8-K
STERIS plc (STE)
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): May 14, 2025
STERIS plc
(Exact Name of Registrant as Specified in Charter)
| Ireland | 001-38848 | 98-1455064 | |||||
|---|---|---|---|---|---|---|---|
| (State or other jurisdiction of<br>incorporation or organization) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) | 70 Sir John Rogerson's Quay, | Dublin 2, | Ireland | D02 R296 | |
| --- | --- | --- | --- | ||||
| (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<br>Symbol(s) | Name of each exchange<br>on which registered |
|---|---|---|
| Ordinary Shares, $0.001 par value | STE | New York Stock Exchange |
| 2.700% Senior Notes due 2031 | STE/31 | New York Stock Exchange |
| 3.750% Senior Notes due 2051 | STE/51 | New York Stock Exchange |
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 May 14, 2025, STERIS plc (the “Company”) issued a press release announcing financial results for the three and twelve month periods ending March 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<br>No. | Description |
|---|---|
| 99.1 | Press Release issued by STERIS plc on May14, 2025announcing financial results for the three and twelve month periods ending March 31, 2025. |
| 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: May 14, 2025
Document
| Exhibit 99.1 |
|---|
STERIS Announces Financial Results for Fiscal 2025 Fourth Quarter and Full Year
| • | Full year fiscal 2025 revenue from continuing operations increased 6%; constant currency organic revenue growth was 6% |
|---|---|
| • | Full year fiscal 2025 as reported diluted EPS from continuing operations increased to $6.16; adjusted EPS per diluted share increased to $9.22 |
| • | Fiscal 2026 outlook provided |
DUBLIN, IRELAND - (May 14, 2025) - STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced financial results for its fiscal 2025 fourth quarter and full year ended March 31, 2025. Total revenue from continuing operations for the fourth quarter of fiscal 2025 increased 4% to $1.5 billion compared with $1.4 billion in the fourth quarter of fiscal 2024. Constant currency organic revenue growth from continuing operations for the fourth quarter was 6%.
Revenue from continuing operations for fiscal 2025 increased 6% to $5.5 billion compared with $5.1 billion in fiscal 2024. Constant currency organic revenue growth from continuing operations for fiscal 2025 was 6%.
“Fiscal 2025 was another record year,” said Dan Carestio, President and CEO of STERIS. “We continue to benefit from our diversified Customer base and growth in global procedure volumes. We appreciate the efforts of our global Associates who continue to put Customers first. We look forward to another successful year in fiscal 2026.”
Total Company Fourth Quarter and Full Year Results from Continuing Operations
As reported, net income from continuing operations for the fourth quarter was $146.5 million or $1.48 per diluted share, compared with net income of $152.9 million or $1.54 per diluted share in the fourth quarter of fiscal 2024. Adjusted net income for the fourth quarter of fiscal 2025 was $270.3 million or $2.74 per diluted share, compared with the previous year’s fourth quarter of $240.1 million or $2.41 per diluted share.
As reported, net income from continuing operations for the full year fiscal 2025 was $610.1 million or $6.16 per diluted share, compared with net income of $551.4 million or $5.55 per diluted share in fiscal 2024. Adjusted net income for the full year fiscal 2025 was $913.2 million or $9.22 per diluted share, compared with $814.9 million or $8.20 per diluted share in fiscal 2024.
Fourth Quarter Segment Results from Continuing Operations
Healthcare revenue as reported grew 5% in the fourth quarter to $1.1 billion compared with $1.0 billion in the fourth quarter of fiscal 2024. This performance reflected 13% improvement in service revenue, 6% growth in consumable revenue, and a 4% decline in capital equipment revenue. Constant currency organic revenue growth was 6%. Healthcare operating income was $279.7 million compared with $245.2 million in last year’s fourth quarter. The increase in operating income was primarily due to improved volume, price, productivity and the benefit of restructuring.
