Haemonetics Corporation

Good day and thank you for standing by. Welcome to the Humanetics Corporation first quarter, 2026 earnings call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising you that your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Olga Gayet, Vice President, Investor Relations and Treasury. Olga, you have the floor.

Good morning and thank you for joining us for Humanetics first quarter fiscal year 2026 conference call and webcast. I'm joined today by Chris Simon, our CEO, and James Zarecka, our CFO. This morning, we posted our first quarter fiscal year 2026 results and full year fiscal 2026 guidance to our Investor Relations website. The same information was made available via the press release issued this morning. As we provide our business and financial update this morning, I would like to remind everyone that we will use both reported and organic revenue growth numbers that exclude the impact of effects, the divestiture of the whole blood business, and the exit of liquid solution products. Organic revenue growth X-CSL also excludes the impact of the previously discussed transition of CSL's US disposables business. We'll also refer to other non-GAAP financial measures to help investors understand Humanetics ongoing business performance. Please note that these measures exclude certain charges and income items. A full list of excluded items, reconciliations to our GAAP results and comparisons with the prior year periods I provided in our first quarter fiscal year 2026 earnings release available on our website. Our remarks today include forward-looking statements and our actual results may differ materially from the anticipated results. Factors that may cause the results to differ include those referenced in the safe harbor statement in today's earnings release and in other SSP filing. We do not undertake any obligation to update these forward-looking statements. And now I'd like to turn it over to Chris.

Thanks Olga. Good morning everyone and thank you for joining. We started our first quarter fiscal 2026, the fourth and final year of our long range plan by delivering solid results and advancing toward our ambitious growth targets for revenue, earnings, margin and free cash flow. We reported revenue of 321 million, down 4% due to the anticipated $52 million impact from portfolio transitions, but up 13% organically XCSL. Strong growth in our base business, margin expansion and the most recent share buybacks drove 8% adjusted EPS growth to $1.10. Our business is straightforward with nearly 85% of total revenue driven by three core products, Nexus, TEG and VASCADE, all of which are concentrated here in the US. This evolving portfolio provides the right balance of focus and resilience, enabling revenue growth and continued margin expansion despite macro and market challenges. In plasma, we're reinforcing our global leadership through Nexus technology upgrades and share gains. In hospital, strong adoption of TEG 6S continues to fuel growth in blood management technologies while we take decisive actions to strengthen execution in interventional technologies through key leadership additions, organizational realignment and targeted commercial initiatives. Moving to our businesses, our hospital business, the largest in our portfolio with two core growth drivers delivered $140 million in revenue in the first quarter, up 4% reported and organic. Strength in blood management technologies more than offset temporary softness in interventional technologies, reflecting the resilience of our diversified portfolio and multiple drivers of performance. Blood management technologies grew 14%, led by another standout quarter in hemostasis management, which delivered 22% growth overall and 27% growth in the US. Performance was fueled by strong TEG disposable utilization, continued rapid adoption of the global hemostasis HN cartridge, accelerated new account openings and customer conversions from the lab-based TEG 5000 to our advanced point of care TEG 6S system. The BMT franchise also benefited from continued growth in transfusion management, partially offset by distributor order timing and cell stagger. Interventional technologies declined 7% in the quarter, primarily due to tough comparisons from prior year OEM to stocking in sensor-guided technologies and PFA-related pressures in esophageal cooling, which were anticipated in our fiscal 26 guidance. Vascular closure grew 3%, led by 6% growth in MVP and MVPXL. This was partially offset by continued softness in our legacy VASCADE, concentrated in lower growth coronary and peripheral procedures, representing about 15% of vascular closure revenue. Despite increased competition, we remain confident in the clinical and economic advantages of our vascular closure portfolio. We view recent softness as executional,