Investor Presentation June 2025 Forward Looking Statements This presentation contain statements concerning certain trends, expectations, forecasts, estimates, or other forward-looking information affecting or relating to STERIS or its industry, products or activities that are intended to qualify for the protections afforded "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 and other laws and regulations. Forward- looking statements speak only as to the date the statemen ...

Core Insights - The article discusses the evolution of U.S. tariff policies and their impact on the sterile container system industry, highlighting the urgency for Chinese companies to internationalize due to domestic market saturation and global opportunities [2][3]. Section Summaries 1. U.S. Tariff Policy Evolution and Impact on the Sterile Container System Industry - The article defines sterile container system products and analyzes the core aspects of U.S. tariff policies [2]. - It emphasizes the impact of U.S. tariff adjustments on global supply chains and the necessity for Chinese sterile container system companies to expand internationally [2][3]. - The research aims to analyze policy impacts and summarize corporate strategies while providing future planning recommendations [2]. 2. Industry Impact Assessment - The article outlines optimistic, conservative, and pessimistic scenarios for the global sterile container system industry scale trends from 2024 to 2031 [3][9]. - It discusses the direct effects of tariff policies on Chinese sterile container system companies, including cost pressures and market access challenges [3][4]. 3. Global Market Share of Enterprises - The article presents the market share and rankings of major global sterile container system companies based on revenue and sales from 2022 to 2025, with 2025 being a forecast year [3][11]. - It includes data on sales revenue, market share, and pricing trends for these companies [3][11]. 4. Corporate Response Strategies - The article suggests strategies for companies to shift from export dependence to global capacity layout, including regional production networks and localized technology strategies [4][5]. - It emphasizes the importance of optimizing supply chain resilience and diversifying markets, particularly in emerging markets [4][5]. 5. Future Outlook: Global Industry Restructuring and China's Role - The article provides long-term trend predictions and strategic recommendations for the sterile container system industry [4][5]. 6. Current Global Capacity Distribution - The article forecasts global sterile container system supply and demand from 2020 to 2031, detailing production capacity, output, and utilization rates [6][7]. 7. Market Size and Growth Potential in Key Regions - The article analyzes the sales volume and revenue of the global sterile container system market, comparing data from 2020, 2024, and 2031 [7][8]. 8. Overview of Major Global Manufacturers - The article includes profiles of major manufacturers in the sterile container system market, detailing their production bases, sales regions, and market positions [8][9]. 9. Product Type Scale Analysis - The article categorizes sterile container systems by product type, including plastic, glass, and metal containers, and compares sales revenue and volume forecasts [9][10]. 10. Application Scale Analysis - The article categorizes sterile container systems by application, including hospitals, clinics, and laboratories, and provides sales and revenue forecasts [10][11].

Company Overview - Steris shares have decreased by approximately 1.8% over the past month, underperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the key drivers affecting the stock [1] Earnings Estimates - Estimates for Steris have trended downward in the past month, indicating a negative outlook [2][4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the upcoming months [4] VGM Scores - Steris has an average Growth Score of C, a Momentum Score of C, and a Value Score of C, placing it in the middle 20% for investment strategies [3] Industry Performance - Steris is part of the Zacks Medical - Instruments industry, where Pacific Biosciences of California (PACB) has seen a gain of 11.3% over the past month [5] - Pacific Biosciences reported revenues of $37.15 million for the last quarter, reflecting a year-over-year decline of 4.3% [5] - The expected loss for Pacific Biosciences in the current quarter is $0.18 per share, with a year-over-year improvement of 10% [6]

