How did STERIS perform in fiscal 2025?

Revenue from continuing operations rose 6% to $5.5 billion, with constant currency organic growth also at 6%. As-reported diluted EPS from continuing operations increased to $6.16 from $5.55, and adjusted diluted EPS rose to $9.22 from $8.20. Management called it another record year.

What drove the change in fourth-quarter profitability?

As-reported net income from continuing operations was $146.5 million, or $1.48 per diluted share, versus $1.54 a year earlier. The quarter included a $48.2 million Illinois EO litigation settlement charge. Adjusted EPS was $2.74, compared with $2.41 in the prior-year quarter. Healthcare operating income rose to $279.7 million from $245.2 million, and Applied Sterilization Technologies operating income rose to $122.2 million from $114.2 million.

What is the fiscal 2026 outlook?

STERIS expects reported revenue from continuing operations to rise 6-7%, with currency expected to be neutral. Adjusted EPS from continuing operations is guided to $9.90 to $10.15, and free cash flow to approximately $770 million on capital expenditures of approximately $375 million. The outlook includes an estimated approximately $30 million reduction in pre-tax profit from tariffs.

How strong is the company's cash flow and balance sheet?

Operating cash flow was $1.15 billion and free cash flow was $787.2 million for fiscal 2025. Long-term indebtedness fell to $1.92 billion from $3.12 billion, and cash and equivalents totaled $171.7 million at March 31, 2025. The company also repurchased $211.3 million of ordinary shares and paid $219.9 million in cash dividends during the year.

Why did Life Sciences revenue decline?

Fourth-quarter Life Sciences revenue fell 7% as reported to $149.5 million, primarily due to the April 1, 2024 divestiture of the CECS business and lower capital equipment revenue. On a constant currency organic basis, revenue was flat for the quarter. Consumable revenue grew 8%, while capital equipment revenue declined 16% and service revenue declined 21%.

STE 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 14, 2025. Cited figures are marked; the original filing is the authoritative source.

STERIS plc (NYSE: STE) reported results for its fiscal 2025 fourth quarter and full year ended March 31, 2025, in a press release furnished as Exhibit 99.1 to this Form 8-K.

Full-year revenue from continuing operations rose 6% to $5.5 billion^a (from $5.1 billion), with constant currency organic revenue growth also at 6%. As-reported diluted EPS from continuing operations was $6.16, up from $5.55, and adjusted EPS was $9.22, up from $8.20. Management described fiscal 2025 as "another record year." Fourth-quarter revenue rose 4% to $1.5 billion, and as-reported net income from continuing operations was $146.5 million, or $1.48 per diluted share, compared with $1.54 in the prior-year quarter.

The quarter included a $48.2 million^b Illinois EO litigation settlement charge. Cash generation strengthened: operating cash flow was $1.15 billion and free cash flow was $787.2 million, versus $620.3 million a year earlier, driven primarily by working capital improvements. Balance sheet debt fell substantially, with long-term indebtedness of $1.92 billion at March 31, 2025, down from $3.12 billion, and the company made large term loan and credit facility repayments during the year.

Repurchases of ordinary shares totaled $211.3 million^c for the year. For fiscal 2026, STERIS expects revenue from continuing operations to grow 6-7% on a reported basis, with currency expected to be neutral. Adjusted EPS from continuing operations is guided to $9.90 to $10.15, an increase of 7-10%.

The outlook includes an estimated approximately $30 million^d pre-tax profit reduction from tariffs. Capital expenditures are expected to be about $375 million and free cash flow about $770 million.

02—Key points

Key Highlights

Full-year fiscal 2025 revenue from continuing operations increased 6% to $5.5 billion; constant currency organic revenue growth was 6%.
As-reported diluted EPS from continuing operations was $6.16 (vs. $5.55); adjusted diluted EPS was $9.22 (vs. $8.20).
Fourth-quarter results included a $48.2 million Illinois EO litigation settlement expense, which reduced as-reported income from operations to $216.1 million.
Free cash flow rose to $787.2 million from $620.3 million, primarily on working capital improvements; operating cash flow was $1.15 billion.
Long-term indebtedness declined to $1.92 billion from $3.12 billion, with $638.1 million of term loan payments and $80.0 million of Private Placement Senior Notes payments during the year.
Fiscal 2026 guidance: reported revenue growth of 6-7%, adjusted EPS of $9.90 to $10.15, and free cash flow of approximately $770 million, including an estimated approximately $30 million pre-tax tariff impact.
Healthcare segment full-year revenue reached $3.88 billion, and Life Sciences revenue fell to $542.3 million, reflecting the April 1, 2024 divestiture of the CECS business.

03—Questions

Frequently Asked Questions

How did STERIS perform in fiscal 2025?
Revenue from continuing operations rose 6% to $5.5 billion, with constant currency organic growth also at 6%. As-reported diluted EPS from continuing operations increased to $6.16 from $5.55, and adjusted diluted EPS rose to $9.22 from $8.20. Management called it another record year.
What drove the change in fourth-quarter profitability?
As-reported net income from continuing operations was $146.5 million, or $1.48 per diluted share, versus $1.54 a year earlier. The quarter included a $48.2 million Illinois EO litigation settlement charge. Adjusted EPS was $2.74, compared with $2.41 in the prior-year quarter. Healthcare operating income rose to $279.7 million from $245.2 million, and Applied Sterilization Technologies operating income rose to $122.2 million from $114.2 million.
What is the fiscal 2026 outlook?
STERIS expects reported revenue from continuing operations to rise 6-7%, with currency expected to be neutral. Adjusted EPS from continuing operations is guided to $9.90 to $10.15, and free cash flow to approximately $770 million on capital expenditures of approximately $375 million. The outlook includes an estimated approximately $30 million reduction in pre-tax profit from tariffs.
How strong is the company's cash flow and balance sheet?
Operating cash flow was $1.15 billion and free cash flow was $787.2 million for fiscal 2025. Long-term indebtedness fell to $1.92 billion from $3.12 billion, and cash and equivalents totaled $171.7 million at March 31, 2025. The company also repurchased $211.3 million of ordinary shares and paid $219.9 million in cash dividends during the year.
Why did Life Sciences revenue decline?
Fourth-quarter Life Sciences revenue fell 7% as reported to $149.5 million, primarily due to the April 1, 2024 divestiture of the CECS business and lower capital equipment revenue. On a constant currency organic basis, revenue was flat for the quarter. Consumable revenue grew 8%, while capital equipment revenue declined 16% and service revenue declined 21%.

04—Continue

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