Haemonetics Corporation (HAE) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This filing covers the quarterly period ended September 27, 2025 (Fiscal Q2 2026). Haemonetics is a global medical technology company operating in three segments: Plasma, Blood Center, and Hospital. The period reflects the impact of the divestiture of the Whole Blood product line (completed January 2025) and ongoing customer transitions in the Plasma segment.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Revenues | $327.3 million | $345.5 million | $648.7 million | $681.7 million |
| Gross Profit | $194.7 million | $187.4 million | $387.0 million | $362.4 million |
| Gross Margin | 59.5% | 54.2% | 59.7% | 53.2% |
| Operating Income | $58.5 million | $51.7 million | $112.4 million | $91.5 million |
| Net Income | $38.7 million | $33.8 million | $72.7 million | $72.2 million |
| Diluted EPS | $0.81 | $0.66 | $1.51 | $1.40 |
| Cash & Equivalents | $296.4 million (as of Sept 27, 2025) | |||
| Operating Cash Flow (YTD) | $128.7 million | $21.4 million |
Material Changes vs. Prior Period
- Revenue Decline: Net revenues decreased 5.3% QoQ and 4.8% YTD. This was driven by a 9.5% decline in Plasma (due to CSL Plasma customer transition) and a 17.6% decline in Blood Center (due to the Whole Blood divestiture).
- Margin Expansion: Despite lower revenue, gross margin expanded to 59.5% (from 54.2% prior year) due to pricing benefits, favorable product mix, and reduced restructuring costs.
- Profitability Growth: Operating income increased 13.1% QoQ and 22.9% YTD, outpacing revenue declines due to cost efficiencies and lower amortization of fair value inventory step-up.
- Impairment Charge: The Company recorded an $8.6 million impairment charge related to intangible assets (HAS viscoelastic diagnostic devices) in the Hospital segment, compared to $2.4 million in the prior year period.
- Share Repurchases: The Company completed a $75.0 million Accelerated Share Repurchase (ASR) in Q2, buying back 1.43 million shares at an average price of $52.43.
Guidance, Outlook, and Risks
- Strategic Initiatives: Management is executing a "Market and Regional Alignment Initiative" approved in May 2025 to reallocate resources to high-growth markets. Cumulative charges for this initiative are $4.0 million as of period end.
- Debt Profile: The Company has $300.0 million in 0.0% Convertible Senior Notes due March 2026 and $700.0 million in 2.5% Convertible Senior Notes due 2029. A $242.2 million term loan is outstanding with an effective rate of 6.4%.
- Liquidity: The Company maintains $748.7 million in availability under its revolving credit facility and $296.4 million in cash. Management believes liquidity is sufficient for the next 12 months.
- Legal Proceedings: The Company settled a patent infringement claim with Philips/IP2IPO regarding OpSens technology (immaterial impact). It is actively pursuing patent infringement claims against Terumo BCT and Fresenius Kabi regarding plasma collection technology.
- Forward-Looking Risks: Key risks include the full impact of the CSL Plasma transition, geopolitical instability, supply chain disruptions, and the outcome of ongoing IP litigation.
Investor Verification Checklist
- CSL Plasma Transition: Verify the timeline and financial impact of the complete cessation of North America disposable sales to CSL Plasma in Fiscal 2026.
- Hospital Segment Growth: Confirm the sustainability of the 13.0% growth in Blood Management Technologies (Hemostasis Management) which offset declines in other segments.
- Intangible Asset Valuation: Review the assumptions behind the $8.6 million impairment charge for HemoAssay assets and assess if further impairments are likely.
- Debt Maturity Wall: Assess the Company's plan to refinance or repay the $300 million 2026 Convertible Notes maturing in March 2026.
- Restructuring Savings: Monitor the realization of cost savings from the "Market and Regional Alignment Initiative" against the $4.0 million incurred to date.