STERIS plc 8-K, filed Feb 4, 2026
STERIS plc (STE)
8-K
2026-02-04
For: 2026-02-04
View Original
Added on
April 04, 2026
About this 8-K
STERIS plc filed this 8-K on February 4, 2026.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 4, 2026
(Exact Name of Registrant as Specified in Charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||||||||
| (Address of principal executive offices) | |||||||||||
Registrant’s telephone number, including area code: + 353 1 232 2000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. | ||||
On February 4, 2026, STERIS plc (the “Company”) issued a press release announcing its financial results for the quarter ended December 31, 2025. A copy of this press release is attached hereto as Exhibit 99.1.
The information contained in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished to the Securities and Exchange Commission and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in this Item 2.02 of this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933.
| Item 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits:
| Exhibit No. | Description | |||||||||||||
| 99.1 | ||||||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| STERIS plc | |||||||||||
| By | /s/ J. Adam Zangerle | ||||||||||
| Name: | J. Adam Zangerle | ||||||||||
| Title: | Senior Vice President, General Counsel & Company Secretary | ||||||||||
Dated: February 4, 2026
| Exhibit 99.1 | ||||||||||||||
STERIS Announces Financial Results for Fiscal 2026 Third Quarter
• | Total revenue from continuing operations increased 9%; constant currency organic revenue grew 8% | ||||||||||||||||
• | As reported EPS from continuing operations increased to $1.96; adjusted EPS increased to $2.53 | ||||||||||||||||
• | Fiscal 2026 outlook maintained | ||||||||||||||||
DUBLIN, IRELAND - (February 4, 2026) - STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced financial results for its fiscal 2026 third quarter ended December 31, 2025. Total revenue from continuing operations for the third quarter of fiscal 2026 increased 9% to $1.5 billion compared with $1.4 billion in the third quarter of fiscal 2025. Constant currency organic revenue growth from continuing operations for the third quarter was 8%.
“We are pleased with our performance in the third quarter,” said Dan Carestio, President and CEO of STERIS. “Our performance continues to benefit from strong execution by our commercial teams and our diversified portfolio. High single digit revenue growth combined with cost discipline is allowing us to deliver meaningful earnings per share growth despite increased tariff headwinds.”
Total Company Third Quarter Results from Continuing Operations
As reported, net income from continuing operations for the third quarter was $192.9 million or $1.96 per diluted share, compared with $173.6 million or $1.75 per diluted share in the third quarter of fiscal 2025. Adjusted net income for the third quarter of fiscal 2026 was $249.4 million or $2.53 per diluted share, compared with the previous year’s third quarter of $229.1 million or $2.32 per diluted share.
Third Quarter Segment Results from Continuing Operations
Healthcare revenue as reported grew 9% in the third quarter to $1.1 billion compared with $976.0 million in the third quarter of fiscal 2025. This performance reflected 11% improvement in service revenue, 8% growth in consumable revenue and 7% growth in capital equipment revenue. Constant currency organic revenue growth was 8% compared to last year’s third quarter. Healthcare operating income was $258.1 million compared with $246.9 million in last year’s third quarter. The increase in operating income was primarily due to improved volume, price, productivity and the benefit of prior restructuring efforts, which were partially offset by tariff costs and inflation.
Fiscal 2026 third quarter revenue for Applied Sterilization Technologies (AST) increased 11% as reported to $286.6 million compared with $258.1 million in the same period last year. This performance reflected 9% growth in service revenue and a 103% growth in capital equipment revenue. Constant currency organic revenue growth was 8% compared to last year’s third quarter. Segment operating income was $129.2 million in the third quarter of fiscal 2026, compared with operating income of $115.8 million in the same period last year. The operating income increase compared with the prior year primarily reflects improved price and volume, which were partially offset by continued headwinds in labor and energy costs and unfavorable mix.
Life Sciences third quarter revenue as reported increased 7% to $145.8 million compared with $136.4 million in the third quarter of fiscal 2025. This performance reflected 11% growth in consumable revenue, 7% growth in capital equipment revenue and flat service revenue. Constant currency organic revenue increased 5% compared to last year’s third quarter. Operating income increased to $61.8 million in the third quarter of fiscal 2026 compared with $58.1 million in the prior year’s third quarter. The operating income increase compared with the prior year primarily reflects improved volume and price, which were partially offset by inflation and tariff costs.
Cash Flow
Net cash provided by operations for the first nine months of fiscal 2026 was $1.0 billion, compared with $887.3 million in the first nine months of fiscal 2025. Free cash flow for the first nine months of fiscal 2026 was $737.6 million compared with $588.1 million in the prior year period. The increase in free cash flow during the period was driven primarily by the growth in earnings and lower capital spending.
