What is the revenue and EPS growth rate for STERIS year over year?

Did STERIS beat or miss consensus estimates last quarter?

What guidance did STERIS's management provide for the next earnings period?

What were the key takeaways from STERIS’s earnings call?

What were the key takeaways from STERIS's earnings call?

What is the market's earnings forecast for STERIS next quarter?

What does STERIS do and what are its main business segments?

What factors drove the changes in STERIS's revenue and profit?

- **Segment Growth**: Healthcare (9%), AST (7%), Life Sciences (12%) organic growth, driven by services and capital equipment recoveries.
- **Margin Resilience**: 23.1% EBIT margin despite 220 bps headwinds from tariffs and inflation.
- **Free Cash Flow Strength**: $527M H1, revised $850M FY26 target, supported by earnings and working capital efficiency.
- **Strategic Initiatives**: AST capacity expansion, Life Sciences pharma partnerships, and Healthcare service pricing discipline.
- **Risks**: Tariffs (90 bps), material inflation (130 bps), and pharma capital equipment comparison challenges.

**【CEO Summary Section】**
- **Healthcare Segment**: Constant currency organic revenue grew 9%, driven by 13% service growth and 10% consumables. EBIT margin expanded 100 bps to 25.1%, offsetting tariffs and inflation. Capital equipment orders were up 3% YTD with a $400M backlog.
- **AST Segment**: Services grew 13%, offsetting capital equipment declines. EBIT margin improved 250 bps to 45.3% due to volume and pricing. Global footprint expansion supports 9-10% service growth outlook.
- **Life Sciences Segment**: 12% organic growth, 39% capital equipment growth, and 9% service expansion. Margins declined 70 bps due to tariffs, but $114M backlog signals future recovery.
- **Outlook**: Revised FY26 guidance for 7-8% constant currency organic growth across all segments, with EBIT margin expansion of 10-20 bps and free cash flow of $850M.

**【CFO Financial Commentary】**
- **Revenue**: $244.5M net income, $2.47 EPS (15% YOY). Free cash flow $527M (H1), up $30M to $850M FY26 target.
- **Margins**: Gross margin +60 bps to 44.3%, EBIT margin +90 bps to 23.1%. Tariffs and inflation cost 220 bps, offset by pricing and productivity.
- **Liquidity**: $1.9B debt, 1.2x gross debt/EBITDA. Capital expenditures $375M FY26.

**【Q&A Key Highlights】**
- **AST Growth**: Stable medtech volumes, bioprocessing recovery, and 4-year expansion investments driving 9-10% service growth.
- **Healthcare Services**: 12-13% growth expected, with labor cost normalization limiting top-line acceleration but maintaining margins.
- **Life Sciences Capital Equipment**: 39% growth from pharma reshoring and new plant investments, despite low base.
- **Free Cash Flow**: Strong H1 performance due to earnings and working capital improvements, with cautious H2 outlook.
- **Reshoring Impact**: New pharma manufacturing capacity driving capital equipment growth, with long-term capacity expansion plans.

STERIS plc (STE) Q2 2026 Earnings Call Transcript

- **Revenue Growth**: 9% YoY total, 8% organic (6-7% FY26 guidance). Services and consumables drive 13-15% segment growth.
- **Margin Expansion**: 50bps EBIT margin improvement to 22.8%, 260bps+ in Life Sciences.
- **Cash Flow Strength**: $327M Q1 free cash, $820M FY26 guidance (+$50M). Debt at 1.2x EBITDA.
- **Strategic Focus**: M&A pipeline active; 20th consecutive dividend increase.
- **Risk Management**: Tariffs ($45M annual) offset by FX; compliant EO facilities mitigate regulatory risk.

**【CFO Financial Commentary】**
- Total revenue grew 9% YoY, with 8% constant currency organic growth driven by 230bps price and volume. 
- Gross margin improved 20bps to 45.3%, EBIT margin rose 50bps to 22.8%.
- Net income from continuing ops was $231.2M, adjusted EPS of $2.34 (+15%).
- Free cash flow of $327M, debt reduced to $1.9B, dividend increased 10%.

