CSL’s 1H26 Revenue Falls 4% to $8.3B, NPATA Near $2B Excluding Costs

Half-Year Financial Overview

CSL Limited, the Melbourne-based biotech giant, reported its half-year results for the six months ending 31 December 2025, revealing a revenue figure of $8.3 billion, representing a 4% decline compared to the previous corresponding period. Despite this dip, the company’s underlying net profit after tax and amortisation (NPATA) stood robust at $1.946 billion, excluding one-off restructuring and impairment costs.

The reported net profit after tax was $401 million, significantly impacted by $1.8 billion in restructuring and impairment expenses, primarily related to the sa-mRNA vaccine platform and the Venofer iron therapy product. These impairments reflect CSL’s strategic pivot and ongoing portfolio optimisation amid evolving market conditions.

Transformation and Cost Savings Progress

CSL’s transformation program is progressing well, with the company achieving approximately 60% of its targeted $500-$550 million annual pre-tax cost savings for FY26. This initiative includes organisational simplification, operational efficiencies, and commercial optimisation, such as consolidating plasma collection centres and modernising manufacturing systems.

The company has also streamlined its R&D footprint, reducing sites from 11 to 6, and is reinvesting savings into growth areas, particularly in the US and China markets. This disciplined approach aims to balance cost leadership with innovation and portfolio expansion.

Business Segment Performance

CSL Behring, the company’s flagship segment, experienced a 7% revenue decline to $5.45 billion, affected by government policy changes and competitive pressures. However, key products such as immunoglobulin therapies showed resilience, with a 3% growth on the trailing half-year period driven by expanded US field force and direct-to-patient campaigns.

CSL Seqirus, the influenza vaccine business, posted mixed results. While adjuvanted vaccines like FLUAD and FLUCELVAX grew by 6%, egg-based vaccines declined sharply by 29%, reflecting shifting market dynamics and lower US immunisation rates. The segment is benefiting from geographic expansion, including successful market entries in Germany and France.

CSL Vifor demonstrated strong growth in nephrology products, with dialysis and non-dialysis therapies increasing by 40% and 45% respectively, supported by new launches and expanded market access. Conversely, iron therapies faced headwinds from generic competition in the US and EU, leading to a 15% revenue decline.

Capital Management and Outlook

CSL maintains a strong balance sheet with leverage at 2.0 times EBITDA and stable investment-grade credit ratings. The company has expanded its share buyback program from US$500 million to US$750 million, signalling confidence in its capital allocation strategy.

Importantly, CSL has reaffirmed its full-year 2026 guidance, targeting 2-3% revenue growth and 4-7% NPATA growth at constant currency, excluding restructuring and impairment costs. The company is optimistic about the second half, expecting momentum from immunoglobulin, albumin growth in China, and new product launches such as HEMGENIX and ANDEMBRY.

While challenges remain, including regulatory pressures and competitive dynamics, CSL’s strategic focus on rare diseases with high unmet medical needs, operational efficiencies, and innovation pipeline positions it well for sustainable growth.