Haemonetics Lifts FY2027 Revenue Outlook, Trims Margin Forecast

Haemonetics (NYSE:HAE) raised its fiscal 2027 organic revenue growth outlook to 6%–9%, up from 4%–7%, after posting 10% organic revenue growth in its second quarter — but it cut its operating margin expansion forecast as it spends to support an expanded relationship with plasma collector CSL. Adjusted EPS rose 6% to $1.35 in the quarter and 6% to $2.49 for the first half, Chief Executive Officer Chris Simon said on the earnings call.

The company also lifted its reported revenue growth outlook to 8%–11% from 5%–8%, and expects adjusted earnings per diluted share growth in line with that new range. At the same time, it reduced its forecast for adjusted operating margin expansion to 0–50 basis points from 50–100 basis points.

The margin math is straightforward. CFO James D'Arecca cited spending ahead of plasma share gains, higher performance-based compensation and continuing cost pressures. In short: growth costs money now, and Haemonetics is choosing to pay it.

What does the CSL rollout change?

Simon said Haemonetics expects to complete the rollout of its NexSys PCS system with Persona PLUS to all of CSL's U.S. plasma centers before the end of calendar 2027. CSL will also use the company's updated software offerings.

The fiscal 2027 outlook includes completed CSL center conversions and those formally confirmed through the end of the fiscal third quarter. More conversions are expected in the fourth quarter, but they're excluded from guidance pending confirmation of specific plans. Simon declined to disclose customer-specific contract economics, citing confidentiality and competition.

The plasma engine is already running. Plasma revenue grew 18% organically in the second quarter and 13% in the first half, helped by prior share gains, collections growth and Persona PLUS adoption. D'Arecca noted CSL contributed minimally to the second-quarter result — meaning the heavier lift comes later.

The growth isn't purely U.S.-driven. U.S. plasma collections trended in the mid- to high-single digits during the quarter and first half, while collections outside the U.S. grew well into the double digits, Simon said. The full-year apheresis (the process of separating specific blood components from donors) organic revenue growth forecast rose to high single digits from low to mid-single digits. Simon added the outlook does not assume incremental revenue from second-half plasma collections growth.

D'Arecca said Haemonetics will need to expand manufacturing capacity and purchase additional devices, driving elevated capital expenditures over the next two years. He expects some ramp-up costs to be transitory, with greater fixed-cost absorption as volumes increase in fiscal 2028 and beyond.

Where does MedSurg stand?

MedSurg organic revenue grew 6% in both the quarter and first half. Within it, Blood Management Technologies grew 7% in the quarter, while Interventional Technologies grew 3%, with vascular closure leading the latter — partially offset by a tough prior-year comparison in esophageal cooling.

Haemonetics reaffirmed its forecast for mid-single-digit MedSurg organic revenue growth in fiscal 2027. Recent regulatory and product milestones — FDA approval for PerQseal Elite, a vascular closure product for large-bore procedures, and the launch of the PacePro guidewire — aren't expected to contribute materially to revenue this year. Simon said the products are in early launch stages and the company will take a stepwise approach to PerQseal Elite, emphasizing physician education and training.

How did margins and cash flow perform?

Second-quarter adjusted gross margin rose roughly 140 basis points to 61.9%, but that includes an approximately 200-basis-point benefit from tariff refunds against a 60-basis-point foreign exchange headwind. Strip both out, and gross margin was essentially flat, D'Arecca said.

Adjusted operating expenses climbed 15% to $127.6 million, reflecting growth investments, personnel costs and higher freight. Adjusted operating margin fell 40 basis points to 26.3%, with second-half margin expansion expected to be weighted toward the fourth quarter in line with the revenue cadence.

Cash generation was the bright spot. First-half operating cash flow rose 40% to $180 million, and free cash flow (operating cash flow minus capital expenditures) jumped approximately 57% to $143 million. Haemonetics ended the quarter with roughly $261 million in cash and estimated net leverage of about 2.5 times EBITDA, as defined in its credit agreement.

Haemonetics is trading margin expansion this year for a bigger plasma franchise next year — and its cash flow says it can afford the trade.