Fiscal 2025 fourth quarter revenue for Applied Sterilization Technologies (AST) increased 9% as reported to $273.9 million compared with $250.9 million in the same period last year. This performance reflected 6% growth in service revenue and an increase in capital equipment revenue. Constant currency organic revenue growth was 10%. Segment operating income was $122.2 million in the fourth quarter of fiscal 2025, compared with operating income of $114.2 million in the same period last year. The operating income increase compared with the prior year primarily reflects improved volume and price, which was partially offset by continued increases in labor and energy costs.
Life Sciences fourth quarter revenue as reported decreased 7% to $149.5 million compared with $160.6 million in the fourth quarter of fiscal 2024, primarily due to the divestiture of the CECS business on April 1, 2024 and a decline in capital equipment revenue. This performance reflected 8% growth in consumable revenue offset by a 16% decline in capital equipment revenue and a 21% decline in service revenue. Constant currency organic revenue was flat. Reflecting improvement in mix and price, operating income increased to $65.0 million in the fourth quarter of fiscal 2025 compared with $64.5 million in the prior year’s fourth quarter.
Cash Flow
Net cash provided by operations for fiscal 2025 was $1.15 billion, compared with $973.3 million in fiscal 2024. Free cash flow for fiscal 2025 was $787.2 million compared with $620.3 million in the prior year period. The increase in free cash flow during the period was driven primarily by working capital improvements.
Fiscal 2026 Outlook
For fiscal 2026, the Company expects as reported revenue from continuing operations to increase 6-7%. Based on forward rates through March 31, 2026, currency is expected to be neutral to revenue in fiscal 2026. As a result, constant currency organic revenue growth from continuing operations is also anticipated to be 6-7%. Adjusted earnings per diluted share from continuing operations is anticipated to be in the range of $9.90 to $10.15, an increase of 7-10% compared with $9.22 in adjusted earnings per diluted share from continuing operations in fiscal 2025. Included in this outlook is the negative impact of tariffs, estimated to reduce pre-tax profit by approximately $30 million.
Capital expenditures are anticipated to be approximately $375 million and free cash flow is expected to be approximately $770 million.
Conference Call
As previously announced, STERIS management will host a conference call tomorrow, May 15, 2025, 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 5194825 and dial 1-877-344-7529 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 sciences products and services. 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 Isomedix 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, trade wars, 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 | ||||||||
| (Unaudited - In thousands, except per share data) | Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Revenues | $ | 1,480,531 | $ | 1,419,387 | $ | 5,459,515 | $ | 5,138,701 |
| Cost of revenues | 839,320 | 836,485 | 3,056,751 | 2,920,541 | ||||
| Gross profit | 641,211 | 582,902 | 2,402,764 | 2,218,160 | ||||
| Operating expenses: | ||||||||
| Selling, general, and administrative | 333,905 | 309,063 | 1,334,276 | 1,252,318 | ||||
| Research and development | 27,686 | 27,462 | 107,648 | 103,679 | ||||
| Illinois EO litigation settlement | 48,150 | — | 48,150 | — | ||||
