The CSL Ltd (ASX: CSL) share price is down 16% after its FY25 result and demerger plans.
CSL is Australia’s largest biopharmaceutical business. It says it has portfolio of lifesaving medicines, including those that treat hemophilia and immune deficiencies, vaccines to prevent influenza, and therapies in iron deficiency and nephrology.
CSL FY25 result
The company reported various growth numbers in its FY25 report:
- Revenue growth of 5% to US$15.6 billion
- Underlying net profit grew 14% to US$3.3 billion
- Net profit grew 17% to US$3 billion
- Final dividend per share up 12% to US$1.62
The business reported growth for each of its major business units.
CSL Behring experienced revenue growth of 6% to $11.2 billion, which saw continued strong demand for its plasma therapies.
CSL Seqirus continued to show resilience with its differentiated portfolio and platforms, achieving revenue growth of 2% in a “challenging environment”, The healthcare company said the majority of avian flu contracts globally were awarded to CSL Seqirus.
CSL Vifor’s revenue growth was 8% in FY25, thanks to its “resilient iron business and pleasing momentum” across the nephrology portfolio, thanks to its established and new products.
Business plans
After many years of significant growth, CSL believes it’s important to stay committed to a winning strategy.
It wants to re-focus on its core strengths, lift productivity, and instill a “lean and efficient mindset”, while at the same time optimising its capital structure and removing complexity.
For R&D, it’s going to reduce the proportion of fixed costs in overall spending and implement initiatives to increase its pipeline productivity, including consolidation of the R&D footprint.
With its operating model, it’s going to integrate its R&D, business development and commercial teams. CSL Behring and CSL Vifor will also combine medical and commercial functions, “delivering further synergies and additional revenue growth opportunities.” The corporate functions will be streamlined to align to the new operating model.
On its plasma network, the business said the rollout of Rika and iNomi have driven expected efficiencies, as well as manufacturing process improvements, creating opportunities for the business to optimise CSL’s plasma collection network.
In August 2025, it has closed 22 underperforming centres, representing 7% of CSL’s plasma US footprint.
One-off restructuring costs are expected to be between approximately $700 million to $770 million. It’ll reduce its net headcount by up to 15% of its employee base.
But, the initiatives are expected to drive annualised cost savings of between $500 million to $550 million progressively over the next three years.
CSL said it will look to balance the reinvestment of these savings in high priority opportunities, with the need to deliver sustainable, profitable growth.
Seqirus demerger
The healthcare giant announced it intends for Seqirus, a global vaccine leader, to be demerged as a substantial ASX business before the end of FY26.
CSL said a demerger will allow autonomy to set an independent strategic direction, including “capitalising on potential opportunities that may arise in a highly dynamic vaccines market, as well as reducing complexity, making the business more agile and efficient to manage.”
The demerger will require various approvals, including a shareholder vote.
CSL share buyback
The company announced it will recommence a share buyback program, which will be a multi-year buyback, starting with A$750 million in FY26 and is expected to “progressively increase over the medium term”.
Final thoughts on the CSL share price
In FY26, the business is expecting revenue growth of between 4% to 5%.
Robust demand is expected for CSL Behring and a rising gross profit margin.
CSL Seqirus is expecting a substantially lower contribution from avian influenza and COVID-19 than in the prior financial year.
CSL Vifor is “well positioned to maintain its market-leading positions”, despite new entrants into the iron market.
Underlying net profit is expected to grow by between 7% to 10% in FY26.
The guidance assumes no impact from pharma sector tariffs. CSL said it has significant operations in the US and the majority of its commercial portfolio is “drug-sourced from there.”
I don’t know what the future holds for the CSL share price with so much disruption in the US. It could be a turnaround idea at this lower price, but it isn’t the type of bet I’d make for my own portfolio.
There are other ASX growth shares I’d rather buy.