Fiscal 2026 Outlook Maintained
For fiscal 2026, the Company expects as reported revenue from continuing operations to increase 8-9%, and constant currency organic revenue from continuing operations growth of 7-8%. Adjusted earnings per diluted share from continuing operations are expected to be in the range of $10.15 to $10.30. Included in this outlook is the negative impact of tariffs, estimated to reduce pre-tax profit by approximately $55 million, an increase from prior expectations of approximately $45 million. The fiscal 2026 outlook assumes an effective tax rate of approximately 24%.
Capital expenditures are anticipated to be approximately $375 million, and free cash flow is expected to be approximately $850 million.
Conference Call
As previously announced, STERIS management will host a conference call tomorrow, February 5, 2026, at 9:00 a.m. ET. The conference call can be heard at www.steris-ir.com or via phone by dialing 1-833-535-2199 in the United States or 1-412-902-6776 internationally, then asking to join the conference call for STERIS plc.
For those unable to listen to the conference call live, a replay will be available beginning at 12:00 p.m. ET tomorrow either at www.steris-ir.com or via phone. To access the replay of the call, please use the access code 7731965 and dial 1-855-669-9658 in the United States or 1-412-317-0088 internationally.
About STERIS
STERIS is a leading global provider of products and services that support patient care with an emphasis on infection prevention. WE HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science products and services around the globe. For more information, visit www.steris.com.
Company Contact:
Julie Winter, Vice President, Investor Relations and Corporate Communications
Julie_Winter@steris.com
Non-GAAP Financial Measures
Adjusted net income, adjusted income from operations, free cash flow, adjusted EPS and constant currency organic revenue are non-GAAP measures that may be used from time to time and should not be considered replacements for U.S. GAAP results. Non-GAAP financial measures are presented in this release with the intent of providing greater transparency to supplemental financial information used by management and the Board of Directors in their financial analysis and operational decision making. These amounts are disclosed so that the reader has the same financial data that management uses with the belief that it will assist investors and other readers in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented. The Company believes that the presentation of these non-GAAP financial measures, when considered along with our U.S. GAAP financial measures, provides a more complete understanding of the factors and trends affecting our business than could be obtained absent this disclosure.
Adjusted net income, adjusted EPS and adjusted income from operations exclude the amortization of intangible assets acquired in business combinations, acquisition and divestiture related transaction costs and gains or losses, integration costs related to acquisitions, tax restructuring costs, and certain other unusual or non-recurring items. STERIS believes this measure is useful because it excludes items that may not be indicative of or are unrelated to our core operating results and provides a baseline for analyzing trends in our underlying businesses.
The Company defines free cash flow as cash flows from operating activities less purchases of property, plant, equipment and intangibles, plus proceeds from the sale of property, plant, equipment, and intangibles. STERIS believes that free cash flow is a useful measure of the Company’s ability to fund future principal debt repayments and growth outside of core operations, pay cash dividends, and repurchase ordinary shares. To measure the percentage organic revenue growth, the Company removes the impact of significant acquisitions and divestitures that affect the comparability and trends in revenue.
To measure the percentage constant currency organic revenue growth, the impact of changes in currency exchange rates and acquisitions and divestitures that affect the comparability and trends in revenue are removed. The impact
of changes in currency exchange rates is calculated by translating current year results at prior year average currency exchange rates.
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales, gross profit, operating income, net earnings and net earnings per diluted share, the most directly comparable U.S. GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of the Company’s operations that, when viewed with U.S. GAAP results and the reconciliations to corresponding U.S. GAAP financial measures below, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This release may contain statements concerning certain trends, expectations, forecasts, estimates, or other forward-looking information affecting or relating to STERIS or its industry, products or activities that are intended to qualify for the protections afforded “forward-looking statements” under the Private Securities Litigation Reform Act of 1995 and other laws and regulations. Forward-looking statements speak only as to the date the statement is made and may be identified by the use of forward-looking terms such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “targets,” “forecasts,” “outlook,” “impact,” “potential,” “confidence,” “improve,” “optimistic,” “deliver,” “orders,” “backlog,” “comfortable,” “trend,” and “seeks,” or the negative of such terms or other variations on such terms or comparable terminology.
