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STESteris

Health care · Medical Devices · NYSE
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The 10-K against last year's

174 changes: 13 added, 15 removed, 141 reworded, 5 quiet changes

10-K May 29, 2026 vs May 29, 2025
Risk FactorsRedline ↓
23.3%
of the text changed · 10,661 words now
15.2%
of the text changed · 12,298 words now
Legal ProceedingsRedline ↓
16.2%
of the text changed · 1,783 words now
Accounting PoliciesRedline ↓
12.8%
of the text changed · 5,454 words now

10-K 0001628280-26-039136 (2026-05-29) vs 10-K 0001757898-25-000005 (2025-05-29)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

MD&A 526 words changed in this paragraph; it is 47% similar to last year's version.
Many factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, those identified in Part I, Item 1A, “Risk Factors” in this Annual Report on Form 10-K. Other potential risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements include, without limitation: (a) 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; (b) 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) (c) the potential of international unrest, military conflicts, economic downturns, currency fluctuations and cybersecurity events and any resulting effects on STERIS’s ability to successfully integrate acquired businesses into its existing businesses, including unknown anticipated growth, performance or inestimable liabilities, impairments, or increases in expected integration costs or difficulties in connection with the integration of such businesses; (c) other results; (d) changes in tax laws healthcare policy or interpretations government 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) third-party payor reimbursement levels; (e) 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 EO 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 changes in receipt of orders, order cancellations, tax laws or interpretations or the manufacture 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 U.S. resident for U.S. federal tax purposes, or shipment the impact of ordered products; tariffs and/or other trade barriers as a result of STERIS’s corporate structure; (g) the possibility that anticipated growth, performance impacts of increasing consolidation and competition within our industry, which may exert pressure on our pricing strategy, manufacturing strategy 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; lead to decreasing demand for our products and services; (h) the impact effects on STERIS and its our 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, resulting from labor-related issues, such as strikes, unsuccessful union negotiations and other anticipated benefits of acquisitions, restructuring efforts, workforce disruptions or from our inability to recruit or retain management and divestitures will not be realized or will be less than anticipated; (j) other personnel; (i) the level of STERIS’s indebtedness limiting financial flexibility or increasing future borrowing costs; (k) (j) 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) and (k) 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 possibility that anticipated financial results, anticipated revenues, productivity improvements, cost savings, growth synergies, and other workforce disruptions; (n) anticipated benefits of acquisitions, restructuring efforts, and divestitures will not be realized or will be less than anticipated due to unknown or inestimable liabilities, impairments, or increases in expected integration costs or difficulties in connection with the possibility integration of economic downturns and recessions, which could negatively impact our business by reducing consumer and Customer spending. acquired businesses.

