STERIS Announces Financial Results for Fiscal 2027 Second Quarter
STERIS Announces Financial Results for Fiscal 2027 Second Quarter • Fiscal 2027 second quarter revenue increased 9%; constant currency organic revenue growth was 8%
• Outlook updated to reflect solid underlying performance and the benefit of tariff refunds
DUBLIN, IRELAND - (November 4, 2026) - STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced financial results for its fiscal 2027 second quarter ended September 30, 2026. Total revenue for the second quarter of fiscal 2027 increased 9% to $1.6 billion compared with $1.5 billion in the second quarter of fiscal 2026. Constant currency organic revenue growth was 8% in the second quarter.
“We are pleased with our second quarter performance,” said Dan Carestio, President and CEO of STERIS. “Life Sciences delivered particularly strong performance in the quarter, giving us confidence to raise our expectations for the segment for the full year. Our updated outlook reflects stable underlying performance, plus the benefit of tariff refunds received year-to-date. Fiscal 2027 is shaping up to be another record year for STERIS, supported by solid underlying demand and excellent execution from our commercial teams.”
As reported, net income for the second quarter was $213.7 million, or $2.19 per diluted share, compared with net income of $191.9 million, or $1.94 per diluted share, in the second quarter of fiscal 2026. Adjusted net income for the second quarter of fiscal 2027 was $286.8 million, or $2.94 per diluted share, compared with the previous year’s second quarter of $244.5 million or $2.47 per diluted share. For the second quarter, the pre-tax impact of tariff refunds on as reported results was a benefit of approximately $20 million. Gross tariff costs were flat with the prior year at $15 million for the quarter.
revenue as reported grew 9% in the second quarter to $1.1 billion compared with $1.0 billion in the second quarter of fiscal 2026. The as reported performance reflected 10% improvement in service revenue, 10% growth in consumables revenue, and a 4% increase in capital equipment revenue. Constant currency organic revenue growth was 7%. Healthcare operating income was $269.2 million compared with $259.5 million in last year’s second quarter. The increase in operating income was primarily due to improved volume and price which were partially offset by inflation, lower productivity and investments.
increased 5% as reported to $295.6 million compared with $281.5 million in the same period last year. This performance reflected 5% growth in service revenue and a 21% decline in capital equipment revenue. Constant currency organic revenue growth was 5%. Segment operating income was $132.1 million in the second quarter of fiscal 2027, compared with operating income of $127.6 million in the same period last year. The increase in operating income compared with the prior year primarily reflects improved price, which was partially offset by inflation and increased depreciation.
second quarter revenue as reported increased 18% to $170.6 million compared with $145.0 million in the second quarter of fiscal 2026. This performance reflected 53% growth in capital equipment revenue, 9% improvement in consumables revenue, and 5% growth in service revenue. Constant currency organic revenue increased 18%. Operating income increased to $75.8 million in the second quarter of fiscal 2027 compared with $59.9 million in the prior year’s second quarter. The increase in operating income reflects improvement in price, productivity, volume and favorable mix.
Net cash provided by operations for the first six months of fiscal 2027 was $656.1 million, compared with $707.8 million in the first six months of fiscal 2026. Free cash flow for the first six months of fiscal 2027 was $492.5 million compared with $527.7 million in the prior year period. The decrease in cash flow from operations and free
cash flow was driven primarily by a significantly lower contribution from working capital in fiscal 2027 compared with fiscal 2026, partially offset by higher net income.
During the quarter, the Company approved a separate targeted restructuring plan, in addition to the plan announced on August 5, 2026. The additional plan includes targeted facility realignment, product rationalization and select organizational realignment, primarily in the Healthcare segment. The Company anticipates total charges of approximately $45 million associated with the plan, including approximately $10 million in cash expenditures and $35 million in non- cash charges. Charges associated with the second quarter of fiscal 2027 are approximately $25 million. The plan is expected to generate annualized savings of approximately $9 million, with a portion realized in fiscal 2028 and the full benefit realized in subsequent fiscal years.