Business Segments and Revenue - STERIS operates in three reportable business segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences, with the majority of revenues derived from healthcare and medical device customers[11]. - For the year ended March 31, 2025, no customer represented more than 10% of total revenues in any of the segments[17][21][26]. - As of March 31, 2025, the company reported a backlog of $452.9 million, with $369.2 million related to the Healthcare segment and $83.7 million to the Life Sciences segment, indicating an increase from $425.2 million in the previous year[49][50]. - Healthcare segment revenue increased to $12,341 million in fiscal 2025 from $11,419 million in fiscal 2024, representing an increase of 8.1%[78]. - Revenues increased by $320.8 million, or 6.2%, to $5,459.5 million for the year ended March 31, 2025, compared to $5,138.7 million for the year ended March 31, 2024[205]. Research and Development - STERIS invests significantly in research and development to discover and market innovative, cost-effective products and services[45]. - The company has 607 U.S. patents and 2,315 patents in other jurisdictions, with 90 U.S. patent applications and 289 applications pending[31]. Operational Performance and Costs - STERIS experienced a rise in supply chain and labor costs during fiscal 2023 and 2024, which moderated in fiscal 2025[29]. - The company applies Lean principles across its operations to enhance performance, agility, and value[34]. - The average number of employees during fiscal 2025 was approximately 18,000, with less than 11% represented by work councils or labor unions, indicating generally good employee relations[77]. - Total employees rose to 17,787 in fiscal 2025, up from 16,768 in fiscal 2024, reflecting a growth of 6.1%[78]. - Total employee costs increased to $1,850,544 thousand in fiscal 2025 from $1,718,164 thousand in fiscal 2024, marking a rise of 7.7%[86]. - The company maintained zero Class I recalls in fiscal 2025, 2024, or 2023, demonstrating strong compliance with safety standards[89]. Environmental and Sustainability Efforts - The company has made significant investments to comply with environmental laws and regulations, focusing on improving energy and water efficiency and reducing waste[69]. - The company tracks greenhouse gas emissions and reports direct and indirect energy use, participating in the Carbon Disclosure Project[70]. - The company has developed new products aimed at reducing environmental impact, such as ultra-concentrate cleaning chemistries that offer 10 times the uses per container[71]. - The company has established key performance indicators aligned with Sustainability Accounting Standards Board (SASB) Standards for Medical Equipment & Supplies, focusing on financial materiality in sustainability reporting[56]. - STERIS has three facilities accredited to ISO 14001 and ISO 45001 standards, reflecting commitment to environmental management[82]. Regulatory and Compliance Challenges - STERIS is subject to extensive governmental regulations, which require compliance and can significantly impact operations and costs[38][39]. - The company faces extensive regulatory requirements for product approvals, and delays in obtaining these could harm revenues and profitability[106]. - Compliance with international laws and regulations may be burdensome and expensive, impacting operational efficiency[103]. - Regulatory changes regarding greenhouse gas emissions and sustainability reporting may impose additional compliance costs and risks of non-compliance[138]. - The company's EO sterilization operations are at risk from regulatory actions that could significantly affect operational costs and demand for medical devices[141]. Financial Position and Debt - As of March 31, 2025, STERIS had approximately $2,043.7 million of outstanding indebtedness, including $1,350.0 million of Senior Public Notes, $674.2 million of Private Placement Senior Notes, and $34.8 million under the Revolving Credit Facility[153]. - The debt-to-total capital ratio was 23.6% at March 31, 2025, indicating a stable capital structure[209]. - The company expects to continue paying cash dividends for the foreseeable future, as determined by its Board of Directors[187]. Acquisitions and Growth Strategy - Acquisitions are a key part of STERIS's long-term growth strategy, alongside organic opportunities[45]. - The company completed several tuck-in acquisitions during fiscal 2025, with total aggregate consideration of approximately $54.1 million, enhancing its Healthcare and AST segments[201]. - The acquisition of assets from Becton, Dickinson and Company was valued at $539.8 million, financed through borrowings from the existing credit facility[203]. - The company plans to sell its Dental segment for total cash consideration of $787.5 million, with potential additional payments based on revenue targets in fiscal 2025[205]. Employee Relations and Engagement - Employee turnover rate was 16% in fiscal 2025, slightly up from 15% in fiscal 2024, with a goal to achieve a rate of 10% or less[85]. - 88% of employees participated in the pulse survey in fiscal 2025, indicating strong engagement levels[85]. Cybersecurity and Risk Management - The company has implemented a cybersecurity risk management program integrated into its enterprise risk management (ERM) framework, with no material cyberattacks reported in fiscal year 2025[178]. - The company maintains a comprehensive incident response policy for managing cybersecurity incidents, overseen by an Executive Cybersecurity Steering Committee[173]. - The company may face increased cybersecurity risks due to reliance on IT systems and remote work arrangements[149]. Market and Competitive Environment - The competitive environment is intensifying, with increased competition from new products and technologies in infection prevention and sterile processing[128]. - Consolidations among healthcare customers may lead to pricing pressures and potential loss of customers[130]. - Geopolitical instability may lead to supply chain disruptions, increased production costs, and reduced consumer demand, potentially adversely affecting the company's business[102]. Legal and Liability Risks - The company is exposed to product liability claims, which could result in substantial costs and distract management from core responsibilities[110]. - Future litigation related to EO operations may increase costs and divert management attention, potentially impacting financial results[144]. - STERIS agreed to pay up to approximately $48.2 million to resolve claims related to EO exposure in Illinois[143].