Source: Item 7, 10-K 0001628280-26-039136 vs Item 7, 10-K 0001757898-25-000005

Risk Factors 251 words changed in this paragraph; it is 65% similar to last year's version.
In addition, further changes in the tax laws of other jurisdictions will likely arise, including as a result of the base erosion and profit shifting ("BEPS") project undertaken by the Organization for Economic Cooperation and Development ("OECD"). The OECD, which represents a coalition of member countries, has issued recommendations that, in some cases, would make substantial changes to numerous long-standing tax positions and principles. Following the issuance of such recommendation, in December 2022, the European Union issued a directive to adopt Global Base Erosion laws (a/k/a GloBE ("GloBE" or Pillar Two) "Pillar Two") in the EU member countries, in most cases beginning in fiscal year 2024. Most EU member countries and many non-EU member countries have already adopted local legislation based on GloBE Model Rules. Some of the countries that have not yet adopted GloBE are expected to do so in the near future. The GloBE rules could subject us to additional income taxes in the jurisdictions that adopted GloBE if our effective corporate tax rate in those jurisdictions (determined under the GloBE rules) is below 15%. Accordingly, the GloBE rules could increase tax uncertainty and adversely impact our provision for income taxes. In addition, the GloBE rules have certain transition period provisions that apply to certain intercompany transactions occurring between December 1, 2021 and the effective date of the GloBE rules in a given jurisdiction. These transition period provisions may have an adverse impact on our effective tax rate, and subject us to additional income tax, in some of the jurisdictions who that adopt the GloBE rules. OECD continues to issue guidance under GloBE which could result in amendments and modifications of the local GloBE rules and further uncertainty of GloBE’s impact on our income tax expense. In the most recent guidance, issued in January of 2026, OECD modified, among other things, certain rules relating to the one-year extension of the transitional country-by-country reporting safe harbor and the addition of both a permanent simplified effective tax rate safe harbor and a substance-based tax incentive safe harbor. This guidance also introduced a so-called “side-by-side” safe harbor pursuant to which multinational groups with an ultimate parent entity (or a "UPE") located in a qualifying jurisdiction are effectively exempt from certain GloBE taxes. At this time, only the United States is included on the list of qualifying jurisdictions allowing U.S.-parented multinational companies to avoid such GloBE taxes. While we have substantial presence in the U.S., we do not anticipate to benefit from the side-by-side safe harbor at this time, because we are a multinational enterprise with a UPE organized in Ireland. As a result, the GloBE rules could subject us to additional income taxes in the jurisdictions that adopted GloBE if our effective corporate tax rate in those jurisdictions (determined under the GloBE rules) is below 15%. Accordingly, the GloBE rules could increase tax uncertainty and adversely impact our provision for income taxes.

Source: Item 1A, 10-K 0001628280-26-039136 vs Item 1A, 10-K 0001757898-25-000005

Legal Proceedings 83 words changed in this paragraph; it is 67% similar to last year's version.
Pursuant to the Term Sheets, Settlement Agreements, the Company has entered into and expects to enter into additional settlement agreements agreed to pay up to $48,150 $48.2 million to settle claims. We recorded a charge for this amount, amount in fiscal 2025, and the remaining liability for which is included in the Accrued "Accrued expenses and other other" line within our Consolidated Balance Sheets. None of the Term Sheets nor any such settlement agreements Settlement Agreements are an admission of liability or that emissions from the Waukegan, Illinois facility ever posed a safety hazard to the people who live or work in the surrounding areas. The Term Sheets call for establishment of Settlement Agreements establish a claims administration process that includes guidelines and procedures for administering individual settlements, which process is expected to continue through has continued into fiscal 2027. The Company anticipates dismissal of all pending EO related claims brought by the fourth quarter covered plaintiffs upon completion of fiscal 2026. the claims administration process and approval by the court.

Source: Item 3, via Note 12 – COMMITMENTS AND CONTINGENCIES, 10-K 0001628280-26-039136 vs Item 3, via Note 12 – COMMITMENTS AND CONTINGENCIES, 10-K 0001757898-25-000005

Accounting Policies 81 words changed in this paragraph; it is 84% similar to last year's version.
Discontinued Operations. On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787,500, $787.5 million, subject to customary adjustments, and up to an additional $12,500 $12.5 million in contingent payment should had the Dental business achieve achieved certain revenue targets in fiscal 2025. No amounts have been recorded or are expected to be recorded with respect to this contingent consideration. The transaction was structured as an equity sale and closed on May 31, 2024. A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the divestiture of our Dental segment and determined that those conditions for discontinued operations presentation had been met prior to March 31, 2024. The Dental segment results of operations have been reclassified classified as income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented, and we classified the Dental segment's assets and liabilities as held for sale for the year ended March 31, 2024 in the accompanying Consolidated Balance Sheets. Due to the transaction closing in the first quarter of fiscal 2025, the held for sale assets and liabilities were classified as current as of March 31, 2024. presented. Our Consolidated Statements of Cash Flows include the financial results of the Dental segment through the date of sale on May 31, 2024. For additional information regarding this transaction and its effect on our financial reporting, refer to Note 4 titled, "Discontinued Operations" and Note 13 titled, "Business Segment Information."

