Q4 2025 STERIS plc Earnings Call Transcript
Key Points
- Steris PLC (STE) reported a 4% increase in total revenue for the fourth quarter, with constant currency organic revenue growing by 6%.
- The company achieved a 14% increase in adjusted earnings per diluted share from continuing operations, reaching $2.74.
- Free cash flow for fiscal 2025 was a record $787 million, surpassing full-year guidance due to significant working capital improvements.
- Healthcare segment margins improved to 25% for the year, driven by volume, pricing, and productivity gains.
- Steris PLC (STE) anticipates 6% to 7% revenue growth for fiscal 2026, with no expected impact from acquisitions or divestitures and neutral foreign currency effects.
- Healthcare capital equipment revenue declined by 5% for the year, despite strong underlying demand.
- AST segment EBIT margins decreased slightly to 44.8% due to energy and labor headwinds and a negative mix shift from capital equipment shipments.
- The company faces a $30 million tariff cost impact for fiscal 2026, which is expected to affect earnings.
- Life sciences segment experienced only a 1% increase in constant currency organic revenue for the full year, with a decline in capital equipment revenue.
- Steris PLC (STE) anticipates a $40 million legal settlement for EtO in fiscal 2026, negatively impacting cash flow.
Good morning everyone and welcome to the STERIS plc fourth quarter 2025 conference call. (Operator Instructions) Please also note, today's event is being recorded.
At this time I'd like to turn the floor over to Julie Winter, Investor Relations. Ma'am, please go ahead.
Thank you, Jamie and good morning everyone. As usual, 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 comment.
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
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