STERIS plc (Market cap: $23.66B) reported a strong performance for the fourth quarter of fiscal year 2025, surpassing earnings expectations. The company posted an earnings per share (EPS) of $2.74, exceeding the forecasted $2.60. Revenue met expectations at $1.48 billion, maintaining the company’s solid 6.24% year-over-year growth trajectory. Following the earnings announcement, STERIS shares rose by 5.9% in after-hours trading to $240.05, reflecting investor optimism about the company’s financial health and future prospects.
Key Takeaways
- STERIS posted an EPS of $2.74, surpassing expectations by $0.14.
- Revenue for Q4 2025 reached $1.48 billion, aligning with forecasts.
- The company’s stock increased by 5.9% following the earnings release.
- STERIS reported a record free cash flow of $787 million for fiscal 2025.
- Full year adjusted EPS was $9.22.
Company Performance
STERIS demonstrated robust financial performance in the fourth quarter of 2025, with a 4% increase in total reported revenue. The company’s focus on constant currency organic growth led to a 6% rise in this metric. STERIS’s commitment to maintaining strong margins was evident, with the gross margin improving by 170 basis points to 44.3% and the EBIT margin rising by 110 basis points to 24.8%.
Financial Highlights
- Revenue: $1.48 billion, a 4% increase year-over-year.
- Earnings per share: $2.74, up from the forecasted $2.60.
- Gross margin: 44.3%, an increase of 170 basis points.
- EBIT margin: 24.8%, an increase of 110 basis points.
- Free cash flow: Record $787 million for fiscal 2025.
- Total debt: $2 billion, with a gross debt to EBITDA ratio of 1.4x.
Earnings vs. Forecast
STERIS exceeded its EPS forecast by $0.14, delivering $2.74 against an expected $2.60. This 5.4% earnings surprise highlights the company’s operational efficiency and strategic execution. Revenue met expectations at $1.48 billion, indicating stable demand across its product lines.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.