The Company is updating its prior outlook for revenue and earnings for fiscal 2027. Expectations for consolidated revenue growth are unchanged and include as reported revenue growth of 7-8% and constant currency organic revenue growth of 6-7%. Adjusted earnings per diluted share are now anticipated to be in the range of $11.35 to $11.55, an increase from prior expectations of $11.10 to $11.30. The revised outlook includes the benefit of approximately $0.18 from tariff refunds received year-to-date. All other elements of the most recently provided outlook remain unchanged.
Current Outlook Prior Outlook Healthcare 6-7% 6-7% Applied Sterilization Technologies 6-7% 7-8% Life Sciences 9-10% 6-7%
STERIS will provide revised fiscal 2027 outlook inclusive of the proposed Xodus Medical acquisition after closing.
As previously announced, STERIS management will host a conference call tomorrow, November 5, 2026, at 9:00 am 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 STERIS plc conference call.
For those unable to listen to the conference call live, a replay will be available beginning at noon ET on November 5, 2026, either at www.steris-ir.com or via phone. To access the replay of the call, please use the access code 2589658 and dial 1-855-669-9658 in the United States or 1-412-317-0088 internationally.
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.
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 gross profit, 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, restructuring charges (credits), and certain other unusual or non- recurring items. STERIS believes these measures are useful because they exclude items that may not be indicative of or are unrelated to our core operating results and provide 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.
This release contains 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. These forward-looking statements are based on management’s current expectations, estimates or forecasts about STERIS’s businesses, the industries in which it operates and current beliefs and assumptions of management and are subject to uncertainty and changes in circumstances. Readers of this release should understand that these statements are not guarantees of performance or results.
Many factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, those set forth in this release. No assurances can be provided as to any result or the timing of any outcome regarding matters described in STERIS’s securities filings or otherwise with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, cost reductions, business strategies, earnings or revenue trends or future financial results. 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, (c) the potential of international unrest, military conflicts, economic downturns, currency fluctuations and cybersecurity events and any resulting effects on STERIS’s anticipated growth, performance or other results, (d) changes in healthcare policy or government or other 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, 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, (f) changes in tax laws or interpretations or the adoption of certain income tax treaties in jurisdictions where STERIS operates that could increase its 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 the impact of tariffs and/or other trade barriers as a result of STERIS’s corporate structure, (g) the impacts of increasing consolidation and competition within STERIS’s industry, which may exert pressure on its pricing strategy, manufacturing strategy or lead to decreasing demand for its products and services, (h) the effects on STERIS’s operations resulting from labor-related issues, such as strikes, unsuccessful union negotiations and other workforce disruptions or from its inability to recruit or retain management and other personnel, (i) the level of STERIS’s indebtedness limiting financial flexibility or increasing future borrowing costs, (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, (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, (l) the possibility that expectations about the benefits, charges and cash expenditures from the new Center of Excellence in North Carolina and the related facility consolidation plan may not be accurate or realized on anticipated timelines, or at all, (m) the risk that regulatory approvals that are required to complete the acquisition of Xodus Medical, Inc. (the “Acquisition”) may not be received, may take longer than expected or may impose adverse conditions and STERIS’s ability to complete the Acquisition on the expected timeline, or at all, (n) the risk that the cost savings, tax benefits and other synergies expected from the Acquisition may not be realized or may take longer to realize than expected, including that the Acquisition may not be accretive or produce the expected cash tax benefits within the expected timeframe or to the extent anticipated, and (o) other risks described in STERIS’s most recent Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on any forward-looking statements included in this release, which speak only as of the date hereof. STERIS undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law.
