Haemonetics (NYSE:HAE) recently announced its financial results for the fourth fiscal quarter and the full fiscal year, showcasing substantial performance driven by key business segments. The company reported a 5% increase in fourth-quarter revenue, reaching $346 million, and an impressive 9% organic growth excluding the impact of CSL. Adjusted earnings per share stood at $1.29 for the quarter. For the entire fiscal year, Haemonetics achieved total revenues of $1.3 billion and an adjusted earnings per share of $4.96, underpinned by enhanced margins and significant free cash flow generation.

The growth in the Plasma and Blood Management Technologies divisions was a primary contributor to these positive results, effectively counteracting ongoing challenges within the Interventional Technologies sector. Plasma segment revenues climbed by 13% organically during the quarter, while the Blood Management Technologies segment marked a record performance. However, the Interventional Technologies segment experienced a 10% revenue decline, mainly due to reduced activity in vascular closure and related medical procedures.

Looking ahead, Haemonetics has provided optimistic guidance for fiscal year 2027, forecasting a reported revenue increase of 4% to 7%. The company also anticipates an expansion in its adjusted operating margin by 50 to 100 basis points, fueled by ongoing momentum in its Plasma business and steady growth in hospital-related services. Notably, the projections do not factor in any revenue from PerQseal Elite, a new product awaiting FDA approval, although launch expenditures are included in the financial outlook.

During the fiscal fourth quarter, Haemonetics recorded revenues of $346 million, indicating a 5% rise on a reported basis. Organically, excluding CSL, the growth was even more pronounced at 9%. This robust performance was largely attributed to the vitality of its Plasma and Blood Management Technologies divisions, which successfully mitigated sustained pressures in the Interventional Technologies area. Christopher Simon, President and CEO, highlighted an adjusted earnings of $1.29 per share for the quarter, marking a 4% increase from the prior year. For the fiscal year 2026, the company's revenue reached $1.3 billion, with adjusted earnings of $4.96 per share. Simon emphasized that these results were achieved despite a $153 million impact from non-recurring revenue adjustments related to portfolio transitions, underscoring the resilience of Haemonetics' adjusted margins and free cash flow.

The Plasma division emerged as a central pillar of Haemonetics' growth strategy, recording $130 million in revenue during the fourth quarter. This represented a 3% reported increase and a 13% organic growth, excluding CSL, as the company moved past the final effects of its discontinued CSL U.S. disposable supply agreement. The full-year Plasma revenue totaled $524 million, a reported decrease of 2% but an impressive 20% organic growth, surpassing the revised guidance of 17% to 19%. Simon attributed this success to strong market fundamentals, including consistent demand for immunoglobulin and an expansion in global plasma collections. He noted significant gains in Haemonetics' share of U.S. plasma collections and double-digit growth in Europe. Furthermore, the company received FDA clearance for Persona PLUS, a product anticipated to enhance plasma yield by a mid-single-digit percentage, generating considerable positive feedback from customers. For fiscal 2027, while the guidance assumes a modest 0% to 2% growth in collection volume, there is potential for higher upside if current trends persist or Persona PLUS adoption accelerates.

The Hospital business presented a mixed financial picture. Fourth-quarter revenue reached $160 million, contributing to a full-year total of $588 million, reflecting an 8% quarterly growth and a 4% annual increase. Organically, the Hospital revenue saw a 7% rise in the quarter and 4% for the year. The Blood Management Technologies segment achieved a record quarter, with revenues surging by 21% quarterly and 14% annually. This growth was particularly fueled by the TEG 6s, increased disposable utilization, new capital placements, and strong performance in Europe following the HN cartridge launch. Transfusion management also played a crucial role, contributing nearly half of the franchise's growth in the quarter. In contrast, Interventional Technologies continued to struggle, experiencing a 10% revenue decline in the fourth quarter and 9% for the full year. This was primarily due to an 8% drop in vascular closure revenue, influenced by a decline in MVP and MVP XL in electrophysiology, along with persistent softness in coronary and peripheral procedures. However, Simon expressed renewed confidence in the Interventional Technologies' future trajectory, noting that two significant headwinds from fiscal 2026, OEM-related softness in sensor-guided technologies and the impact of pulsed-field ablation on esophageal cooling, have either been resolved or diminished to a non-material level. He suggested that the fourth quarter might represent a turning point for this segment, bolstered by a stronger commercial framework, improved tools, enhanced products, and a more favorable market environment.

Financially, James D’Arecca, EVP and CFO, reported that the adjusted gross margin for the fourth quarter was 59.7%, a slight decrease of 50 basis points year-over-year. This dip was attributed to the absence of a prior-year CSL shortfall payment and the impact of tariffs, partially offset by a higher-margin product portfolio. For the full fiscal year, the adjusted gross margin expanded by 280 basis points to 60.3%, driven by strategic portfolio changes, increased volume in Plasma and Blood Management Technologies, and strong demand for the company's offerings. The adjusted operating margin also saw a significant improvement, growing by 140 basis points to 25.4% for the year. Fourth-quarter adjusted operating expenses increased by 5% year-over-year to $122 million, primarily due to the Vivasure acquisition, tariffs, higher self-insured benefits, increased performance-based compensation, and targeted commercial investments. Free cash flow reached $45 million in the fourth quarter and an impressive $210 million for the full year, with a conversion ratio of 89% to adjusted net income. This improvement was largely due to better working capital management and reduced capital expenditures. Haemonetics concluded the year with $245 million in cash, having repurchased over 3 million shares for $175 million and invested $61 million in the Vivasure acquisition. The total debt remained at $1.2 billion, with a net leverage ratio of 2.73 times EBITDA.

For fiscal year 2027, Haemonetics forecasts reported revenue growth between 4% and 7%, and organic revenue growth ranging from 3% to 6%, after adjusting for foreign exchange rates and the 53rd week. By segment, the company anticipates mid-single-digit growth in Hospital revenue, stemming from both Blood Management Technologies and Interventional Technologies. Plasma revenue is also projected to grow in the mid-single digits, supported by market share gains, the Persona PLUS rollout, and modest increases in collection volume. Conversely, Blood Center revenue is expected to decline in the mid-single digits due to ongoing portfolio rationalization, despite the underlying demand for plasma and strong customer relationships. D’Arecca indicated that the adjusted operating margin is projected to improve by 50 to 100 basis points in fiscal 2027, driven by growth franchises, innovation, and operational leverage. This outlook incorporates a full year of dilution from Vivasure without any assumed revenue contribution, additional tariff impacts, ERP-related costs, and continued strategic investments. Adjusted EPS is expected to grow proportionally with reported revenue, with operational leverage and favorable mix benefits offsetting higher interest and tax expenses. The company also anticipates a free cash flow conversion rate of approximately 80%, demonstrating disciplined working capital management and the flexibility to invest in growth, reduce debt, and pursue opportunistic share repurchases. Additionally, the fiscal 2027 guidance explicitly excludes revenue from PerQseal Elite, the large-bore vascular closure product acquired through Vivasure, due to the uncertainty surrounding its FDA approval timeline. Haemonetics is poised for continued success, with a strategic focus on expanding its leadership in Plasma and TEG, and revitalizing growth in vascular closure.