Highlights

  • CSL Limited (ASX:CSL) reported FY26 total Revenue of US$15.8 billion, down 1% at constant currency, while underlying NPATA fell 2% to US$3.1 billion.
  • Reported NPAT attributable to CSL shareholders swung from a US$3.0 billion profit to a US$2.6 billion loss after restructuring costs and impairments.
  • FY26 pre-tax impairments totalled US$7.1 billion, while restructuring costs were US$799 million.
  • CSL maintained its Dividend and announced a further A$1.1 billion share buy-back program as it targets approximately 5% underlying NPAT growth in FY27.

CSL Limited (ASX:CSL) described FY26 as a reset year as the healthcare company reported lower underlying earnings, broadly flat revenue and a significant statutory loss following large Impairment and restructuring charges. Total revenue was US$15.8 billion, down 1% at constant currency, while underlying NPATA attributable to CSL shareholders declined 2% to US$3.1 billion. Cash Flow from operations was US$3.5 billion, down 1% from the prior year.

The statutory result was materially weaker. NPAT attributable to CSL shareholders moved from a US$3.0 billion profit in FY25 to a US$2.6 billion loss in FY26. The change reflected US$7.1 billion of pre-tax impairments and restructuring-related expenses, rather than the underlying operating result alone.

CSL Behring Revenue Declines

CSL Behring remained the largest contributor to group revenue, generating US$11.4 billion in FY26, down 1% at constant currency. Immunoglobulin revenue was US$6.2 billion and was broadly unchanged, with performance affected by US channel inventory normalisation, changes to Medicare Part D and previous tender losses.

Albumin revenue declined 17% to US$1.1 billion following government cost-containment measures in China. Haemophilia revenue was down 1% to US$1.5 billion, although HEMGENIX sales increased 25%. The increase in HEMGENIX and 1% growth in IDELVION were offset by lower sales from the legacy FVIII portfolio.

ANDEMBRY generated US$240 million in its first full year on the market. KCENTRA revenue, however, declined 17%, reflecting pricing pressure in the United States.

Vifor and Seqirus Show Mixed Performance

CSL Vifor recorded revenue of US$2.4 billion, representing 3% growth at constant currency. Growth in nephrology was partly offset by lower iron revenue as generic competition increased. VELPHORO sales also declined in the second half as the product approached the end of its TDAPA period.

CSL Seqirus generated US$2.0 billion, down 8% at constant currency. The decline reflected the absence of non-recurring avian influenza revenue recorded in the prior comparable period. Seasonal influenza revenue nevertheless increased 4%, with FLUAD sales rising 5% to US$968 million and FLUCELVAX sales increasing 5% to US$503 million.

Impairments Reshape the Statutory Result

The most significant financial development was the recognition of US$7.1 billion in pre-tax impairments during FY26, including US$5.5 billion in the second half. The charges were associated principally with changes in commercial outlook, generic competition timing, regulatory developments, market conditions and site-utilisation assumptions.

CSL also incurred US$799 million in one-off pre-tax restructuring costs. These charges contributed to the substantial difference between the underlying Earnings result and statutory loss.

Underlying NPATA declined 2% to US$3.1 billion, while underlying NPAT attributable to CSL shareholders fell 3% to US$2.8 billion. Underlying NPATA Earnings Per Share declined 3% to US$6.43.

Cash Flow, Capital and Shareholder Returns

Cash flow from operations was US$3.5 billion, a 1% decline from FY25. CSL ended FY26 with net Assets of US$16.3 billion and Leverage of 1.8 times, based on net Debt to EBITDA excluding the impacts of restructuring and impairment costs.

The company completed an A$1 billion share buy-back during FY26 and maintained its dividend. The final dividend was set at US$1.62 per share, with Australian shareholders expected to receive approximately A$2.29 per share based on the stated exchange rate.

CSL has also announced a further A$1.1 billion share buy-back program.

FY27 Outlook

For FY27, CSL expects revenue to be broadly in line with the prior year and underlying NPAT growth of approximately 5%, using FY26 exchange rates. CSL Behring is expected to deliver mid-single-digit revenue growth, with immunoglobulin revenue anticipated to grow at a mid-to-high single-digit rate.

Seqirus is targeting low-single-digit revenue growth, while Vifor expects revenue to decline approximately 25% because of generic competition in iron products, the conclusion of the VELPHORO TDAPA period and the revocation of TAVNEOS Marketing authorisation.

The company is also continuing its transformation program, which delivered approximately US$176 million of cost savings during FY26. CSL plans to invest approximately US$1.5 billion in expanding its US plasma Manufacturing presence, including the Horizon 2 Yield improvement program.

Conclusion

CSL's FY26 results present a mixed financial picture, with revenue declining 1% at constant currency and underlying NPATA falling 2%, while statutory earnings were heavily affected by US$7.1 billion of impairments and significant restructuring expenses. Individual businesses also produced divergent results, with growth in Vifor, seasonal influenza products and newer therapies offset by declines in albumin, KCENTRA and overall Seqirus revenue. For FY27, CSL expects revenue to remain broadly unchanged and underlying NPAT to increase approximately 5%, while continuing its transformation program, plasma manufacturing Investment and shareholder capital-return initiatives.