STERIS plc Consolidated Condensed Balance Sheets (in millions) September 30, Assets 2026 March 31, Current assets: (Unaudited) 2026 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 531.1 $ 439.6 Accounts receivable, net 1,005.2 1,092.8 Inventories, net 737.0 631.8 Prepaid expenses and other current 205.9 230.4 assets Total current assets 2,479.2 2,394.6 Property, plant, and 2,187.6 2,161.2 equipment, net Lease right-of-use assets, 156.0 155.2 net Goodwill 4,178.8 4,194.8 Intangibles, net 1,497.0 1,620.0 Other assets 215.0 211.4 Total assets $ 10,713.6 $ 10,737.2 Liabilities and equity Current liabilities: Accounts payable $ 334.2 $ 338.8 Short-term indebtedness 243.1 118.9 Other current liabilities 630.5 687.4 Total current liabilities 1,207.8 1,145.0 Long-term indebtedness 1,650.3 1,812.8 Other liabilities 583.7 582.1 Total equity 7,271.7 7,197.2 Total liabilities and $ 10,713.6 $ 10,737.2 equity
STERIS plc Segment Data (in millions) 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, certain services and facilities related to distribution and research and development that are shared by multiple segments, as well as the benefit of refunds received on tariffs previously paid under the International Emergency Economic Powers Act.
STERIS plc Consolidated Condensed Statements of Cash Flows Six Months Ended (in millions) September 30, Operating 2026 2025 activities: (Unaudited) (Unaudited) ────────────────────────────────────────────────────────────────────────────── Net income $ 415.1 $ 370.4 Non-cash items 286.6 287.7 Changes in operating assets and -45.7 49.7 liabilities Net cash provided by operating 656.1 707.8 activities Investing activities: Purchases of property, plant, -163.6 -180.1 equipment, and intangibles Purchases of -5.0 -1.8 investments Acquisition of businesses, net of -16.0 -15.0 cash acquired Net cash used in -184.6 -196.8 investing activities Financing activities: Payments on Private Placement Senior — -125.0 Notes Payments under credit facilities, -37.8 -34.8 net Acquisition related deferred or -0.2 -0.2 contingent consideration Repurchases of -215.9 -111.1 ordinary shares Cash dividends paid to ordinary -128.4 -118.1 shareholders Distributions to noncontrolling -0.5 — interest holders Stock option and other equity 5.8 16.9 transactions, net Net cash used in -377.0 -372.3 financing activities Effect of exchange rate changes on cash -2.9 8.7 and cash equivalents Increase in cash and 91.5 147.5 cash equivalents Cash and cash equivalents at 439.6 171.7 beginning of period Cash and cash equivalents at end $ 531.1 $ 319.2 of period
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.
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.
(1) Includes the amortization of intangible asset basis differences arising from the Company's equity method investment.
(2) The tax expense includes both the current and deferred income tax impact of the adjustments.
(1) Includes the amortization of intangible asset basis differences arising from the Company's equity method investment.
(2) The tax expense includes both the current and deferred income tax impact of the adjustments.
Twelve Months FY 2027 Outlook Ended March 31, 2027 ────────────────────────────────────────────────────────────────────────────── (Outlook)* Net income from continuing operations $8.92 - $9.12 per diluted share Amortization of acquired intangible 2.07 assets and "step-up" to fair value Acquisition and integration related 0.06 charges Restructuring charges 0.28 Other unusual items 0.02 Adjusted net income from continuing $11.35 - $11.55 operations per diluted share Cash flows from operating $1,250.0 activities Purchases of property, plant, equipment, -450.0 and intangibles Free Cash Flow $800.0 * All amounts are estimates.
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. *The Company expects to discontinue disclosure of backlog beginning in fiscal 2028, as backlog has become a less meaningful indicator of future revenue trends across the business.
Full text with the tables
Exhibit 99.1
STERIS Announces Financial Results for Fiscal 2027 Second Quarter
• Fiscal 2027 second quarter revenue increased 9%; constant currency organic
revenue growth was 8%
• Fiscal 2027 second quarter as reported diluted EPS increased to $2.19;
adjusted EPS per diluted share increased to $2.94
• Outlook updated to reflect solid underlying performance and the benefit of
tariff refunds
DUBLIN, IRELAND - (November 4, 2026) - STERIS plc (NYSE: STE) (“STERIS” or the
“Company”) today announced financial results for its fiscal 2027 second quarter
ended September 30, 2026. Total revenue for the second quarter of fiscal 2027
increased 9% to $1.6 billion compared with $1.5 billion in the second quarter of
fiscal 2026. Constant currency organic revenue growth was 8% in the second
quarter.