Source: Item 8, Note 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001628280-26-039136 vs Item 8, Note 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001757898-25-000005

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of STE's Risk Factors and MD&A, 10-K 2026-05-29 against 10-K 2025-05-29. Each links to the text at sec.gov.

Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier (may, could, will, not, significant, material…). A year or date rolling forward is not counted.

The full word listadverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
force. The U.S. has solicited feedback from the trading community regarding the operation of the USMCA, and the joint review could result in changes, including, for example, the processes by which goods qualify for preferential treatment, the tariffs applicable to products or other restrictions on the movement of goods within the region under the USMCA. Changes to the USMCA could adversely affect our manufacturing operations and those of our suppliers in Canada and Mexico and impact our ability to manufacture and market products or source materials at competitive prices, which could have a material adverse effect on our financial condition and results of operations. We cannot predict the ultimate scope, duration, or impact of current or future tariff measures, changes to existing trade agreements, such as the USMCA, or the imposition of other trade restrictions.

Read it in 10-K 2026-05-29 at sec.gov ↗

AddedRisk Factors
liability in the U.S. is lower than the income tax liability calculated under the CAMT provisions, we will be subject to additional income taxes in the U.S.

Read it in 10-K 2026-05-29 at sec.gov ↗

AddedRisk Factors
The introduction and evolution of climate- and sustainability-related laws, regulations and reporting requirements—many of which are not uniform across jurisdictions—can increase the complexity and cost of compliance and heighten our exposure to enforcement actions, litigation and reputational harm. For example, the European Union adopted the CSRD in 2023, and in 2025 the European Commission proposed amendments to the CSRD aimed at simplifying sustainability reporting in Europe. Such amendments entered into force in March 2026, with transposition into national law by EU member states required in 2027, while changes to the ESRS are expected to be finalized later in calendar year 2026. While the EU has adopted extensive requirements through CSRD and ESRS, which continue to evolve, other jurisdictions, including, for example, the United Kingdom and California, have their own sustainability reporting frameworks. Managing compliance across these inconsistent regimes is complex and costly, and may result in disclosures that emphasize different metrics, use different methodologies or reach different conclusions depending on the applicable frameworks. We may also face challenges in presenting consistent and comparable sustainability information to global stakeholders.

Read it in 10-K 2026-05-29 at sec.gov ↗

AddedRisk Factors
These changes, and any other new or pending legal or regulatory matters, may result in the expenditure of additional resources or costs to comply with such requirements, which could affect our financial condition, results of operations or cash flows.

Read it in 10-K 2026-05-29 at sec.gov ↗

AddedRisk Factors
Court of Cook County, Illinois. A claims process regarding confidential settlement agreements is ongoing and subject to final court approval. Furthermore, some claims would be subject to further litigation if certain terms of the applicable settlement agreements are not fulfilled and we exercise our walkaway rights. Please refer to Note 12 to our consolidated financial statements titled “Commitments and Contingencies” for further information.

Read it in 10-K 2026-05-29 at sec.gov ↗

AddedRisk Factors
Similarly, we continue to invest in smart manufacturing to drive structural cost reduction in our facilities, including aligning work to more efficient manufacturing centers, implementing advanced manufacturing capabilities such as digital initiatives, automation and robots, and closing facilities that are not required to meet future capacity and work needs. Our success will depend on various factors, including our ability to either source or custom develop the necessary technology and components, and the digital transformation initiative’s cost-effectiveness, utility and competitive positioning. If our digital transformation initiative fails to develop as we expect, or progresses more slowly than expected, such failure to realize efficiencies and cost reduction benefits could adversely impact our financial condition and results of operations.

