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]

Core Insights - The article emphasizes the importance of Steris' international operations in assessing its financial strength and growth potential, particularly in the context of a global economy [2][3]. Revenue Performance - Steris reported total revenue of $1.37 billion for the quarter ending December 2024, reflecting a decline of 1.8% year-over-year [4]. - Revenue from Ireland was $24.12 million, accounting for 1.76% of total revenue, which was a decrease of 17.04% compared to the projected $29.07 million [5]. - Other Foreign Revenues contributed $343.87 million, representing 25.09% of total revenue, falling short of the consensus estimate of $382.04 million by 9.99% [6]. Future Projections - Analysts project Steris to report total revenue of $1.49 billion in the current fiscal quarter, indicating a 5.1% increase from the prior year [7]. - For the entire year, total revenue is forecasted at $5.48 billion, a 0.7% improvement from the previous year, with Ireland expected to contribute 1.9% ($102.31 million) and Other Foreign Revenues 26.2% ($1.44 billion) [8]. Market Context - The reliance on foreign markets presents both opportunities and challenges for Steris, necessitating close monitoring of international revenue trends to gauge future performance [9]. - Financial analysts are increasingly focused on international developments and their impact on earnings estimates for companies operating globally [10].

Financial Performance - Revenues increased 5.6% to $1,370.6 million for the three months ended December 31, 2024, compared to $1,297.7 million for the same period in the prior year[160]. - Gross profit for the three months ended December 31, 2024, was $610.3 million, a 9.0% increase from $560.0 million in the prior year[180]. - Income from operations for the third quarter of fiscal 2025 was $245.3 million, compared to $226.5 million for the same period in fiscal 2024[162]. - Total revenues for the nine months ended December 31, 2024, were $3.98 billion, reflecting a 7.0% increase compared to $3.72 billion in 2023[200]. - Operating income for the same period was reported at $686,140,000, while net income stood at $574,877,000[226]. Cash Flow and Capital Management - Cash flows from operations were $887.3 million for the first nine months of fiscal 2025, compared to $718.5 million for the same period in fiscal 2024[163]. - Free cash flow for the first nine months of fiscal 2025 was $588.1 million, an increase from $457.0 million in the same period of fiscal 2024[169]. - Total cash dividends paid to ordinary shareholders increased to $163.9 million, or $1.66 per share, in the first nine months of fiscal 2025, compared to $149.2 million, or $1.51 per share, in the same period of fiscal 2024[218]. - The company repaid $638.1 million of term loans during the first nine months of fiscal 2025, compared to $45.0 million in the same period of fiscal 2024[213]. Debt and Capital Structure - The debt-to-total capital ratio improved to 25.2% at December 31, 2024, down from 33.7% at March 31, 2024[164]. - Debt-to-total capital ratio improved to 25.2% at December 31, 2024, down from 34.0% at December 31, 2023[216]. Segment Performance - Service revenues rose by 10.4% to $652.2 million for the three months ended December 31, 2024, driven by growth in the Healthcare and AST segments[171]. - Healthcare segment revenues increased by 6.5% to $976.0 million for the three months ended December 31, 2024, driven by a 13.5% increase in service revenues[201]. - AST segment revenues increased by 9.9% to $258.1 million for the three months ended December 31, 2024, primarily due to increased pricing and volume[203]. - Life Sciences segment revenues decreased by 6.9% to $136.4 million for the three months ended December 31, 2024, impacted by a 30.7% decline in capital equipment revenues[204]. Expenses and Investments - Total operating expenses increased by 9.4% to $365.0 million for the three months ended December 31, 2024, compared to $333.6 million for the same period in the prior year[182]. - Research and development expenses rose by 8.3% to $27.4 million for the three months ended December 31, 2024, reflecting ongoing investments in new product development and technological innovations[183]. - Capital expenditures totaled $299.2 million for the first nine months of fiscal 2025, compared to $268.8 million during the same prior year period[213]. Restructuring and Future Outlook - The company anticipates annual improvements in income from operations of approximately $25.0 million due to a targeted restructuring plan, with benefits expected to materialize primarily in fiscal 2026 and beyond[184]. - Total pre-tax restructuring expenses recorded in fiscal 2025 related to the restructuring plan amounted to $33.1 million for the nine months ended December 31, 2024[185]. - The restructuring plan aims to achieve pre-tax savings, although the timeline and realization of benefits remain uncertain[235]. Legal and Regulatory Risks - The company is involved in various legal proceedings and claims, which may impact financial results but are not expected to have a material adverse effect on the consolidated financial position[231]. - The company anticipates potential risks from public health crises, market demand fluctuations, and regulatory changes that could affect operations and financial performance[234]. Currency and Commodity Risks - The company is subject to interest rate, currency, and commodity risks, with exposures not changing materially since March 31, 2024[237]. - The company held forward foreign currency contracts to hedge a portion of expected non-U.S. dollar-denominated earnings against the US dollar during the third quarter of fiscal 2025[238]. - The company entered into commodity swap contracts to buy 197.3 thousand pounds of nickel to hedge against price changes impacting raw materials[240]. Internal Controls and Compliance - The company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[241]. - There were no changes in internal control over financial reporting that materially affected or are likely to materially affect the company's internal control during the quarter ended December 31, 2024[242].