“We are pleased with our second quarter performance,” said Dan Carestio,
President and CEO of STERIS. “Life Sciences delivered particularly strong
performance in the quarter, giving us confidence to raise our expectations for
the segment for the full year. Our updated outlook reflects stable underlying
performance, plus the benefit of tariff refunds received year-to-date. Fiscal
2027 is shaping up to be another record year for STERIS, supported by solid
underlying demand and excellent execution from our commercial teams.”
Total Company Second Quarter Results
As reported, net income for the second quarter was $213.7 million, or $2.19 per
diluted share, compared with net income of $191.9 million, or $1.94 per diluted
share, in the second quarter of fiscal 2026. Adjusted net income for the second
quarter of fiscal 2027 was $286.8 million, or $2.94 per diluted share, compared
with the previous year’s second quarter of $244.5 million or $2.47 per diluted
share. For the second quarter, the pre-tax impact of tariff refunds on as
reported results was a benefit of approximately $20 million. Gross tariff costs
were flat with the prior year at $15 million for the quarter.
Second Quarter Segment Results
Healthcare
revenue as reported grew 9% in the second quarter to $1.1 billion compared with
$1.0 billion in the second quarter of fiscal 2026. The as reported performance
reflected 10% improvement in service revenue, 10% growth in consumables revenue,
and a 4% increase in capital equipment revenue. Constant currency organic
revenue growth was 7%. Healthcare operating income was $269.2 million compared
with $259.5 million in last year’s second quarter. The increase in operating
income was primarily due to improved volume and price which were partially
offset by inflation, lower productivity and investments.
Fiscal 2027 second quarter revenue for
Applied Sterilization Technologies (AST)
increased 5% as reported to $295.6 million compared with $281.5 million in the
same period last year. This performance reflected 5% growth in service revenue
and a 21% decline in capital equipment revenue. Constant currency organic
revenue growth was 5%. Segment operating income was $132.1 million in the second
quarter of fiscal 2027, compared with operating income of $127.6 million in the
same period last year. The increase in operating income compared with the prior
year primarily reflects improved price, which was partially offset by inflation
and increased depreciation.
Life Sciences
second quarter revenue as reported increased 18% to $170.6 million compared with
$145.0 million in the second quarter of fiscal 2026. This performance reflected
53% growth in capital equipment revenue, 9% improvement in consumables revenue,
and 5% growth in service revenue. Constant currency organic revenue increased
18%. Operating income increased to $75.8 million in the second quarter of fiscal
2027 compared with $59.9 million in the prior year’s second quarter. The
increase in operating income reflects improvement in price, productivity, volume
and favorable mix.
Cash Flow
Net cash provided by operations for the first six months of fiscal 2027 was
$656.1 million, compared with $707.8 million in the first six months of fiscal
2026. Free cash flow for the first six months of fiscal 2027 was $492.5 million
compared with $527.7 million in the prior year period. The decrease in cash flow
from operations and free
cash flow was driven primarily by a significantly lower contribution from
working capital in fiscal 2027 compared with fiscal 2026, partially offset by
higher net income.
Restructuring
During the quarter, the Company approved a separate targeted restructuring plan,
in addition to the plan announced on August 5, 2026. The additional plan
includes targeted facility realignment, product rationalization and select
organizational realignment, primarily in the Healthcare segment. The Company
anticipates total charges of approximately $45 million associated with the plan,
including approximately $10 million in cash expenditures and $35 million in non-
cash charges. Charges associated with the second quarter of fiscal 2027 are
approximately $25 million. The plan is expected to generate annualized savings
of approximately $9 million, with a portion realized in fiscal 2028 and the full
benefit realized in subsequent fiscal years.
Fiscal 2027 Outlook
The Company is updating its prior outlook for revenue and earnings for fiscal
2027. Expectations for consolidated revenue growth are unchanged and include as
reported revenue growth of 7-8% and constant currency organic revenue growth of
6-7%. Adjusted earnings per diluted share are now anticipated to be in the range
of $11.35 to $11.55, an increase from prior expectations of $11.10 to $11.30.