Many factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, those identified in STERIS’s recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Other potential risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements include, without limitation: (a) operating costs, pressure on pricing (including, without limitation, as a result of inflation), Customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, Customers, clients or suppliers) being greater than expected and leading to erosion of profit margins; (b) STERIS’s ability to successfully integrate acquired businesses into its existing businesses, including unknown or inestimable liabilities, impairments, or increases in expected integration costs or difficulties in connection with the integration of such businesses; (c) changes in tax laws or interpretations or the adoption of certain income tax treaties in jurisdictions where we operate that could increase our consolidated tax liabilities, including changes in tax laws that would result in STERIS being treated as a domestic corporation for United States federal tax purposes, or tariffs and/or other trade barriers; (d) the possibility that compliance with laws, court rulings, certifications, regulations, or other regulatory actions, or the outcome of any pending or threatened litigation, including the ethylene oxide litigation, may delay, limit or prevent new product or service introductions, impact production, supply and/or marketing of existing products or services, result in uncovered costs, or otherwise affect STERIS’s performance, results, prospects or value; (e) the potential of international unrest, including military conflicts, economic downturn and effects of currency fluctuations; (f) the possibility of delays in receipt of orders, order cancellations, or the manufacture or shipment of ordered products; (g) the possibility that anticipated growth, performance or other results may not be achieved, or that timing, execution, impairments, or other issues associated with STERIS’s businesses, industry or initiatives may adversely impact STERIS’s performance, results, prospects or value; (h) the impact on STERIS and its operations of any legislation, regulations or orders, including but not limited to any new trade, regulations or orders, that may be implemented by the U.S. administration or Congress, or of any responses thereto by non-U.S. governments; (i) the possibility that anticipated financial results, anticipated revenue, productivity improvements, cost savings, growth synergies, and other anticipated benefits of acquisitions, restructuring efforts, and divestitures will not be realized or will be less than anticipated; (j) the level of STERIS’s indebtedness limiting financial flexibility or increasing future borrowing costs; (k) the effects of changes in credit availability and pricing, as well as the ability of STERIS and STERIS’s Customers and suppliers to adequately access the credit markets, on favorable terms or at all, when needed; (l) the impacts of increasing competition within our industry, which may exert pressure on our pricing strategy or lead to decreasing demand for our products and services; (m) the effects on our operations resulting from labor-related issues, such as strikes, unsuccessful union negotiations and other workforce disruptions; (n) the possibility of economic downturns and recessions, which could negatively impact our business by reducing consumer and Customer spending. Unless legally required, STERIS does not undertake to update or revise any
forward-looking statements even if events make clear that any projected results, express or implied, will not be realized.
| STERIS plc | ||||||||||||||||||||||||||
| Consolidated Condensed Statements of Operations | ||||||||||||||||||||||||||
| (in millions, except per share data) | Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||
| Revenues | $ | 1,496.2 | $ | 1,370.6 | $ | 4,347.5 | $ | 3,979.0 | ||||||||||||||||||
| Cost of revenues | 840.7 | 760.2 | 2,418.2 | 2,217.4 | ||||||||||||||||||||||
| Gross profit | 655.5 | 610.3 | 1,929.4 | 1,761.6 | ||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Selling, general, and administrative | 352.3 | 335.5 | 1,055.9 | 1,000.4 | ||||||||||||||||||||||
| Research and development | 29.5 | 27.4 | 84.1 | 80.0 | ||||||||||||||||||||||
| Restructuring expenses | 0.4 | 2.2 | 4.4 | 30.7 | ||||||||||||||||||||||
| Total operating expenses | 382.3 | 365.0 | 1,144.4 | 1,111.1 | ||||||||||||||||||||||
| Income from operations | 273.2 | 245.3 | 785.0 | 650.5 | ||||||||||||||||||||||
| Non-operating expenses, net: | ||||||||||||||||||||||||||
| Interest expense | 14.9 | 19.1 | 45.6 | 69.1 | ||||||||||||||||||||||
| Interest and miscellaneous income | (2.9) | (2.4) | (7.0) | (4.9) | ||||||||||||||||||||||
| Other expense (income), net | 3.3 | (0.1) | 3.5 | (12.7) | ||||||||||||||||||||||
