Steris PLC (STE, Financial) released its 8-K filing on February 5, 2025, announcing its financial results for the fiscal 2025 third quarter ended December 31, 2024. The Ireland-domiciled medical technology company, known for its sterilization services and infection prevention solutions, reported a 6% increase in total revenue from continuing operations, reaching $1.4 billion, aligning with analyst estimates of $1,381.82 million. The company's adjusted earnings per share (EPS) rose to $2.32, surpassing the estimated EPS of $1.81. Reported EPS from continuing operations increased to $1.75.
Company Overview
Steris PLC (STE, Financial) is a global leader in contract sterilization services, ensuring the safe delivery of single-use and implantable medical equipment to hospitals worldwide. The company also provides sterilizers, washer-disinfectors, and other decontamination equipment for healthcare facilities and biopharma manufacturing sites. Approximately 70% of its revenue is derived from Healthcare Services, 19% from Applied Sterilization Technologies (AST), and 11% from life sciences services.
Performance Highlights and Challenges
In the third quarter, Steris PLC (STE, Financial) reported a net income of $173.6 million, or $1.75 per diluted share, compared to $148.4 million, or $1.49 per diluted share, in the same period last year. The adjusted net income was $229.1 million, or $2.32 per diluted share, up from $207.6 million, or $2.09 per diluted share, in the previous year. The company's performance was driven by a 7% growth in healthcare revenue, reaching $976.0 million, and a 10% increase in AST revenue, totaling $258.1 million. However, life sciences revenue decreased by 7% to $136.4 million, primarily due to the divestiture of the CECS business and a decline in capital equipment revenue.
Financial Achievements and Industry Importance
Steris PLC (STE, Financial) achieved significant financial milestones, including a 6% increase in constant currency organic revenue. The company's ability to grow its revenue and earnings in a challenging economic environment underscores its resilience and strategic positioning in the Medical Devices & Instruments industry. The growth in healthcare and AST segments highlights the company's strength in providing essential services and products that support patient care and infection prevention.
Key Financial Metrics
Net cash provided by operations for the first nine months of fiscal 2025 was $887.3 million, compared to $718.5 million in the previous year. Free cash flow increased to $588.1 million from $457.0 million, driven by improved working capital. These metrics are crucial for Steris PLC (STE, Financial) as they reflect the company's ability to generate cash flow to fund operations, pay dividends, and invest in growth opportunities.
| Segment | Revenue (Q3 2025) | Revenue (Q3 2024) | Growth |
|---|---|---|---|
| Healthcare | $976.0 million | $916.2 million | 7% |
| AST | $258.1 million | $234.9 million | 10% |
| Life Sciences | $136.4 million | $146.6 million | -7% |
Analysis and Outlook
Steris PLC (STE, Financial) has demonstrated robust performance in its core segments, with healthcare and AST driving revenue growth. The company's strategic focus on infection prevention and sterilization services positions it well in the medical technology sector. However, challenges such as currency fluctuations and declining capital equipment revenue in the life sciences segment may impact future performance. The updated fiscal 2025 outlook anticipates a 6% revenue increase, with adjusted EPS expected to range between $9.05 and $9.15, reflecting a cautious approach to currency impacts and market conditions.
We are pleased with our results through the first nine months of the fiscal year," said Dan Carestio, President and CEO of STERIS. "We appreciate the efforts of our global Associates who continue to focus on our Customers and look forward to another year of solid performance."
Explore the complete 8-K earnings release (here) from Steris PLC for further details.
