CSL Limited falls as layoffs overshadow FY25 results

[Scissors separating employees on colorful blocks representing staff reduction]

ADRs of CSL Limited (OTCQX:CSLLY [https://seekingalpha.com/symbol/CSLLY]) dropped ~16% on Tuesday as Wall Street reacted to Australian biotech’s plans to lay off 15% of its workforce, announced in conjunction with its fiscal 2025 financials.

The flu vaccine maker reported $1.3B NPAT with a ~14% YoY growth on a forex-adjusted basis for FY26, meeting the analysts’ projections, on ~$15.6B in revenue, which improved ~5% YoY on the same basis.

Its CSL Behring and CSL Seqirus divisions added $11.2B and $2.1B to the topline with ~6% YoY and ~2% YoY growth, respectively, and CSL Vifor generated $2.2B, marking a forex-adjusted ~8% YoY expansion.

“Our business has grown this year despite an unprecedented level of challenge and volatility in our external operating environment,” CEO Paul McKenzie remarked, adding, “It is from this position of strength that we are taking the opportunity to make significant changes.”

CSL (OTCQX:CMXHF [https://seekingalpha.com/symbol/CMXHF]) said that the strategic initiatives, which will lead to a net headcount reduction of up to 15%, equivalent to about 3,000 employees, could generate $500M-$550M in annualized savings over the next three years. Most of the savings are expected to be realized in fiscal 2027.

In connection with the changes, the company plans to recognize $700M - $770M in pre-tax restructuring costs and a $400M - $450M cash flow impact in FY26, with an additional $100M cash flow impact expected in FY27.

Concurrently, CSL (OTCQX:CSLLY [https://seekingalpha.com/symbol/CSLLY]) announced plans to spin off CSL [https://investors.csl.com/pdf/56bf77f4-8eff-40ff-bb67-c890e3a3476e/CSL-FY25-Results-and-Major-Strategic-Initiatives.pdf] Seqirus as a publicly listed company and repurchase A$750M worth of stock in FY26 as part of a multi-year share buyback program. [https://seekingalpha.com/article/4814696-csl-limited-2025-q4-results-earnings-call-presentation]

MORE ON CSL

* CSL Limited (CSLLY) Q4 2025 Earnings Call Transcript [https://seekingalpha.com/article/4814711-csl-limited-cslly-q4-2025-earnings-call-transcript]
* CSL Limited 2025 Q4 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4814696-csl-limited-2025-q4-results-earnings-call-presentation]
* RFK Jr. formally orders removal of thimerosal from all flu vaccines [https://seekingalpha.com/news/4470729-rfk-jr-formally-orders-removal-thimerosal-from-all-flu-vaccines]
* CSL will reduce its R&D department, increase external alliances: Reuters [https://seekingalpha.com/news/4467518-csl-will-reduce-its-rd-department-increase-external-alliances-reuters]
* Seeking Alpha’s Quant Rating on CSL  [https://seekingalpha.com/symbol/CSLLY/ratings/quant-ratings]