporation is a global medical technology company operating in two reportable segments: Apheresis (plasma and blood center technologies) and MedSurg (hospital technologies including interventional and blood management). On June 5, 2026, the Company reorganized its segments, combining the former Plasma and Blood Center segments into Apheresis and renaming the Hospital segment to MedSurg.
Key Financial Metrics
| Metric | Q1 2027 (Ended June 27, 2026) | Q1 2026 (Ended June 28, 2025) |
|---|---|---|
| Net Revenues | $339.4 million | $321.4 million |
| Gross Profit | $202.8 million (59.8% margin) | $192.2 million (59.8% margin) |
| Operating Income | $57.5 million (16.9% margin) | $53.9 million (16.8% margin) |
| Net Income | $33.0 million | $34.0 million |
| Diluted EPS | $0.72 | $0.70 |
| Cash from Operations | $52.3 million | $17.4 million |
| Total Debt | $1.174 billion | $1.225 billion |
| Cash & Equivalents | $223.4 million | $292.9 million |
Material Changes vs. Prior Period
- Revenue Growth: Net revenues increased 5.6% year-over-year, driven by volume growth and share gains in the Plasma franchise (Apheresis) and share gains in Hemostasis Management and Transfusion Management (MedSurg).
- Profitability: Operating income rose 6.7% due to favorable product mix and reduced amortization of fair value inventory step-up from the Attune Medical acquisition. However, Net Income declined 3.0% primarily due to a higher effective tax rate (30.6% vs. 24.7%) driven by stock compensation shortfalls and valuation allowance impacts.
- Segment Performance: Apheresis revenue grew 5.3% while MedSurg revenue grew 6.0%. MedSurg operating income increased significantly to $22.7 million from $18.4 million.
- Acquisition: The Company acquired Vivasure Medical Limited in January 2026 for a net purchase price of $166.1 million, adding next-generation vessel closure technology to the MedSurg portfolio.
- Debt Management: Total debt decreased by approximately $50 million as the Company repaid $50 million on its revolving credit facility during the quarter.
Guidance, Outlook, and Risks
- Restructuring: The Company is executing a "Market and Regional Alignment Initiative" approved in May 2025. Cumulative charges under this initiative reached $7.9 million as of June 27, 2026, with $2.3 million incurred in the current quarter.
- Share Repurchases: Under the 2025 Share Repurchase Program, the Company has $325.0 million remaining authorization. No repurchases were made in this specific quarter, but $175.0 million was utilized in fiscal 2026.
- Legal Proceedings: The Company is engaged in patent litigation against Terumo BCT and Fresenius Kabi regarding donor-centric blood plasma collection patents. The Company believes these actions are necessary to protect its intellectual property.
- Market Risks: Key risks include foreign currency fluctuations (24% of sales are international), interest rate volatility on variable-rate debt, and potential supply chain disruptions. The Company utilizes forward contracts and interest rate swaps to mitigate these risks.
Investor Verification Checklist
- Verify the impact of the segment reorganization on future comparability of Apheresis and MedSurg performance metrics.
- Monitor the effective tax rate, which increased to 30.6% due to discrete items; assess if this is a recurring trend.
- Review the progress and cost realization of the Market and Regional Alignment Initiative to ensure projected savings are met.
- Track the status of patent litigation against Terumo BCT and Fresenius Kabi for potential financial or operational impacts.
- Assess the integration and revenue contribution of the Vivasure acquisition in the MedSurg segment.