The revised outlook includes the benefit of approximately $0.18 from tariff
refunds received year-to-date. All other elements of the most recently provided
outlook remain unchanged.
Segment Constant Currency Organic Revenue Growth
Current Outlook Prior Outlook
Healthcare 6-7% 6-7%
Applied Sterilization Technologies 6-7% 7-8%
Life Sciences 9-10% 6-7%
STERIS will provide revised fiscal 2027 outlook inclusive of the proposed Xodus
Medical acquisition after closing.
Conference Call
As previously announced, STERIS management will host a conference call tomorrow,
November 5, 2026, at 9:00 am 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 STERIS plc conference
call.
For those unable to listen to the conference call live, a replay will be
available beginning at noon ET on November 5, 2026, either at www.steris-ir.com
or via phone. To access the replay of the call, please use the access code
2589658 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 gross profit, 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, restructuring charges (credits), and certain other unusual or non-
recurring items. STERIS believes these measures are useful because they exclude
items that may not be indicative of or are unrelated to our core operating
results and provide 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 contains 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. These forward-looking statements are based on
management’s current expectations, estimates or forecasts about STERIS’s
businesses, the industries in which it operates and current beliefs and
assumptions of management and are subject to uncertainty and changes in
circumstances. Readers of this release should understand that these statements
are not guarantees of performance or results.
Many factors could cause actual results to differ materially from those in the
forward-looking statements including, without limitation, those set forth in
this release. No assurances can be provided as to any result or the timing of
any outcome regarding matters described in STERIS’s securities filings or
otherwise with respect to any regulatory action, administrative proceedings,
government investigations, litigation, warning letters, cost reductions,
business strategies, earnings or revenue trends or future financial results.
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, (c) the potential of international unrest, military conflicts,
economic downturns, currency fluctuations and cybersecurity events and any
resulting effects on STERIS’s anticipated growth, performance or other results,
(d) changes in healthcare policy or government or other 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, 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, (f) changes in tax laws or
interpretations or the adoption of certain income tax treaties in jurisdictions
where STERIS operates that could increase its 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 the impact of tariffs and/or
other trade barriers as a result of STERIS’s corporate structure, (g) the
impacts of increasing consolidation and competition within STERIS’s industry,
which may exert pressure on its pricing strategy, manufacturing strategy or lead
to decreasing demand for its products and services, (h) the effects on STERIS’s
operations resulting from labor-related issues, such as strikes, unsuccessful
union negotiations and other workforce disruptions or from its inability to
recruit or retain management and other personnel, (i) the level of STERIS’s
indebtedness limiting financial flexibility or increasing future borrowing
costs, (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, (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, (l) the
possibility that expectations about the benefits, charges and cash expenditures
from the new Center of Excellence in North Carolina and the related facility
consolidation plan may not be accurate or realized on anticipated timelines, or
at all, (m) the risk that regulatory approvals that are required to complete the
acquisition of Xodus Medical, Inc. (the “Acquisition”) may not be received, may
take longer than expected or may impose adverse conditions and STERIS’s ability
to complete the Acquisition on the expected timeline, or at all, (n) the risk
that the cost savings, tax benefits and other synergies expected from the
Acquisition may not be realized or may take longer to realize than expected,
including that the Acquisition may not be accretive or produce the expected cash
tax benefits within the expected timeframe or to the extent anticipated, and (o)
other risks described in STERIS’s most recent Annual Report on Form 10-K and
other reports filed with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on any forward-looking
statements included in this release, which speak only as of the date hereof.
STERIS undertakes no obligation to update or revise any forward-looking
statement, whether as a result of new information, future developments or
otherwise, except as required by applicable law.
