CSL Shares Fall 6.5% on Earnings Miss, Surprise CEO Change

By David Winning

SYDNEY--Shares of pharmaceutical company CSL fell early Wednesday as investors react to the sudden departure of chief executive Paul McKenzie and an 80% fall in first-half net profit.

The stock was down 6.5% at A$160.32 after falling as much as 9% earlier in the session.

CSL, which produces plasma-derived therapies for a variety of conditions, said its reported net profit totaled US$401 million in the six months through December, down from A$2.01 billion a year ago. Underlying profit, which strips out one-time items, fell 6% to US$1.95 billion. Its dividend was held steady on year at US$1.30/share.

Jarden analyst Steve Wheen said investors had feared big downgrades and that these concerns were heightened on Tuesday when CSL announced the surprising leadership change, replacing McKenzie as CEO with Gordon Naylor, a highly experienced former CSL senior executive.

While CSL reaffirmed guidance, the result highlighted worrying trends for key products including immunoglobulin and albumin. "There are good reasons for a recovery in 2H26 in immunoglobulin and Albumin with Medicare Part D funding impact now in base and new Albumin distribution agreement commencing," Wheen said.

Jarden said investors lack confidence in CSL's ability to deliver in the second-half, which could keep the stock under pressure. Still, it retained an overweight call on the stock. "Ultimately we think there remains value here," Wheen said.

Jefferies also had a bullish view of CSL's stock. It said the result wasn't as bad as feared, noting that CSL maintained guidance for underlying profit growth of 4%-7%. That implies US$3.35 billion-US$3.44 billion underlying profit, which compares with Jefferies' US$3.38 billion forecast when currency swings are stripped out.

Macquarie said CSL's Behring blood plasma unit was the main driver of a 3% miss on first-half net profit. It said revenue from the division was 10% lower than forecast, while gross profit fell short of hopes by 9%.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

February 10, 2026 19:45 ET (00:45 GMT)