CSL Limited (ASX: CSL) Posts US$2.6 Billion Loss, Guides to FY27 Profit Growth

CSL Limited reported a US$2.58 billion statutory loss for FY26 after heavy impairments and restructuring charges overwhelmed its underlying earnings.

The healthcare group still generated US$15.80 billion in reported revenue and US$3.51 billion in operating cash flow. However, revenue fell 1% at constant currency, while underlying net profit after tax declined 3% to US$2.84 billion.

CSL described FY26 as a reset year focused on commercial execution, operational simplification and cost reductions. Its FY27 guidance points to about 5% underlying profit growth at constant currency, despite flat group revenue.

Impairments Drive Statutory Loss

Reported earnings absorbed US$7.12 billion of pre-tax impairment and related charges. The company also booked US$799 million of one-off pre-tax restructuring costs.

CSL Vifor intangibles, including goodwill, accounted for US$4.87 billion of impairments. These charges reflected generic competition, changing competitor dynamics and the coming end of Velphoro’s transitional payment support.

They also reflected the revocation of Tavneos’ marketing authorisation. Other charges covered assets affected by changes in site utilisation and the discontinued self-amplifying messenger RNA collaboration with Arcturus Therapeutics.

The difference between statutory and underlying earnings is therefore largely attributable to non-recurring charges. CSL expects another roughly US$200 million of impairments in FY27, subject to further review and approvals.

Mixed Performance Across the Portfolio

CSL Behring generated US$11.39 billion in revenue, down 1% at constant currency. Immunoglobulin revenue was unchanged, although second-half sales improved against both the prior period and trailing period.

Albumin revenue dropped 17% amid Chinese government cost-containment measures. Haemophilia revenue fell 1%, despite Hemgenix growing 25%.

Hereditary angioedema revenue rose 14% as Andembry expanded into 19 markets. Andembry contributed US$240 million during the year.

CSL Vifor revenue increased 3% to US$2.38 billion. Still, iron revenue fell 16% as generic competition intensified in Europe and the US.

CSL Seqirus revenue declined 8% to US$2.03 billion. Seasonal influenza revenue rose 4%, but the prior year included non-recurring avian influenza-related revenue.

Cost Savings and Capital Returns

CSL delivered US$176 million of annual pre-tax savings, exceeding its FY26 target. It aims to lift annual savings to US$400 million in FY27 and up to about US$550 million in FY28.

About half of FY27’s incremental savings will be reinvested in growth opportunities. Planned capital expenditure is around US$1 billion, plus or minus US$100 million.

Leverage finished at 1.8 times net debt to earnings before interest, tax, depreciation and amortisation. That was within CSL’s target range of 1.5 to 2 times.

The dividend was maintained at US$2.92 per share. CSL completed about A$1 billion of buybacks during FY26 and plans another A$1.1 billion in FY27.

For FY27, Behring expects mid-single-digit revenue growth and Seqirus expects low-single-digit growth. Vifor revenue is forecast to decline about 25%, leaving group revenue broadly unchanged at constant currency.