| Restructuring expenses | 15,322 | 26,043 | 46,049 | 26,045 | ||||
| Total operating expenses | 425,063 | 362,568 | 1,536,123 | 1,382,042 | ||||
| Income from operations | 216,148 | 220,334 | 866,641 | 836,118 | ||||
| Non-operating expenses, net | ||||||||
| Interest expense | 17,115 | 36,103 | 86,261 | 144,351 | ||||
| Interest and miscellaneous income | (3,534) | (6,344) | (8,402) | (11,043) | ||||
| Loss (gain) on sale of businesses and equity investment, net | 5,258 | — | (7,425) | — | ||||
| Total non-operating expenses, net | 18,839 | 29,759 | 70,434 | 133,308 | ||||
| Income from continuing operations before income tax expense | 197,309 | 190,575 | 796,207 | 702,810 | ||||
| Income tax expense | 50,450 | 37,276 | 184,650 | 149,530 | ||||
| Income from continuing operations, net of income tax | $ | 146,859 | $ | 153,299 | $ | 611,557 | $ | 553,280 |
| (Loss) income from discontinued operations, net of income tax | $ | (786) | $ | (154,301) | $ | 4,517 | $ | (173,201) |
| Net income (loss) | $ | 146,073 | $ | (1,002) | $ | 616,074 | $ | 380,079 |
| Less: Net income (loss) attributable to noncontrolling interests | 403 | 375 | 1,433 | 1,840 | ||||
| Net income (loss) attributable to shareholders | $ | 145,670 | $ | (1,377) | $ | 614,641 | $ | 378,239 |
| Net income from continuing operations attributable to shareholders | $ | 146,456 | $ | 152,924 | $ | 610,124 | $ | 551,440 |
| Earnings per ordinary share (EPS) - Basic | ||||||||
| Continuing Operations | $ | 1.49 | $ | 1.55 | $ | 6.19 | $ | 5.58 |
| Discontinued Operations | $ | (0.01) | $ | (1.56) | $ | 0.05 | $ | (1.75) |
| Total | $ | 1.48 | $ | (0.01) | $ | 6.24 | $ | 3.83 |
| Earnings per ordinary share (EPS) - Diluted | ||||||||
| Continuing Operations | $ | 1.48 | $ | 1.54 | $ | 6.16 | $ | 5.55 |
| Discontinued Operations | $ | (0.01) | $ | (1.55) | $ | 0.05 | $ | (1.74) |
| Total | $ | 1.48 | $ | (0.01) | $ | 6.20 | $ | 3.81 |
| Cash dividends declared per share ordinary outstanding | $ | 0.57 | $ | 0.52 | $ | 2.23 | $ | 2.03 |
| Weighted average number of shares outstanding used in EPS computation: | ||||||||
| Basic number of shares outstanding | 98,273 | 98,851 | 98,575 | 98,787 | ||||
| Diluted number of shares outstanding | 98,756 | 99,435 | 99,069 | 99,359 | ||||
| STERIS plc | ||||||||
| --- | --- | --- | --- | --- | ||||
| Consolidated Condensed Balance Sheets | ||||||||
| (Unaudited - In thousands) | March 31, | March 31, | ||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 171,701 | $ | 207,020 | ||||
| Accounts receivable, net | 1,043,961 | 1,008,315 | ||||||
| Inventories, net | 581,329 | 674,535 | ||||||
| Prepaid expenses and other current assets | 203,774 | 174,349 | ||||||
| Current assets held for sale | — | 804,904 | ||||||
| Total current assets | 2,000,765 | 2,869,123 | ||||||
| Property, plant, and equipment, net | 1,956,544 | 1,765,180 | ||||||
| Lease right-of-use assets, net | 156,388 | 173,201 | ||||||
| Goodwill | 4,095,678 | 4,070,712 | ||||||
| Intangibles, net | 1,854,390 | 2,119,282 | ||||||
| Other assets | 83,046 | 66,199 | ||||||
| Total assets | $ | 10,146,811 | $ | 11,063,697 | ||||
| Liabilities and equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 280,770 | $ | 251,723 | ||||
| Short-term indebtedness | 125,000 | 85,938 | ||||||
| Other current liabilities | 616,403 | 529,454 | ||||||
| Current liabilities held for sale | — | 64,012 | ||||||
| Total current liabilities | 1,022,173 | 931,127 | ||||||
| Long-term indebtedness | 1,918,701 | 3,120,162 | ||||||
