Core Viewpoint - STERIS plc reported better-than-expected first-quarter fiscal 2025 results, with adjusted earnings and revenues surpassing consensus estimates, driven by strong performance in the Healthcare segment and improvements in the AST segment [10][11]. Financial Performance - Adjusted EPS for the first quarter was $2.03, a 10.3% increase year-over-year, exceeding the Zacks Consensus Estimate by 2 cents [1] - GAAP EPS was $1.41, up 7.6% from $1.31 in the prior year [1] - Revenues from continuing operations reached $1.28 billion, an 8.5% year-over-year increase, surpassing the Zacks Consensus Estimate by 1.5% [2] Revenue Breakdown - Healthcare segment revenues rose 10% year-over-year to $901.2 million, with consumable revenues up 23% and service revenues up 14%, although capital equipment revenues declined by 10% [3] - AST segment revenues improved 7% to $249.8 million, driven by a 24% increase in capital equipment revenues and 7% growth in service revenues [4] - Life Sciences segment revenues decreased 2% to $128.5 million, impacted by the divestiture of the CECS business, despite a 13% growth in consumable revenues [5] Margins and Expenses - Gross profit was $572.4 million, an 8.2% increase year-over-year, with a gross margin of 44.7%, reflecting a slight expansion of 4 basis points [6] - Selling, general and administrative expenses rose 9.5% to $335.6 million, while research and development expenses increased 3.6% to $25.6 million [7] Cash Flow and Guidance - Cash and cash equivalents at the end of the first quarter were $198.3 million, down from $207 million at the end of fiscal 2024 [8] - Cumulative net cash flow from operating activities was $303.7 million, compared to $123.8 million in the prior year [8] - The company expects revenues to grow by 6.5-7.5% and adjusted EPS to be in the range of $9.05-$9.25 for fiscal 2025 [9]

Financial Data and Key Metrics Changes - Total revenue growth for the quarter was 8%, with constant currency organic revenue growth of 6% driven by volume and a 270 basis points price increase [4] - Gross margin increased by 30 basis points to 45.1%, while EBIT margin decreased by 20 basis points to 22.3% due to increased compensation and higher insurance costs [4][5] - Net income for the quarter was $201.7 million, and adjusted earnings per share increased by 10% to $2.03 [5] - Free cash flow for the quarter was $195.7 million, impacted by the timing of capital spending [5] Business Line Data and Key Metrics Changes - Healthcare constant currency organic revenue grew by 5%, driven by procedure volumes in the U.S. and market share gains [6] - Healthcare capital equipment revenue declined in the quarter but is expected to grow in the low single digits for the full fiscal year [6] - AST constant currency organic revenue grew by 8%, with strong performance in Europe MedTech [7] - Life Sciences constant currency organic revenue growth was 4%, driven by strong growth in consumables [7] Market Data and Key Metrics Changes - The company anticipates recurring revenue to continue growing above procedure volumes, independent of capital equipment shipments [6] - The divestiture of the CECS business impacted reported revenues, but the company remains confident in its growth outlook [7] Company Strategy and Development Direction - The company is reiterating its full-year outlook of 6% to 7% constant currency organic revenue growth and adjusted earnings per diluted share of $9.05 to $9.25 [8] - The focus remains on leveraging market share gains and enhancing service offerings to drive growth [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver on full-year guidance, citing positive trends across all segments [8] - The company is managing inflationary pressures, particularly in labor costs, and expects stability in staffing and turnover [15][17] Other Important Information - The company announced its 19th consecutive year of dividend increases, raising the quarterly dividend from $0.52 to $0.57 [5] - A $100 million restructuring plan was announced, primarily for the closure of a manufacturing facility, with benefits expected to materialize in fiscal year 2026 [33] Q&A Session Summary Question: How did the first quarter compare to internal expectations for Healthcare capital equipment? - Management indicated that results were in line with expectations, noting that Q1 is typically the slowest quarter for capital shipments [10] Question: What is driving the continued growth in services and consumables? - Management highlighted that most consumables are recurring in nature, driven by sustained growth in procedures, particularly in North America [11] Question: What are the expectations for operating margin expansion for FY 2025? - Management acknowledged increased compensation and insurance costs impacting margins but remains optimistic about achieving positive EBIT margin leverage for the full year [13] Question: What is the outlook for the Life Sciences business? - Management noted a slowdown in demand for capital products but emphasized strong growth in services and consumables, which are critical for income generation [17] Question: What are the assumptions for order growth this year? - Management expects mid-single-digit order growth and anticipates backlog to be around $350 million [27]

