Haemonetics Q2 2026: Contradictions Emerge on Plasma Collections, IVT Turnaround, and VASCADE Strategy

Date of Call: November 6, 2025

Financials Results

• Revenue: $327M Q2 ($649M YTD), reported down 5% YOY; organic revenue ex CSL +9% Q2 and +11% YTD (notes: $48M/$101M portfolio transitions excluded)
• EPS: $1.27 adjusted EPS Q2, up 13% YOY; $2.36 adjusted EPS YTD, up 11% YOY (quarter benefits include ~$0.06 from share repurchases, tax, interest & FX)
• Gross Margin: 60.5% adjusted gross margin Q2 (60.6% YTD), up ~380 bps Q2 and ~460 bps YTD versus prior year (software license fees contributed ~100 bps YTD)
• Operating Margin: 26.7% adjusted operating margin Q2, up ~250 bps YOY; YTD adjusted operating margin 25.4%, up ~270 bps YOY; full-year guidance 26%–27%

Guidance:

• Total company full-year revenue expected to decline 1% to 4% reported; organic growth ex CSL expected +7% to +10%.
• Hospital revenue growth guidance 4% to 7% (reported and organic).
• Plasma: full-year reported revenue decline of 4% to 7% or organic growth ex CSL of 14% to 17%.
• Blood Center reported revenue decline expected 17% to 19%; organic approximately flat.
• Adjusted EPS guidance $4.80 to $5.00; adjusted operating margin affirmed at 26% to 27%.
• Free cash flow guidance $170M to $210M; FCF to adjusted net income >70%; assumptions include ~$35M interest/other and ~47.6M diluted shares.

Business Commentary:

* Revenue and Profitability Growth: - Haemonetics reported second quarter revenue of $327 million, reflecting a 5% reported revenue decline, but organic growth ex CSL was 9% in the quarter. - Adjusted EPS increased 13% in the quarter to $1.27. The growth was driven by disciplined execution, strong core product growth, and record margin expansion.

• Plasma and Collection Growth:
• Plasma revenue was $125 million in the quarter, down 10% on a reported basis, but organic revenue grew 19%, reflecting share gains and robust growth in U.S. collections.

• The increase in collections was attributed to a return from cyclicality and strong demand for Ig-derived therapies, reinforcing confidence in sustained growth.

• Blood Management Technologies Expansion:

• Blood Management Technologies delivered 12% growth in the quarter, driven by sustained strength in hemostasis management and the launch of the global heparinase neutralization cartridge.

• Growth was fueled by higher TEG disposable utilization and the adoption of new cartridges, supported by enhanced product offerings and increased demand for transfusion safety.

• Hospital Segment Performance:

• Hospital revenue was $146 million in the second quarter, up 5% on a reported basis and 4% organically, supported by strong Blood Management Technologies.
• Despite softness in Interventional Technologies, the segment's performance underscored resilience with expectations for sustained double-digit growth in BMT and renewed focus on IVT's growth.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management raised full-year revenue and plasma guidance, reported record margin expansion (adjusted gross margin 60.5% and adjusted operating margin 26.7%), and raised adjusted EPS guidance to $4.80–$5. They highlighted strong cash generation (Q2 operating cash flow $111M, FCF guidance $170M–$210M) and sustained organic growth in key franchises.

Q&A:

• Question from Rohin Patel (JPMorgan Chase & Co, Research Division): What are you assuming in the second half for plasma collections versus share gains versus pricing? Any intra-quarter recovery and how to reconcile strong ex-CSL growth with longer-term sustainability?
  Response: Plasma strength was driven in priority by share gains (NexSys), premium pricing from innovation and now collections (high single-digit US, double-digit Europe); management is bullish and views these drivers as sustainable.

• Question from Rohin Patel (JPMorgan Chase & Co, Research Division): Update on commercial work to get IVT back on track and which levers drove hospital margin expansion; how are you balancing commercial spend with margin improvement?
  Response: Hospital margin expansion came from mix, volume and operating leverage (notably Blood Management); for IVT the company is redeploying resources to vascular closure with new commercial leadership and decisive actions to regain growth while preserving margins.