STER…
plc
Cons…
Cond…
Stat…
of
Oper… Three Six
(in Months Months
mill… Ended Ended
exce… Septe… Septe…
per 30, 30,
share 2026 2025 2026 2025
data) (Unau… (Unau… (Unau… (Una…
──────────────────────────────────────────────────────────────────────────────
Reve… $ 1,588… $ 1,460… $ 3,081… $ 2,851…
Cost
of 877.8 814.4 1,686… 1,577…
reve…
Gross 710.8 645.9 1,395… 1,273…
prof…
Oper…
expe…
Sell…
gene… 366.0 349.7 735.7 703.6
and
admi…
Rese…
and 31.5 28.2 60.2 54.6
deve…
Rest… 19.1 2.2 19.1 3.9
expe…
Total
oper… 416.6 380.1 814.9 762.1
expe…
Inco…
from 294.3 265.8 580.1 511.8
oper…
Non-…
expe…
net:
Inte… 11.2 14.9 26.9 30.7
expe…
Inte…
and -3.6 -2.4 -6.8 -4.1
misc…
inco…
Other
(inc… -1.3 0.2 -1.6 0.3
expe…
net
Total
non-… 6.2 12.7 18.5 26.8
expe…
net
Inco…
befo…
inco… 288.0 253.1 561.5 485.0
tax
expe…
Inco…
tax 73.9 60.6 146.4 114.5
expe…
Net $ 214.1 $ 192.5 $ 415.1 $ 370.4
inco…
Less:
Net
inco…
attr… 0.4 0.6 1.3 1.3
to
nonc…
inte…
Net
inco…
attr… $ 213.7 $ 191.9 $ 413.8 $ 369.2
to
shar…
Earn…
per
ordi…
share
(EPS)
Basic $ 2.20 $ 1.95 $ 4.25 $ 3.75
Dilu… $ 2.19 $ 1.94 $ 4.23 $ 3.74
Cash
divi…
decl…
per $ 0.69 $ 0.63 $ 1.32 $ 1.20
ordi…
share
outs…
Weig…
aver…
numb…
of
shar…
outs…
used
in
EPS
comp…
Basic
numb…
of 97.3 98.4 97.5 98.4
shar…
outs…
Dilu…
numb…
of 97.6 98.8 97.7 98.8
shar…
outs…
STERIS plc
Consolidated Condensed
Balance Sheets
(in millions) September 30,
Assets 2026 March 31,
Current assets: (Unaudited) 2026
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 531.1 $ 439.6
Accounts receivable, net 1,005.2 1,092.8
Inventories, net 737.0 631.8
Prepaid expenses and other
current 205.9 230.4
assets
Total current assets 2,479.2 2,394.6
Property, plant, and 2,187.6 2,161.2
equipment, net
Lease right-of-use assets, 156.0 155.2
net
Goodwill 4,178.8 4,194.8
Intangibles, net 1,497.0 1,620.0
Other assets 215.0 211.4
Total assets $ 10,713.6 $ 10,737.2
Liabilities and equity
Current liabilities:
Accounts payable $ 334.2 $ 338.8
Short-term indebtedness 243.1 118.9
Other current liabilities 630.5 687.4
Total current liabilities 1,207.8 1,145.0
Long-term indebtedness 1,650.3 1,812.8
Other liabilities 583.7 582.1
Total equity 7,271.7 7,197.2
Total liabilities and $ 10,713.6 $ 10,737.2
equity
STERIS plc
Segment Data
(in millions)
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,
certain services and facilities related to
distribution and research and development that are
shared by multiple segments, as well as the
benefit of refunds received on tariffs previously
paid under the International Emergency Economic
Powers Act.
