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Sep 30, 2024
STERIS Q2 2025 Earnings Report
Announced financial results for fiscal 2025 second quarter, showing revenue increase and reiterated fiscal 2025 outlook.
Key Takeaways
STERIS reported a 7% increase in total revenue from continuing operations, reaching $1.3 billion. The company reiterated its full year outlook for fiscal 2025, with adjusted EPS increasing to $2.14.
Total revenue from continuing operations increased 7%; constant currency organic revenue grew 7%.
As reported EPS from continuing operations increased to $1.51; adjusted EPS increased to $2.14.
Healthcare revenue grew 9% to $944.2 million, driven by improvements in consumable and service revenue.
Fiscal 2025 outlook reiterated, with expected revenue increase of 6.5-7.5% and adjusted EPS in the range of $9.05 to $9.25.
STERIS
STERIS
STERIS Revenue by Segment
Revenue by Segment
AST Revenue
CapyFin.comLife Sciences Revenue
CapyFin.com Forward Guidance
For fiscal 2025, the company expects as reported revenue to increase 6.5-7.5%. Constant currency organic revenue from continuing operations is anticipated to increase 6-7%. Adjusted earnings per diluted share from continuing operations is anticipated to be in the range of $9.05 to $9.25.
Positive Outlook
- As reported revenue to increase 6.5-7.5%.
- Currency is expected to be slightly favorable to revenue in fiscal 2025.
- Constant currency organic revenue from continuing operations is anticipated to increase 6-7%.
- Adjusted earnings per diluted share from continuing operations is anticipated to be in the range of $9.05 to $9.25.
- Free cash flow is expected to be approximately $700 million.
Challenges Ahead
- Capital expenditures are anticipated to be approximately $360 million.
- Effective tax rate of approximately 23% is assumed.
- Uncertainties related to tax treatments under the TCJA and the IRA.
- Potential for increased pressure on pricing or costs that leads to erosion of profit margins, including as a result of inflation.
- Possibility of reduced demand, or reductions in the rate of growth in demand, for STERIS’s products and services.
Revenue & Expenses
Visualization of income flow from segment revenue to net income