CSL Analysis: CSL Shares Plunge on US Vaccination Decline and Cost-Cutting Plan

Event: CSL Shares Plunge on US Vaccination Decline and Cost-Cutting Plan | Date: 2025-10-28 | Source: CSL Investor Relations

CSL Shares Drop 8% as US Flu Vaccination Slump Prompts $500M Cost Overhaul

CSL Limited announced a significant restructuring initiative in response to declining US influenza vaccination rates, which have fallen 25% post-pandemic to 35-40% coverage, impacting its Seqirus division. The Melbourne-based company plans to cut $500 million in costs over the next three years through measures including a 15% headcount reduction, consolidation of R&D sites from 11 to 6, and closure of 22 underperforming plasma collection centers. This follows FY25 results showing revenue of $15,558 million (up 7.5%) and EBITDA of $5,272 million (33.1% margin), but with Seqirus facing a projected -12-14% revenue decline in FY26 due to the vaccination headwinds. The announcement, released via ASX on October 28, 2025, also reaffirmed FY26 revenue growth guidance of 2-3%, emphasizing the transformation's aim to sustain margins amid external pressures like payer pricing and labor inflation. Shares fell sharply, closing down approximately 8% on the news, reflecting investor concerns over near-term growth deceleration. Source: CSL ASX Announcements.