STE
STERIS plc253.03
-1.04-0.41%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q3 '26
Q4 slowdown, tariff mitigation detailed
Q&A clarified an anticipated Q4 slowdown—healthcare services decelerating from teens, tough AST capital comps—explaining steady full-year guidance despite YTD outperformance. Life Sciences backlog grew on pharma recovery and US onshoring wins in North Carolina, Pennsylvania. Tariffs hit $55M FY26 run-rate; mitigation via supplier shifts, productivity targets small FY27 uptick. M&A stays disciplined: bolt-ons flow, but big deals scarce. Frogs abound in the pipeline. AST services dipped early quarter on vague volume softness, possibly tariff build-aheads. Management exudes FY27 macro confidence; watch Q4 cash timing.
Key Stats
Market Cap
24.92BP/E (TTM)
36.25Basic EPS (TTM)
6.98Dividend Yield
0.01%Recent Filings
10-Q
Q3 FY2026 results
STERIS posted Q3 FY2026 revenues of $1.5B, up 9.2% y/y, with Healthcare surging 9.0% y/y to $1.1B on volume and pricing gains across services, consumables, and capital gear. Operating income climbed to $273.2M (up 11.4% y/y), though gross margins slipped to 43.8% from tariff hits and mix shifts—but restructuring costs plunged 80%. Cash swelled to $424M on $1.0B YTD operating cash flow (up 13% y/y), fueling $161M buybacks and $180M dividends while trimming debt to $1.9B. Free cash flow hit $738M YTD (derived). Tuck-ins added Healthcare depth for $23M. Solid momentum, yet ethylene oxide litigation lingers.
8-K
Q3 revenue up 9%
STERIS reported Q3 fiscal 2026 revenue up 9% to $1.5B, with constant currency organic growth at 8%, driven by Healthcare (9%), AST (11%), and Life Sciences (7%). As-reported EPS rose to $1.96; adjusted hit $2.53. Revenue beats offset tariff headwinds. Fiscal 2026 outlook holds steady. Tariffs now dent profits by $55M.
10-Q
Q2 FY2026 results
STERIS posted Q2 FY2026 revenues of $1.5B, up 9.9% y/y, with Healthcare (+9.5%), AST (+9.7%), and Life Sciences (+13.3%) all gaining from volume and pricing. Gross margins ticked to 44.2% from 43.6%, while operating income jumped 21% to $265.8M on lower restructuring ($2.2M vs $2.8M). Diluted EPS from continuing ops hit $1.94, up from $1.51, verified against 98.8M shares. Cash swelled to $319.2M, FCF (derived) reached $527.7M on $707.8M ops cash minus $180.1M capex; total debt fell to $1.9B with $1.1B revolver available. Tuck-in buys added $15M; Dental divestiture (closed May 2024, $787.5M cash) cleaned the portfolio. Solid momentum, yet ethylene oxide litigation lingers.
8-K
Q2 revenue beats, outlook raised
STERIS reported Q2 fiscal 2026 revenue up 10% to $1.5B, with constant currency organic growth of 9%, driven by Healthcare (9%), AST (7%), and Life Sciences (12%). As-reported EPS rose to $1.94; adjusted EPS hit $2.47. Margins expanded despite tariffs and inflation. Outlook lifted: constant currency organic revenue 7-8%, adjusted EPS $10.15-$10.30. Cash flow surges.
10-Q
Q1 FY2026 results
STERIS posted Q1 FY2026 revenues of $1,391.1M, up 8.7% y/y from $1,279.5M, with Healthcare (70% of total) leading at 8.2% growth fueled by service and consumables; gross margin expanded to 45.1% from 44.7% on pricing and productivity gains. Operating income jumped to $246.0M from $185.5M, reflecting lower restructuring charges ($1.8M vs. $25.7M) despite higher SG&A; diluted EPS from continuing ops hit $1.79 (98.8M shares), consistent with net income of $178.0M. Cash swelled to $279.7M, operating cash flow $420.0M, free cash flow $326.5M (operating cash minus $93.6M capex); total debt fell to $1,903.1M (Revolving Facility $4.2M outstanding, $1,100M available). Tuck-in acquisition closed for $15.0M cash in Healthcare. Litigation lingers over ethylene oxide emissions.
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