STERIS(STE)2025-02-05 21:33Financial Performance - Total revenue from continuing operations for Q3 fiscal 2025 increased 6% to $1.4 billion compared to $1.3 billion in Q3 fiscal 2024[2] - Net income for Q3 fiscal 2025 was $173.6 million or $1.75 per diluted share, up from $148.4 million or $1.49 per diluted share in Q3 fiscal 2024[3] - Adjusted net income for Q3 fiscal 2025 was $229.1 million or $2.32 per diluted share, compared to $207.6 million or $2.09 per diluted share in the prior year[3] - Healthcare revenue grew 7% to $976.0 million, driven by a 9% increase in consumable revenue and a 13% increase in service revenue[4] - Applied Sterilization Technologies (AST) revenue increased 10% to $258.1 million, with service revenue also growing by 10%[5] - Life Sciences revenue decreased 7% to $136.4 million, primarily due to the divestiture of the CECS business and a decline in capital equipment revenue[6] - Fiscal 2025 revenue outlook updated to approximately 6% growth, down from previous expectations of 6.5% to 7.5%[9] - Adjusted earnings per diluted share for fiscal 2025 is anticipated to be in the range of $9.05 to $9.15, reflecting a ten cent negative impact from currency[9] Cash Flow and Assets - Net cash provided by operations for the first nine months of fiscal 2025 was $887.3 million, compared to $718.5 million in the same period of fiscal 2024[7] - Free cash flow for the first nine months of fiscal 2025 was $588.1 million, up from $457.0 million in the prior year[7] - Free cash flow for the nine months ended December 31, 2024, was $588,104, an increase of 28.7% from $457,013 in 2023[25] - The company reported a free cash flow of $700,000,000 for FY 2025[32] Revenue Breakdown - Revenues for the three months ended December 31, 2024, increased to $1,370,570, a 5.6% rise from $1,297,724 in the same period of 2023[20] - The Healthcare segment generated revenues of $976,044 for the three months ended December 31, 2024, up 6.5% from $916,227 in 2023[23] - Total revenue for the nine months ended December 31, 2024, was $3,978.984 million, with a GAAP growth of 7.0% and organic growth of 6.3%[29] - The total revenue for the Healthcare segment for the nine months ended December 31, 2024, was $2,821.495 million, reflecting an 8.3% growth[29] - The Life Sciences segment had a revenue decline of 4.4% for the nine months ended December 31, 2024, with total revenue of $392.805 million[29] Profitability - Gross profit for the nine months ended December 31, 2024, reached $1,761,553, up 7.7% from $1,635,258 in 2023[20] - The company reported a gross profit of $610.332 million for Q4 2024, compared to $560.026 million in Q4 2023[30] - The company’s gross profit for the nine months ended December 31, 2024, was $650,490,000, compared to $615,784,000 in 2023, reflecting a 5.6% increase[31] Shareholder Returns - Net income attributable to shareholders for the nine months ended December 31, 2024, was $468,969, representing a 23.5% increase compared to $379,616 in 2023[20] - Earnings per share (EPS) for continuing operations increased to $1.76 for the three months ended December 31, 2024, compared to $1.50 in 2023, reflecting a 17.3% growth[20] - Adjusted diluted EPS for Q4 2024 was $2.32, up from $2.09 in Q4 2023[30] - Adjusted net income from continuing operations per diluted share is projected to be between $6.66 and $6.76 for FY 2025[32] - Adjusted net income from continuing operations per diluted share is expected to be between $9.05 and $9.15 for FY 2025[32] Liabilities and Assets - Total current assets decreased to $1,897,853 as of December 31, 2024, down from $2,869,123 as of March 31, 2024[21] - Total liabilities decreased to $3,579,816 as of December 31, 2024, compared to $3,817,249 as of March 31, 2024[21] - Cash and cash equivalents at the end of the period were $155,178, down from $207,020 at the beginning of the period[24] Backlog and Market Presence - The total backlog for continuing operations was $520,000,000, down from $534,433,000 in the previous year[33] - U.S. revenues accounted for 73% of total revenues, amounting to $1,002,586,000 in Q3 FY 2025, compared to $949,957,000 in Q3 FY 2024[33] - The international revenues for Q3 FY 2025 were $343,867,000, slightly up from $328,166,000 in Q3 FY 2024, maintaining 25% of total revenues[33]