Should CSL Limited (ASX: CSL) Be On Your Buy List Right Now?

When it comes to healthcare giants on the ASX, CSL Limited (ASX: CSL) almost always makes the conversation. For years, the company has built a reputation as a reliable compounder with strong cash generation, durable growth engines, and a knack for executing on its long-term strategy.

The question investors are asking now: should CSL be on the buy list right now?

The short answer: yes—if you’re looking for a mix of structural growth, resilient earnings, and near-term catalysts that could unlock further shareholder value.

Let’s break down why.

What CSL Just Delivered

CSL recently reported its FY25 results, and the numbers show the company is still firing on multiple cylinders:

Revenue growth: Total revenue rose 6.28% to $23.83 billion.

Profit surge: Net profit after tax jumped 15% to $4.64 billion.

Margins expanding: Behring’s gross margin expanded by 130 basis points, while operating cash flow climbed 29% and free cash flow surged 58%. This reflects improved efficiency across its plasma collection network and a stronger product mix.

Dividend uplift: CSL declared a final dividend of US$1.62 per share, up 12% year-on-year. With the interim payout of US$1.30, total dividends for FY25 reached US$2.92 per share. (CSL’s dividends are unfranked and declared in USD.)

Why this matters: Despite a mixed backdrop for vaccines, CSL is delivering profit, cash, and dividends all on the rise. The “engine room” businesses—Behring and Vifor—are doing the heavy lifting and demonstrating resilience.

The FY26–FY28 Playbook and Catalysts

What makes CSL compelling today is not just what it’s delivering now, but the roadmap it has laid out for the next few years.

1. Seqirus Demerger

CSL announced plans to spin off its vaccines division, Seqirus, by the end of FY26. This will create two separately focused businesses:

1. A pure play plasma and renal innovator (Behring + Vifor).
2. A standalone vaccines business listed on the ASX.

Alongside the demerger, CSL is targeting over US$500 million in annual pre-tax cost savings by FY28, which will be reinvested into growth opportunities.

2. Capital Returns

From FY26, management expects to restart multi-year share buybacks, beginning with around $750 million in the first year, subject to conditions. This comes on top of a growing dividend stream.

3. Behring Growth Drivers

Demand for CSL’s immunoglobulin (IG) and albumin products continues to recover strongly, underpinned by higher plasma collection efficiency. New product launches—including gene therapy and specialty indications—add further growth levers.

4. Vifor Momentum

The Vifor iron and nephrology portfolios delivered 8% revenue growth in FY25. With deeper geographic penetration and a promising pipeline, Vifor looks well placed to sustain high single-digit growth.

Why this matters: Simplifying the portfolio, reinvesting savings, and adding capital returns creates a rare combination—accelerated per-share growth without stretching the balance sheet.

Valuation and Income Context

CSL has always commanded a premium valuation on the ASX, and for good reason. The business consistently generates mid-teens returns on invested capital (ROIC), converts profit into cash at high rates, and operates in defensive, growing end markets.

1. Dividend yield: With FY25 dividends at US$2.92 per share, CSL’s yield has ranged between 2.0–3.6% depending on share price levels. While not the highest on the ASX, the dividend is backed by strong cash flows and growth potential.
2. Through-cycle view: Historically, CSL’s premium multiple has reflected its ability to compound earnings over long periods. The upcoming demerger could surface additional value if each business is valued on more appropriate global peer comparisons.

What Investors Should Watch Next

For anyone considering CSL, a few key developments will be critical in the months and years ahead:

1. Seqirus demerger details: Investors will want clarity on the timetable, capital structure, governance, and whether CSL shareholders receive an in specie distribution of Seqirus shares. Costs of separation versus long-term savings will also be closely scrutinized.
2. Plasma network KPIs: Keep an eye on plasma collection volumes, yield efficiency, and per-litre economics—all vital to sustaining Behring’s margin progression.
3. Vifor’s growth trajectory: Watch adoption of iron therapies, nephrology launches, and regional expansion, which will dictate whether Vifor can maintain high single-digit growth.

The Bottom Line

CSL has just hit an attractive trifecta:

1. Accelerating earnings and cash generation.
2. Higher dividends with scope for buybacks from FY26.
3. A credible plan to unlock value through the Seqirus demerger and cost savings.

For long-term investors seeking exposure to defensive healthcare growth combined with near-term catalysts, CSL looks like it deserves a front-row seat on the buy list.

Disclaimer:

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