STERIS Q3 2025 Earnings Report
Key Takeaways
STERIS announced a 6% increase in total revenue to $1.4 billion for the third quarter of fiscal 2025. Net income increased to $173.6 million, or $1.75 per diluted share, while adjusted EPS rose to $2.32. The company updated its fiscal 2025 outlook, anticipating a revenue increase of approximately 6% and adjusted EPS in the range of $9.05 to $9.15.
Total revenue increased by 6% with constant currency organic revenue also growing by 6%.
As reported EPS increased to $1.75, and adjusted EPS increased to $2.32.
Healthcare revenue grew by 7% to $976.0 million, driven by improvements in consumable and service revenue.
The fiscal 2025 outlook was updated to reflect currency shifts and lower capital equipment revenue in the Healthcare segment.
STERIS
STERIS
STERIS Revenue by Segment
Forward Guidance
For fiscal year 2025, STERIS expects revenue to increase by approximately 6% and adjusted earnings per diluted share to be in the range of $9.05 to $9.15. Capital expenditures are anticipated to be approximately $360 million, with free cash flow expected to be approximately $700 million.
Positive Outlook
- Revenue is expected to increase approximately 6%.
- Constant currency organic revenue is anticipated to grow approximately 6%.
- Adjusted earnings per diluted share are projected to be in the range of $9.05 to $9.15.
- Free cash flow is expected to be approximately $700 million.
- The fiscal 2025 outlook assumes an effective tax rate of approximately 23%.
Challenges Ahead
- Currency is expected to be unfavorable to revenue in fiscal 2025.
- Revenue for capital equipment in the Healthcare segment is expected to be lower than anticipated.
- Adjusted earnings per diluted share are negatively impacted by approximately ten cents due to currency.
- Capital expenditures are anticipated to be approximately $360 million.
- The outlook does not reflect any potential impact from new tariffs.