Core Insights - STERIS is enhancing its product offerings through new acquisitions and partnerships, currently holding a Zacks Rank 2 (Buy) [1] Group 1: Growth Drivers - The Healthcare segment of STERIS is benefiting from the successful market adoption of its infection prevention consumables and capital equipment, with a reported revenue growth of 5% year over year for Q4 fiscal 2025 [2] - The Applied Sterilization Technologies (AST) division saw a 9% reported growth year over year in Q4 fiscal 2025, driven by a 6% increase in service revenues, with organic revenues in high single digits [3] - STERIS is experiencing increased bioprocessing demand, while global demand from MedTech customers remains stable [3] Group 2: Strategic Acquisitions - STERIS frequently engages in strategic acquisitions and joint ventures, including the recent purchase of surgical instrumentation and sterilization container assets from BD, which enhances its Healthcare product offerings [4] - The company anticipates a strong fiscal year ahead, with reported revenues from continuing operations expected to grow approximately 6-7% in fiscal 2026 [4] Group 3: Stock Performance - Over the past three months, STERIS shares have risen 13.6%, contrasting with an 11.8% dip in the industry, driven by sustained growth in bioprocessing demand and strategic acquisitions [5]

Core Insights - The U.S. Gynecological Chairs and Tables Market was valued at USD 194.8 Million in 2024 and is projected to reach USD 283.8 Million by 2030, with a CAGR of 6.50% [1][9]. Market Growth Drivers - The expansion of the U.S. gynecological chairs and tables industry is driven by the increasing adoption of minimally invasive surgical (MIS) techniques, which enhance procedural efficiency and patient comfort [2][4]. - The demand for laparoscopic procedures is significantly influenced by the prevalence of uterine fibroids, affecting approximately 26 million women in the U.S. aged 15 to 50 [3][4]. Market Segmentation - Gynecological chairs dominate the U.S. market share, while gynecological tables are expected to grow steadily, supported by high procedure volumes in OB/GYN facilities [8]. - The pelvic surgery segment holds a notable market share, while the urology surgery segment is projected to grow at the fastest CAGR of 8.1% due to rising urological procedures [8]. - The office-based surgery (OBS) segment significantly contributes to market revenue, with the Department of Veterans Affairs (VA) segment expected to experience the fastest growth rate [8]. Future Trends and Recommendations - Healthcare facilities are increasingly investing in advanced gynecological chairs and tables to improve procedural outcomes and patient safety as MIS becomes more prevalent [4]. - The report provides insights into market estimates and forecasts from 2018 to 2030, highlighting growth opportunities and trend analyses [5][9].

Core Insights - The performance of Steris' international operations is crucial for understanding its financial resilience and growth potential [1][2][3] - The company's total revenue for the quarter was $1.48 billion, reflecting a 4.3% increase year-over-year [4] International Revenue Analysis - Ireland contributed $38.21 million, or 2.58% of total revenue, exceeding the consensus estimate by 49.78% [5] - Other Foreign Revenues accounted for $363.71 million, or 24.57% of total revenue, falling short of expectations by 12.43% [6] Revenue Forecasts - Analysts project Steris will generate $1.36 billion in revenue for the ongoing fiscal quarter, a 6.1% increase year-over-year [7] - For the full year, total revenue is expected to reach $5.79 billion, a 6% rise from the previous year, with Ireland contributing 2.1% and Other Foreign Revenues 27.4% [8] Conclusion - The reliance on global markets presents both opportunities and challenges for Steris, making the analysis of international revenue trends essential for forecasting future performance [9][10]