| Total non-operating expenses, net | 15.3 | 16.5 | 42.1 | 51.6 | ||||||||||||||||||||||
| Income from continuing operations before income tax expense | 257.8 | 228.7 | 742.8 | 598.9 | ||||||||||||||||||||||
| Income tax expense | 63.5 | 55.4 | 178.0 | 134.2 | ||||||||||||||||||||||
| Income from continuing operations, net of income tax | $ | 194.3 | $ | 173.4 | $ | 564.8 | $ | 464.7 | ||||||||||||||||||
| (Loss) income from discontinued operations, net of income tax | — | (0.1) | — | 5.3 | ||||||||||||||||||||||
| Net income | 194.3 | 173.3 | 564.8 | 470.0 | ||||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | 1.5 | (0.2) | 2.7 | 1.0 | ||||||||||||||||||||||
| Net income attributable to shareholders | $ | 192.9 | $ | 173.5 | $ | 562.1 | $ | 469.0 | ||||||||||||||||||
| Net income from continuing operations attributable to shareholders | $ | 192.9 | $ | 173.6 | $ | 562.1 | $ | 463.7 | ||||||||||||||||||
| Earnings per ordinary share (EPS) - Basic | ||||||||||||||||||||||||||
| Continuing Operations | $ | 1.96 | $ | 1.76 | $ | 5.72 | $ | 4.70 | ||||||||||||||||||
| Discontinued Operations | $ | — | $ | — | $ | — | $ | 0.05 | ||||||||||||||||||
| Total | $ | 1.96 | $ | 1.76 | $ | 5.72 | $ | 4.75 | ||||||||||||||||||
| Earnings per ordinary share (EPS) - Diluted | ||||||||||||||||||||||||||
| Continuing Operations | $ | 1.96 | $ | 1.75 | $ | 5.69 | $ | 4.68 | ||||||||||||||||||
| Discontinued Operations | $ | — | $ | — | $ | — | $ | 0.05 | ||||||||||||||||||
| Total | $ | 1.96 | $ | 1.75 | $ | 5.69 | $ | 4.73 | ||||||||||||||||||
| Cash dividends declared per share ordinary outstanding | $ | 0.63 | $ | 0.57 | $ | 1.83 | $ | 1.66 | ||||||||||||||||||
| Weighted average number of shares outstanding used in EPS computation: | ||||||||||||||||||||||||||
| Basic number of shares outstanding | 98.2 | 98.5 | 98.3 | 98.7 | ||||||||||||||||||||||
| Diluted number of shares outstanding | 98.6 | 98.9 | 98.8 | 99.2 | ||||||||||||||||||||||
| STERIS plc | ||||||||||||||||||||
| Consolidated Condensed Balance Sheets | ||||||||||||||||||||
| (in millions) | ||||||||||||||||||||
| December 31, | March 31, | |||||||||||||||||||
| 2025 | 2025 | |||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Assets | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 423.7 | $ | 171.7 | ||||||||||||||||
| Accounts receivable, net | 990.6 | 1,044.0 | ||||||||||||||||||
| Inventories, net | 673.5 | 581.3 | ||||||||||||||||||
| Prepaid expenses and other current assets | 198.4 | 203.8 | ||||||||||||||||||
| Total current assets | 2,286.2 | 2,000.8 | ||||||||||||||||||
| Property, plant, and equipment, net | 2,133.2 | 1,956.5 | ||||||||||||||||||
| Lease right-of-use assets, net | 154.9 | 156.4 | ||||||||||||||||||
| Goodwill | 4,232.0 | 4,095.7 | ||||||||||||||||||
| Intangibles, net | 1,691.5 | 1,854.4 | ||||||||||||||||||
| Other assets | 93.6 | 83.0 | ||||||||||||||||||
| Total assets | $ | 10,591.4 | $ | 10,146.8 | ||||||||||||||||
| Liabilities and equity | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Accounts payable | $ | 285.1 | $ | 280.8 | ||||||||||||||||
| Short-term indebtedness | — | 125.0 | ||||||||||||||||||
| Other current liabilities | 637.2 | 616.4 | ||||||||||||||||||
| Total current liabilities | 922.3 | 1,022.2 | ||||||||||||||||||
| Long-term indebtedness | 1,898.4 | 1,918.7 | ||||||||||||||||||
| Other liabilities | 602.7 | 590.1 | ||||||||||||||||||
| Total equity | 7,167.9 | 6,615.8 | ||||||||||||||||||
| Total liabilities and equity | $ | 10,591.4 | $ | 10,146.8 | ||||||||||||||||
| STERIS plc | ||||||||||||||
| Segment Data | ||||||||||||||
| Financial information for each of the segments is presented in the following table. We disclose a measure of segment income that is consistent with the way management operates and views the business. The accounting policies for reportable segments are the same as those for the consolidated Company. Segment income is calculated as the segment’s gross profit less direct costs and indirect costs if the resources are dedicated to a single segment. Corporate costs include corporate and administrative functions, public company costs, legacy post-retirement benefits, and certain services and facilities related to distribution and research and development that are shared by multiple segments. | ||||||||||||||
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Healthcare | $ | 1,063.8 | $ | 976.0 | $ | 3,072.3 | $ | 2,821.5 | ||||||||||||||||||
| AST | 286.6 | 258.1 | 849.3 | 764.7 | ||||||||||||||||||||||
| Life Sciences | 145.8 | 136.4 | 425.9 | 392.8 | ||||||||||||||||||||||
| Total revenues | $ | 1,496.2 | $ | 1,370.6 | $ | 4,347.5 | $ | 3,979.0 | ||||||||||||||||||
| Income (loss) from operations before adjustments: | ||||||||||||||||||||||||||
| Healthcare | $ | 258.1 | $ | 246.9 | $ | 753.1 | $ | 691.8 | ||||||||||||||||||
