Haemonetics Corporation

Good day and thank you for standing by. Welcome to the second quarter 2026 Havenetics Corporation earnings conference 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 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 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 Treasurer. Please go ahead.

Good morning, and thank you all for joining us for Humanetics Second Quarter Fiscal Year 2026 Conference Call and Webcast. I'm joined today by Chris Simon, our CEO, and James Durecka, our CFO. This morning, we released our second quarter and year-to-date fiscal 2026 results and updated full-year fiscal 2026 guidance. The materials, including our earnings release, Form 10-Q, and supplemental earnings presentation, are available on our Investor Relations website and through this morning's press release. Before we begin, I'd like to remind everyone that we will use both organic and reported revenue growth rates. In case of organic growth rates, those exclude the impact of effects the divestiture of the whole blood product line, and the exit of certain liquid solution products. Organic Growth Act CSL also excludes the impact of the previously disclosed transition of CSL's U.S. disposable 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 are provided in our earnings release. Our remarks today include forward-looking statements, and our actual results may differ materially from anticipated results. Factors that may cause our results to differ include those referenced in the Safe Harbor Statement in today's earnings release and in our SOC filings. We do not undertake any obligation to update this forward-looking statement. And now I'd like to turn it over to Chris.

Thanks, Olga. Good morning, everyone, and thank you all for joining us. Second quarter revenue was $327 million and $649 million year to date, each reflecting a 5% reported revenue decline driven by $48 million and $101 million in last year's portfolio transitions, respectively. Excluding these transitions, organic growth XCSL was 9% in the quarter and 11% year-to-date. Adjusted EPS increased 13% in the quarter and 11% year-to-date to $1.27 and $2.36, respectively. Our results reflect disciplined execution, delivering strong core product growth, record margin expansion, and solid earnings that convert to cash, while advancing our portfolio and company transformation to sustain this momentum well beyond our long-range plan. The focus on Nexus, TEG, and VAScAID continues to advance our leadership and fuel growth. We are gaining plasma share through best-in-class collection solutions. We are reinforcing TEG leadership in visoelastic testing, and we are executing targeted vascular closure initiatives to strengthen performance and return interventional technologies to growth. Turning now to our individual business performance. Hospital revenue was 146 million in the second quarter and 285 million year to date, up 5% on a reported basis and 4% organic in both periods. Strong blood management technologies performance offset softness in interventional technologies, underscoring the resilience of our diversified portfolio and multiple drivers of performance. Blood management technologies delivered strong growth, up 12% in the quarter and 13% year-to-date, driven by sustained strength in hemostasis management. Growth was fueled by higher TEG disposable utilization and the ongoing rapid adoption of the global heparinase neutralization cartridge. In October, we reinforced our global leadership in visoelastic testing by launching the HN cartridge in EMEA and Japan. The broader portfolio also contributed to growth with transfusion management achieving double-digit growth supported by heightened demand for transfusion safety and efficiency. Interventional technologies declined 5% in the quarter and 6% year-to-date, reflecting softness in the esophageal cooling against accelerating PFA adoption. While modest in size at approximately $3 million in revenue in the second quarter, Esophageal cooling remains a disproportionate driver of near-term underperformance. Vascular closure grew 2% in the quarter and 3% year-to-date, led by MVP and MVP XL and electrophysiology growing 4% and 5% respectively. These gains were partially offset by continued softness in legacy vascage concentrated in lower growth coronary and peripheral procedures. We remain confident in the strong clinical and economic differentiation of our vascular closure portfolio, and we are taking decisive actions to strengthen execution to accelerate growth. We are also making solid progress with Savvy Wire in the U.S., delivering consistent double-digit growth as we build its foundation and broaden our relevance in structural heart. We are updating our hospital revenue growth guidance to 4% to 7%, both reported and organic, reflecting sustained double-digit growth in blood management technologies and little to no contribution from interventional technologies. This outlook reflects our focus on taking the steps necessary to drive long-term value creation with interventional technologies expected to play a larger role in accelerated growth and margin expansion beyond FY26. Moving to plasma, revenue was $125 million in the quarter and $255 million year to date, down 10% and 7% on a reported basis respectively, reflecting the CSL transition. Excluding CSL, organic revenue grew 19% in the quarter and 23% year to date. Second quarter results were driven by share gains, robust growth in U.S. collections, and ongoing benefits from innovation. Our plasma business is stronger than ever, delivering revenue growth and margin expansion enabled by best-in-class solutions that help improve customer performance to drive our share gains. Based on customer forecast and strong sentiment from PPTA, we have renewed confidence in the sustained, robust growth of the plasma therapeutics market, particularly immunoglobulins. Our second quarter results reinforce that view with U.S. collections growing in the high single digits and European collections continuing to grow double digits. Given stronger than anticipated first half performance, we are raising our full year reported plasma revenue guidance to a decline of 4% to 7% or 14% to 17% organic growth XCSL. Second quarter collections growth was very encouraging. However, our guidance remains grounded in the factors we can control, primarily share gains. Blood Center reported revenue decline of 18% in the quarter and 21% year to date, reflecting the impact of the whole blood divestiture. Organic revenue grew 4% in the quarter and 5% year to date, driven by resilience in our core apheresis business. We are raising our full year blood center guidance to reflect this performance. Now expecting reported revenues to decline 17 to 19% as we fully anniversary the whole blood divestiture and our grant growth to be approximately flat. Overall, revenue momentum remains strong, underpinned by growth and expanding profitability across our businesses. Despite $153 million in last year's portfolio transitions, two of our three growth franchises continue to deliver outsized organic growth while we strengthen our commercial execution for renewed, sustained success in IBT. Reflecting better-than-expected first-half performance across more than 80% of our portfolio, we are raising full-year revenue guidance from a reported decline of 3% to 6% to a decline of 1% to 4% and organic growth XCSL from an increase of 6% to 9% to an increase of 7% to 10%. Over to you, James.