| Other liabilities | 590,180 | 697,062 | ||||||
| Total equity | 6,615,757 | 6,315,346 | ||||||
| Total liabilities and equity | $ | 10,146,811 | $ | 11,063,697 | ||||
| STERIS plc | ||||||||
| --- | ||||||||
| Segment Data | ||||||||
| (Unaudited - In thousands) | ||||||||
| 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 March 31, | Twelve Months Ended March 31, | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2025 | 2024 | 2025 | 2024 | |||||
| Revenues: | ||||||||
| Healthcare | $ | 1,057,176 | $ | 1,007,862 | $ | 3,878,671 | $ | 3,613,019 |
| AST | 273,889 | 250,897 | 1,038,573 | 953,980 | ||||
| Life Sciences | 149,466 | 160,628 | 542,271 | 571,702 | ||||
| Total revenues | $ | 1,480,531 | $ | 1,419,387 | $ | 5,459,515 | $ | 5,138,701 |
| Income (loss) from operations before adjustments: | ||||||||
| Healthcare | $ | 279,711 | $ | 245,224 | $ | 971,521 | $ | 871,358 |
| AST | 122,202 | 114,215 | 465,576 | 439,744 | ||||
| Life Sciences | 65,024 | 64,486 | 229,441 | 221,349 | ||||
| Corporate | (99,314) | (88,044) | (399,033) | (348,497) | ||||
| Total income from operations before adjustments | $ | 367,623 | $ | 335,881 | $ | 1,267,505 | $ | 1,183,954 |
| Less: Adjustments | ||||||||
| Amortization of acquired intangible assets | $ | 70,909 | $ | 67,760 | $ | 273,784 | $ | 266,420 |
| Acquisition and integration related charges | 1,944 | 1,217 | 11,159 | 25,526 | ||||
| Tax restructuring (benefits) costs | — | (32) | 54 | 620 | ||||
| Net loss on divestiture of businesses | — | 873 | — | 873 | ||||
| Amortization of inventory and property "step up" to fair value | 1,306 | 1,366 | 5,442 | 10,032 | ||||
| Restructuring charges | 29,166 | 44,363 | 62,275 | 44,365 | ||||
| Illinois EO litigation settlement | 48,150 | — | 48,150 | — | ||||
| Income from operations | $ | 216,148 | $ | 220,334 | $ | 866,641 | $ | 836,118 |
| STERIS plc | ||||||||
| --- | --- | --- | --- | --- | ||||
| Consolidated Condensed Statements of Cash Flows | ||||||||
| (Unaudited - In thousands) | ||||||||
| Twelve Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 616,074 | $ | 380,079 | ||||
| Non-cash items | 465,500 | 739,273 | ||||||
| Changes in operating assets and liabilities | 66,513 | (146,078) | ||||||
| Net cash provided by operating activities | 1,148,087 | 973,274 | ||||||
| Investing activities: | ||||||||
| Purchases of property, plant, equipment, and intangibles, net | (370,091) | (360,326) | ||||||
| Proceeds from the sale of property, plant, equipment, and intangibles | 9,195 | 7,381 | ||||||
| Proceeds from the sale of businesses | 814,558 | 9,458 | ||||||
| Proceeds from the sale of investments | — | 3,882 | ||||||
| Purchases of equity investments and convertible notes | (10,750) | (1,500) | ||||||
| Acquisition of businesses, net of cash acquired | (54,139) | (546,256) | ||||||
| Net cash provided by (used in) investing activities | 388,773 | (887,361) | ||||||
| Financing activities: | ||||||||
| Payments on term loans | (638,125) | (60,000) | ||||||
| Payments on Private Placement Senior Notes | (80,000) | — | ||||||
| (Payments) proceeds under credit facilities, net | (446,304) | 181,486 | ||||||
| Deferred financing fees and debt issuance costs | (2,316) | — | ||||||
| Acquisition related deferred or contingent consideration | (355) | (6,242) | ||||||
| Repurchases of ordinary shares | (211,321) | (11,765) | ||||||
| Cash dividends paid to ordinary shareholders | (219,875) | (200,570) | ||||||
| Distributions to noncontrolling interest | (2,069) | (1,561) | ||||||
