Q2 2025 STERIS plc Earnings Call Transcript
Key Points
- Steris PLC (STE) reported a 7% growth in total as-reported revenue for the second quarter, maintaining momentum from the start of the fiscal year.
- Adjusted earnings per share from continuing operations increased by 15% over the previous year, reaching $2.14.
- The company successfully reduced its total debt, ending the quarter with $2.2 billion and a total debt to EBITDA ratio of approximately 1.5 times.
- Healthcare segment saw a 7% growth in constant currency organic revenue, driven by strong recurring revenue streams and market share gains.
- Life Sciences segment experienced a 3% growth in constant currency organic revenue, with strong growth in consumables contributing positively to margins.
- Gross margin for the quarter decreased by 50 basis points to 43.7%, impacted by labor inflation and productivity challenges.
- EBIT margin decreased by 30 basis points to 22.2% of revenue compared to the previous year.
- Healthcare capital equipment revenue declined by 2% due to the timing of shipments, with expectations for flat to slightly down revenue for fiscal 2025.
- AST segment faced margin pressures due to labor and energy costs, and a significant loss on a capital equipment order in the med-x business unit.
- The company no longer expects to achieve double-digit revenue growth in the AST segment by the end of the fiscal year, citing slower-than-expected bioprocessing demand recovery.
Good day, everybody, and welcome to the STERIS PLC second-quarter 2025 earnings call. (Operator Instructions) Please note, today's event is being recorded.
I would now like to turn the call over to Julie Winter, Investor Relations. Please go ahead.
Thank you, Eric, and good morning, everyone. As usual, speaking on today's call will be Mike Tokich, our Senior Vice President and CFO; and Dan Carestio, our President and CEO. I do have a few words of caution before we open for comments.
This webcast contains time-sensitive information that is accurate only as of today. Any redistribution, retransmission or rebroadcast of this call without the expressed written consent of STERIS is strictly prohibited. Some of the statements made during this review are or may be considered forward-looking statements.
Many important factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, those risk factors
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