Core Viewpoint - STERIS plc reported mixed results for the fourth quarter of fiscal 2025, with adjusted earnings per share (EPS) exceeding estimates while revenues fell short of expectations [13]. Financial Performance - Adjusted EPS for Q4 fiscal 2025 was $2.74, a 13.7% increase year-over-year, surpassing the Zacks Consensus Estimate by 5.8% [1] - GAAP EPS was $1.48, down 3.9% from $1.54 in the previous year [1] - Full-year adjusted EPS was $9.22, up 12.4% year-over-year, also exceeding the Zacks Consensus Estimate by 1.4% [2] Revenue Analysis - Q4 revenues from continuing operations were $1.48 billion, a 4.2% increase year-over-year, but missed the Zacks Consensus Estimate by 0.1% [3] - Organic revenues at constant exchange rate (CER) rose 6% year-over-year [3] - Full-year revenues from continuing operations reached $5.46 billion, a 6.2% increase year-over-year, matching the Zacks Consensus Estimate [3] Segment Performance - Healthcare segment revenues increased 5% year-over-year to $1.10 billion, with consumable revenues up 6% and service revenues up 13%, partially offset by a 4% decline in capital equipment revenues [4] - Applied Sterilization Technologies (AST) revenues improved 9% to $273.9 million, driven by 6% growth in service revenues [5] - Life Sciences segment revenues decreased 7% to $149.5 million, attributed to the divestiture of the CECS business, with consumable revenues growing 8% but capital equipment and service revenues declining significantly [6] Margin and Expense Insights - Gross profit for the quarter was $641.2 million, a 10% increase year-over-year, with gross margin expanding 224 basis points to 43.3% [7] - Selling, general and administrative expenses rose 8% to $333.9 million, while research and development expenses increased 0.8% to $27.7 million [8] - Adjusted operating expenses totaled $361.6 million, up 7.4% year-over-year, with adjusted operating margin expanding 153 basis points to 18.9% [8] Cash Flow and Guidance - Cash and cash equivalents at the end of fiscal 2025 were $171.7 million, down from $207 million at the end of fiscal 2024 [10] - Cumulative net cash flow from operating activities was $1.15 billion, compared to $973.2 million in the previous year [11] - For fiscal 2026, the company expects revenues from continuing operations to increase approximately 6-7%, with adjusted EPS projected in the range of $9.90-$10.15 [12]

Core Insights - Steris reported revenue of $1.48 billion for the quarter ended March 2025, reflecting a year-over-year increase of 4.3% and an EPS of $2.74, up from $2.41 in the same quarter last year [1] - The reported revenue was in line with the Zacks Consensus Estimate, showing a slight surprise of -0.09%, while the EPS exceeded expectations by 5.79% [1] Financial Performance Metrics - Healthcare revenues reached $1.06 billion, surpassing the average estimate of $1.05 billion, marking a 4.9% increase year-over-year [4] - Healthcare Products - Consumables generated $352.74 million, slightly below the estimate of $355.87 million, but still showing a 6% increase from the previous year [4] - Healthcare Products - Capital equipment reported $318.03 million, which was below the average estimate of $329.58 million, representing a decline of 4.1% year-over-year [4] - Healthcare Products - Service revenues were $386.41 million, exceeding the estimate of $367.62 million, with a significant year-over-year increase of 12.5% [4] - Life Sciences revenues totaled $149.47 million, falling short of the $158.82 million estimate, reflecting a 7% decrease year-over-year [4] - Applied Sterilization Technologies (AST) revenues were $273.89 million, slightly above the estimate of $269.92 million, with a year-over-year increase of 9.2% [4] - Life Sciences - Service revenues were $36.45 million, below the estimate of $44.18 million, showing a decline of 20.7% year-over-year [4] - Life Sciences - Capital equipment revenues were $36.98 million, under the average estimate of $40.52 million, representing a decrease of 16.4% year-over-year [4] - Life Sciences - Consumables generated $76.04 million, slightly below the estimate of $77.15 million, with an 8% increase year-over-year [4] Operating Income - Operating income for Healthcare was reported at $279.71 million, exceeding the average estimate of $255.95 million [4] - Corporate and Other reported an operating loss of $99.31 million, worse than the estimated loss of $83.07 million [4] - Operating income for Applied Sterilization Technologies (AST) was $122.20 million, slightly above the average estimate of $118.69 million [4] Stock Performance - Steris shares have returned +4.6% over the past month, compared to the Zacks S&P 500 composite's +9.9% change, indicating potential for future outperformance [3]