| Contributions from noncontrolling interest | 2,532 | 2,994 | ||||||
| Stock option and other equity transactions, net | 25,469 | 10,472 | ||||||
| Net cash used in financing activities | (1,572,364) | (85,186) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 185 | (2,064) | ||||||
| Decrease in cash and cash equivalents | (35,319) | (1,337) | ||||||
| Cash and cash equivalents at beginning of period | 207,020 | 208,357 | ||||||
| Cash and cash equivalents at end of period | $ | 171,701 | $ | 207,020 | 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. | |||
| --- | Twelve Months Ended March 31, | |||||||
| --- | --- | --- | --- | --- | ||||
| 2025 | 2024 | |||||||
| Calculation of Free Cash Flow: | ||||||||
| Cash flows from operating activities | $ | 1,148,087 | $ | 973,274 | ||||
| Purchases of property, plant, equipment, and intangibles, net | (370,091) | (360,326) | ||||||
| Proceeds from the sale of property, plant, equipment, and intangibles | 9,195 | 7,381 | ||||||
| Free Cash Flow | $ | 787,191 | $ | 620,329 |
STERIS plc
Non-GAAP Financial Measures
(Unaudited - In thousands, except per share data)
| 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 March 31, | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| 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 | $ | 1,057,176 | $ | 1,007,862 | $ | — | $ | — | $ | (7,532) | 4.9 | % | 4.9 | % | 5.6 | % | ||
| AST | 273,889 | 250,897 | — | — | (2,837) | 9.2 | % | 9.2 | % | 10.3 | % | |||||||
| Life Sciences | 149,466 | 160,628 | — | (9,958) | (1,283) | (6.9) | % | (0.8) | % | 0.1 | % | |||||||
| Total | $ | 1,480,531 | $ | 1,419,387 | $ | — | $ | (9,958) | $ | (11,652) | 4.3 | % | 5.0 | % | 5.9 | % | ||
| Twelve months ended March 31, | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| 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 | $ | 3,878,671 | $ | 3,613,019 | $ | 52,373 | $ | — | $ | (8,139) | 7.4 | % | 5.9 | % | 6.1 | % | ||
| AST | 1,038,573 | 953,980 | — | — | (2,028) | 8.9 | % | 8.9 | % | 9.1 | % | |||||||
| Life Sciences | 542,271 | 571,702 | — | (34,598) | (1,915) | (5.1) | % | 1.0 | % | 1.3 | % | |||||||
| Total | $ | 5,459,515 | $ | 5,138,701 | $ | 52,373 | $ | (34,598) | $ | (12,082) | 6.2 | % | 5.9 | % | 6.2 | % |
STERIS plc
Non-GAAP Financial Measures (Continued)
(Unaudited - In thousands, except per share data)
| Three months ended March 31, | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Continuing Operations | ||||||||||||||||||||||||||||||||
| Gross Profit | Income from Operations | Income from continuing operations, net of income tax | (Loss) income from discontinued operations, net of income tax | Net income (loss) 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 | $ | 641,211 | $ | 582,902 | $ | 216,148 | $ | 220,334 | $ | 146,859 | $ | 153,299 | $ | (786) | $ | (154,301) | $ | 145,670 | $ | (1,377) | $ | 1.48 | $ | 1.54 | $ | (0.01) | $ | (1.55) | $ | 1.48 | $ | (0.01) |
| Adjustments: | ||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 979 | 393 | 70,909 | 67,760 | ||||||||||||||||||||||||||||
| Acquisition and integration related (credits) charges | (32) | 1,884 | 1,944 | 1,217 | ||||||||||||||||||||||||||||
| Tax restructuring benefits | — | — | — | (32) | ||||||||||||||||||||||||||||
| Net loss on divestiture of businesses | — | 176 | — | 873 | ||||||||||||||||||||||||||||
| Amortization of inventory and property "step up" to fair value | 479 | 635 | 1,306 | 1,366 | ||||||||||||||||||||||||||||
