Q1 2025 STERIS plc Earnings Call Transcript
Key Points
- Steris PLC (STE) reported an 8% total revenue growth in the first quarter, with a 6% constant currency organic revenue growth driven by volume and price.
- Gross margin increased by 30 basis points to 45.1%, indicating improved profitability.
- Net income for the quarter was $201.7 million, with adjusted earnings per share increasing by 10% to $2.03.
- The company successfully reduced its total debt to $2.3 billion, achieving a debt to EBITDA ratio of approximately 1.6x.
- Steris PLC (STE) announced its 19th consecutive year of dividend increases, raising the quarterly dividend from $0.52 to $0.57 per share.
- EBIT margin decreased by 20 basis points to 22.3% of revenue, impacted by increased compensation and higher insurance costs.
- Healthcare capital equipment revenue declined in the quarter due to challenging comparisons, although low single-digit growth is still anticipated for the full fiscal year.
- The life sciences segment experienced a slowdown in demand for capital products due to decreased funding and cutbacks in general pharma and biopharma.
- Free cash flow for the first quarter was $195.7 million, impacted by the timing of capital spending.
- The adjusted effective tax rate was 21.3%, lower than the prior year due to favorable discrete item adjustments, which may not be sustainable.
Good morning and welcome to the STERIS first-quarter of 2025 earnings call. (Operator Instructions) Also, please be aware that today's call is being recorded.
I would like to now turn the call over to Julie Winter of Investor Relations. Please go ahead.
Thank you, Joe. 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 described in
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