STERIS plc
STE
$263.28 0.87%
Exchange: NYSE | Sector: Healthcare | Industry: Medical Devices
Q3 2025
Published: Feb 7, 2025

Earnings Highlights

  • Revenue of $1.37B up 5.6% year-over-year
  • EPS of $1.75 increased by 23.2% from previous year
  • Gross margin of 44.5%
  • Net income of 173.53M
  • "Orders grew over 10% in the third quarter, which is reflected in the $435 million healthcare backlog. While order growth remains robust, shipments were delayed by customer project delays." - Dan Carestio
STE
STERIS plc

Executive Summary

STERIS delivered a solid QQ3 2025 performance anchored by broad-based organic growth across Healthcare and Applied Sterilization Technologies (AST), with Life Sciences still solid on consumables and services despite a divestiture drag. Total revenue of $1.3706 billion grew about 6% on a reported and constant-currency basis, underpinned by volume and price, while gross margins rose to 44.6% (+90 bps YoY). Operating income reached $245.3 million and diluted EPS from continuing operations was $2.32 on an adjusted basis, up 11% YoY. Management highlighted strong healthcare backlog ($435 million) and order growth (>10%) even as shipments were delayed by customer project timing. The company also indicated meaningful margin leverage from volume, pricing, and productivity across Healthcare and Life Sciences, with CECS divestiture contributing to a 390 bps margin uplift in Life Sciences. On the profitability and liquidity front, STE enjoys a robust balance sheet, with net debt of approximately $2.165 billion and debt-to-EBITDA around 1.5x, and generated $588 million of free cash flow in the first nine months, on track to roughly $700 million for the year. The outlook remains constructive but tilted by currency headwinds and EO-related litigation costs. The company reaffirmed a 2025 guidance path of ~6% revenue growth (as-reported) and ~6% constant-currency organic growth, with adjusted EPS guidance of $9.05-$9.15 and ~$700 million of free cash flow, implying continued deleveraging and earnings resilience even as foreign exchange and regulatory matters pose near-term headwinds.

Key Performance Indicators

Revenue
Increasing
1.37B
QoQ: 3.13% | YoY: 5.61%
Gross Profit
Increasing
610.33M
44.53% margin
QoQ: 5.45% | YoY: 8.98%
Operating Income
Increasing
245.29M
QoQ: 11.67% | YoY: 13.48%
Net Income
Increasing
173.53M
QoQ: 15.66% | YoY: 23.30%
EPS
Increasing
1.75
QoQ: 15.13% | YoY: 23.24%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2026 1,460.30 1.94 +9.9% View
Q1 2026 1,391.10 1.79 +8.7% View
Q4 2025 1,480.53 1.48 +4.3% View
Q3 2025 1,370.57 1.75 +5.6% View
Q2 2025 1,328.91 1.51 +7.3% View