| Restructuring charges | 13,844 | 18,321 | 29,166 | 44,363 | ||||||||||||||||||||||||||||
| Illinois EO litigation settlement | — | — | 48,150 | — | ||||||||||||||||||||||||||||
| Loss on sale of business | 5,258 | — | ||||||||||||||||||||||||||||||
| Net impact of adjustments after tax(1) | 118,613 | 87,199 | 786 | 170,488 | 124,657 | 257,687 | ||||||||||||||||||||||||||
| Net EPS impact | 1.26 | 0.87 | 0.01 | 1.71 | 1.26 | 2.59 | ||||||||||||||||||||||||||
| Adjusted | $ | 656,481 | $ | 604,311 | $ | 367,623 | $ | 335,881 | $ | 270,730 | $ | 240,498 | $ | — | $ | 16,187 | $ | 270,327 | $ | 256,310 | $ | 2.74 | $ | 2.41 | $ | — | $ | 0.16 | $ | 2.74 | $ | 2.58 |
(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)
(Unaudited- In thousands, except per share data)
| Twelve months ended March 31, | |||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | $ | 2,402,764 | $ | 2,218,160 | $ | 866,641 | $ | 836,118 | $ | 611,557 | $ | 553,280 | $ | 4,517 | $ | (173,201) | $ | 614,641 | $ | 378,239 | $ | 6.16 | $ | 5.55 | $ | 0.05 | $ | (1.74) | $ | 6.20 | $ | 3.81 | |
| Adjustments: | |||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 3,109 | 2,049 | 273,784 | 266,420 | |||||||||||||||||||||||||||||
| Acquisition and integration related charges | 1,628 | 3,264 | 11,159 | 25,526 | |||||||||||||||||||||||||||||
| Tax restructuring costs | — | — | 54 | 620 | |||||||||||||||||||||||||||||
| Gain on fair value adjustment of acquisition related contingent consideration | — | — | — | — | |||||||||||||||||||||||||||||
| Net loss (gain) on divestiture of businesses | — | 176 | — | 873 | |||||||||||||||||||||||||||||
| Amortization of inventory and property "step up" to fair value | 2,223 | 7,060 | 5,442 | 10,032 | |||||||||||||||||||||||||||||
| Restructuring charges | 16,233 | 18,320 | 62,275 | 44,365 | |||||||||||||||||||||||||||||
| Illinois EO litigation settlement | ` | — | — | 48,150 | — | ||||||||||||||||||||||||||||
| Gain on sale of businesses and equity investment, net | (7,425) | — | |||||||||||||||||||||||||||||||
| Net impact of adjustments after tax(1) | 310,520 | 263,429 | 6,559 | 235,960 | 309,654 | 499,389 | |||||||||||||||||||||||||||
| Net EPS impact | 3.06 | 2.65 | 0.06 | 2.37 | 3.13 | 5.02 | |||||||||||||||||||||||||||
| Adjusted | $ | 2,425,957 | $ | 2,249,029 | $ | 1,267,505 | $ | 1,183,954 | $ | 914,652 | $ | 816,709 | $ | 11,076 | $ | 62,759 | $ | 924,295 | $ | 877,628 | $ | 9.22 | $ | 8.20 | $ | 0.11 | $ | 0.63 | $ | 9.33 | $ | 8.83 |
(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)
(Unaudited - In thousands, except per share data)
| FY 2026 Outlook | Twelve Months |
|---|---|
| Ended March 31, 2026 | |
| (Outlook)*** | |
| Net income from continuing operations per diluted share | 7.82 - 8.07 |
| Amortization of acquired intangible assets | |
| Acquisition and integration related charges | — |
| Restructuring | |
| Adjusted net income from continuing operations per diluted share | 9.90 - 10.15 |
| Cash flows from operating activities | 1,145,000 |
| Purchases of property, plant, equipment, and intangibles, net | (375,000) |
| Free Cash Flow | 770,000 |
| *** All amounts are estimates. |
All values are in US Dollars.
| STERIS plc | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unaudited Supplemental Financial Data | ||||||||||||||
| Fourth Quarter Fiscal 2025 | ||||||||||||||
| For the Periods Ending March 31, 2025 and 2024 | ||||||||||||||
| FY 2025 | FY 2024 | FY 2025 | FY 2024 | |||||||||||
| Total Company Revenues - Continuing Operations | Q4 | Q4 | YTD | YTD | ||||||||||
