Haemonetics — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance:

• Reported revenue for the second quarter of fiscal 2027 was $357.8 million, a 9.3% increase year-over-year compared to $327.3 million in the second quarter of fiscal 2026.
• Year-to-date revenue for the first half of fiscal 2027 was $697.1 million, an 8% increase year-over-year compared to $648.7 million.
• Organic revenue growth for the second quarter was 10.0%, compared to 8.0% year-to-date.
• GAAP net income for the second quarter was $46.3 million ($1.00 per diluted share), up from $38.7 million ($0.81 per diluted share) in the prior year period.
• Year-to-date GAAP net income was $79.3 million ($1.72 per diluted share), up from $72.7 million ($1.51 per diluted share).
• Adjusted net income for the second quarter was $62.6 million ($1.35 per diluted share), a 3.8% increase year-over-year.
• Year-to-date adjusted net income was $114.9 million ($2.49 per diluted share).
• Gross margin for the second quarter was 61.7%, up from 59.5% in the prior year period.
• Adjusted gross margin for the second quarter was 61.9%, up 140 basis points year-over-year.
• Operating income for the second quarter was $75.1 million with a 21.0% operating margin, compared to $58.5 million and a 17.9% margin in the prior year.
• Adjusted operating income for the second quarter was $94.1 million with a 26.3% margin, down 40 basis points year-over-year.
• Cash flow from operating activities for the second quarter was $128.1 million, up $16.8 million year-over-year.
• Free cash flow for the second quarter was $103.8 million, up $15.1 million year-over-year.
• Year-to-date free cash flow was $142.9 million.
• Cash on hand as of September 26, 2026, was $260.7 million.
• Long-term debt was $1,114.1 million as of September 26, 2026, down from $1,219.6 million at the end of fiscal 2026.

Guidance and Future Outlook:

• Reported revenue guidance for fiscal 2027 was updated to 8–11% growth, up from the previous 5–8% range.
• Organic revenue growth guidance for fiscal 2027 was updated to 6–9%, up from the previous 4–7% range.
• Adjusted operating margin guidance for fiscal 2027 was updated to 0–50 basis points expansion year-over-year, down from the previous 50–100 basis points expansion.
• Free cash flow conversion guidance for fiscal 2027 was updated to greater than 80%, up from the previous ~80%.
• The 53rd week impact is expected to be approximately 2%, and strategic exits (liquid solution products) are expected to impact revenue by approximately 1%.
• Currency impact is expected to be between 0–1%.

Business Segments and Product Lines:

• Apheresis segment revenue was $204.8 million in the second quarter, a 12.6% increase year-over-year, with organic growth of 13.6%.
• MedSurg segment revenue was $153.0 million in the second quarter, a 5.1% increase year-over-year, with organic growth of 5.5%.
• Within Apheresis, Plasma revenue was $162.6 million (16.5% reported growth, 17.7% organic growth), while Other revenue was $42.2 million.
• Within MedSurg, Interventional Technologies revenue was $60.5 million (2.4% reported growth, 3.2% organic growth), and Blood Management Technologies revenue was $92.4 million (7.0% reported growth, 7.0% organic growth).
• Year-to-date Apheresis revenue was $396.1 million (9.0% reported growth, 9.8% organic growth).
• Year-to-date MedSurg revenue was $301.0 million (5.6% reported growth, 5.7% organic growth).
• The expansion of the CSL relationship and innovation milestones in Apheresis and MedSurg are cited as growth catalysts.

Market and Competitive Landscape:

• The company notes significant momentum across its businesses driven by the expansion of its relationship with CSL.
• Innovation milestones in both Apheresis and MedSurg are strengthening the company's competitive position.
• The product portfolio is continuing to transform toward higher-margin offerings.

Risks and Challenges:

• Operating expenses increased 7.0% year-over-year in the second quarter, driven by higher personnel-related costs and freight charges.
• The effective income tax rate increased to 26.3% in the second quarter from 24.6% in the prior year, primarily due to valuation allowances recorded against deferred tax assets in jurisdictions with losses from recent acquisitions.
• Free cash flow was impacted by higher capital expenditures, partially offset by lower non-cash transfers from Haemonetics equipment.
• Cash outflows included repayment of revolving credit facility borrowings and contingent consideration payments.

Management Commentary and Tone:

• CEO Chris Simon stated that second-quarter and first-half results reflect significant momentum across the businesses.
• Management emphasized that multiple catalysts for growth are present and the focus is on executing for customers to translate momentum into sustained success and shareholder value.
• The tone regarding the CSL relationship expansion and innovation milestones was positive, highlighting them as creating powerful new opportunities.

Other Key Points:

• The company hosted a conference call with investors and analysts on November 5, 2026, to discuss results.
• Supplemental earnings presentation and webcast links were provided for investors.
• Non-GAAP measures used include adjusted gross profit, adjusted operating expenses, adjusted operating income, adjusted net income, and adjusted earnings per diluted share, which exclude items such as restructuring costs, digital transformation costs, amortization of acquired intangible assets, and acquisition-related costs.
• Free cash flow conversion is calculated as free cash flow divided by adjusted net income.
• The organic revenue growth calculation excludes the impacts of currency fluctuation and the exit of certain liquid solution products.