**【CEO Segment Review】**
- **Healthcare**: 8% organic growth (6% cap equip, 13% services, 5% consumables). Backlog $400M, EBIT margin +10bps to 24.2%.
- **AST**: 10% organic growth (12% services). EBIT margin +150bps to 48.6%.
- **Life Sciences**: 4% growth (8% consumables). EBIT margin +260bps.
- **Outlook**: 8-9% as-reported rev growth (6-7% organic), EPS $9.90-$10.15, free cash flow $820M.

**【Q&A Highlights】**
- **Tariffs**: $45M annual impact (+$15M vs prior guide) due to metal tariffs. FX offsets costs.
- **AST**: Maintaining 6-7% growth despite Q1 10% beat, citing MedTech manufacturing shifts.
- **M&A**: Active pipeline, prioritizing cash deployment for strategic tuck-ins and larger opportunities.
- **Regulatory**: EO facilities compliant without NESHAP relief; no material competitive impact.
- **FX**: 200bps top-line benefit, $15M bottom-line offset for tariffs. Hedged position.

STERIS plc (STE) Q1 2026 Earnings Call Transcript

- **Record Cash Flow**: $787M free cash flow vs. prior year, driven by inventory management.
- **Margin Expansion**: 25% EBIT in Healthcare, 42.3% in Life Sciences, up 360bps YoY.
- **Tariff Resilience**: $30M net impact offset by $15M mitigation, EBIT margin +20bps at high end.
- **Growth Drivers**: 6-7% organic growth across all segments, 200bps price contribution.
- **Debt Health**: 1.4x debt/EBITDA, $370M capex vs. $476M D&A.

**【CFO Financial Highlights】**
- **Q4 2025 Revenue**: $1.2B (4% YoY growth, 6% constant currency organic), driven by 210bps price and volume.
- **Gross Margin**: 44.3% (+170bps YoY), benefiting from pricing, mix, and productivity vs. labor inflation.
- **Adjusted EPS**: $2.74 (40% YoY growth), with free cash flow of $787M (record high).
- **Debt Metrics**: $2B total debt, 1.4x gross debt/EBITDA, down $370M YoY.

**【CEO Full Year Review】**
- **Healthcare Segment**: 6% organic growth (6% services, -5% capital equip.), 25% EBIT margin (vs. 21% prior year). Orders +12% YoY, backlog strong.
- **AST Segment**: 9% organic growth (7% services, +100% capital equip. shipments). EBIT margin 44.8% (-20bps YoY due to energy/labor).
- **Life Sciences**: 1% organic growth (strong consumables offset capital equip. decline). Margin 42.3% (+360bps YoY).

**【2026 Outlook】**
- **Revenue Growth**: 6-7% (6-7% constant currency), including 200bps price. All segments to grow 6-7%.
- **Tariff Impact**: $30M net cost (+$0.24 EPS), half from China, half from global 10% tariffs. Supply chain to mitigate $15M.
- **Margin Targets**: EBIT margin +20bps at high end of EPS range. Restructuring savings $5M/Q4, $20M+ FY26.

**【Key Q&A Takeaways】**
- **Life Sciences Recovery**: Capital equip. orders rebounded late FY25, confident in FY26 execution despite pharma uncertainty.
- **M&A Strategy**: Financially strong but cautious on legacy assets; focus on greenfield vs. acquisitions.
- **Tariff Mitigation**: 85% U.S. products made in North America. $30M impact spread evenly, with more mitigation in H2.
- **Share Buybacks**: $200M bought FY25, no signal pause; may resume if stock undervalued.


