Q1 2026 STERIS plc Earnings Call Transcript
Key Points
- Steris PLC (STE) reported a 9% growth in total revenue for the first quarter, with constant currency organic revenue growing by 8%.
- The company achieved a 15% improvement in adjusted earnings per diluted share from continuing operations, reaching $2.34.
- Free cash flow for the first quarter was strong at $327 million, driven by increased earnings and improvements in working capital.
- Steris PLC (STE) announced its 20th consecutive year of dividend increases, with a 10% increase to $0.63 per quarter.
- The company has a solid financial position with a gross debt to EBITDA ratio of 1.2 times and continued debt reduction efforts.
- Steris PLC (STE) faced increased tariff costs, with an additional $15 million impact expected over the previous quarter.
- The adjusted effective tax rate increased to 23.5%, driven by geographic mix and changes in discrete item adjustments.
- Employee healthcare benefit costs are rising due to increased utilization, impacting overall expenses.
- The company is maintaining a conservative outlook for AST's revenue growth despite a strong start, indicating potential uncertainties in the market.
- Steris PLC (STE) is experiencing increased tariffs on metals, including steel, aluminum, and copper, affecting cost structures.
Good day, and welcome to the STERIS plc first quarter 2026 conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Julie Winters, Investor Relations. Please go ahead.
Thank you, Allen, and good morning, everyone. Speaking on today's call will be Mike Tokich, our Senior Vice President and CFO; and Dan Carestio, our President and CEO.
And I do have a few words of caution before we open for comments from management. This webcast contains time-sensitive information that is accurate only as of today. Any redistribution, retransmission or rebroadcast of this call without the expressed written consent of STERIS is strictly prohibited.
Some of the statements made during this review are or may be considered forward-looking statements. Many important factors could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, those risk factors described in STERIS'
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