Three Six
Months Months
Ended Ended
Septe… Septe…
30, 30,
2026 2025 2026 2025
Reve… (Unau… (Unau… (Unau… (Una…
──────────────────────────────────────────────────────────────────────────────
Heal… $ 1,122… $ 1,033… $ 2,170… $ 2,008…
AST 295.6 281.5 593.2 562.7
Life 170.6 145.0 317.4 280.2
Scie…
Total $ 1,588… $ 1,460… $ 3,081… $ 2,851…
reve…
Inco…
(los…
from
oper…
befo…
adju…
Heal… $ 269.2 $ 259.5 $ 529.4 $ 495.0
AST 132.1 127.6 275.1 264.4
Life 75.8 59.9 137.5 118.6
Scie…
Corp… -86.7 -109.9 -196.8 -224.0
Total
inco…
from $ 390.5 $ 337.1 $ 745.2 $ 653.9
oper…
befo…
adju…
Less:
Adju…
Amor…
of
acqu… $ 65.0 $ 67.2 $ 130.3 $ 134.3
inta…
asse…
Acqu…
and
inte… 4.0 1.3 5.5 1.8
rela…
char…
Tax
rest… 0.4 0.3 0.7 0.5
costs
Amor…
of
inve…
and
prop… 1.4 1.3 3.2 2.7
"step
up"
to
fair
value
Rest… 25.5 1.2 25.5 2.9
char…
Inco…
from $ 294.3 $ 265.8 $ 580.1 $ 511.8
oper…
STERIS plc
Consolidated
Condensed Statements
of Cash Flows Six Months Ended
(in millions) September 30,
Operating 2026 2025
activities: (Unaudited) (Unaudited)
──────────────────────────────────────────────────────────────────────────────
Net income $ 415.1 $ 370.4
Non-cash items 286.6 287.7
Changes in operating
assets and -45.7 49.7
liabilities
Net cash provided by
operating 656.1 707.8
activities
Investing
activities:
Purchases of
property, plant, -163.6 -180.1
equipment,
and intangibles
Purchases of -5.0 -1.8
investments
Acquisition of
businesses, net of -16.0 -15.0
cash
acquired
Net cash used in -184.6 -196.8
investing activities
Financing
activities:
Payments on Private
Placement Senior — -125.0
Notes
Payments under
credit facilities, -37.8 -34.8
net
Acquisition related
deferred or -0.2 -0.2
contingent
consideration
Repurchases of -215.9 -111.1
ordinary shares
Cash dividends paid
to ordinary -128.4 -118.1
shareholders
Distributions to
noncontrolling -0.5 —
interest
holders
Stock option and
other equity 5.8 16.9
transactions, net
Net cash used in -377.0 -372.3
financing activities
Effect of exchange
rate changes on cash -2.9 8.7
and cash equivalents
Increase in cash and 91.5 147.5
cash equivalents
Cash and cash
equivalents at 439.6 171.7
beginning
of period
Cash and cash
equivalents at end $ 531.1 $ 319.2
of
period
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.
Six Months Ended
September 30,
Calculation of Free 2026 2025
Cash Flow: (Unaudited) (Unaudited)
──────────────────────────────────────────────────────────────────────────────
Cash flows from $ 656.1 $ 707.8
operating activities
Purchases of
property, plant, -163.6 -180.1
equipment,
and intangibles
Free Cash Flow $ 492.5 $ 527.7
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.
…
…
…
…
…
… …
… … C…
… … … … U… C…
… … … … G… O… O…
… … … … G… G… G…
… … … … … 2… 2… 2…
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ — $ … … % … % … %
… … — — … … % … % … %
… … — — … … % … % … %
$ … $ … $ … $ — $ … … % … % … %
…
…
…
…
…
… …
… … …
… … … … … …
… … … … … … …
… … … … … … …
… … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ — $ … 8… % 7… % 6… %
… … — — … 5… % 5… % 5… %
… … — — … 1… % 1… % 1… %
$ … $ … $ … $ — $ … 8… % 7… % 7… %
STERIS plc
Non-GAAP Financial Measures (Continued)
(in millions, except per share data)
…
…
…
…
…
…
… …
… … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … … … … … $ $ $ $
… … … …
… … … …
— — … …
… … … …
… … … …
… …
… …
$ … $ … … … … … $ $ $ $
(1) Includes the amortization of intangible asset basis differences arising from
the Company's equity method investment.
(2) The tax expense includes both the current and deferred income tax impact of
the adjustments.
…
…
…
…
…
…
… …
… … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … … … … … $ $ $ $
… … … …
… … … …
— — … …
… … … …
… … … …
… …
… …
$ … $ … … … … … $ $ $ $
(1) Includes the amortization of intangible asset basis differences arising from
the Company's equity method investment.
(2) The tax expense includes both the current and deferred income tax impact of
the adjustments.
