Haemonetics Corporation

First quarter revenue was $339 million, up 6% reported and organic. Adjusted EPS increased 4% year-over-year to $1.14. Gross margin was 60.4%, down 40 basis points year-over-year, and adjusted operating margin was 23.4%, down 70 basis points year-over-year. MedSurg revenue was $148 million, up 6% reported and organic, and Apheresis revenue was $191 million, up 5% reported and 6% organic. For FY2027, management raised reported revenue growth guidance to 5% to 8% and organic growth guidance to 4% to 7%; Apheresis revenue guidance was raised to low- to mid-single-digit growth. Management also reaffirmed adjusted operating margin expansion of 50 to 100 basis points and free cash flow conversion of approximately 80% of adjusted net income. The company said Q2 will include about a $7 million tariff refund, which it expects to be largely offset by other cost pressures later in the year.

Chris Simon said the quarter showed “another quarter of profitable growth” driven by investments in portfolio, operating model and commercial execution. He emphasized that all three core platforms contributed and said Haemonetics is seeing more durable growth, with MedSurg “reemerging” and Plasma benefiting from Persona PLUS and share gains. His tone was confident but disciplined: management raised guidance after first-quarter outperformance, while keeping the rest of the year “balanced and largely unchanged” and focusing on what it can control.

James D’Arecca highlighted stronger revenue quality, favorable mix and operating leverage from prior investments. He said Q1 gross margin was 60.4%, down 40 basis points mainly because the prior year included about a 200 basis point software benefit, but that adjusted gross margin expanded excluding that comparison. He noted operating expenses rose 7% to $126 million, adjusted operating margin was 23.4%, and the company remains confident in 50 to 100 basis points of full-year margin expansion despite external cost pressure. On cash, he cited $52 million of operating cash flow, 75% free cash flow conversion in Q1, 106% conversion over the last 12 months, $223 million in cash, and a net leverage ratio of approximately 2.69x EBITDA; the company repaid $50 million on its revolver in Q1 and another $50 million after quarter-end.

Analysts pressed on IVT recovery, Plasma growth, margin progression, and whether guidance is intentionally conservative versus the underlying collection trends. Management said IVT growth is being driven primarily by Vascular Closure, helped by a stabilizing PFA market, better commercial execution and the MVP XL label expansion; it also said ensoETM remains the main drag outside closure. On Plasma, management said the business has “finally outrun” the CSL/customer-loss overhang, that Persona PLUS adoption is accelerating, and that guidance still assumes only 0% to 2% collection-volume growth because the company does not want to rely on something it cannot control.