STERIS Reports 6.2% Revenue Growth to $5.46 Billion for Fiscal Year 2025

STERIS plc reported a financial performance for the fiscal year ending March 31, 2025, with total revenues reaching $5.46 billion, marking a 6.2% increase from $5.14 billion in the previous fiscal year. The company's gross profit margin improved to 44.0%, up from 43.2% in fiscal 2024, driven by favorable pricing and productivity gains, despite rising labor and overhead costs. Operating income also saw a rise of 3.7%, totaling $866.6 million compared to $836.1 million in the prior year. The net income attributable to shareholders was $614.6 million, translating to earnings per share of $6.20, a significant increase from $3.81 in the previous year.

The company underwent significant strategic changes, including the divestiture of its Dental segment, which was completed on May 31, 2024, for $787.5 million. This divestiture was classified as discontinued operations, allowing STERIS to focus on its core segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. In fiscal 2025, STERIS also made several tuck-in acquisitions, including the purchase of surgical instrumentation assets from Becton, Dickinson and Company for $539.8 million, which was financed through existing credit facilities.

Operationally, STERIS reported a backlog of $452.9 million as of March 31, 2025, an increase from $425.2 million the previous year, indicating strong demand for its products and services. The Healthcare segment, which accounted for the majority of revenues, experienced a 7.4% increase in revenues, driven by growth in service and consumable revenues. The AST segment also reported an 8.9% revenue increase, while the Life Sciences segment saw a decline of 5.1%, primarily due to the divestiture of the Controlled Environment Certification Services business.

The company’s employee headcount averaged approximately 18,000 in fiscal 2025, reflecting a strategic focus on enhancing operational efficiency. STERIS continues to invest in research and development, with expenses rising to $107.6 million, aimed at advancing its product offerings and technological capabilities. Looking ahead, STERIS anticipates continued growth through internal product development and potential acquisitions, while managing costs and expanding its operational capacity. The company remains committed to delivering value to its shareholders, as evidenced by its consistent dividend payments and share repurchase program, which has $300 million remaining for future buybacks.