STERIS plc
Non-GAAP Financial Measures (Continued)
(in millions, except per share data)
Twelve Months
FY 2027 Outlook Ended March 31, 2027
──────────────────────────────────────────────────────────────────────────────
(Outlook)*
Net income from continuing
operations $8.92 - $9.12
per diluted share
Amortization of acquired
intangible 2.07
assets and "step-up" to
fair value
Acquisition and integration
related 0.06
charges
Restructuring charges 0.28
Other unusual items 0.02
Adjusted net income from
continuing $11.35 - $11.55
operations per diluted
share
Cash flows from operating $1,250.0
activities
Purchases of property,
plant, equipment, -450.0
and intangibles
Free Cash Flow $800.0
* All amounts are
estimates.
STE…
plc
Una…
Sup…
Fin…
Data
Sec…
Qua…
Fis…
2027
For
the
Per…
End…
Sep…
30,
2026
and
2025 Total
(in Comp… FY FY FY FY
mil… Reve… 2027 Q2 2026 Q2 2027 YTD 2026 YTD
──────────────────────────────────────────────────────────────────────────────
Con… $ 496.3 $ 452… $ 970… $ 886…
Ser… 771.7 714… 1,5… 1,4…
Tot… $ 1,26… $ 1,1… $ 2,4… $ 2,3…
Rec…
Cap… 320.6 293… 583… 549…
Equ…
Tot… $ 1,58… $ 1,4… $ 3,0… $ 2,8…
Rev…
Ire… $ 26.0 $ 27.3 $ 55.0 $ 49.8
Rev…
Ire…
Rev…
as a 2 % 2 % 2 % 2 %
% of
Tot…
Uni…
Sta… $ 1,17… $ 1,0… $ 2,2… $ 2,1…
Rev…
Uni…
Sta…
Rev… 74 % 74 % 74 % 74 %
as a
% of
Tot…
Int… $ 388.2 $ 357… $ 761… $ 700…
Rev…
Int…
Rev…
as a 24 % 24 % 25 % 25 %
% of
Tot…
Seg… FY FY FY FY
Data 2027 2026 2027 2026
Q2 Q2 YTD YTD
Hea…
Rev…
Con… $ 411.8 $ 374… $ 803… $ 733…
Ser… 440.6 400… 866… 788…
Tot… $ 852.4 $ 774… $ 1,6… $ 1,5…
Rec…
Cap… 270.0 259… 500… 486…
Equ…
Tot…
Hea… $ 1,12… $ 1,0… $ 2,1… $ 2,0…
Rev…
Seg…
Ope… $ 269.2 $ 259… $ 529… $ 495…
Inc…
AST
Rev…
Ser… $ 293.9 $ 279… $ 590… $ 559…
Cap… 1.7 2.1 3.1 3.7
Equ…
Tot…
AST $ 295.6 $ 281… $ 593… $ 562…
Rev…
Seg…
Ope… $ 132.1 $ 127… $ 275… $ 264…
Inc…
Life
Sci…
Rev…
Con… $ 84.0 $ 77.2 $ 165… $ 152…
Ser… 37.7 35.8 71.7 69.1
Tot… $ 121.7 $ 113… $ 237… $ 221…
Rec…
Cap… 48.9 31.9 80.1 58.6
Equ…
Tot…
Life $ 170.6 145… $ 317… 280…
Sci…
Rev…
Seg…
Ope… $ 75.8 $ 59.9 $ 137… $ 118…
Inc…
Cor…
Ope… $ -86.7 $ -10… $ -19… $ -22…
Loss
Oth… FY FY FY FY
Data 2027 2026 2027 2026
Q2 Q2 YTD YTD
Hea… $ 455.5 $ 427…
Bac…
Life
Sci… 93.4 113…
Bac…
Tot… $ 548.9 $ 541…
Bac…
As
rep…
U.S.
GAAP 25.7 % 23.9 % 26.1 % 23.6 %
Inc…
Tax
Rate
Adj…
Inc… 25.3 % 24.5 % 25.6 % 24.0 %
Tax
Rate
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.
*The Company expects to discontinue disclosure of backlog beginning in
fiscal 2028, as backlog has become a less meaningful indicator of future
revenue trends across the business.