CSL shares bleed to decade low after $6.9 billion writedown as turnaround timeline blows out

Shares in Australian blood products giant CSL Limited (ASX: CSL) have crashed to a decade low after revealing US$5 billion ($6.9 billion) in additional non-cash impairments and a further downgrade to full-year earnings guidance, signalling the company's turnaround will take significantly longer than previously flagged.

Shares in CSL hit an intraday low of $93.60 today, with the stock trading 16.9 per cent lower at $99.65 at 2.18pm (AEST) as investors digested the scale of the writedowns and a third successive guidance cut in less than 12 months.

The additional impairments - spanning FY26 and FY27 - come on top of US$1.5 billion in restructuring and impairment charges already recognised at the first half, bringing the total writedown for the period to US$6.5 billion ($8.9 billion).

The charges relate primarily to CSL Vifor intangible assets across the product portfolio and under-utilised property, plant and equipment, though the final figure remains subject to further analysis, external audit and board approval.

Interim CEO Gordon Naylor, who took the reins in February, says with a 90-day review of the company now completed, CSL is "accelerating the execution of our plan".

“Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise," says Naylor.

"As a result, we have now revised down our 2026 financial year guidance."

Naylor has expressed confidence that CSL "can be returned to profitable growth", but the updated numbers paint a sobering picture of the near-term outlook.

CSL has cut FY26 guidance to US$15.2 billion in revenue and US$3.1 billion in net profit after tax and amortisation at constant currency.

That represents a sharp reduction from the 2 to 3 per cent revenue growth and 4 to 7 per cent NPATA growth the company maintained as recently as February 2026, and is even further below the original FY26 guidance of 4 to 5 per cent revenue growth and 7 to 10 per cent NPATA growth set by former CEO Dr Paul McKenzie in August 2025.

The NPATA figure of US$3.1 billion compares with US$3.3 billion delivered in FY25 on revenue of US$15.6 billion, meaning the biotech heavyweight is now forecasting earnings to go backwards year-on-year rather than grow.

The revenue downgrades are attributed to multiple headwinds across the business.

US immunoglobulin channel inventory normalisation accounts for about US$300 million of the reduction, while declining albumin market value in China stripped out roughly US$200 million.

A further US$150 million in revenue has been lost to Middle East conflict impacts, revised growth expectations for gene therapy HEMGENIX, and intensifying competition in the iron products market.

The guidance trajectory has deteriorated rapidly.

When McKenzie set the original FY26 outlook in August 2025, it called for 4 to 5 per cent revenue growth and 7 to 10 per cent NPATA growth.

That was lowered at the October 2025 annual general meeting -  the last chaired by McKenzie before his departure - to 2-3 per cent revenue growth and 4-7 per cent NPATA growth.

The February 2026 half-year results maintained that reduced range, but the May update has now abandoned ranges altogether in favour of flat dollar figures that fall well short.

At the half-year to December 2025, reported net profit after tax had already fallen 81 per cent to US$401 million after restructuring and impairment charges of US$2.06 billion.

Naylor's 90-day review has effectively reset expectations for a company that was, until recently, one of the ASX's most reliable growth stories.

The US$6.5 billion in total writedowns - heavily weighted toward the CSL Vifor acquisition - suggest the 2022 deal to buy the Swiss iron-deficiency and renal-care specialist has destroyed substantially more value than previously acknowledged.