STERIS(STE)2025-02-07 21:32Financial Performance - Revenues increased 5.6% to 1,297.7 million for the same period in the prior year[160]. - Gross profit for the three months ended December 31, 2024, was 560.0 million in the prior year[180]. - Income from operations for the third quarter of fiscal 2025 was 226.5 million for the same period in fiscal 2024[162]. - Total revenues for the nine months ended December 31, 2024, were 3.72 billion in 2023[200]. - Operating income for the same period was reported at 574,877,000[226]. Cash Flow and Capital Management - Cash flows from operations were 718.5 million for the same period in fiscal 2024[163]. - Free cash flow for the first nine months of fiscal 2025 was 457.0 million in the same period of fiscal 2024[169]. - Total cash dividends paid to ordinary shareholders increased to 1.66 per share, in the first nine months of fiscal 2025, compared to 1.51 per share, in the same period of fiscal 2024[218]. - The company repaid 45.0 million in the same period of fiscal 2024[213]. Debt and Capital Structure - The debt-to-total capital ratio improved to 25.2% at December 31, 2024, down from 33.7% at March 31, 2024[164]. - Debt-to-total capital ratio improved to 25.2% at December 31, 2024, down from 34.0% at December 31, 2023[216]. Segment Performance - Service revenues rose by 10.4% to 976.0 million for the three months ended December 31, 2024, driven by a 13.5% increase in service revenues[201]. - AST segment revenues increased by 9.9% to 136.4 million for the three months ended December 31, 2024, impacted by a 30.7% decline in capital equipment revenues[204]. Expenses and Investments - Total operating expenses increased by 9.4% to 333.6 million for the same period in the prior year[182]. - Research and development expenses rose by 8.3% to 299.2 million for the first nine months of fiscal 2025, compared to 25.0 million due to a targeted restructuring plan, with benefits expected to materialize primarily in fiscal 2026 and beyond[184]. - Total pre-tax restructuring expenses recorded in fiscal 2025 related to the restructuring plan amounted to $33.1 million for the nine months ended December 31, 2024[185]. - The restructuring plan aims to achieve pre-tax savings, although the timeline and realization of benefits remain uncertain[235]. Legal and Regulatory Risks - The company is involved in various legal proceedings and claims, which may impact financial results but are not expected to have a material adverse effect on the consolidated financial position[231]. - The company anticipates potential risks from public health crises, market demand fluctuations, and regulatory changes that could affect operations and financial performance[234]. Currency and Commodity Risks - The company is subject to interest rate, currency, and commodity risks, with exposures not changing materially since March 31, 2024[237]. - The company held forward foreign currency contracts to hedge a portion of expected non-U.S. dollar-denominated earnings against the US dollar during the third quarter of fiscal 2025[238]. - The company entered into commodity swap contracts to buy 197.3 thousand pounds of nickel to hedge against price changes impacting raw materials[240]. Internal Controls and Compliance - The company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[241]. - There were no changes in internal control over financial reporting that materially affected or are likely to materially affect the company's internal control during the quarter ended December 31, 2024[242].