STERIS Announces Financial Results for Fiscal 2025 First Quarter

Core Insights - STERIS plc reported an 8% increase in total revenue from continuing operations for Q1 fiscal 2025, reaching $1.3 billion compared to $1.2 billion in Q1 fiscal 2024, with constant currency organic revenue growing by 6% [1][2] - The company reiterated its fiscal 2025 outlook, expecting revenue growth of 6.5-7.5% and adjusted earnings per diluted share in the range of $9.05 to $9.25 [7][8] Financial Performance - Net income for Q1 fiscal 2025 was $139.9 million or $1.41 per share, up from $130.6 million or $1.31 per diluted share in Q1 fiscal 2024 [2] - Adjusted net income for Q1 fiscal 2025 was $201.7 million or $2.03 per diluted share, compared to $182.5 million or $1.84 per diluted share in the same period last year [2] Segment Performance - Healthcare revenue grew by 10% to $901.2 million, driven by a 23% increase in consumable revenue and a 14% rise in service revenue, despite a 10% decline in capital equipment revenue [3] - Applied Sterilization Technologies (AST) revenue increased by 7% to $249.8 million, with service revenue growing by 7% and capital equipment revenue rising by 24% [4] - Life Sciences revenue decreased by 2% to $128.5 million, impacted by the divestiture of the CECS business, although consumable revenue grew by 13% [5] Cash Flow - Net cash provided by operations for Q1 fiscal 2025 was $303.7 million, an increase from $281.1 million in fiscal 2024 [6] - Free cash flow for Q1 fiscal 2025 was $195.7 million, down from $214.5 million in the prior year, primarily due to the timing of capital spending [6] Fiscal 2025 Outlook - The company expects constant currency organic revenue growth from continuing operations to be between 6-7% for fiscal 2025 [7] - Capital expenditures are anticipated to be approximately $360 million, with free cash flow expected to be around $700 million [8]