Haemonetics Corporation

Good day and thank you for standing by. Welcome to the Humanetics Corporation first quarter 2027 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'll 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, today's conference is being recorded. I would now like to hand the conference over to your speaker today. Olga Guyette, Vice President, Investor Relations and Treasurer, please go ahead.

Good morning and thank you for joining us for Humanetics first quarter fiscal year 2027 conference call and webcast. I'm joined today by Chris Simon, our CEO, and James D'Arecca, our CFO. This morning we reported first quarter fiscal 2027 results and raised our fiscal 2027 guidance. Our earnings release, supplemental presentation, and related materials are available in the Investor Relations section of our website. First quarter results are reported under the new reportable segment structure announced on June 5, 2026. Additional information, including historical recast financials and the presentation describing the changes, is also available on our Investor Relations website. Before we begin, I'd like to remind everyone that we will use both reported and organic revenue growth rates that exclude the impact of effects and the exit of liquid solutions. and our fiscal year 2027 guidance is also adjusted for the impact of the 53rd week. We'll 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, reconciliation through 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 the 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 other SSE filings. We do not undertake any obligation to update these forward-looking statements. And with that, I'd like to turn the call over to Chris.

Good morning, everyone. Thank you for joining. We start at FY27 strong. with broad-based execution driving another quarter of profitable growth. First quarter revenue was $339 million, increasing 6% reported and organic, while adjusted earnings per diluted share increased 4% to $1.14. Investments we have made to enhance our portfolio, improve our operating model, and strengthen commercial execution are fueling consistent growth and strong cash generation. All three of our core platforms contributed to our performance this quarter, demonstrating the breadth of our business and reinforcing the confidence in our ability to deliver sustainable long-term growth. Before discussing our business results, I'd like to welcome Dr. Martin Medeiros to our board of directors. Martin has built a distinguished career leading global healthcare businesses through transformation, strengthening execution, and creating long-term value. His strategic perspective and operating experience will be invaluable as we continue executing our strategy and we're delighted to welcome him to the board. Now let's discuss our business results. MedSurg revenue increased 6% year over year reported and organic to $148 million with growth across both franchises. Blood management technologies grew 8% organically with double digit growth in hemostasis and transfusion management partially offset by slowing cell salvage to capital upgrades. Hemostasis management is the definition of durable growth with mid-teens disposable growth in the quarter driven by higher utilization across the installed base and continued share gains. The ongoing success of the HN cartridge underscores our ability to innovate, expand the clinical applications of visceral elastic testing, and further strengthen our leadership position. creating a longer runway for sustainable growth. Transfusion management also continued to build momentum with another quarter of strong software implementations. Faster customer activations are expanding our recurring revenue base and enhancing the durability of revenue growth for this franchise. Interventional technologies return to growth, growing organically 3%. Vascular closure grew above market increasing in the low double digits year over year and low single digits sequentially. Performance reflected contributions from all geographies led by renewed momentum in the U.S. with Fascade MVP and MVP XL and electrophysiology more than offsetting softness in peripheral and coronary procedures and esophageal cooling. Three factors are driving our vascular closure outperformance. The re-acceleration of access site growth following the stabilization of PFA in atrial fibrillation procedures. Second, stronger commercial execution resulting from the investments we've made in sales and marketing. And third, the momentum created by the VASC-AID MVP XL expanded indication up to 17 French in outer diameter. Higher utilization, account wins, and the expanded XL use case are driving broader adoption and positioning the franchise for resurgent growth. We continue to strengthen the clinical evidence in large-bore venous closure with the largest real-world study of Vascade MVP XL to date. The study, conducted at Emory University in more than 1,600 patients, demonstrated rapid hemostasis, greater than 92% same-day discharge and an excellent safety profile in large-bore sheath procedures like DFA and LAAC. Together, the expanded indication and growing body of real-world clinical data further strengthen our competitive position and provide the foundation for broader physician adoption. MedSurg is re-emerging as a driver of humanetics' long-term growth, with two growth-oriented franchises supported by strong innovation, expanding adoption and improving market fundamentals. Solid first quarter performance reinforces our confidence in delivering mid-single digit, mid-surge growth in fiscal 2027. Turning to apheresis, revenue grew 5% on a reported basis and 6% organic to $191 million. Plasma revenue grew 8% organic, reflecting double digit growth in disposables globally. partially offset by a difficult prior year software comparison. Growth was supported by share gains, strong plasma collection trends, and the rollout of Persona Plus. Collections among our U.S. customers increased in the high single to low double digits, including favorable ordering patterns, reinforcing continued IG demand and strong market fundamentals. Persona Plus is delivering meaningful economic benefits to our customers and reinforcing the unique value proposition of our integrated plasma collection platform. Through a simple firmware upgrade, Persona Plus helps our customers increase plasma yield, improve center productivity, and lower cost per liter. The rollout is progressing ahead of schedule and early adopters are achieving yield improvements in excess of 5% compared with our earlier Persona offerings. Other apheresis revenue declined 3% organic, reflecting portfolio optimization and order timing. Following a strong first quarter, we are raising our fiscal 2027 apheresis revenue guidance to low to mid single digit growth. The increase reflects first quarter outperformance, while our expectations for the rest of the year remain balanced and largely unchanged, supported by share gains, persona plus adoption, and modest market growth assumptions. Our first quarter performance reflects the strength of the overall business. Consistent execution across plasma, flood management technologies and interventional technologies demonstrate that our growth is becoming increasingly durable. Accordingly, we are raising our full year reported revenue growth guidance to five to 8% and organic growth guidance to four to 7%. We remain confident in our outlook while maintaining a disciplined approach to guidance for the rest of the year.