• Question from Marie Thibault (BTIG, LLC, Research Division): Can you give more detail on IVT turnaround initiatives and any green shoots?
  Response: Sales organization overhaul (new leadership, field-force realignment, training, quotas, incentives), strengthened corporate accounts, completed MVP‑XL trial submission to FDA — early green shoots include new account openings and competitive win‑backs.

• Question from Marie Thibault (BTIG, LLC, Research Division): How sustainable is Blood Management Technologies' double-digit growth and cadence of recent launches?
  Response: BMT's double-digit growth is sustainable, driven by the heparinase neutralization cartridge adoption, capital equipment and disposable utilization, with recent launches in EMEA/Japan supporting continued expansion.

• Question from Unknown Analyst (on behalf of Needham & Company): Why was Blood Center organic growth strong (~4%) and what were the drivers?
  Response: Divesting whole-blood and non-core liquids removed margin drag, enabling focus on apheresis (NexSys) and regional market alignment, yielding organic growth and margin expansion; expect Blood Center organic to finish roughly flat for the year.

• Question from Unknown Analyst (on behalf of Needham & Company): How much did share repurchases add to EPS this quarter and are you committed to Vivasure/large bore market?
  Response: Share repurchases contributed a few cents (part of the ~$0.06 below‑the‑line benefit); management is committed to Vivasure (near‑final FDA submission), expects it to be an FY'27 event and sees it as a highly synergistic, high‑growth opportunity.

• Question from David Rescott (Robert W. Baird & Co., Research Division): What's driving the step‑up in U.S. plasma collections and confidence it's sustainable? Also, what's driving VASCADE progress vs competition?
  Response: U.S. collections step‑up reflects cyclicality plus durable share gains enabled by NexSys and pricing from technology improvements; VASCADE is showing green shoots from sales actions and head‑to‑head wins and is expected to regain share over time.

• Question from Travis Steed / Anja (BofA Securities): Will sales‑force changes return VASCADE to above‑market growth and what about Japan label expansion timing/impact?
  Response: Yes — management expects sales‑force changes to drive above‑market growth; Japan adoption is slower but meaningful over time with U.S. data accepted for submission and distributor support, timing is uncertain.

• Question from Joanne Wuensch / Anthony (Citi): How is the HN cartridge launch tracking in EMEA and Japan vs the U.S.?
  Response: Launch dynamics differ (smaller installed TEG base, distributor channels), so early pacing will lag the U.S., but long‑term HN cartridge rollout in EMEA/Japan is expected to be an important source of sustainable double‑digit growth.

• Question from Andrew Cooper (Raymond James & Associates, Inc., Research Division): How is VASCADE economically differentiated versus competition and has pricing changed?
  Response: VASCADE delivers faster ambulation/discharge, better workflow and less pain leading to ASC advantages; pricing flexibility has been modest and targeted (trial conversions), so margins are expected to hold while regaining share.

• Question from Andrew Cooper (Raymond James & Associates, Inc., Research Division): Are there additional Blood Management innovations similar in magnitude to the HN cartridge?
  Response: Yes — management sees further upside for viscoelastic testing penetration (targeting non‑adopters, e.g., T700) and additional indications/applications in the pipeline to be detailed at the next Investor Day.

• Question from Michael Petusky (Barrington Research Associates, Inc., Research Division): Have you bottomed/turned Vascular Closure; are you seeing week‑by‑week improvement?
  Response: Actions to date have stabilized closure with green shoots (new accounts, utilization, win‑backs); management expects meaningful growth ahead but remains prudent in near‑term guidance due to remaining headwinds (e.g., esophageal cooling drag).

• Question from Michael Petusky (Barrington Research Associates, Inc., Research Division): Will share count stay below ~50M and will buybacks remain active going forward?
  Response: Yes — management expects diluted shares to remain below ~50M and to remain active with opportunistic buybacks while prioritizing debt paydown and targeted investments.

Contradiction Point 1

Plasma Collections and Share Gains

It involves differing perspectives on the recovery and growth trajectory of plasma collections and share gains, which are crucial for the company's financial performance and investor expectations.