Read it in 10-K 2026-05-29 at sec.gov ↗

AddedRisk Factors
Likewise, governments and regulatory bodies worldwide are actively developing new laws, regulations and ethical guidelines governing AI use, including the European Union’s Artificial Intelligence Act. Compliance with evolving and potentially inconsistent AI regulations across jurisdictions may be costly and complex. Failure to comply could result in significant penalties, restrictions on our use of AI, or reputational harm. The use of AI may also raise data privacy concerns, particularly if AI systems process sensitive health information subject to GDPR, HIPAA or other privacy regulations. If our competitors deploy AI technologies more effectively than we do, we may lose market share or be unable to maintain our competitive position. Failure to adequately manage AI-related risks could have a material adverse effect on our business, reputation, financial condition, and results of operations.

Read it in 10-K 2026-05-29 at sec.gov ↗

Show the other 49
AddedRisk Factors
From time to time, we may invest in technology, business infrastructure, new businesses, product offerings and manufacturing innovations and expansion of existing businesses, each of which may require substantial cash investments and management attention. We believe cost-effective investments are essential to business growth and profitability; however, significant investments are subject to typical risks and uncertainties inherent in developing a new business or expanding an existing business. The failure of any significant investment to provide expected returns or profitability could have a material adverse effect on our financial results and divert management attention from more profitable business operations.

Read it in 10-K 2026-05-29 at sec.gov ↗

AddedRisk Factors
STERIS may not achieve expected returns and benefits in connection with dispositions, which may require continued involvement in a divested business, such as through transition service agreements, guarantees, indemnities or other financial obligations. Under these arrangements, the performance of the divested business, or other conditions outside our control, could affect our future financial results. The costs described above, as well as other unanticipated costs and expenses, could have a material adverse effect on the financial condition and operating results.

Read it in 10-K 2026-05-29 at sec.gov ↗

RemovedRisk Factors
Although we are organized under the laws of Ireland and are a tax resident in Ireland for Irish tax purposes, the IRS may assert that we should be treated as a U.S. corporation (and, therefore, a U.S. tax resident) for U.S. federal tax purposes pursuant to Section 7874 of the Code (“Section 7874”). For U.S. federal tax purposes, a company generally is considered to be a tax resident in the jurisdiction of its organization. Because we are organized under the laws of Ireland, we would generally be classified as a non-U.S. corporation (and, therefore, a non-U.S. tax resident) under these rules. Section 7874, however, provides an exception to this general rule under which a non-U.S. organized entity may be treated as a U.S. corporation for U.S. federal tax purposes. The rules under Section 7874 are complex, but as a general matter, a foreign corporation is treated as a U.S. corporation if the foreign corporation acquires stock in or assets of a U.S. corporation (or a U.S. partnership) whereas, by reason of such acquisition, the former shareholders of the U.S. corporation (or the former partners of the U.S. partnership) own at least 80% (by vote or value) of the stock in the foreign corporation.

Read it in 10-K 2025-05-29 at sec.gov ↗

RemovedRisk Factors
gastrointestinal endoscopy accessories, contract sterilization, and other products and services entering the market. Competitors and potential competitors also are attempting to develop alternate technologies and sterilizing agents, as well as disposable medical instruments and other devices designed to address the risk of contamination.

Read it in 10-K 2025-05-29 at sec.gov ↗

RemovedRisk Factors
For example, on January 5, 2023, the CSRD became effective. The CSRD expands the number of companies required to publicly report ESG-related information, defines the ESG-related information that companies are required to disclose in accordance with ESRS and imposes additional assurance obligations with respect to such disclosures. While CSRD rules are prescriptive for the types of data to be reported, the methodology for quantifying and qualifying such data are still developing and uncertain and may impose increased costs on us related to complying with our reporting obligations and increase risks of non-compliance with ESRS and the CSRD. In addition, there is currently uncertainty surrounding the requirements to publish ESG-related information under the CSRD and the content requirements of such report under the ESRS. On February 26, 2025, the European Commission proposed an “Omnibus” reform law that would delay application of the CSRD by two years (so-called “stop the clock”) and that proposes reducing the number of reporting requirements under the ESRS. On April 17, 2025, the "stop the clock" delay became effective at the EU level, and EU member states have until December 31, 2025 to transpose the delay into national law. However, the balance of the changes to the CSRD proposed as part of the Omnibus package need to progress through the European Union's legislative process and require political approval. Responses from the European Union member countries have been varied, and there is uncertainty as to when and how the CSRD may be changed in light of these proposals; however, Irish officials have expressed support for the proposed changes and further pledged to amend existing Irish legislation to clarify and reduce the scope of companies covered. These changes, and any other new or pending legal or regulatory matters, may result in the expenditure of additional resources or costs to comply with such requirements, which could affect our financial condition, results of operations or cash flows.

