STERIS Hosts Conference Call for Q3 Fiscal 2025 Results on February 6, 2025

STERIS plc (NYSE: STE), a global leader in infection prevention and other procedural products and services, has announced that it will host a conference call to discuss its fiscal 2025 third quarter financial results on February 6, 2025. The call is scheduled for 9:00 a.m. ET and will be webcast live at .

Investors and analysts are invited to participate in the call, which will provide an update on the company's performance and outlook for the remainder of the fiscal year. STERIS' management team, including President and CEO Dan Carestio, will be on hand to discuss the company's financial results and answer questions from participants.

STERIS' diversified business model has contributed significantly to its consistent growth and profitability over the past quarters. The company's revenue is derived from three main segments: Healthcare Services (70%), Applied Sterilization Technologies (AST) (19%), and Life Sciences Services (11%). This diversification has allowed STERIS to maintain a robust financial performance even in the face of challenges in one segment, as other segments often offset any potential declines.

In the fiscal 2025 second quarter, STERIS reported a 7% increase in total revenue from continuing operations, reaching $1.3 billion compared to $1.2 billion in the same quarter last year. This growth was driven by strong performances across all three segments:

1. Healthcare Services: Revenue grew 9% in the quarter to $944.2 million, reflecting a 12% improvement in consumable revenue, 14% growth in service revenue, and a 2% decline in capital equipment revenue. Constant currency organic revenue increased 7% for the quarter compared with the prior year. Healthcare operating income was $228.0 million, up from $204.1 million in the previous year, primarily due to improved volume, price, and productivity.
2. Applied Sterilization Technologies (AST): Revenue increased 9% as reported to $256.7 million, reflecting 6% growth in service revenue and a significant increase in capital equipment revenue. Constant currency organic revenue in the quarter increased 9%. Segment operating income was $109.9 million, although it declined compared with the prior year due to increased labor and energy costs and a loss incurred on a large capital equipment sale.
3. Life Sciences: Revenue as reported decreased 4% to $127.9 million due to the divestiture of the CECS business, which was primarily service revenue. However, constant currency organic revenue increased 3% in the quarter compared with the prior year. Operating income increased to $53.7 million, up from $50.3 million in the prior year's second quarter, reflecting improvement in price and favorable mix.

Key trends driving STERIS' performance include:

* Strong growth in consumable and service revenue across segments, particularly in Healthcare Services.
* Increased capital equipment revenue in the AST segment.
* Improved operating income in the Life Sciences segment, despite a decline in revenue due to divestments.
* The company's ability to offset declines in one segment with growth in others, demonstrating the resilience of its diversified business model.

STERIS' management remains optimistic about its diversified business strategy and its potential to sustain growth and profitability, as evidenced by the company's reiterated fiscal 2025 outlook. For fiscal 2025, the Company continues to expect as reported revenue to increase 6.5-7.5%. Based on forward rates through March 31, 2025, currency is expected to be slightly favorable to revenue in fiscal 2025. Constant currency organic revenue from continuing operations is anticipated to increase 6-7%. Adjusted earnings per diluted share from continuing operations is anticipated to be in the range of $9.05 to $9.25 compared with $8.20 in adjusted earnings from continuing operations in fiscal 2024. The fiscal 2025 outlook assumes an effective tax rate of approximately 23%. Capital expenditures are anticipated to be approximately $360 million and free cash flow is expected to be approximately $700 million.

Investors and analysts are encouraged to participate in the conference call to gain insights into STERIS' financial performance and outlook for the remainder of the fiscal year. The call is an opportunity to engage with the company's management team and ask questions about the company's strategies and growth prospects.