What are your assumptions for plasma collections, share gains, and pricing in H2? Are you seeing meaningful intra-quarter recovery in collections, and how does it align with your long-term sustainable outlook for plasma? - Rohin Patel (JPMorgan Chase & Co)

2026Q2: Plasma had a solid second quarter, driven by share gains, innovation pricing, and collection volume growth. The U.S. saw high single-digit growth, while Europe maintained double-digit growth, showing a return to normal cyclicality. - Christopher Simon(CEO, President & Director)

Has your outlook for U.S. collections changed in the second half of the year? - Joanne Wuensch (Citi)

2026Q1: The pullback in collections is temporary. We expect some recovery as technology-enabled gains annualize, but we remain cautious as collections are cyclical and influenced by macroeconomic factors. - Christopher Simon(CEO)

Contradiction Point 2

Plasma Segment Growth Drivers

It involves differing explanations of the factors driving growth in the Plasma segment, which is a significant part of the company's business and impacts investor expectations.

What are your assumptions for plasma collections, share gains, and pricing in the second half? Are there meaningful intra-quarter collection improvements, and how do they align with your long-term plasma outlook? - Rohin Patel (JPMorgan Chase & Co)

2026Q2: Plasma had a solid second quarter, driven by share gains, innovation pricing, and collection volume growth. The U.S. saw high single-digit growth, while Europe maintained double-digit growth, showing a return to normal cyclicality. - Christopher Simon(CEO, President & Director)

What are the growth assumptions for Plasma in fiscal 2026 from pricing, share gains, and volumes? How do these factors impact Plasma and company-wide margins in fiscal 2026? - Rohin Patel (JPMorgan)

2025Q4: We remain bullish on Plasma's long-term demand, with technologies that enhance throughputs and yield. Growth in fiscal 2026 is driven by share gains and technology adoption, not volume. - Chris Simon (CEO)

Contradiction Point 3

Interventional Technologies and Market Share Recovery

It involves differing expectations about the recovery and market share gains for Interventional Technologies, which impact the company's revenue and competitive position.

Will VASCADE's sales force changes drive above-market growth, and when can we expect the Japan label expansion? - Anja (BofA Securities)

2026Q2: We are confident in our ability to regain market share due to the product's clinical and economic differentiation. The focus on electrophysiology will drive growth, with continued progress expected in VASCADE and SavvyWire. - Christopher Simon(CEO, President & Director)

Could you share details on interventional technologies, especially the performance of MVP and MVP XL? - Rohin Patel (JPM)

2026Q1: We're seeing growth across multiple products, but we're experiencing a decline in interventional technologies, particularly due to previous destocking and competition. MVP and MVP XL saw 6% growth, driven by strong international contributions. - Christopher Simon(CEO)

Contradiction Point 4

IVT Segment Turnaround Strategy and Performance

It involves differing descriptions of the turnaround strategy and progress in the IVT segment, which affects investor expectations regarding operational improvements and financial outlook.

Can you provide an update on IVT's commercial recovery and discuss strategies to improve hospital operating margins? - Rohin Patel (JPMorgan Chase & Co)

2026Q2: Hospital segment expanded operating income by 370 basis points, with Blood Management Technologies performing well, offsetting softness in Interventional Technologies. The focus is on vascular closure, with the new sales force structure and tools supporting performance. - Christopher Simon(CEO, President & Director)

Can you discuss the growth and performance of the Vascular Closure portfolio, including MVP, XL, and the legacy VASCADE business? - Marie Thibault (BTIG, LLC)

2025Q4: Our focus is on growth in electrophysiology procedures, with a target of 8.5-9% growth in the U.S. We are addressing the legacy product challenges through a dedicated U.S. field force and are optimistic about improvements. - Chris Simon (CEO)

Contradiction Point 5

VASCADE Performance and Strategy

It involves differing statements on the performance and strategic focus of the VASCADE product, impacting expectations for growth and market share.

Will VASCADE's sales force changes lead to above-market growth, and when should we expect the Japan label expansion? - Anja (BofA Securities)

2026Q2: We are confident in our ability to regain market share due to the product's clinical and economic differentiation. The focus on electrophysiology will drive growth, with continued progress expected in VASCADE and SavvyWire. - Christopher Simon(CEO, President & Director)

What caused the growth shift from high 20s to mid-20s related to VASCADE XL? - Rohan Patel (JPMorgan)

2025Q3: The mid-20s growth in MVP and MVP XL is driven by AF ablation therapy, while the slower growth in VASCADE is due to competition and a focus on interventional cardiology procedures. Efforts are underway to improve performance in VASCADE. - Christopher Simon(President and Chief Executive Officer)