Financial Data and Key Metrics Changes - Total revenue for the third quarter grew by 6%, with constant currency organic revenue also increasing by 6%, driven by volume and a 240 basis point price increase [8] - Gross margin increased by 90 basis points year-over-year to 44.6% [8] - EBIT margin decreased by 10 basis points to 23.3% compared to the previous year's third quarter [9] - Net income from continuing operations was $229 million, with adjusted earnings per diluted share increasing by 11% to $2.32 [10][11] - Free cash flow for the first nine months was $588 million, on track to meet the full-year guidance of approximately $700 million [12] Business Line Data and Key Metrics Changes - Healthcare constant currency organic revenue grew by 7%, driven by strong recurring revenue streams, while capital equipment revenue declined by 5% due to shipment timing [13][14] - AST constant currency organic revenue grew by 10%, with services growing by 10% and a slight decline in capital equipment shipments [15] - Life Sciences Group saw a 1% decline in constant currency organic revenue, with margins improving to 42.6%, benefiting from favorable mix pricing and the divestiture of CECS [17] Market Data and Key Metrics Changes - Orders in the healthcare segment grew over 10%, reflected in a $435 million healthcare backlog [14] - The company noted that while order growth remains robust, shipments were delayed due to customer project delays [14] Company Strategy and Development Direction - The company is tightening its revenue and earnings guidance for 2025, now expecting approximately 6% as-reported revenue growth and constant currency organic revenue growth [19] - The company is optimistic about the bioprocessing demand and believes it has worked through inventory challenges, expecting normalized growth going forward [30] - The company continues to invest in facilities and processes to meet or exceed environmental and regulatory standards [21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the trends in the AST segment, noting that while there has been a recent uptick in growth, they are not ready to declare victory [45] - The management highlighted that the spending from healthcare customers remains strong, with no significant concerns about order structures [73] - The company is well-positioned to comply with existing regulations regarding ethylene oxide and does not anticipate changes in the current legislative environment [63] Other Important Information - The company incurred over $10 million in additional litigation expenses year-over-year due to ongoing legal matters related to ethylene oxide [9][20] - Capital expenditures for the first nine months totaled $299 million, with depreciation and amortization at $354 million [11][12] Q&A Session Summary Question: Concerns about Healthcare Capital Equipment - Management indicated that delays in shipments are due to customer readiness rather than hesitancy, with strong order growth still observed [26] Question: Trends in Bioprocessing Demand - Management noted optimism in bioprocessing demand, suggesting that the market is recovering from previous inventory challenges [30] Question: Potential Impact of Tariffs - Management is taking a wait-and-see approach regarding potential tariff reintroductions, emphasizing ongoing analysis of the situation [35] Question: Sustainability of Margin Performance - Management expressed confidence in the sustainability of margin improvements, driven by favorable volume, mix, and pricing [53] Question: Update on Ethylene Oxide Cases - Management confirmed that the retrial for the first ethylene oxide case is scheduled for May, with no additional cases added beyond what was previously disclosed [58] Question: Customer Concerns about Policy Changes - Management reported no significant concerns from customers regarding potential policy changes, with strong order growth in both healthcare and life sciences [71]

Core Viewpoint - STERIS plc reported third-quarter fiscal 2025 adjusted EPS of $2.32, reflecting a 9.9% increase year-over-year, aligning with Zacks Consensus Estimate, while revenues of $1.37 billion increased 5.6% year-over-year but missed estimates by 0.7% [1][3][12] Financial Performance - Adjusted EPS of $2.32, GAAP EPS of $1.75, up 17.4% from $1.49 year-over-year [1][2] - Revenues of $1.37 billion from continuing operations, a 5.6% increase year-over-year, but missed Zacks Consensus Estimate [3][12] - Organic revenues at constant exchange rate (CER) rose 6% year-over-year [3] Segment Performance - Healthcare segment revenues rose 7% year-over-year to $976.0 million, with consumable revenues up 9% and service revenues up 13%, partially offset by a 5% decline in capital equipment revenues [4] - Applied Sterilization Technologies (AST) revenues improved 10% to $258.1 million, driven by a 10% growth in service revenues [5] - Life Sciences segment revenues decreased 7% to $136.4 million, impacted by the divestiture of the CECS business, despite a 14% growth in consumable revenues [6] Margins and Expenses - Gross profit increased 9% to $610.3 million, with gross margin expanding 138 basis points to 44.5% [7] - Selling, general and administrative expenses rose 8.8% to $335.4 million, while research and development expenses increased 8.3% to $27.4 million [8] Cash Flow and Guidance - Cumulative net cash flow from operating activities reached $887.3 million, up from $718.5 million year-over-year [10] - Updated fiscal 2025 revenue guidance expects approximately 6% growth, down from earlier estimates of 6.5-7.5% [11] Overall Assessment - The earnings met estimates, but revenue performance was mixed, with growth in most segments except Life Sciences, attributed to a rebound in procedure volume and favorable pricing [12] - Margin expansion is a positive indicator, although the lowered revenue guidance may raise concerns [13]