| AST | 129.2 | 115.8 | 393.6 | 343.4 | ||||||||||||||||||||||
| Life Sciences | 61.8 | 58.1 | 180.4 | 164.4 | ||||||||||||||||||||||
| Corporate | (106.0) | (100.8) | (330.1) | (299.7) | ||||||||||||||||||||||
| Total income from operations before adjustments | $ | 343.1 | $ | 320.0 | $ | 997.0 | $ | 899.9 | ||||||||||||||||||
| Less: Adjustments | ||||||||||||||||||||||||||
| Amortization of acquired intangible assets | $ | 65.4 | $ | 67.2 | $ | 199.6 | $ | 202.9 | ||||||||||||||||||
| Acquisition and integration related charges | 3.3 | 3.8 | 5.1 | 9.2 | ||||||||||||||||||||||
| Tax restructuring costs (credits) | — | 0.1 | 0.5 | 0.1 | ||||||||||||||||||||||
| Amortization of inventory and property "step up" to fair value | 1.1 | 1.3 | 3.8 | 4.1 | ||||||||||||||||||||||
| Restructuring charges | 0.1 | 2.2 | 3.0 | 33.1 | ||||||||||||||||||||||
| Income from operations | $ | 273.2 | $ | 245.3 | $ | 785.0 | $ | 650.5 | ||||||||||||||||||
| STERIS plc | ||||||||||||||
| Consolidated Condensed Statements of Cash Flows | ||||||||||||||
| (in millions) | ||||||||||||||
| Nine Months Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Operating activities: | (Unaudited) | (Unaudited) | ||||||||||||
| Net income | $ | 564.8 | $ | 470.0 | ||||||||||
| Non-cash items | 427.5 | 369.1 | ||||||||||||
| Changes in operating assets and liabilities | 13.7 | 48.2 | ||||||||||||
| Net cash provided by operating activities | 1,006.0 | 887.3 | ||||||||||||
| Investing activities: | ||||||||||||||
| Purchases of property, plant, equipment, and intangibles, net | (278.8) | (299.2) | ||||||||||||
| Proceeds from the sale of property, plant, equipment, and intangibles | 10.4 | — | ||||||||||||
| Proceeds from the sale of businesses | — | 811.4 | ||||||||||||
| Purchase of investments | (6.8) | — | ||||||||||||
| Acquisition of businesses, net of cash acquired | (20.1) | (53.7) | ||||||||||||
| Net cash (used in) provided by investing activities | (295.3) | 458.6 | ||||||||||||
| Financing activities: | ||||||||||||||
| Payments on Private Placement Senior Notes | (125.0) | (80.0) | ||||||||||||
| Payments on term loans | — | (638.1) | ||||||||||||
| Payments under credit facilities, net | (34.8) | (319.0) | ||||||||||||
Deferred financing fees and debt issuance costs | — | (2.3) | ||||||||||||
| Acquisition related deferred or contingent consideration | (0.3) | (0.3) | ||||||||||||
Repurchases of ordinary shares | (161.2) | (211.1) | ||||||||||||
Cash dividends paid to ordinary shareholders | (180.0) | (163.9) | ||||||||||||
| Distributions to noncontrolling interest holders | (1.4) | (1.6) | ||||||||||||
| Contributions from noncontrolling interest holders | — | 2.5 | ||||||||||||
Stock option and other equity transactions, net | 32.3 | 19.4 | ||||||||||||
| Net cash used in financing activities | (470.3) | (1,394.3) | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 11.6 | (3.4) | ||||||||||||
| Increase (decrease) in cash and cash equivalents | 252.0 | (51.8) | ||||||||||||
| Cash and cash equivalents at beginning of period | 171.7 | 207.0 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 423.7 | $ | 155.2 | ||||||||||
The following table presents a financial measure which is considered to be "non-GAAP financial measures" under Securities Exchange Commission rules. Free cash flow is defined by the Company as cash flows from operating activities less purchases of property, plant, equipment and intangibles (capital expenditures) plus proceeds from the sale of property, plant, equipment and intangibles. The Company uses free cash flow as a measure to gauge its ability to pay cash dividends, fund growth outside of core operations, fund future debt principal repayments, and repurchase shares. STERIS's calculation of free cash flows may vary from other companies. | ||||||||||||||
| Nine Months Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Calculation of Free Cash Flow: | ||||||||||||||
Cash flows from operating activities | $ | 1,006.0 | $ | 887.3 | ||||||||||
Purchases of property, plant, equipment, and intangibles, net | (278.8) | (299.2) | ||||||||||||
Proceeds from the sale of property, plant, equipment, and intangibles | 10.4 | — | ||||||||||||
| Free Cash Flow | $ | 737.6 | $ | 588.1 | ||||||||||
STERIS plc
Non-GAAP Financial Measures
(in millions)
Non-GAAP financial measures are presented with the intent of providing greater transparency to supplemental financial information used by management and the Board of Directors in their financial analysis and operational decision making. These amounts are disclosed so that the reader has the same financial data that management uses with the belief that it will assist investors and other readers in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented. | ||||||||||||||
