Workflow
STERIS(STE) - 2025 Q3 - Quarterly Results
STESTERIS(STE)2025-02-05 21:33

Financial Performance - Total revenue from continuing operations for Q3 fiscal 2025 increased 6% to 1.4billioncomparedto1.4 billion compared to 1.3 billion in Q3 fiscal 2024[2] - Net income for Q3 fiscal 2025 was 173.6millionor173.6 million or 1.75 per diluted share, up from 148.4millionor148.4 million or 1.49 per diluted share in Q3 fiscal 2024[3] - Adjusted net income for Q3 fiscal 2025 was 229.1millionor229.1 million or 2.32 per diluted share, compared to 207.6millionor207.6 million or 2.09 per diluted share in the prior year[3] - Healthcare revenue grew 7% to 976.0million,drivenbya9976.0 million, driven by a 9% increase in consumable revenue and a 13% increase in service revenue[4] - Applied Sterilization Technologies (AST) revenue increased 10% to 258.1 million, with service revenue also growing by 10%[5] - Life Sciences revenue decreased 7% to 136.4million,primarilyduetothedivestitureoftheCECSbusinessandadeclineincapitalequipmentrevenue[6]−Fiscal2025revenueoutlookupdatedtoapproximately6136.4 million, primarily due to the divestiture of the CECS business and a decline in capital equipment revenue[6] - Fiscal 2025 revenue outlook updated to approximately 6% growth, down from previous expectations of 6.5% to 7.5%[9] - Adjusted earnings per diluted share for fiscal 2025 is anticipated to be in the range of 9.05 to 9.15,reflectingatencentnegativeimpactfromcurrency[9]CashFlowandAssets−Netcashprovidedbyoperationsforthefirstninemonthsoffiscal2025was9.15, reflecting a ten cent negative impact from currency[9] Cash Flow and Assets - Net cash provided by operations for the first nine months of fiscal 2025 was 887.3 million, compared to 718.5millioninthesameperiodoffiscal2024[7]−Freecashflowforthefirstninemonthsoffiscal2025was718.5 million in the same period of fiscal 2024[7] - Free cash flow for the first nine months of fiscal 2025 was 588.1 million, up from 457.0millionintheprioryear[7]−FreecashflowfortheninemonthsendedDecember31,2024,was457.0 million in the prior year[7] - Free cash flow for the nine months ended December 31, 2024, was 588,104, an increase of 28.7% from 457,013in2023[25]−Thecompanyreportedafreecashflowof457,013 in 2023[25] - The company reported a free cash flow of 700,000,000 for FY 2025[32] Revenue Breakdown - Revenues for the three months ended December 31, 2024, increased to 1,370,570,a5.61,370,570, a 5.6% rise from 1,297,724 in the same period of 2023[20] - The Healthcare segment generated revenues of 976,044forthethreemonthsendedDecember31,2024,up6.5976,044 for the three months ended December 31, 2024, up 6.5% from 916,227 in 2023[23] - Total revenue for the nine months ended December 31, 2024, was 3,978.984million,withaGAAPgrowthof7.03,978.984 million, with a GAAP growth of 7.0% and organic growth of 6.3%[29] - The total revenue for the Healthcare segment for the nine months ended December 31, 2024, was 2,821.495 million, reflecting an 8.3% growth[29] - The Life Sciences segment had a revenue decline of 4.4% for the nine months ended December 31, 2024, with total revenue of 392.805million[29]Profitability−GrossprofitfortheninemonthsendedDecember31,2024,reached392.805 million[29] Profitability - Gross profit for the nine months ended December 31, 2024, reached 1,761,553, up 7.7% from 1,635,258in2023[20]−Thecompanyreportedagrossprofitof1,635,258 in 2023[20] - The company reported a gross profit of 610.332 million for Q4 2024, compared to 560.026millioninQ42023[30]−Thecompany’sgrossprofitfortheninemonthsendedDecember31,2024,was560.026 million in Q4 2023[30] - The company’s gross profit for the nine months ended December 31, 2024, was 650,490,000, compared to 615,784,000in2023,reflectinga5.6615,784,000 in 2023, reflecting a 5.6% increase[31] Shareholder Returns - Net income attributable to shareholders for the nine months ended December 31, 2024, was 468,969, representing a 23.5% increase compared to 379,616in2023[20]−Earningspershare(EPS)forcontinuingoperationsincreasedto379,616 in 2023[20] - Earnings per share (EPS) for continuing operations increased to 1.76 for the three months ended December 31, 2024, compared to 1.50in2023,reflectinga17.31.50 in 2023, reflecting a 17.3% growth[20] - Adjusted diluted EPS for Q4 2024 was 2.32, up from 2.09inQ42023[30]−Adjustednetincomefromcontinuingoperationsperdilutedshareisprojectedtobebetween2.09 in Q4 2023[30] - Adjusted net income from continuing operations per diluted share is projected to be between 6.66 and 6.76forFY2025[32]−Adjustednetincomefromcontinuingoperationsperdilutedshareisexpectedtobebetween6.76 for FY 2025[32] - Adjusted net income from continuing operations per diluted share is expected to be between 9.05 and 9.15forFY2025[32]LiabilitiesandAssets−Totalcurrentassetsdecreasedto9.15 for FY 2025[32] Liabilities and Assets - Total current assets decreased to 1,897,853 as of December 31, 2024, down from 2,869,123asofMarch31,2024[21]−Totalliabilitiesdecreasedto2,869,123 as of March 31, 2024[21] - Total liabilities decreased to 3,579,816 as of December 31, 2024, compared to 3,817,249asofMarch31,2024[21]−Cashandcashequivalentsattheendoftheperiodwere3,817,249 as of March 31, 2024[21] - Cash and cash equivalents at the end of the period were 155,178, down from 207,020atthebeginningoftheperiod[24]BacklogandMarketPresence−Thetotalbacklogforcontinuingoperationswas207,020 at the beginning of the period[24] Backlog and Market Presence - The total backlog for continuing operations was 520,000,000, down from 534,433,000inthepreviousyear[33]−U.S.revenuesaccountedfor73534,433,000 in the previous year[33] - U.S. revenues accounted for 73% of total revenues, amounting to 1,002,586,000 in Q3 FY 2025, compared to 949,957,000inQ3FY2024[33]−TheinternationalrevenuesforQ3FY2025were949,957,000 in Q3 FY 2024[33] - The international revenues for Q3 FY 2025 were 343,867,000, slightly up from $328,166,000 in Q3 FY 2024, maintaining 25% of total revenues[33]