Steris Plc

Strong Revenue Growth and Performance: STERIS reported a 6% increase in total revenue for Q3 2025, driven by a combination of volume growth and a 240 basis point price increase. Adjusted earnings per diluted share rose by 11% YOY to $2.32.

Healthcare Segment Outlook: The healthcare segment saw a constant currency organic revenue growth of 7%, primarily driven by strong recurring revenue streams from consumables and services. Order growth in healthcare surpassed 10%, leading to a backlog of approximately $435 million. However, healthcare capital equipment revenue declined by 5% due to timing of shipments, which could be a concern moving forward.

Cost Management Challenges: Significant litigation expenses related to the ethylene oxide trial and increased healthcare benefit costs contributed over $10 million in additional expense YOY in Q3. Legal expenses are expected to continue impacting the bottom line, likely adding another $5 million in Q4, which may influence future profitability.