Management and the Board of Directors believe that the presentation of these non-GAAP financial measures, when considered along with our U.S. GAAP financial measures and the reconciliation to the corresponding U.S. GAAP financial measures, provides the reader with a more complete understanding of the factors and trends affecting our business than could be obtained absent this disclosure. It is important for the reader to note that the non-GAAP financial measure used may be calculated differently from, and therefore may not be comparable to, a similarly titled measure used by other companies. | ||||||||||||||
| To measure the percentage organic revenue growth, the Company removes the impact of acquisitions and divestitures that affect the comparability and trends in revenue. To measure the percentage constant currency organic revenue growth, the impact of changes in currency exchange rates and acquisitions and divestitures that affect the comparability and trends in revenue are removed. The impact of changes in currency exchange rates is calculated by translating current year results at prior year average currency exchange rates. | ||||||||||||||
| Three Months Ended December 31, (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| As reported, U.S. GAAP | Impact of Acquisitions | Impact of Divestitures | Impact of Foreign Currency Movements | U.S. GAAP Growth | Organic Growth | Constant Currency Organic Growth | ||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Segment revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Healthcare | $ | 1,063.8 | $ | 976.0 | $ | — | $ | — | $ | 7.8 | 9.0 | % | 9.0 | % | 8.2 | % | ||||||||||||||||||||||||||||||||||
| AST | 286.6 | 258.1 | — | — | 8.0 | 11.0 | % | 11.0 | % | 7.9 | % | |||||||||||||||||||||||||||||||||||||||
| Life Sciences | 145.8 | 136.4 | — | — | 2.6 | 6.9 | % | 6.9 | % | 5.0 | % | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 1,496.2 | $ | 1,370.6 | $ | — | $ | — | $ | 18.4 | 9.2 | % | 9.2 | % | 7.8 | % | ||||||||||||||||||||||||||||||||||
| Nine Months Ended December 31, (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| As reported, U.S. GAAP | Impact of Acquisitions | Impact of Divestitures | Impact of Foreign Currency Movements | U.S. GAAP Growth | Organic Growth | Constant Currency Organic Growth | ||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Segment revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Healthcare | $ | 3,072.3 | $ | 2,821.5 | $ | — | $ | — | $ | 17.2 | 8.9 | % | 8.9 | % | 8.3 | % | ||||||||||||||||||||||||||||||||||
| AST | 849.3 | 764.7 | — | — | 19.8 | 11.1 | % | 11.1 | % | 8.5 | % | |||||||||||||||||||||||||||||||||||||||
| Life Sciences | 425.9 | 392.8 | — | — | 5.9 | 8.4 | % | 8.4 | % | 6.9 | % | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 4,347.5 | $ | 3,979.0 | $ | — | $ | — | $ | 42.9 | 9.3 | % | 9.3 | % | 8.2 | % | ||||||||||||||||||||||||||||||||||
STERIS plc
Non-GAAP Financial Measures (Continued)
(in millions, except per share data)
| Three Months Ended December 31, (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Continuing Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Income from Operations | Income from continuing operations, net of income tax | Income (loss) from discontinued operations, net of income tax | Net Income attributable to shareholders | Diluted EPS from continuing operations | Diluted EPS from discontinued operations | Diluted EPS (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| As reported, U.S. GAAP | $ | 655.5 | $ | 610.3 | $ | 273.2 | $ | 245.3 | $ | 194.3 | $ | 173.4 | $ | — | $ | (0.1) | $ | 192.9 | $ | 173.5 | $ | 1.96 | $ | 1.75 | $ | — | $ | — | $ | 1.96 | $ | 1.75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 1.4 | 1.0 | 65.4 | 67.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition and integration related charges | — | — | 3.3 | 3.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax restructuring costs (credits) | — | — | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of inventory and property "step up" to fair value | 0.5 | 0.5 | 1.1 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring (credits) charges | (0.4) | — | 0.1 | 2.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loss (gain) on asset and business disposals, net | 3.3 | (0.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net impact of adjustments after tax(1) | 53.3 | 55.6 | — | 0.1 | 56.6 | 55.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net EPS impact | 0.57 | 0.57 | — | — | 0.57 | 0.57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted | $ | 657.1 | $ | 611.9 | $ | 343.1 | $ | 320.0 | $ | 250.9 | $ | 228.9 | $ | — | $ | — | $ | 249.4 | $ | 229.1 | $ | 2.53 | $ | 2.32 | $ | — | $ | — | $ | 2.53 | $ | 2.32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) The tax expense includes both the current and deferred income tax impact of the adjustments.