Steris (STE) reported $1.28 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 0.4%. EPS of $2.03 for the same period compares to $2.00 a year ago. The reported revenue represents a surprise of +1.47% over the Zacks Consensus Estimate of $1.26 billion. With the consensus EPS estimate being $2.01, the EPS surprise was +1.00%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expecta ...

Steris (STE) came out with quarterly earnings of $2.03 per share, beating the Zacks Consensus Estimate of $2.01 per share. This compares to earnings of $2 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 1%. A quarter ago, it was expected that this medical products maker would post earnings of $2.41 per share when it actually produced earnings of $2.41, delivering no surprise. Over the last four quarters, the company has surpas ...

Exhibit 99.1 STERIS Announces Financial Results for Fiscal 2025 First Quarter • Total revenue from continuing operations increased 8%; constant currency organic revenue grew 6% • As reported EPS from continuing operations increased to $1.41; adjusted EPS increased to $2.03 • Fiscal 2025 outlook reiterated DUBLIN, IRELAND - (August 6, 2024) - STERIS plc (NYSE: STE) ("STERIS" or the "Company") today announced financial results for its fiscal 2025 first quarter ended June 30, 2024. Total revenue from continuin ...

Total revenue from continuing operations increased 8%; constant currency organic revenue grew 6% As reported EPS from continuing operations increased to $1.41; adjusted EPS increased to $2.03 Fiscal 2025 outlook reiterated DUBLIN, IRELAND , Aug. 06, 2024 (GLOBE NEWSWIRE) -- STERIS plc (NYSE: STE) ("STERIS" or the "Company") today announced financial results for its fiscal 2025 first quarter ended June 30, 2024. Total revenue from continuing operations for the first quarter of fiscal 2025 increased 8% to $1. ...

Total revenue from continuing operations increased 8%; constant currency organic revenue grew 6% As reported EPS from continuing operations increased to $1.41; adjusted EPS increased to $2.03 Fiscal 2025 outlook reiterated DUBLIN, IRELAND , Aug. 06, 2024 (GLOBE NEWSWIRE) -- STERIS plc (NYSE: STE) ("STERIS" or the "Company") today announced financial results for its fiscal 2025 first quarter ended June 30, 2024. Total revenue from continuing operations for the first quarter of fiscal 2025 increased 8% to $1. ...

In its upcoming report, Steris (STE) is predicted by Wall Street analysts to post quarterly earnings of $2.03 per share, reflecting an increase of 1.5% compared to the same period last year. Revenues are forecasted to be $1.26 billion, representing a year-over-year decrease of 1.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Ahead of a c ...

DUBLIN, IRELAND, July 31, 2024 (GLOBE NEWSWIRE) -- STERIS plc (NYSE: STE) ("STERIS" or the "Company") announced today that the Company will distribute a quarterly interim dividend of $0.57 per share. This represents a $0.05 increase in the dividend and the Company's 19th consecutive year of dividend growth. The dividend is payable on September 20, 2024, to shareholders of record at the close of business on September 5, 2024. Additional information about the U.S. tax treatment of dividends, including require ...

DUBLIN, IRELAND, July 31, 2024 (GLOBE NEWSWIRE) -- STERIS plc (NYSE: STE) ("STERIS" or the "Company") announced today that the Company will distribute a quarterly interim dividend of $0.57 per share. This represents a $0.05 increase in the dividend and the Company's 19th consecutive year of dividend growth. The dividend is payable on September 20, 2024, to shareholders of record at the close of business on September 5, 2024. Additional information about the U.S. tax treatment of dividends, including require ...