CSL Half-Year Profit Slides 80%, Holds Dividend Steady

By Mike Cherney

SYDNEY--Australia-based pharmaceutical company CSL posted a steep decline in fiscal first-half profit, reflecting government policy changes, shifting public attitudes toward vaccines and one-off costs, but it held its dividend steady.

CSL, which produces plasma-derived therapies for a variety of conditions, said its reported net profit in the half year to Dec. 31 totaled $401 million, down 80%. Another measure of profit, known as underlying Npata, which strips out one-time items, was $1.95 billion, down 6%. Revenue was $8.33 billion, down 2%.

At constant currency, which excludes the impact of foreign exchange movements, net profit fell by 81%, underlying Npata fell by 7% and revenue fell by 4%.

The company said it would pay an interim dividend of $1.30/share, the same as the prior corresponding period.

"We are clearly not satisfied with our performance and have implemented a number of initiatives to drive stronger growth going forward," Chief Financial Officer Ken Lim said.

CSL said revenue at its main blood-plasma Behring unit fell 7%, which it said was partly due to Medicare Part D reforms. Revenue at flu-vaccine unit Seqirus fell 2%, but revenue at iron deficiency and nephrology business Vifor rose 12%.

Aside from restructuring costs, CSL said that much of $1.1 billion in asset impairments, including for Seqirus and Vifor, had been recognized in the fiscal first half.

Looking ahead, CSL maintained its guidance for the full 2026 fiscal year, saying it expects Npata growth of 4-7% excluding one-off costs at constant currency. Revenue growth is expected at 2-3%.

The company, which last year said it would cut up to 15% of its staff, has been through a rough patch. During the height of the Covid-19 pandemic, restrictions made it difficult for people to attend CSL's network of blood plasma collection centers in the U.S. CSL has said that plasma collections, needed for immunoglobulin, a key product, have risen above pre-pandemic levels.

More recently, shifting public attitudes toward vaccines has hit CSL's flu-vaccine unit Seqirus. CSL last year said it would spin off Seqirus, but then delayed the plan after U.S. immunization rates declined more than the company expected. It also cut its initial guidance for the 2026 fiscal year, citing a reduction in demand for albumin--which is also taken from plasma--in China as another headwind.

Meanwhile, the company has faced a tariff threat from the Trump administration in the U.S. It said in November that it would invest $1.5 billion in the U.S. and expand production there, helping to minimize exposure to any tariffs.

The turmoil at CSL was highlighted just yesterday, when Chief Executive Paul McKenzie abruptly stepped down. Company officials said they announced the management change first so investors could focus more clearly on the half-year earnings report.

CSL shares have given up all of their post-Covid gains, and the stock is now trading below where it was at the end of 2018. Last year, shares tumbled about 39%.

Write to Mike Cherney at mike.cherney@wsj.com

(END) Dow Jones Newswires

February 10, 2026 16:46 ET (21:46 GMT)