(2) Diluted EPS is calculated independently for Diluted EPS from continuing operations and Diluted EPS from discontinued operations. The sum of Diluted EPS from continuing operations and Diluted EPS from discontinued operations may not equal Diluted EPS due to rounding.
STERIS plc
Non-GAAP Financial Measures (Continued)
(in millions, except per share data)
| Nine Months Ended December 31, (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Continuing Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Income from Operations | Income from continuing operations, net of income tax | Income from discontinued operations, net of income tax | Net Income attributable to shareholders | Diluted EPS from continuing operations | Diluted EPS from discontinued operations | Diluted EPS (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| As reported, U.S. GAAP | $ | 1,929.4 | $ | 1,761.6 | $ | 785.0 | $ | 650.5 | $ | 564.8 | $ | 464.7 | $ | — | $ | 5.3 | $ | 562.1 | $ | 469.0 | $ | 5.69 | $ | 4.68 | $ | — | $ | 0.05 | $ | 5.69 | $ | 4.73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 3.5 | 2.1 | 199.6 | 202.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition and integration related charges | 0.1 | 1.7 | 5.1 | 9.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax restructuring costs | — | — | 0.5 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of inventory and property "step up" to fair value | 1.8 | 1.7 | 3.8 | 4.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring (credits) charges | (1.3) | 2.4 | 3.0 | 33.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loss (gain) on asset and business disposals, net | 3.5 | (12.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net impact of adjustments after tax(1) | 159.6 | 191.9 | — | 5.8 | 163.1 | 185.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net EPS impact | 1.65 | 1.80 | — | 0.06 | 1.65 | 1.86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted | $ | 1,933.3 | $ | 1,769.5 | $ | 997.0 | $ | 899.9 | $ | 727.8 | $ | 643.9 | $ | — | $ | 11.1 | $ | 725.1 | $ | 654.0 | $ | 7.34 | $ | 6.48 | $ | — | $ | 0.11 | $ | 7.34 | $ | 6.59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) The tax expense includes both the current and deferred income tax impact of the adjustments.
(2) Diluted EPS is calculated independently for Diluted EPS from continuing operations and Diluted EPS from discontinued operations. The sum of Diluted EPS from continuing operations and Diluted EPS from discontinued operations may not equal Diluted EPS due to rounding.
STERIS plc
Non-GAAP Financial Measures (Continued)
(in millions, except per share data)
| FY 2026 Outlook | Twelve Months | |||||||
| Ended March 31, 2026 | ||||||||
| (Outlook)** | ||||||||
| Net income from continuing operations per diluted share | $7.97 - $8.12 | |||||||
| Amortization of acquired intangible assets | 2.08 | |||||||
| Acquisition and integration and divestiture related charges | 0.04 | |||||||
| Restructuring | 0.03 | |||||||
| Other unusual items | 0.03 | |||||||
| Adjusted net income from continuing operations per diluted share | $10.15 - $10.30 | |||||||
| Cash flows from operating activities | $1,225.0 | |||||||
| Purchases of property, plant, equipment, and intangibles, net | (375.0) | |||||||
| Free Cash Flow | $850.0 | |||||||
| ** All amounts are estimates. | ||||||||
| STERIS plc | |||||||||||||||||
| Unaudited Supplemental Financial Data | |||||||||||||||||
| Third Quarter Fiscal 2026 | |||||||||||||||||
| For the Periods Ending December 31, 2025 and 2024 | |||||||||||||||||
| (in millions) | FY 2026 | FY 2025 | FY 2026 | FY 2025 | |||||||||||||
| Total Company Revenues - Continuing Operations | Q3 | Q3 | YTD | YTD | |||||||||||||
