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Steris 8-K Report, Financial Results (Feb 5, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 5, 2025
Period End
February 5, 2025
Security
STE
In the record · 2019–202610-K810-Q228-K64

STE filed 8 annual reports (10-K), 22 quarterly reports (10-Q) and 64 current reports (8-K) between 2019 and 2026.

  1. Change in control8-K · Mar ’19Mar ’19
  2. Leadership change8-K · Aug ’21Aug ’21
  3. Leadership change8-K · Jul ’23Jul ’23
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed February 5, 2025. Cited figures are marked; the original filing is the authoritative source.

STERIS plc filed a Form 8-K on February 5, 2025 furnishing a press release (Exhibit 99.1) announcing results for its fiscal 2025 third quarter ended December 31, 2024.

Third-quarter total revenue from continuing operations rose 6% to $1.37 billiona ($1,370,570 thousand), with constant currency organic revenue also up 6%. As-reported diluted EPS from continuing operations was $1.75 versus $1.49 a year earlier, and adjusted diluted EPS was $2.32 versus $2.09. Healthcare revenue grew 7% to $976.0 million with operating income of $246.9 million, Applied Sterilization Technologies (AST) revenue grew 10% to $258.1 million, and Life Sciences revenue fell 7% to $136.4 million, mainly reflecting the April 1, 2024 divestiture of the CECS business.

For the first nine months of fiscal 2025, net cash provided by operations was $887.3 millionb (versus $718.5 million) and free cash flow was $588.1 million (versus $457.0 million), which the company attributed primarily to improved working capital. Cash and cash equivalents fell to $155.2 million at December 31, 2024, while long-term indebtedness dropped to $2.04 billion from $3.12 billion at March 31, 2024, reflecting $638.1 million of term loan payments and $80.0 million of Private Placement Senior Notes payments in the nine-month period. Management updated its fiscal 2025 outlook.

As-reported revenue growth is now expected to be approximately 6%, versus prior expectations of 6.5% to 7.5%, primarily due to unfavorable forward currency rates and lower-than-anticipated Healthcare capital equipment revenue. Adjusted EPS from continuing operations is now expected at $9.05 to $9.15c, versus the prior $9.05 to $9.25, with an approximately ten-cent negative currency impact. The outlook excludes any potential impact from new tariffs.

02—Key points

Key Highlights

  1. Q3 FY2025 total revenue from continuing operations rose 6% to $1,370.6 million; constant currency organic revenue also grew 6%.
  2. Q3 diluted EPS from continuing operations was $1.75 (vs. $1.49); adjusted diluted EPS was $2.32 (vs. $2.09).
  3. Healthcare revenue grew 7% to $976.0 million, with consumables up 9%, service up 13%, and capital equipment down 5%; Healthcare operating income was $246.9 million.
  4. AST revenue grew 10% to $258.1 million, with segment operating income of $115.8 million; Life Sciences revenue fell 7% to $136.4 million, largely due to the CECS divestiture.
  5. Nine-month free cash flow increased to $588.1 million from $457.0 million, driven primarily by improved working capital.
  6. FY2025 as-reported revenue growth outlook lowered to approximately 6% (from 6.5% to 7.5%), mainly due to currency; adjusted EPS outlook narrowed to $9.05 to $9.15 (from $9.05 to $9.25).
  7. Capital expenditures are expected to be approximately $360 million and free cash flow approximately $700 million for fiscal 2025; the outlook excludes potential tariff impacts.

03—Questions

Frequently Asked Questions

  1. How did STERIS perform in the fiscal 2025 third quarter?

    Total revenue from continuing operations rose 6% to $1.37 billion, and constant currency organic revenue also grew 6%. As-reported EPS from continuing operations was $1.75 and adjusted EPS was $2.32, up from $1.49 and $2.09 a year earlier.

  2. Why did the company change its fiscal 2025 revenue outlook?

    The company said the update primarily reflects a significant shift in foreign currency, with forward rates through March 31, 2025 now expected to be unfavorable to revenue, as well as lower-than-anticipated Healthcare capital equipment revenue.

  3. What drove the change in free cash flow?

    Free cash flow for the first nine months of fiscal 2025 was $588.1 million compared with $457.0 million in the prior-year period, driven primarily by improved working capital.

  4. What is the impact of the Life Sciences segment's decline?

    Life Sciences revenue decreased 7% to $136.4 million as reported, primarily due to the April 1, 2024 divestiture of the CECS business and a decline in capital equipment revenue. Constant currency organic revenue decreased 1%, and operating income increased to $58.1 million on improved mix and price.

  5. Does the updated outlook account for tariffs?

    No. The company stated that the fiscal 2025 outlook does not reflect any potential impact from new tariffs.

04—Continue

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