Q4 2026 STERIS plc Earnings Call Transcript
Key Points
- Steris PLC (STE) reported a 7% increase in total revenue for the fourth quarter, with a 5% growth in constant currency organic revenue.
- The company achieved a record year with 9% revenue growth and 10% adjusted earnings per share growth.
- Healthcare segment reported strong growth, with a 9% increase in revenue and a 12% growth in service.
- AST segment crossed a milestone with over $1 billion in revenue and $500 million in operating profit.
- Steris PLC (STE) maintained a strong balance sheet with a gross debt to EBITDA ratio of 1.2 times, well below their target range.
- Gross margin for the quarter decreased by 30 basis points compared to the previous year, impacted by inflation and tariffs.
- The adjusted effective tax rate increased to 25.4% from 23.5% in the previous year, driven by changes in geographic mix and unfavorable discrete items.
- Incremental tariffs impacted the fourth quarter by approximately $10 million, affecting margins.
- AST segment experienced softness in the second half of the year, particularly due to severe snowstorms in the US.
- The company anticipates upward pressure on the effective tax rate in fiscal 2027 due to additional withholding tax.
Good day, and welcome to the STERIS PLC fourth-quarter 2026 financial results conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Julie Winter, Investor Relations. Please go ahead.
Thank you, Chad, 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 comments.
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, those risk factors described in STERIS' securities
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