分组1 - Steris reported quarterly earnings of $2.74 per share, exceeding the Zacks Consensus Estimate of $2.59 per share, and up from $2.41 per share a year ago, representing an earnings surprise of 5.79% [1][2] - The company posted revenues of $1.48 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.09%, and compared to $1.42 billion in the same quarter last year [2] - Over the last four quarters, Steris has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] 分组2 - Steris shares have increased approximately 12.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4][6] - The current consensus EPS estimate for the upcoming quarter is $2.32 on revenues of $1.36 billion, and for the current fiscal year, it is $9.94 on revenues of $5.78 billion [7] 分组3 - The Medical - Instruments industry, to which Steris belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

[Fiscal 2025 Financial Performance Overview](index=1&type=section&id=Fiscal%202025%20Financial%20Performance%20Overview) STERIS achieved a record fiscal year 2025, marked by significant revenue growth and increased adjusted diluted EPS, with strong performance continuing into the fourth quarter [Fourth Quarter & Full Year Highlights](index=1&type=section&id=Fourth%20Quarter%20%26%20Full%20Year%20Highlights) STERIS reported a record fiscal year 2025, with full-year revenue from continuing operations increasing 6% to $5.5 billion, driven by 6% constant currency organic growth Fiscal 2025 Full Year Financial Highlights (vs. FY 2024) | Metric | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue from Continuing Operations | $5.5 billion | $5.1 billion | +6% | | Constant Currency Organic Revenue Growth | 6% | N/A | N/A | | As Reported Diluted EPS | $6.16 | $5.55 | +11.0% | | Adjusted Diluted EPS | $9.22 | $8.20 | +12.4% | Q4 Fiscal 2025 Financial Highlights (vs. Q4 FY 2024) | Metric | Q4 FY 2025 | Q4 FY 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue from Continuing Operations | $1.5 billion | $1.4 billion | +4% | | Constant Currency Organic Revenue Growth | 6% | N/A | N/A | | As Reported Diluted EPS | $1.48 | $1.54 | -3.9% | | Adjusted Diluted EPS | $2.74 | $2.41 | +13.7% | - The President and CEO, Dan Carestio, stated that fiscal 2025 was a record year, benefiting from a diversified customer base and growth in global procedure volumes[4](index=4&type=chunk) [Fourth Quarter Segment Performance](index=1&type=section&id=Fourth%20Quarter%20Segment%20Performance) In Q4 FY2025, the Healthcare and AST segments drove growth, with revenues increasing 5% and 9% respectively, while Life Sciences experienced a 7% revenue decline due to a divestiture [Healthcare](index=1&type=section&id=Healthcare) The Healthcare segment's Q4 revenue grew 5% to $1.1 billion, with a 6% constant currency organic growth, driven by service and consumable revenue increases Healthcare Segment Q4 Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1.1 billion | $1.0 billion | +5% | | Constant Currency Organic Revenue Growth | 6% | N/A | N/A | | Operating Income | $279.7 million | $245.2 million | +14.1% | - Revenue growth drivers included a **13% improvement in service revenue** and **6% growth in consumable revenue**, while capital equipment revenue declined by **4%**[6](index=6&type=chunk) [Applied Sterilization Technologies (AST)](index=1&type=section&id=Applied%20Sterilization%20Technologies%20(AST)) The AST segment's Q4 revenue increased 9% to $273.9 million, with strong constant currency organic growth of 10%, supported by service revenue and capital equipment sales AST Segment Q4 Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $273.9 million | $250.9 million | +9% | | Constant Currency Organic Revenue Growth | 10% | N/A | N/A | | Operating Income | $122.2 million | $114.2 million | +7.0% | [Life Sciences](index=1&type=section&id=Life%20Sciences) Life Sciences Q4 revenue decreased 7% to $149.5 million, largely due to a divestiture and a 16% decline in capital equipment revenue, though operating income remained stable Life Sciences Segment Q4 Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $149.5 million | $160.6 million | -7% | | Constant Currency Organic Revenue Growth | 0% | N/A | N/A | | Operating Income | $65.0 million | $64.5 million | +0.8% | - The revenue decline was primarily caused by the divestiture of the CECS business and significant declines in capital equipment (**-16%**) and service (**-21%**) revenue, which was partially offset by **8% growth in consumable revenue**[8](index=8&type=chunk) [Cash Flow](index=2&type=section&id=Cash%20Flow) For fiscal 2025, net cash provided by operations increased to $1.15 billion, and free cash flow rose to $787.2 million, primarily driven by improvements in working capital Fiscal 2025 Cash Flow Summary (vs. FY 2024) | Metric | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operations | $1.15 billion | $973.3 million | +18.2% | | Free Cash Flow | $787.2 million | $620.3 million | +26.9% | [Fiscal 2026 Outlook](index=2&type=section&id=Fiscal%202026%20Outlook) STERIS anticipates continued growth in fiscal 2026, projecting a 6-7% increase in revenue and a 7-10% increase in adjusted EPS, despite an estimated $30 million negative impact from tariffs [Key Projections](index=2&type=section&id=Key%20Projections) STERIS anticipates continued growth in fiscal 2026, projecting a 6-7% increase in both reported and constant currency organic revenue, with adjusted EPS expected between $9.90 and $10.15 Fiscal 2026 Guidance | Metric | FY 2026 Projection | | :--- | :--- | | As Reported Revenue Growth | 6% - 7% | | Constant Currency Organic Revenue Growth | 6% - 7% | | Adjusted EPS from Continuing Operations | $9.90 - $10.15 | | Capital Expenditures | ~$375 million | | Free Cash Flow | ~$770 million | - The outlook includes an estimated negative pre-tax profit impact of approximately **$30 million** due to tariffs[11](index=11&type=chunk) [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section provides an unaudited overview of STERIS's consolidated financial statements, including statements of operations, balance sheets, and cash flows [Consolidated Condensed Statements of Operations](index=4&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) For the twelve months ended March 31, 2025, STERIS reported revenues of $5.46 billion, a 6.2% increase, with gross profit growing to $2.40 billion and income from continuing operations rising to $611.6 million FY 2025 Income Statement Highlights (in thousands) | Line Item | Twelve Months Ended Mar 31, 2025 | Twelve Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenues | $5,459,515 | $5,138,701 | | Gross Profit | $2,402,764 | $2,218,160 | | Income from Operations | $866,641 | $836,118 | | Income from Continuing Operations, Net of Tax | $611,557 | $553,280 | | Diluted EPS - Continuing Operations | $6.16 | $5.55 | [Consolidated Condensed Balance Sheets](index=5&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) As of March 31, 2025, STERIS's total assets were $10.15 billion, with total equity increasing to $6.62 billion and long-term indebtedness significantly reduced to $1.92 billion Balance Sheet Summary (in thousands) | Line Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $2,000,765 | $2,869,123 | | Total Assets | $10,146,811 | $11,063,697 | | Long-term Indebtedness | $1,918,701 | $3,120,162 | | Total Equity | $6,615,757 | $6,315,346 | | Total Liabilities and Equity | $10,146,811 | $11,063,697 | [Consolidated Condensed Statements of Cash Flows](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) For fiscal 2025, net cash from operating activities was $1.15 billion, with investing activities providing $388.8 million, and financing activities using $1.57 billion FY 2025 Cash Flow Summary (in thousands) | Activity | Twelve Months Ended Mar 31, 2025 | | :--- | :--- | | Net cash provided by operating activities | $1,148,087 | | Net cash provided by (used in) investing activities | $388,773 | | Net