Q3 2026 STERIS plc Earnings Call Transcript
Key Points
- Steris PLC (STE) reported a 9% increase in total revenue for the third quarter, with constant currency organic revenue growth of 8%.
- The company achieved a 9% increase in earnings per diluted share from continuing operations, reaching $2.53.
- Free cash flow for the first nine months of fiscal 2026 improved significantly to $737.6 million, driven by increased earnings and lower capital spending.
- The AST segment saw a 103% growth in capital equipment revenue, contributing to an overall 8% growth in constant currency organic revenue.
- Life sciences segment experienced a 5% increase in constant currency organic revenue, with consumables growing by 11%.
- Gross margin declined by 70 basis points to 43.9% due to increased tariffs and inflation, despite positive price and productivity contributions.
- EBIT margin decreased by 40 basis points to 22.9% of revenue, primarily due to the decline in gross margin.
- Healthcare segment EBIT margins decreased by 100 basis points to 24.3%, impacted by increased tariffs and inflation.
- The company faces a $55 million annual run rate impact from tariffs, with $16 million affecting the third quarter alone.
- Steris PLC (STE) maintained its fiscal 2026 earnings outlook but noted that the higher end of the range is less likely due to additional anticipated tariffs.
Good day and welcome to the STERIS PLC third-quarter 2026 conference call.
(Operator Instructions)
Please note this event is being recorded.
I would now like to turn the conference over to Ms. Julie Winter, Vice President of Investor Relations. Please go ahead, ma'am.
Thank you, Chuck, and good morning, everyone. Speaking on today's call will be Karen Burton, 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 comment.
This webcast contains time-sensitive information that is accurate only as of today. Any redistribution, retransmission, or rebroadcast of this call without the express 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,
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