HAE Q4 Deep Dive: Plasma Momentum and Hospital Weakness Shape Mixed Results

Blood products company Haemonetics (NYSE:HAE). announced better-than-expected revenue in Q4 CY2025, but sales fell by 2.7% year on year to $339 million. Its non-GAAP profit of $1.31 per share was 4.8% above analysts’ consensus estimates.

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StockStory’s Take

Haemonetics’ fourth quarter results were met with a negative market reaction, reflecting investor caution despite the company’s performance exceeding Wall Street’s revenue and earnings expectations. Management attributed the revenue decline primarily to ongoing softness in Interventional Technologies, particularly in esophageal cooling and vascular closure, while highlighting continued strength in Blood Management Technologies and Plasma. CEO Christopher Simon noted, “We delivered a strong quarter… Nexus and TEG delivered outsized growth driven by sustained share gains, innovation-based pricing, and durable end-market demand.” This contrast between robust plasma growth and hospital segment challenges was a focal point in management’s commentary.

Looking forward, Haemonetics’ updated guidance is driven by optimism around plasma market demand, continued share gains, and the anticipated recovery in Interventional Technologies. Management expects the upcoming launch of PercuSeal Elite and the MVP XL label expansion to support a turnaround in vascular closure, while ongoing investments in R&D aim to sustain operating margin improvement. CFO James D’Arecca cautioned that future margin gains will be smaller, stating, “The 200 basis points improvement that we saw this year… is going to begin to slow down as we get into the future.” The company remains focused on leveraging its strong cash flow to fund organic growth and strategic acquisitions.

Key Insights from Management’s Remarks

Management highlighted strong plasma and blood management performance, but continued to note headwinds in hospital-based interventional technologies and the need for targeted commercial actions.

• Plasma segment outperformance: The plasma business benefited from robust end-market demand, sustained share gains, and technology-driven pricing, with management emphasizing the “trifecta” of price, share, and volume as key growth contributors.
• Interventional Technology challenges: The hospital division’s performance was constrained by declines in esophageal cooling and vascular closure, with CEO Simon attributing 70% of the quarterly decline in Interventional Technologies to these areas and to OEM headwinds.
• Blood Management Technologies momentum: Continued double-digit growth in hemostasis management, particularly from TEG 6s disposables and the global heparinase neutralization cartridge, drove upgrades and new account wins in the hospital segment.
• Commercial execution in vascular closure: Management reported stepped-up commercial efforts, including a strengthened sales force and targeted initiatives to win back business in key accounts, aiming for a return to growth in Interventional Technologies next year.
• Portfolio transformation and cash flow: The company continued to benefit from its portfolio shift and disciplined cost structure, resulting in expanded adjusted operating margins and strong free cash flow conversion, supporting balance sheet flexibility and future investments.

Drivers of Future Performance

Haemonetics’ outlook is shaped by sustained plasma market demand, the recovery of Interventional Technologies, and disciplined margin management.

• Plasma growth sustainability: Management anticipates ongoing strength in plasma, underpinned by rising immunoglobulin demand and customer enthusiasm, but noted the inherent cyclicality of plasma collections and the need for ongoing customer discussions to refine volume forecasts.
• Interventional Technologies turnaround: The planned launch of PercuSeal Elite and MVP XL label expansion are expected to improve competitiveness in vascular closure and structural heart procedures, with a focus on commercial execution and penetration of ambulatory surgery centers (ASCs).
• Margin expansion and capital allocation: While future operating margin gains will moderate, management plans to sustain profitability through portfolio improvements and productivity initiatives, prioritizing organic growth, debt reduction, and selective M&A, including learnings from the VIVUSHORE acquisition.

Catalysts in Upcoming Quarters

Looking ahead, our analysts will watch (1) the pace of recovery in Interventional Technologies, particularly with the launch of PercuSeal Elite and MVP XL label expansion, (2) sustained plasma growth and market share gains, and (3) the company’s ability to maintain operating margin improvements amid product mix changes. Execution on R&D investments and integration of recent acquisitions will also be critical signposts.

Haemonetics currently trades at $65.02, down from $65.95 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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