| Consumables | $ | 430,009 | $ | 403,637 | $ | 1,685,924 | $ | 1,502,378 | ||||||
| Service | 679,465 | 633,150 | 2,587,911 | 2,374,747 | ||||||||||
| Total Recurring | $ | 1,109,474 | $ | 1,036,787 | $ | 4,273,835 | $ | 3,877,125 | ||||||
| Capital Equipment | $ | 371,057 | $ | 382,600 | $ | 1,185,680 | $ | 1,261,576 | ||||||
| Total Revenues | $ | 1,480,531 | $ | 1,419,387 | $ | 5,459,515 | $ | 5,138,701 | ||||||
| Ireland Revenues | $ | 38,208 | $ | 22,659 | $ | 107,321 | $ | 82,695 | ||||||
| Ireland Revenues as a % of Total | 2 | % | 2 | % | 2 | % | 2 | % | ||||||
| United States Revenues | $ | 1,078,618 | $ | 1,036,039 | $ | 4,007,622 | $ | 3,751,437 | ||||||
| United States Revenues as a % of Total | 73 | % | 73 | % | 73 | % | 73 | % | ||||||
| International Revenues | $ | 363,705 | $ | 360,689 | $ | 1,344,572 | $ | 1,304,569 | ||||||
| International Revenues as a % of Total | 25 | % | 25 | % | 25 | % | 25 | % | ||||||
| Segment Data - Continuing Operations | FY 2025 | FY 2024 | FY 2025 | FY 2024 | ||||||||||
| Q4 | Q4 | YTD | YTD | |||||||||||
| Healthcare | ||||||||||||||
| Revenues | ||||||||||||||
| Consumables | $ | 352,737 | $ | 332,683 | $ | 1,396,031 | $ | 1,248,424 | ||||||
| Service | 386,414 | 343,484 | 1,445,440 | 1,273,058 | ||||||||||
| Total Recurring | $ | 739,151 | $ | 676,167 | $ | 2,841,471 | $ | 2,521,482 | ||||||
| Capital Equipment | 318,025 | 331,695 | 1,037,200 | 1,091,537 | ||||||||||
| Total Healthcare Revenues | $ | 1,057,176 | $ | 1,007,862 | $ | 3,878,671 | $ | 3,613,019 | ||||||
| Segment Operating Income | $ | 279,711 | $ | 245,224 | $ | 971,521 | $ | 871,358 | ||||||
| AST | ||||||||||||||
| Revenues | ||||||||||||||
| Service | $ | 257,840 | $ | 244,247 | $ | 1,007,627 | $ | 939,461 | ||||||
| Capital Equipment | 16,049 | 6,650 | 30,946 | 14,519 | ||||||||||
| Total AST Revenues | $ | 273,889 | $ | 250,897 | $ | 1,038,573 | $ | 953,980 | ||||||
| Segment Operating Income | $ | 122,202 | $ | 114,215 | $ | 465,576 | $ | 439,744 | ||||||
| Life Sciences | ||||||||||||||
| Revenues | ||||||||||||||
| Consumables | $ | 76,037 | $ | 70,401 | $ | 286,656 | $ | 251,580 | ||||||
| Service | 36,446 | 45,972 | 138,081 | 164,602 | ||||||||||
| Total Recurring | $ | 112,483 | $ | 116,373 | $ | 424,737 | $ | 416,182 | ||||||
| Capital Equipment | 36,983 | 44,255 | 117,534 | 155,520 | ||||||||||
| Total Life Sciences Revenues | $ | 149,466 | $ | 160,628 | $ | 542,271 | $ | 571,702 | ||||||
| Segment Operating Income | $ | 65,024 | $ | 64,486 | $ | 229,441 | $ | 221,349 | ||||||
| Corporate Operating Loss | $ | (99,314) | $ | (88,044) | $ | (399,033) | $ | (348,497) | ||||||
| Other Data | FY 2025 | FY 2024 | FY 2025 | FY 2024 | ||||||||||
| Q4 | Q4 | YTD | YTD | |||||||||||
| Healthcare Backlog | $ | 369,200 | $ | 353,833 | ||||||||||
| Life Sciences Backlog | 83,700 | 71,400 | ||||||||||||
| Total Backlog - Continuing Operations | $ | 452,900 | $ | 425,233 | ||||||||||
| As reported, U.S. GAAP Income Tax Rate - Continuing Operations | 25.6 | % | 19.6 | % | 23.2 | % | 21.3 | % | ||||||
| Adjusted Income Tax Rate - Continuing Operations | 23.5 | % | 21.4 | % | 23.1 | % | 22.3 | % | ||||||
| As reported, U.S. GAAP Income Tax Rate - Discontinued Operations | 86.4 | % | 24.3 | % | (371.0) | % | 24.3 | % | ||||||
| Adjusted Income Tax Rate - Discontinued Operations | 26.9 | % | 27.9 | % | 26.9 | % | 27.5 | % | 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. | |||||
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