STERIS reported a solid fourth quarter of fiscal 2025, delivering 4% year-over-year revenue growth (4% reported, 6% constant currency organic growth) and meaningful margin expansion driven by volume, price/m mix, and productivity. The quarter featured a double-digit lift in net income per share on a continuing-operations basis (EPS $2.74, up 40% YoY) aided by deleveraging and the divestiture of the Dental segment. For the full year, STE posted 6% revenue growth and 12% earnings growth, underpinned by recurring consumables/services strength in Healthcare and robust Life Sciences consumables, with Healthcare capital equipment facing a tougher year but remaining supported by a healthy order backlog.
Looking into fiscal 2026, management guides 6-7% revenue growth from continuing operations with a similar cadence in constant currency organic growth and an estimated $30 million tariff impact embedded in guidance. Margin resilience is expected to persist, with an approximate 20 basis point uplift in EBIT margins at the high end of the guidance if tariff offsets are achieved. The company also signaled ongoing capital allocation discipline, including potential M&A if the right opportunity arises, while maintaining a strong balance sheet (net debt close to zero, EBITDA around 1.4x at Q4). The combination of high-velocity consumables, expanding service capabilities, and a backlog-rich capital equipment cycle positions STERIS to sustain mid-single to low-double-digit earnings growth in 2026, albeit with tariff and macro headwinds to monitor.