| Consumables | $ | 463.3 | $ | 427.5 | $ | 1,350.2 | $ | 1,255.9 | |||||||||
| Service | 717.3 | 652.2 | 2,132.7 | 1,908.4 | |||||||||||||
Total Recurring | $ | 1,180.6 | $ | 1,079.7 | $ | 3,483.0 | $ | 3,164.4 | |||||||||
| Capital Equipment | 315.6 | 290.9 | 864.6 | 814.6 | |||||||||||||
| Total Revenues | $ | 1,496.2 | $ | 1,370.6 | $ | 4,347.5 | $ | 3,979.0 | |||||||||
| Ireland Revenues | $ | 26.7 | $ | 24.1 | $ | 76.6 | $ | 69.1 | |||||||||
| Ireland Revenues as a % of Total | 2 | % | 2 | % | 2 | % | 2 | % | |||||||||
| United States Revenues | $ | 1,087.1 | $ | 1,002.6 | $ | 3,188.0 | $ | 2,929.0 | |||||||||
| United States Revenues as a % of Total | 73 | % | 73 | % | 73 | % | 74 | % | |||||||||
| International Revenues | $ | 382.3 | $ | 343.9 | $ | 1,083.0 | $ | 980.9 | |||||||||
| International Revenues as a % of Total | 26 | % | 25 | % | 25 | % | 25 | % | |||||||||
| Segment Data - Continuing Operations | FY 2026 | FY 2025 | FY 2026 | FY 2025 | |||||||||||||
| Q3 | Q3 | YTD | YTD | ||||||||||||||
| Healthcare | |||||||||||||||||
Revenues | |||||||||||||||||
Consumables | $ | 387.1 | $ | 358.2 | $ | 1,120.2 | $ | 1,043.3 | |||||||||
Service | 404.7 | $ | 363.0 | 1,193.3 | $ | 1,059.0 | |||||||||||
Total Recurring | $ | 791.7 | $ | 721.2 | $ | 2,313.5 | $ | 2,102.3 | |||||||||
Capital Equipment | 272.1 | 254.8 | 758.8 | 719.2 | |||||||||||||
| Total Healthcare Revenues | $ | 1,063.8 | $ | 976.0 | $ | 3,072.3 | $ | 2,821.5 | |||||||||
| Segment Operating Income | $ | 258.1 | $ | 246.9 | $ | 753.1 | $ | 691.8 | |||||||||
| AST | |||||||||||||||||
Revenues | |||||||||||||||||
Service | $ | 276.4 | $ | 253.1 | $ | 835.4 | $ | 749.8 | |||||||||
Capital Equipment | 10.2 | 5.0 | 13.9 | 14.9 | |||||||||||||
| Total AST Revenues | $ | 286.6 | $ | 258.1 | $ | 849.3 | $ | 764.7 | |||||||||
| Segment Operating Income | $ | 129.2 | $ | 115.8 | $ | 393.6 | $ | 343.4 | |||||||||
| Life Sciences | |||||||||||||||||
Revenues | |||||||||||||||||
Consumables | $ | 75.9 | $ | 68.7 | $ | 228.5 | $ | 210.6 | |||||||||
Service | 36.5 | $ | 36.6 | 105.6 | $ | 101.6 | |||||||||||
Total Recurring | $ | 112.5 | $ | 105.3 | $ | 334.1 | $ | 312.3 | |||||||||
Capital Equipment | 33.3 | 31.1 | 91.9 | 80.6 | |||||||||||||
Total Life Sciences Revenues | $ | 145.8 | 136.4 | $ | 425.9 | 392.8 | |||||||||||
| Segment Operating Income | $ | 61.8 | $ | 58.1 | $ | 180.4 | $ | 164.4 | |||||||||
| Corporate Operating Loss | $ | (106.0) | $ | (100.8) | $ | (330.1) | $ | (299.7) | |||||||||
| Other Data | FY 2026 | FY 2025 | FY 2026 | FY 2025 | |||||||||||||
| Q3 | Q3 | YTD | YTD | ||||||||||||||
| Healthcare Backlog | $ | 429.0 | $ | 434.9 | |||||||||||||
| Life Sciences Backlog | 113.4 | 85.1 | |||||||||||||||
| Total Backlog - Continuing Operations | $ | 542.3 | $ | 520.0 | $ | — | $ | — | |||||||||
| As reported, U.S. GAAP Income Tax Rate - Continuing Operations | 24.6 | % | 24.2 | % | 24.0 | % | 22.4 | % | |||||||||
| Adjusted Income Tax Rate - Continuing Operations | 24.2 | % | 24.5 | % | 24.1 | % | 22.9 | % | |||||||||
| As reported, U.S. GAAP Income Tax Rate - Discontinued Operations | — | % | 21.6 | % | — | % | 21.4 | % | |||||||||
| Adjusted Income Tax Rate - Discontinued Operations | — | % | 26.8 | % | — | % | 26.8 | % | |||||||||
| This supplemental data is consistent with publicly disclosed information provided in quarterly conference calls, earnings releases and SEC filings, and is subject to all definitions, precautions and limitations contained in those disclosures. Please see the Company's most recent 10-K for definitions (and reconciliation where appropriate) of adjusted measures, backlog, free cash flow and net debt. | ||||||||||||||