Blood plasma product manufacturer CSL's share price has tumbled by about 70 per cent in the two years since July 2024, as it faced softening demand from key markets in the US and China, a major restructure and a wave of downgrades.
The 2025/26 financial year had been a "reset year" for the company, interim chief executive Gordon Naylor said.
"We've been able to maintain momentum, to stabilise the company's performance, restore the cadence and focus of the leadership team, and start to deliver results," Mr Naylor told an earnings briefing on Tuesday.
"Considerable work remains, but we are making progress."
CSL's bottom-line net loss came in at an eye-watering $US2.6 billion ($A3.7 billion) for 2025/26, plummeting from a $US3 billion profit the year before.
Still, total revenue only fell one per cent to $US15.8 billion ($A22.2 billion), highlighting the impact of $US7.1 billion in pre-tax writedowns, mostly linked to its CSL Vifor kidney treatment and iron deficiency business.
Vifor has struggled against generic competition and regulatory shifts since its 2022 acquisition by CSL.
CSL's Behring business, which makes medicines to treat conditions including bleeding disorders, immune deficiencies and angioedema, had its revenue fall one per cent to $US11.4 billion, despite a 7.2 per cent uplift in the second half.
Cash flow remained strong at $US3.5 billion ($A4.9 billion), which helped CSL support a roughly $A1 billion share buyback and a $US1.62 ($A2.28) final dividend, taking the total dividend to $A4.11.
Mr Naylor, who replaced ousted boss Paul McKenzie in 2025, said it had been a difficult financial year.
"Considerable work remains, but the company is now simpler and focused on execution," he told an earnings call on Tuesday.
The result could be a turning point after a disastrous two years for the company, which has struggled against weaker albumin demand in China, vaccine hesitancy in the US and disappointing Vifor returns due to fierce competition from generic medicines.
CSL beat consensus estimates across revenue and earnings, sparking a more than 15 per cent rebound in its share price to $159.01 - its best level since February.
"Despite revenue headwinds, CSL's transformation program and reinvestments into the business will support future earnings growth," Moody's Ratings analyst Mariano Ferreyra said.
"CSL's strong balance sheet will support growth investments and shareholder returns while it searches for a new CEO."
The share price surge indicated markets were betting the company had finally turned a corner, Global X senior investment strategist Marc Jocum said.
"Today's result gives the dip-buyers something they haven't had for a while - evidence rather than just hope that CSL's earnings trajectory is stabilising," Mr Jocum said.
"After a series of earnings misses, guidance cuts, structural headwinds and leadership uncertainty, investors have been burned repeatedly."
While management's description of the year as a reset was fair, etoro analyst Josh Gilbert doesn't expect CSL to return to full growth in 2026/27.
"(Naylor) was brought in to accelerate the transformation, and that work is clearly happening, but the next stage is harder," Mr Gilbert said.
"Investors will still need some patience, but the stepping stones have been laid."
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