Haemonetics Corporation 2025 Form 10-K Review

Haemonetics Corporation (NYSE: HAE) designs and sells technologies that improve the quality, effectiveness and efficiency of healthcare. Its solutions span plasma collection for pharmaceutical fractionation, blood component collection for transfusion, and hospital technologies for vascular closure, hemostasis management, patient warming/cooling and transfusion management. Haemonetics organizes its business in three reporting segments:

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1. Plasma – Automated devices, disposables and software for plasma collectors (39.3% of 2025 revenue).
2. Blood Center – Blood collection and processing devices and disposables (19.2% of 2025 revenue). (Whole Blood divested January 2025.)
3. Hospital –

• Interventional Technologies (Vascular Closure, Sensor-Guided Technologies, Esophageal Protection)
• Blood Management Technologies (Hemostasis Management, Cell Salvage, Transfusion Management) (41.5% of 2025 revenue.)

Across segments, Haemonetics serves biopharmaceutical fractionators, blood centers, hospitals and acute care providers in roughly 95 countries through direct and distribution channels.

1. Fiscal 2025 Financial Highlights

Metric	FY 2025	FY 2024	Change
Net revenues	$1,360.8 m	$1,309.1 m	+4.0%
Gross profit margin	55.0%	52.8%	+220 bps
Operating income	$221.8 m	$164.9 m	+34.5%
Net income	$167.7 m	$117.6 m	+42.6%
Diluted EPS	$3.31	$2.29	+44.5%

Segment Trends

• Plasma – Revenues fell 6.0% (–5.9% cc), driven by a major customer transition (CSL U.S.). (CSL supply deal expires Dec 2025.)
• Blood Center – Revenues fell 7.8% (–6.7% cc). Whole Blood divested Jan 2025; focus now on apheresis devices.
• Hospital – Revenues rose 23.7% (24.0% cc) on acquisitions (OpSens, Attune) and organic growth in Vascular Closure, Sensor-Guided and Blood Management Technologies.

Balance Sheet & Cash Flow

• Cash & equivalents: $306.8 m vs. $178.8 m (FY 2024).
• Operating cash flow: $181.7 m in FY 2025 (flat vs. FY 2024) after strong net income.
• Net debt: $918 m (including $245 m term loan, $300 m convertible debt, $700 m convertible debt).

Capital Allocation

• Repaid $185.5 m of convertible notes; issued $700 m of 2.5% notes due 2029.
• 2024 credit facilities refinanced, maturing April 2029: $250 m term loan; $750 m revolver.
• Share repurchase program fully funded: $300 m repurchased by March 2025.
• New $500 m authorization approved April 2025.
• Divested Whole Blood product line for $43.3 m upfront, up to $22.5 m contingent.

2. Strategic Initiatives

Acquisitions

• OpSens (Dec 2023): Optical sensor guidewires (OptoWire, SavvyWire) for interventional cardiology—complements Vascular Closure.
• Attune Medical (Apr 2024): Esophageal cooling system (ensoETM) for cardiac ablation; expands electrophysiology portfolio.

Divestitures

• Whole Blood (Jan 2025): Sold mature manual blood collection business to GVS to reallocate resources toward high-growth, higher-margin segments.

Operational Excellence & Restructuring

• 2020 Program (Lean manufacturing, cost takeout) closed FY 2025 with cumulative savings and charges of $84.7 m.
• Portfolio Rationalization – End-of-life certain product lines; closed FY 2025; charges: $27.0 m.
• Market & Regional Alignment (2026 plan): Approved May 2025 for $20 m charges to achieve $30 m annual run-rate savings by FY 2028.

3. Financial Health & Ratios

• Gross margin 55.0% (+220 bps). Price/mix and operational leverage offset inventory step-up amortization and inflation.
• R&D: $62.7 m (4.6% of revenue) – development of Persona™ technology, ensoETM uses, TEG enhancements.
• SG&A: $436.8 m (32.1% of revenue) – includes acquisition costs, ERP rollout, digital initiatives.
• Interest expense: $9.7 m (net) – lower debt costs partially offset by new convertible note amortization.
• Effective tax rate: 20.9% vs. 22.6% (FY 2024)—favorable remeasurements and credit generation.

Liquidity

• Operating cash flow funds >18 months of capex ($39 m) and restructuring.
• Revolver capacity $750 m (undrawn).
• Well-capitalized for mid-term maturities; $300 m convertible due March 1, 2026.

4. Risks & Outlook

Opportunities

• Hospital: High-growth structural heart, electrophysiology and hemostasis diagnostics.
• Plasma: Value-added solutions to optimize yield in global fractionation market (NexSys PCS Persona®, Express Plus®, DMS software).

Risks

• Concentration: Plasma disposables heavily reliant on a handful of customers (CSL deal expires Dec 2025).
• Regulation: FDA, EU MDR, reimbursement pressures, pricing headwinds.
• Competition: Large competitors (Terumo BCT, Fresenius, Abbott) with comparable technologies.
• Supply chain: Raw material, sterilization constraints and inflationary pressures.
• Debt load: $918 m net; refinancing and cash flows must support maturities.

5. Investment Takeaway

Haemonetics has a differentiated portfolio in specialist healthcare niches with strong recurring disposables revenues. Hospital technologies are driving the lions share of growth, but Plasma faces customer transitions and pricing pressures. The Companys focused divestiture of non-core assets, ongoing cost optimization and generous cash flow generation underpin a stable balance sheet and healthy returns of capital. Key catalysts through 2026 include:

• Finalizing CSL supply renewal beyond December 2025;
• Continued adoption of Persona® and Express Plus® in plasma centers globally;
• New clinical data and regulatory launches in bespoke Hospital franchises (TEG Global HN, VASCADE MVP XL);
• Integration and cross-sell of optical guidewires (OpSens) and esophageal cooling (Attune) offerings;
• Execution of market & regional alignment cost savings.

Investment Score: 6.5 / 10
A mid-cycle specialty medical technology with solid cash flow, targeted growth drivers in Hospital, offset by concentration and credit renewal risks in Plasma.