STERIS plc (STE) Earnings Call Transcripts

STERIS plc's Latest Earnings Call - Q1 FY2027

In the first quarter of fiscal 2027, STERIS plc reported total revenue growth of 7%, with adjusted earnings per share (EPS) of $2.59, reflecting an 11% year-over-year increase. The company maintained its full-year revenue guidance of 7% to 8% growth and EPS guidance of $11.10 to $11.30, indicating a positive outlook despite increased capital expenditures related to a new $600 million manufacturing facility in North Carolina. Management highlighted strong performance in health care consumables and services, while signaling potential challenges in capital equipment revenue due to timing issues.

Reported metrics

Guidance from management

STERIS maintained its fiscal 2027 revenue growth guidance of 7% to 8% and EPS guidance of $11.10 to $11.30, indicating confidence in continued growth despite increased capital expenditures.

What management said

Yes. Thanks, Brett. This is Dan. Like you said, tough comps in the first half last year. We expect that to linger a bit -- but we get into easier comparisons as we started seeing destocking in Q3. We would assume we'd see acceleration at that point and the growth rates of AST. Nothing has changed in the fundamentals. But coming out of the gate last year at 13% in the first 6 months somewhat tamped down the growth rig...

Yes. You can see our backlog swell. So it really is just a timing issue. Orders were up 4%. We are making real traction in the market right now. I'm highly confident that for the fiscal year, we're going to show solid growth for our capital equipment business. And we're reaping the benefits of the last year and half of South capital sales as you look to the pull-through that we're getting in our consumables consumabl...

What analysts pressed on

Analysts expressed concerns regarding the timing of capital equipment orders and the impact of inventory destocking on future growth in the AST segment. There were also questions about the sustainability of growth in health care consumables amid potential hospital utilization rate challenges.

Main topics on the call

• Revenue Growth in Health Care — Health care segment revenue grew 6% in constant currency, driven by a 10% increase in services and a 9% increase in consumables. Management noted, "The strength of our portfolio continues to enable us to help our custome...
• Investment in New Facility — STERIS announced a $600 million investment to build a new formulated chemistry center in North Carolina, which is expected to enhance production capacity and innovation. This investment is described as "our largest inves...
• EBIT Margin Expansion — The EBIT margin improved to 23.8%, an increase of 100 basis points year-over-year, driven by gross margin improvements and operational discipline. Management stated, "The gross margin improvement coupled with favorable c...
• Free Cash Flow Decline — Free cash flow decreased to $279.6 million from $326.5 million in the prior year, primarily due to lower working capital contributions. This decline raises concerns about cash generation amid increased capital expenditur...

Read the full STERIS plc transcript (Q1 FY2027) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 35 STERIS plc earnings call transcripts on record, spanning February 11, 2020 to August 6, 2026. Based on this history, STERIS plc reports quarterly. The most recent call on file is dated August 6, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

STE

Exchange

NYSE

Country

US

Sector

Health Care

Industry

Health Care Equipment and Supplies

Calls on record

35

First call

February 11, 2020

Most recent

August 6, 2026

Reporting cadence

quarterly