cash used in financing activities | ($1,572,364) | | Decrease in cash and cash equivalents | ($35,319) | | Cash and cash equivalents at end of period | $171,701 | [Non-GAAP Financial Measures & Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section provides reconciliations of non-GAAP financial measures, including organic revenue growth and adjusted net income and EPS, to their most directly comparable GAAP measures [Organic Revenue Growth Reconciliation](index=8&type=section&id=Organic%20Revenue%20Growth%20Reconciliation) For fiscal year 2025, STERIS's reported revenue growth of 6.2% was reconciled to a constant currency organic growth rate of 6.2% after adjusting for acquisitions, divestitures, and foreign currency movements FY 2025 Revenue Growth Reconciliation | Growth Metric | Percentage | | :--- | :--- | | As Reported U.S. GAAP Growth | 6.2% | | Organic Growth | 5.9% | | Constant Currency Organic Growth | 6.2% | [GAAP to Adjusted Net Income & EPS Reconciliation](index=9&type=section&id=GAAP%20to%20Adjusted%20Net%20Income%20%26%20EPS%20Reconciliation) For fiscal year 2025, STERIS adjusted its U.S. GAAP net income from continuing operations of $611.6 million to an adjusted figure of $914.7 million, resulting in an adjusted diluted EPS of $9.22 FY 2025 GAAP to Adjusted EPS Reconciliation (Continuing Operations) | Line Item | Per Diluted Share | | :--- | :--- | | As reported, U.S. GAAP | $6.16 | | Net impact of adjustments | $3.06 | | **Adjusted** | **$9.22** | - Major adjustments for the full year included amortization of acquired intangible assets, acquisition and integration charges, restructuring charges, and a **$48.15 million** Illinois EO litigation settlement[34](index=34&type=chunk) [Supplemental Information](index=12&type=section&id=Supplemental%20Information) This section provides additional financial data, including recurring revenue composition, geographic revenue distribution, and total backlog for continuing operations [Supplemental Financial Data](index=12&type=section&id=Supplemental%20Financial%20Data) For fiscal year 2025, recurring revenue constituted approximately 78% of total revenues, with the United States accounting for 73% of total revenue, and the total backlog increasing to $452.9 million - For the full fiscal year 2025, recurring revenues (Consumables and Service) totaled **$4.27 billion**, representing **78.3% of total revenues**[36](index=36&type=chunk) - The United States remains the primary market, accounting for **73% of total revenues** in fiscal 2025[36](index=36&type=chunk) Total Backlog - Continuing Operations | Period | Backlog Amount | | :--- | :--- | | End of Q4 FY2025 | $452.9 million | | End of Q4 FY2024 | $425.2 million |

Financial Performance - Total revenue from continuing operations for Q4 FY2025 increased 4% to $1.5 billion compared to $1.4 billion in Q4 FY2024, with constant currency organic revenue growth of 6% [1][2] - For the full year FY2025, revenue from continuing operations rose 6% to $5.5 billion from $5.1 billion in FY2024, maintaining a constant currency organic revenue growth of 6% [2][9] - Net income from continuing operations for Q4 FY2025 was $146.5 million or $1.48 per diluted share, down from $152.9 million or $1.54 per diluted share in Q4 FY2024; adjusted net income for Q4 FY2025 was $270.3 million or $2.74 per diluted share, up from $240.1 million or $2.41 per diluted share in the prior year [3][4] Segment Performance - Healthcare revenue in Q4 FY2025 grew 5% to $1.1 billion, driven by a 13% increase in service revenue and a 6% rise in consumable revenue, despite a 4% decline in capital equipment revenue; operating income for this segment was $279.7 million, up from $245.2 million in the previous year [5] - Applied Sterilization Technologies (AST) revenue for Q4 FY2025 increased 9% to $273.9 million, with a 6% growth in service revenue; segment operating income rose to $122.2 million from $114.2 million year-over-year [6] - Life Sciences revenue in Q4 FY2025 decreased 7% to $149.5 million, primarily due to the divestiture of the CECS business; however, operating income slightly increased to $65.0 million from $64.5 million in the prior year [7] Cash Flow and Outlook - Net cash provided by operations for FY2025 was $1.15 billion, compared to $973.3 million in FY2024; free cash flow increased to $787.2 million from $620.3 million [8] - For FY2026, the company expects revenue from continuing operations to increase by 6-7%, with adjusted earnings per diluted share anticipated to be in the range of $9.90 to $10.15, reflecting a 7-10% increase compared to FY2025 [10][11]