STERIS plc (STE) Q4 2025 Earnings Call Transcript

- **Revenue Beats Expectations**: 6% organic growth (6% price, 6% volume), driven by services/consumables.\n- **Margin Expansion**: Gross margin +90bps to 44.6%, EBIT margin flat at 23.3%.\n- **EPS Growth**: $2.32 EPS (+11%), tracking to $9.05-9.15 for FY25.\n- **Healthcare Capital Delay**: 5% Q3 decline due to 6-12 month shipment delays, $435M backlog (+10% orders).\n- **Litigation Costs**: $10M+ Q3, retrial in May with 4/5 jury favoring STERIS.\n- **Bioprocessing Recovery**: AST services +10%, bioprocessing above expectations.\n- **Debt Management**: 1.5x debt/EBITDA, $700M free cash flow target.\n- **Tariff Risk**: 10% COGS exposure, no directional impact guidance.\n

**【CFO Financial Highlights】**
- **Revenue Growth**: Total revenue increased 6% year-over-year, driven by 6% constant currency organic growth (240bps price, 120bps volume).\n- **Gross Margin Expansion**: 90bps improvement to 44.6%, offsetting labor inflation via pricing and productivity.\n- **Earnings Performance**: Adjusted EPS of $2.32 (+11%), net income $229M.\n- **Free Cash Flow**: $588M YTD, tracking to $700M annual target.\n- **Litigation Impact**: $10M+ Q3 expenses from ethylene oxide trial and healthcare benefits.\n- **Debt Management**: $2.2B total debt, 1.5x debt/EBITDA.\n
**【CEO Business Segment Review】**
- **Healthcare**:\n  - 7% organic growth (7% services/consumables, 5% capex decline).\n  - $435M backlog (+10% orders vs. shipments).\n  - Margins improved 390bps to 42.6% (mix shift, pricing).\n  - Q4 capex delays due to customer project timing.\n- **AST**:\n  - 10% organic growth (10% services, 2% bioprocessing above expectations).\n  - EBIT margin flat YoY, sequential improvement.\n  - Medtech customers stable, bioprocessing demand resilient.\n- **Life Sciences**:\n  - 1% organic decline (capex down 30%, services/consumables up).\n  - Margins expand 390bps to 42.6% (mix, pricing).\n
**【Updated FY25 Guidance】**\n- **Revenue**: 6% as-reported/organic (prev. 6-7%).\n- **EPS**: $9.05-9.15 (prev. $9.10-9.20), reflecting $0.10 currency headwind.\n- **Free Cash Flow**: $700M unchanged.\n
**【Key Risks & Updates】**\n- **Ethylene Oxide Litigation**:\n  - $10M+ Q3 expenses, retrial in May.\n  - 4/5 jury favored STERIS in mistrial.\n  - Investing in safety protocols and transparency.\n- **Tariff Risk**:\n  - 10% of COGS from Canada/Mexico.\n  - Monitoring potential tariffs, no directional impact guidance.\n- **Capital Equipment Timing**:\n  - Orders strong (+14% Healthcare), but shipments delayed by 6-12 months.\n  - Backlog up $80M, no cancellations.\n
**【Q&A Key Takeaways】**\n- **Healthcare Capital Equipment**:\n  - 5% Q3 decline due to timing, not demand.\n  - 10%+ order growth vs. 5% shipment decline.\n  - Cautious optimism on FY26 recovery.\n- **AST Bioprocessing**:\n  - "manufacturing bullwhip" effect resolved.\n  - 10% growth quarter validates normalization.\n- **Legal Expenses**:\n  - $10M+ YTD, ~$5M expected Q4.\n  - No plans to adjust abnormal expenses.\n- **Political Risks**:\n  - No customer hesitation on spending.\n  - EPA EO rules unlikely to reverse.\n- **Ambulatory Surgery Centers**:\n  - Targeted product portfolio with dedicated channel.\n  - Growth driver via procedure migration.\n- **Services Sustainability**:\n  - 14%+ growth driven by equipment warranty expirations.\n  - Inflation moderation may limit future price gains.\n

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