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

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

What is STERIS's latest dividend and current dividend yield?

Did STERIS beat or miss consensus estimates last quarter?

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

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

What is STERIS's gross profit margin?

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

- **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.

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