HAEMONETICS CORP Annual Report - How They Did This Year

Welcome to our simple guide to Haemonetics Corp’s performance for the fiscal year ending March 28, 2026. If you are looking to invest, we have broken down their latest results into everyday language.

1. What Does This Company Do?

Haemonetics is a medical technology company. They use a "razor-and-blade" model: they sell or lease machines, then make steady money selling disposable parts like tubing and filters.

• Hospital (44.1% of sales): Their fastest-growing area. Key products include VASCADE systems to close blood vessels and the ensoETM device to protect the esophagus during heart procedures.
• Plasma (39.3% of sales): They sell collection machines, disposable sets, and software to drug companies to collect plasma for life-saving therapies.
• Blood Center (16.6% of sales): This business sells blood collection systems to non-profits like the Red Cross.

2. The Financial Scorecard: A Tough Year for Profits

The official numbers for fiscal year 2026 show a transition year for the company. Here is how the key numbers compared to last year:

Why did revenue drop? Sales fell because of planned changes, not failing products. They ended a contract with a major customer, CSL Plasma, and sold their lower-profit Whole Blood line. These changes cut $153 million in one-time sales from last year.

Why did profits plunge 42%? Haemonetics actually got better at making products. Their gross margin—how much they keep after paying for materials—rose from 55% to 59%. However, business costs jumped nearly 20%. The main cause was a massive, non-cash write-down. The company adjusted its valuation of a past purchase, Attune Medical, recognizing it is worth less than they originally paid for it.

3. Major Wins & Emerging Roadblocks

Haemonetics is buying smaller companies to grow, but some bets face challenges.

• The Big Purchase: They bought Vivasure Medical for $164.4 million for the PerQseal® Elite system. This absorbable patch seals blood vessels after surgery. They sell it in Europe, and it awaits U.S. approval.
• The Esophagus Problem: The Attune Medical write-down happened because their ensoETM cooling device faces a new threat. A safer heart surgery method called Pulsed Field Ablation uses electricity instead of extreme heat. Since it does not cause heat damage, hospitals do not need cooling devices. This has impacted future sales expectations for ensoETM.

4. Financial Health: Debt, Buybacks, and Dividends

• Paying Off Debt: In March 2026, they paid off $300 million of old debt using cash and credit. They still owe $1.24 billion, which requires steady interest payments.
• Stock Buybacks: To boost value and offset new shares being issued, they bought back 1.58 million shares for about $100 million. They have $325 million left for future buybacks.
• No Dividends: They do not pay a dividend. Management prefers to reinvest cash into buying companies or repurchasing stock.

5. Key Risks to Keep in Mind

• Customer Concentration: Their top 10 customers bring in 44% of sales. One single Plasma customer makes up 13% of revenue. Losing this customer would hurt profits.
• Single-Source Manufacturing: They make key VASCADE devices in Mexico through a single partner, Tetakawi. Any border issues, labor disputes, or factory shutdowns could freeze production for their fastest-growing line.

6. The Bottom Line: What This Means for Investors

Haemonetics is in the middle of a transition. While losing the CSL Plasma contract and writing down the value of Attune Medical hurt short-term profits, the company's core profitability is actually improving, as shown by their rising gross margins.

When deciding whether to invest, weigh their strong growth in the Hospital segment and proactive stock buybacks against the risks of high customer concentration and rapid technological shifts in the medical field.