Read it in 10-K 2025-05-29 at sec.gov ↗

RemovedRisk Factors
We may fail to realize all of the anticipated benefits of our strategic business initiatives, as well as acquisitions, dispositions or joint ventures, or those benefits may take longer to realize than expected.

Read it in 10-K 2025-05-29 at sec.gov ↗

RewordedRisk Factors
Our indebtedness could have important consequences to our shareholders, including increasing risk associated with general adverse economic and industry conditions, limiting our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements, requiring the use of a substantial portion of our cash flow from operations for the payment of principal and interest on indebtedness, thereby reducing our ability to use our cash flow to fund working capital, acquisitions, capital expenditures and general corporate matters, including dividend payments and stock repurchases, limiting our flexibility in planning for, or reacting to, changes in our business and our industry and creating a disadvantage compared to our competitors with less indebtedness.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
While our employees and agents are required to comply with these laws, we cannot assure you that laws and regulations, our internal policies and procedures will always may not protect us from violations of these laws, despite our commitment to legal compliance and corporate ethics. which violations could affect financial condition, results of operations, or cash flows.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
While we believe There can be no assurances that we have developed appropriate our measures to protect the health and well-being wellbeing of our employees in the event of future health crises, there can be no assurances that our measures crises will be sufficient to protect our employees in our workplace or that they may not otherwise be exposed to an illness outside of our workplace.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
Furthermore, some non-U.S. jurisdictions have raised tax rates, and it is reasonable to expect that other global taxing authorities will be reviewing current legislation for potential modifications in reaction to the current provisions of the TCJA, potential future modifications or repeal of certain provisions of the TCJA, and other current economic conditions. modifications.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
Other stakeholders, including governments governments, regulators, and regulators, elected officials have expressed concerns about or opposition to businesses' social commitments commitments, and sustainability goals. goals, and other ESG-focused policies, including concerns about or allegations of "greenwashing".

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
Both the standard setting and regulatory landscapes are also extremely complex and present significant compliance and communication challenges in light of these uncertain and varied approaches to greenhouse gas emissions disclosures and sustainability reporting.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
Further, we have settled claims of liability resulting from EO sterilization activities in the past and could in the future be liable for further material damages and fines as a result of legislative or regulatory action or litigation, and any current or future liability could exceed our insurance and indemnification coverage, if any, and have a material adverse effect on our financial condition.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
We could experience a failure of a key information technology system, process or site or a breach of information security, including a cybersecurity breach of one or more key information technology systems, networks, processes, associated sites or service providers. providers; failure to manage these and other risks associated with the use of sophisticated technology could materially impact our business.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
There can be no assurance that we will be able to obtain additional funds beyond those available under existing bank credit facilities on terms favorable to us, or at all, or that such our existing bank credit facilities or other indebtedness can be replaced or refinanced when they mature or terminate.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
Our We may be adversely impacted by changes in tax laws or challenges to our tax positions, and our effective tax rate is uncertain and may vary from expectations, which could have a material impact on our results of operations and earnings per share.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
In Pursuant to binding confidential settlement agreements entered into in March and October 2025, we agreed to pay up to approximately $48.2 million to resolve substantially all of the claims for personal injury against a subsidiary related to EO exposure that are pending in the Circuit Court of Cook County, Illinois.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedRisk Factors
We These tax laws are extremely complex and subject to varying interpretations, and we are subject to tax examinations in various jurisdictions that might may assess additional tax liabilities against us.