Core Insights - Analysts project that Steris (STE) will report quarterly earnings of $2.58 per share, reflecting a 7.1% year-over-year increase, with revenues expected to reach $1.48 billion, a 4.2% increase from the same quarter last year [1] Revenue Projections - 'Revenues- Healthcare' are projected to be $1.05 billion, indicating a 4.5% increase year-over-year [4] - 'Revenues- Healthcare Products- Service' are expected to reach $360.96 million, suggesting a 5.1% year-over-year increase [4] - 'Revenues- Healthcare Products- Capital equipment' is estimated at $327.37 million, reflecting a 1.3% decrease from the prior-year quarter [4] - 'Revenues- Healthcare Products- Consumables' are projected at $364.74 million, indicating a 9.6% year-over-year increase [5] - 'Revenues- Applied Sterilization Technologies (AST)' are expected to be $269.92 million, reflecting a 7.6% increase from the year-ago quarter [5] - 'Revenues- Life Sciences' are projected to reach $155.49 million, indicating a 3.2% decrease year-over-year [5] - 'Revenues- Life Sciences- Service' is expected to be $41.39 million, reflecting a 10% decrease year-over-year [6] - 'Revenues- Life Sciences- Consumables' are projected at $80.04 million, indicating a 13.7% year-over-year increase [6] - 'Revenues- Life Sciences- Capital equipment' is expected to be $35.43 million, reflecting a 19.9% decrease year-over-year [6] Operating Income Estimates - The consensus estimate for 'Operating income / (loss)- Healthcare' is $255.95 million, compared to $245.22 million reported in the same quarter last year [7] - 'Operating income / (loss)- Applied Sterilization Technologies (AST)' is estimated at $118.69 million, compared to $114.22 million reported in the same quarter last year [7] - The consensus for 'Operating income / (loss)- Life Sciences' is projected at $64.54 million, slightly up from $64.49 million reported in the previous year [8] Stock Performance - Steris shares have increased by 4% over the past month, while the Zacks S&P 500 composite has moved up by 13.7% [9] - With a Zacks Rank 2 (Buy), Steris is expected to outperform the overall market performance in the near term [10]

Core Viewpoint - STERIS plc (STE) is set to release its fourth-quarter fiscal 2025 results on May 14, with expectations of revenue growth and increased earnings per share (EPS) compared to the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for revenues is $1.48 billion, reflecting a 4.2% increase from the prior year [2]. - The Zacks Consensus Estimate for EPS is $2.58, indicating a year-over-year increase of 7.1% [2]. - In the last reported quarter, STERIS posted adjusted EPS of $2.32, matching the Zacks Consensus Estimate, with an average surprise of 0.61% over the last four quarters [1][3]. Segment Analysis - **Healthcare**: Growth in consumables and services is expected to continue, driven by increased procedure volumes in the U.S. and market share gains [4]. The revenue for Healthcare capital equipment is projected to improve by 4.1% year-over-year [6]. - **Applied Sterilization Technologies (AST)**: Organic revenue growth is anticipated, with a projected increase of 9% year-over-year for this segment [7][8]. Despite previous declines in capital equipment shipments, demand in bioprocessing is expected to contribute positively [7]. - **Life Sciences**: This segment may see a revenue decline of 1.5% year-over-year, as strong growth in consumables and services is offset by a decrease in capital equipment revenue [9]. Estimate Revision Trend - Earnings estimates for STERIS have remained stable at $2.58 per share over the past 60 days, indicating confidence in the upcoming results [3]. Earnings ESP and Zacks Rank - STERIS has an Earnings ESP of 0.00%, suggesting a lower likelihood of beating earnings expectations [11]. The company currently holds a Zacks Rank of 3 (Hold) [11].

