STERIS (STE) investor relations material

Executive summary

• Fiscal 2026 delivered record results with 9% revenue growth (7% constant currency organic), reaching $5.9 billion, and 10% adjusted EPS growth, despite tariff headwinds and inflationary pressures.

• All business segments achieved new milestones, with adjusted net income surpassing $1 billion.

• U.S. procedure volumes grew mid-single digits, supporting ongoing organic growth expectations for fiscal 2027.

• Board approved a new $1 billion share repurchase program.

Financial highlights

• Q4 as-reported revenue grew 7%, with constant currency organic revenue up 5% driven by volume and 230 basis points of price.

• Q4 gross margin was 44%, down 30 basis points year-over-year; EBIT margin was 24.2%, 60 basis points lower due to inflation and tariffs.

• Adjusted net income for fiscal 2026 reached $1.0 billion, up from $913.2 million in fiscal 2025.

• Free cash flow for fiscal 2026 was $982.9 million, up from $787.2 million in the prior year.

• Cash dividends declared per share increased to $2.46 for the year.

Outlook and guidance

• Fiscal 2027 as-reported revenue expected to grow 7%-8%; constant currency organic revenue growth projected at 6%-7%.

• Adjusted EPS for fiscal 2027 projected at $11.10–$11.30, a 9–11% increase over fiscal 2026.

• Free cash flow for fiscal 2027 expected to be approximately $850 million; CapEx planned at $375 million, including $60 million for a new manufacturing plant.

• Healthcare and Life Sciences segments forecasted to grow 6%-7% organically; AST segment expected to grow 7%-8%.