Read it in 10-K 2026-05-29 at sec.gov ↗

Quiet changesRisk Factors
Developments in examinations and challenges might may materially change our provision for taxes in the affected periods and might may differ materially from our historical tax accruals.

Read it in 10-K 2026-05-29 at sec.gov ↗

Quiet changesRisk Factors
As a result, our income may be taxed in jurisdictions where it is not currently taxed and at higher rates than it is currently taxed, all of which may increase our effective tax rate.

Read it in 10-K 2026-05-29 at sec.gov ↗

Quiet changesRisk Factors
Although we believe we have valid defenses to such claims, there can be no assurance that we will prevail on the merits, as the outcome of trials before juries and other aspects of litigation can be highly unpredictable, and, as a result, we have chosen to pursue a settlement process with respect to certain pending cases in Illinois.

Read it in 10-K 2026-05-29 at sec.gov ↗

AddedMD&A
U.S. Tax Reform. On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act ("OBBBA") which contains substantial changes to its tax policies. Business provisions in the OBBBA, some of which were extensions of those established in the Tax Cuts and Jobs Act, include favorable cost recovery allowances, changes to U.S. international tax rules, and changes to energy and environmental related incentives. The law has multiple effective dates, with certain provisions applicable to fiscal years beginning after fiscal 2026. The law did not have a material impact on our consolidated financial statements for fiscal 2026, and we do not expect it to have a material impact on our effective tax rate in the future.

Read it in 10-K 2026-05-29 at sec.gov ↗

AddedMD&A
The table above also excludes potential obligations related to our investment activities of approximately $211.0 million (based on contractual amounts, excluding working capital adjustments), including arrangements that provide for the potential

Read it in 10-K 2026-05-29 at sec.gov ↗

AddedMD&A
acquisition of the remaining equity interests in an investee, as well as contingent consideration arrangements. The timing and ultimate amount of any such obligations cannot be determined at this time, as they are contingent on the occurrence of specified events or conditions and, in certain cases, future operating performance.

Read it in 10-K 2026-05-29 at sec.gov ↗

RemovedMD&A
•Days sales outstanding (“DSO”) – We define DSO as the average collection period for accounts receivable. It is calculated as net accounts receivable divided by the trailing four quarters’ revenues, multiplied by 365 days. We use this figure to help gauge the quality of accounts receivable and expected time to collect.

Read it in 10-K 2025-05-29 at sec.gov ↗

RemovedMD&A
On August 2, 2023 we purchased the surgical instrumentation, laparoscopic instrumentation and sterilization container assets from Becton, Dickinson and Company (NYSE: BDX) ("BD"). The acquired assets from BD were integrated into our Healthcare segment.

Read it in 10-K 2025-05-29 at sec.gov ↗

RemovedMD&A
The purchase price of the assets acquired from BD was $539.8 million. The acquisition also qualified for a tax benefit related to tax deductible goodwill, with a present value of approximately $60.0 million. The purchase price of the acquisition was financed with borrowings from our existing credit facility.

Read it in 10-K 2025-05-29 at sec.gov ↗

RemovedMD&A
•Proceeds from the sale of property, plant, equipment and intangibles – During fiscal 2025 and 2024 we received $9.2 million and $7.4 million, respectively, for proceeds from the sale of property, plant, equipment and intangibles. The fiscal 2025 proceeds primarily related to the sale of a building previously used by the Healthcare segment, and the fiscal 2024 proceeds primarily related to the sale of a facility previously used by the AST segment.

Read it in 10-K 2025-05-29 at sec.gov ↗

RemovedMD&A
•Acquisition related deferred or contingent consideration – During fiscal 2025 and 2024, we paid $0.4 million and $6.2 million in acquisition related deferred and contingent consideration, respectively.

Read it in 10-K 2025-05-29 at sec.gov ↗

RemovedMD&A
•Transactions with noncontrolling interest holders – During fiscal 2025, we paid $2.1 million in distributions to noncontrolling interest holders and received $2.5 million in contributions from noncontrolling interest holders. During fiscal 2024, we paid $1.6 million in distributions to noncontrolling interest holders and received $3.0 million in contributions from noncontrolling interest holders.