Group 1 - The stock price of Steris plc (NYSE: STE) has increased by more than 11% since the upgrade to a Strong Buy rating in March 2025 [1] - The company is expected to benefit from potential market conditions influenced by political factors [1]

STERIS (STE) Q4 2025 Earnings Call May 15, 2025 09:00 AM ET Company Participants Julie Winter - Vice President of Investor Relations & Corporate CommunicationsMichael Tokich - Senior VP & CFODaniel Carestio - President, CEO & DirectorPatrick Wood - Managing DirectorMac Etoch - Senior Research Associate Conference Call Participants David Turkaly - Research AnalystMike Matson - Senior Equity Research AnalystMichael Polark - Senior Equity Research AnalystJason Bednar - Senior Research AnalystBrett Fishbin - Vi ...

Financial Data and Key Metrics Changes - Total reported revenue grew by 4%, while constant currency organic revenue increased by 6% driven by volume and a 20 basis points price increase [6][10] - Gross margin increased by 170 basis points to 44.3%, with positive pricing, favorable mix, and productivity outpacing labor inflation [6][7] - EBIT margin rose by 110 basis points to 24.8% of revenue compared to the previous year [7] - Net income from continuing operations was $270 million, and adjusted earnings per diluted share increased by 14% to $2.74 [7][10] - Free cash flow for fiscal 2025 reached a record $787 million, significantly above guidance due to working capital improvements [8] Business Line Data and Key Metrics Changes - Healthcare constant currency organic revenue grew by 6% for the year, driven by strong recurring revenue streams, while capital equipment revenue declined by 5% [10][11] - Capital equipment orders grew over 12% for the full year, indicating strong underlying demand [11] - AST constant currency organic revenue grew by 9% for the year, with services growing by 7% [12] - Life Sciences saw a 1% increase in constant currency organic revenue, with margins improving to 42.3% [13] Market Data and Key Metrics Changes - The diversified nature of the business allowed the company to deliver results in line with original outlook despite obstacles [10] - The company anticipates revenue growth of 6% to 7% for fiscal 2026 across all segments, with a minor note on AST reflecting high single-digit growth in services [14][15] Company Strategy and Development Direction - The company plans to leverage its strengths to mitigate tariff exposure, with an estimated $30 million impact from tariffs included in the fiscal 2026 outlook [17][18] - The company is well-positioned to deliver both top and bottom line growth in 2026, with no acquisition or divestiture impacts expected [14][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver growth, particularly in recurring revenues and capital equipment orders, despite previous uncertainties in the pharma sector [23][24] - The anticipated tariff impact is expected to be managed strategically, with a focus on mitigating exposure through supply chain adjustments [18][62] Other Important Information - Capital expenditures for fiscal 2025 totaled $370 million, while depreciation and amortization amounted to $476 million [8] - The effective tax rate is planned at approximately 23.5% for fiscal 2026 [18] Q&A Session Summary Question: Comfort in Life Sciences bouncing back to 6% to 7% range - Management noted strong performance in recurring revenues, particularly in consumables, and a rebound in capital equipment orders towards the end of the year [23] Question: Impact of tariffs on EPS - Management discussed various headwinds and tailwinds, including $20 million in restructuring cost savings and lower interest expenses offsetting higher tax rates and tariff impacts [25][26] Question: Cash flow guidance differences - The anticipated $40 million legal settlement for ETO negatively impacts cash flow, along with tariffs and reduced inventory improvements [30] Question: M&A opportunities - Management indicated capacity for M&A from both financial and intellectual perspectives, should the right opportunity arise [32] Question: Onshoring trends - Management suggested that while there are opportunities for onshoring, regulatory complexities may limit rapid shifts in production [36][37] Question: AST growth expectations - Management expressed confidence in accommodating industry growth without capacity constraints [73] Question: Tariff breakdown and mitigation - Management confirmed that the $30 million tariff impact is a net number, with half attributed to China and half to global tariffs, and emphasized ongoing mitigation efforts [58][62]