01—Abstract
Summary
Summary of the 10-K filed May 29, 2025. Cited figures are marked; the original filing is the authoritative source.
STERIS plc (STE) reported fiscal 2025 (year ended March 31, 2025) revenues of $5.46 billiona, up 6.2% from $5.14 billion, driven by higher volume and pricing.
Gross profit percentage rose to 44.0% from 43.2%, and income from operations increased 3.7% to $866.6 millionb. Net income attributable to shareholders was $614.6 million, versus $378.2 million in fiscal 2024, and diluted EPS from total operations was $6.20. Results were supported by the divestiture of the Dental segment (presented as discontinued operations, sold for $787.5 million in cash), which was used largely to repay debt.
Cash flow strengthened considerably: net cash from operating activities was $1.15 billionc and free cash flow was $787.2 million, versus $620.3 million a year earlier, driven primarily by working capital improvements. Total debt fell to $2.04 billion from $3.21 billion, and the debt-to-total capital ratio declined to 23.6% from 33.7%.
The company returned capital through $219.9 milliond in dividends ($2.23 per share) and $200.0 million in share repurchases, leaving $300.0 million of authorization available. Key risks flagged in the filing include ethylene oxide (EO) litigation, with the company agreeing in March 2025 to pay up to $48.2 million to resolve substantially all pending personal injury claims in Illinois; tariff and trade policy uncertainty; EO sterilization regulation affecting the AST segment; and a restructuring plan that eliminated approximately 300 positions, with management estimating about $25.0 million per year in income-from-operations improvement.
02—Key points
Key Highlights
- Revenue of $5,459.5 million, up 6.2% from $5,138.7 million, reflecting higher volume and pricing; service revenues up 9.0% and consumable revenues up 12.2%, while capital equipment revenues fell 6.0%.
- Gross profit percentage improved to 44.0% from 43.2%; income from operations rose 3.7% to $866.6 million.
- Free cash flow of $787.2 million, up from $620.3 million, with operating cash flow of $1,148.1 million, primarily from working capital improvements.
- Total debt reduced to $2,043.7 million from $3,206.1 million, and the debt-to-total capital ratio fell to 23.6% from 33.7%, largely from Dental divestiture proceeds.
- Dental segment sold for $787.5 million in cash (closed May 31, 2024) and reported as discontinued operations; net income from discontinued operations was $4.5 million.
- Illinois EO litigation settlement expense of $48.2 million recorded, with a commitment to pay up to approximately $48.2 million to resolve substantially all pending personal injury claims.
- Dividends of $2.23 per share ($219.9 million total) and share repurchases of $200.0 million during fiscal 2025, with $300.0 million remaining under the authorization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Steris kept $0.11.
- Revenue$5.46B100.0%
- Cost of revenue−$3.06B56.0%
- Gross profit$2.40B44.0%
- Operating costs−$1.54B28.1%
- Operating income$866.6M15.9%
- Interest, other & tax−$252.0M4.6%
- Net income$614.6M11.3%
Where FY2025 revenue went
$5.46B- Cost of revenue: $3.06B, 56% of revenue
- SG&A: $1.33B, 24% of revenue
- Net income: $614.6M, 11% of revenue
- R&D: $107.6M, 2.0% of revenue
- Other operating costs: $94.2M, 1.7% of revenue
- Interest, other & tax: $252.0M, 4.6% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed May 29, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $5.46B$5.14B | +6.2% |
| Cost of Revenue | $3.06B$2.92B | +4.7% |
| Gross Profit | $2.40B$2.22B | +8.3% |
| R&D Expenses | $107.60M$103.70M | +3.8% |
| SG&A Expenses | $1.33B$1.25B | +6.5% |
| Operating Expenses | $1.54B$1.38B | +11.2% |
| Operating Income | $866.60M$836.10M | +3.6% |
| Net Income | $614.60M$378.20M | +62.5% |
| EPS (Basic) | $6.24$3.83 | +62.9% |
| EPS (Diluted) | $6.20$3.81 | +62.7% |
| Shares Outstanding (Basic) | 98.60M98.80M | −0.2% |
| Shares Outstanding (Diluted) | 99.10M99.40M | −0.3% |
05—Questions
Frequently Asked Questions
How did STERIS perform financially in fiscal 2025?
Revenues rose 6.2% to $5,459.5 million, and income from operations increased 3.7% to $866.6 million. Net income attributable to shareholders was $614.6 million, compared with $378.2 million in fiscal 2024, which included losses from discontinued operations. Gross profit percentage improved to 44.0% from 43.2%.
What drove the improvement in cash flow and the balance sheet?
Operating cash flow rose to $1,148.1 million from $973.3 million, primarily due to higher collections on accounts receivable and improved inventory management. Proceeds of $814.6 million from business sales, mainly the Dental segment and CECS, were used largely to repay term loans and credit facilities, reducing total debt to $2,043.7 million.
What are the main legal and regulatory risks?
The company faces ethylene oxide litigation; it agreed in March 2025 to pay up to approximately $48.2 million to resolve substantially all pending personal injury claims in Cook County, Illinois, while reserving walkaway rights. The filing also cites EO sterilization regulation that could affect the AST segment, tariff and trade policy changes, and extensive FDA and international regulatory requirements.
What is the status of shareholder returns?
The company paid $2.23 per ordinary share in dividends during fiscal 2025, totaling $219.9 million, and has increased its dividend every year since 2005. It repurchased 907,158 shares for $200.0 million under its share repurchase program, leaving $300.0 million of authorization available with no specified expiration date.
What is the outlook for restructuring and segment performance?
A targeted restructuring plan adopted in May 2024 eliminated approximately 300 positions and is estimated to improve income from operations by about $25.0 million per year, mostly beginning in fiscal 2026. Healthcare operating income rose to $971.5 million, AST to $465.6 million, and Life Sciences to $229.4 million. Backlog for capital equipment increased to $452.9 million from $425.2 million.
06—Continue