Read it in 10-K 2025-05-29 at sec.gov ↗

RemovedMD&A
We have made assumptions regarding healthcare costs in computing our other post-retirement benefit obligation. The assumed rates of increase generally decline ratably over a five year-period from the assumed current year healthcare cost trend rate of 8.5% to the assumed long-term healthcare cost trend rate. A 100 basis point change in the assumed healthcare cost trend rate (including medical, prescription drug, and long-term rates) would impact the total service and interest cost components and the post retirement benefit obligation by less than $0.1 million as of March 31, 2025.

Read it in 10-K 2025-05-29 at sec.gov ↗

RewordedMD&A
(k) (j) 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; and (k) the possibility that anticipated financial results, anticipated revenues, 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 due to unknown or inestimable liabilities, impairments, or increases in expected integration costs or difficulties in connection with the integration of acquired businesses.

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedMD&A
Summarized Balance Sheet Information At March 31, (dollars in thousands) (in millions) 2026 2025 2024 Receivables due from non-issuers and non-guarantor subsidiaries $19,931,477 $19,120,843 $21,513.5 $19,931.5 Other current assets 830,522 846,149 1,039.2 830.5 Total current assets $20,761,999 $19,966,992 $22,552.7 $20,762.0 Non-current receivables due from non-issuers and non-guarantor subsidiaries $1,278,411 $1,797,274 $1,280.3 $1,278.4 Goodwill 297,209 292,559 298.0 297.2 Other non-current assets 632,555 642,240 639.9 632.6 Total non-current assets $2,208,175 $2,732,073 $2,218.1 $2,208.2 Payables due to non-issuers and non-guarantor subsidiaries $23,557,233 $21,415,901 $25,938.3 $23,557.2 Other current liabilities 333,726 289,047 510.0 333.7 Total current liabilities $23,890,959 $21,704,948 $26,448.3 $23,891.0 Non-current payables due to non-issuers and non-guarantor subsidiaries $285,630 $598,730 $285.9 $285.6 Other non-current liabilities 2,060,771 3,247,978 1,820.7 2,060.8 Total non-current liabilities $2,346,401 $3,846,708 $2,106.6 $2,346.4

Read it in 10-K 2026-05-29 at sec.gov ↗

RewordedMD&A
Favorable impacts from pricing (130 (120 basis points), mix operational improvements and lower restructuring costs (70 basis points), material costs (30 basis points), and productivity (20 basis points), and divestitures (20 (50 basis points) were partially offset by unfavorable impacts from tariffs (80 basis points), inflation (150 (70 basis points) and adjustments and other charges points), materials costs (30 basis points), mix (30 basis points), and currency (10 basis points).

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RewordedMD&A
The fiscal 2025 increase in cash flows from operations and free cash flow resulted during the period was driven primarily by improvements in net income, which more than offset the significantly lower contribution from the increase in cash provided by working capital, primarily driven by higher collections on accounts receivable and improved inventory management capital when compared to the prior year.

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RewordedMD&A
Net Cash Provided By/Used In Investing Activities – The net cash used in our investing activities was $512.5 million for the year ended March 31, 2026, compared to net cash provided by our investing activities was of $388.8 million for the year ended March 31, 2025, compared to net cash used in our investing activities of $887.4 million for the year ended March 31, 2024. 2025.