Core Viewpoint - STERIS plc will host a conference call to discuss its fiscal 2025 fourth quarter and full year financial results on May 15, 2025, with a press release detailing financial results to be issued on May 14, 2025 [1][2]. Company Information - STERIS is a leading global provider of products and services that support patient care, focusing on infection prevention and creating a healthier and safer world through innovative healthcare and life sciences products and services [3]. Conference Call Details - The conference call will take place at 9:00 a.m. ET on May 15, 2025, and can be accessed live via the company's investor relations website or by phone [1]. - A replay of the conference call will be available starting at 12:00 p.m. ET on the same day, with specific access codes provided for both U.S. and international callers [2]. Contact Information - For inquiries, the company contact is Julie Winter, Vice President of Investor Relations and Corporate Communications, reachable via email and phone [4].

Core Insights - STERIS plc's Healthcare business is experiencing growth due to strong U.S. procedure volumes, favorable pricing, and market share gains, particularly in the Applied Sterilization Technologies (AST) segment [1][4][6] - The company has shown resilience in its stock performance, with a 10.4% increase over the past year, contrasting with a 10.4% decline in the industry [2] - Financial health indicators are positive, with a market capitalization of $22.01 billion and an earnings yield of 4.4%, significantly higher than the industry's -3.2% [2] Healthcare Segment Performance - The Healthcare segment reported a 7% year-over-year revenue growth in the third quarter of fiscal 2025, driven by a 9% increase in consumable revenues and a 13% rise in service revenues [4] - Order growth exceeded 10% in the fiscal third quarter, resulting in a healthcare backlog of $435 million [5] - Margins improved due to increased volume, favorable pricing, and productivity gains that offset labor inflation [5] AST Segment Insights - The AST segment achieved a 10% year-over-year growth in the fiscal third quarter, with service revenues also increasing by 10% [6] - The company is witnessing a rebound in bioprocessing demand and stable global demand from MedTech customers, with expectations for continued growth in bioprocessing revenues [6] Financial Health - As of the fiscal third quarter, STERIS reduced its long-term debt to $2.04 billion, a 5.6% decrease from the previous quarter [7] - The company had cash and cash equivalents of $155.2 million, exceeding its short-term debt of $125 million, resulting in a total debt-to-capital ratio of 25.2% [7] Macroeconomic Challenges - The global macroeconomic environment poses challenges, with rising healthcare costs impacting the company's financial operations [8][10] - Foreign currency exchange rate fluctuations affect nearly 30% of the company's revenues and costs, leading to a revised revenue growth rate of approximately 6% due to negative currency impacts [11]

Core Insights - The article discusses the investment potential of a specific company, highlighting its strong market position and growth prospects [1][2] Company Analysis - The company has demonstrated a beneficial long position in its shares, indicating confidence in its future performance [1] - The analysis emphasizes the importance of understanding past performance as a factor in evaluating future results, although it does not guarantee them [2] Industry Context - The article suggests that the broader industry trends may impact the company's performance, although specific trends are not detailed [2]