STERIS plc recently released its 10-Q report, providing a detailed insight into the company's financial condition and operational performance. STERIS operates through three segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. The Healthcare segment offers a wide range of products and services, including cleaning chemistries, sterility assurance products, and equipment used directly in surgical tables. The AST segment provides contract sterilization and testing services for medical device and pharmaceutical manufacturers, while the Life Sciences segment designs, manufactures, and sells consumable products and equipment installation services.
The Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in the 10-Q report provides an in-depth analysis of STERIS's financial condition and results of operations. It explains the factors affecting the company's business, earnings, costs, and the period-over-period changes in specific line items in the Consolidated Statements of Income. The report also introduces financial measures such as backlog, debt-to-total capital, and days sales outstanding, which are used to gauge the company's financial liquidity and performance.
The MD&A also highlights the company's revenues, which are presented as either Product revenues or Service revenues. The report outlines the definitions and applications of these terms, providing a detailed breakdown of the various revenue streams within the company.
The report also covers STERIS's recent acquisitions and divestitures. During the first nine months of fiscal 2025, the company completed several tuck-in acquisitions, expanding its product and service offerings in the Healthcare and AST segments. Additionally, the sale of the Controlled Environment Certification Services (CECS) business was completed, with net proceeds of $41.9 million and a pre-tax gain on the sale of $19.3 million in fiscal 2025.
In terms of financial performance, the report indicates a 5.6% increase in revenues to $1,370.6 million for the three months ended December 31, 2024, compared to the same period in the prior year. Revenues increased by 7.0% to $3,979.0 million for the nine months ended December 31, 2024, reflecting higher volume and pricing. The gross profit percentage for the third quarter of fiscal 2025 was 44.5%, reflecting favorable impacts from pricing, mix, and productivity. Income from operations for the third quarter of fiscal 2025 was $245.3 million, primarily due to increased volume and pricing.
The report also highlights the company's cash flows from operations, which amounted to $887.3 million for the first nine months of fiscal 2025, compared to $718.5 million for the same period in the prior year. Additionally, the debt-to-total capital ratio was 25.2% at December 31, 2024, reflecting the company's financial position.
As a result of these announcements, the company's shares have moved -1.0% on the market, and are now trading at a price of $223.23. If you want to know more, read the company's complete 10-Q report here.