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RewordedMD&A
Dollar Value at March 31, 2025 2026 $25,000 Senior notes at 3.55% 2012 Private Placement December 2027 25,000 $125,000 Senior notes at 3.45% 2015 Private Placement May 2025 125,000 $ 25.0 $125,000 Senior notes at 3.55% 2015 Private Placement May 2027 125,000 125.0 $100,000 Senior notes at 3.70% 2015 Private Placement May 2030 100,000 100.0 $50,000 Senior notes at 3.93% 2017 Private Placement February 2027 50,000 50.0 €60,000 Senior notes at 1.86% 2017 Private Placement February 2027 64,967 68.9 $45,000 Senior notes at 4.03% 2017 Private Placement February 2029 45,000 45.0 €20,000 Senior notes at 2.04% 2017 Private Placement February 2029 21,656 23.0 £45,000 Senior notes at 3.04% 2017 Private Placement February 2029 58,212 59.5 €19,000 Senior notes at 2.30% 2017 Private Placement February 2032 20,573 21.8 £30,000 Senior notes at 3.17% 2017 Private Placement February 2032 38,807 39.7 Total Private Placement Senior Notes $ 674,215 557.8

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RewordedMD&A
The increase in SG&A during the fiscal 2025 increase year ended March 31, 2026, compared to the fiscal year ended March 31, 2025, is primarily attributable to increased compensation and benefit costs, as well as legal dealer commissions, and bad debt expense, which were partially offset by lower costs associated with our EO litigation.

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RewordedMD&A
Adjustments Amortization of acquired intangible assets (1) 273,784 266,420 $ 265.0 $ 273.8 Acquisition and integration related charges (2) 11,159 25,526 6.2 11.2 Tax restructuring costs (3) 54 620 Net loss on divestiture of businesses (1) — 873 0.5 0.1 Amortization of inventory and property "step up" to fair value (1) 5,442 10,032 5.0 5.4 Restructuring charges (4) 62,275 44,365 3.4 62.3 Illinois EO litigation settlement (5) 48,150 — 48.2 Total income from operations $ 866,641 1,101.8 $ 836,118 866.6

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RewordedMD&A
Selling, general, and administrative $ 1,334,276 1,407.7 $ 1,252,318 1,334.3 $ 81,958 6.5% 73.4 5.5% Research and development 107,648 103,679 3,969 3.8% 112.9 107.6 5.3 4.9% Illinois EO litigation settlement 48,150 — 48,150 48.2 (48.2) NM Restructuring expenses 46,049 26,045 20,004 76.8% 4.1 46.0 (42.0) (91.1)% Total operating expenses $ 1,536,123 1,524.7 $ 1,382,042 1,536.1 $ 154,081 11.1% (11.4) (0.7)%

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RewordedMD&A
Our sources of credit as of March 31, 2025 2026 are summarized in the following table:(dollars in thousands) table:(in millions) Maximum Reductions in March 31, 2025 2026 Amounts Outstanding March 31, 2025 2026 Amounts Amounts Available Credit Available Available Facility for Other Financial Instruments Sources of Credit Private Placement Senior Notes $ 674,215 557.8 — $ 674,215 557.8 $ — Revolving Credit Facility (1) 1,100,000 16,694 34,750 1,048,556 1,100.0 9.8 37.8 1,052.5 Senior Public Notes 1,350,000 1,350.0 — 1,350,000 1,350.0 — Total Sources of Credit $ 3,124,215 3,007.8 $ 16,694 9.8 $ 2,058,965 1,945.6 $ 1,048,556 1,052.5

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RewordedMD&A
The Dental segment results of operations were have been reclassified to as income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented, and we have classified our Dental segment's assets and liabilities as held for sale as of March 31, 2024 in the accompanying Consolidated Balance Sheets. presented.

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RewordedMD&A
Letters of credit and surety bonds 110,901 2,907 595 1,731 $388 $116,522 $ 141.6 $2.3 $0.3 $1.4 $1.5 $147.2 Letters of credit as security for self-insured risk retention policies 10,875 14.1 — — — — 10,875 14.1 Total Commercial Commitments $ 121,776 $ 2,907 $ 595 $ 1,731 $388 $127,397 155.7 $2.3 $0.3 $1.4 $1.5 $161.3

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Quiet changesMD&A
On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787.5 million, subject to customary adjustments, and up to an additional $12.5 million in contingent payment should had the Dental business achieve achieved certain revenue targets in fiscal 2025.

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