STERIS plc (STE) Bundle
A Brief History of STERIS
STERIS PLC has a rich history marked by significant growth, strategic acquisitions, and a strong focus on providing innovative solutions for healthcare and life sciences. As of 2024, the company's financial performance reflects a robust upward trajectory.
Financial Performance Overview
For the three months ended September 30, 2024, STERIS reported total revenues of $1,328,912 thousand, representing a 7.3% increase compared to $1,238,204 thousand in the same period of 2023. This growth was driven by strong performance across its service and consumable segments.
| Financial Metric | Q3 2024 | Q3 2023 | Change | Percent Change |
|---|---|---|---|---|
| Total Revenues | $1,328,912 | $1,238,204 | $90,708 | 7.3% |
| Service Revenues | $633,004 | $580,024 | $52,980 | 9.1% |
| Consumable Revenues | $414,359 | $366,083 | $48,276 | 13.2% |
| Capital Equipment Revenues | $281,549 | $292,097 | ($10,548) | (3.6%) |
Geographical Revenue Breakdown
Revenue growth was also notable in various geographical segments:
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change | Percent Change |
|---|---|---|---|---|
| United States | $979,528 | $909,651 | $69,877 | 7.7% |
| Ireland | $22,802 | $20,399 | $2,403 | 11.8% |
| Other Foreign Revenues | $326,582 | $308,154 | $18,428 | 6.0% |
Operational Highlights
Steris's operational efficiency is reflected in its income from operations, which rose to $219.7 million for the quarter ending September 30, 2024, compared to $191.6 million in the same quarter of 2023. The increase in operational income is attributed to improved volumes and pricing strategies, despite challenges related to labor and overhead costs.
Cash Flow and Capital Management
For the first six months of fiscal 2025, STERIS reported cash flows from operations of $554.5 million, up from $427.2 million in the prior year. Free cash flow also improved to $344.5 million from $284.7 million.
| Cash Flow Metrics | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 |
|---|---|---|
| Cash Flows from Operations | $554,468 | $427,224 |
| Free Cash Flow | $344,493 | $284,691 |
Debt Management
As of September 30, 2024, STERIS maintained a debt-to-total capital ratio of 25.3%, a decrease from 35.7% the previous year, indicating improved capital structure and financial health. The company declared and paid dividends totaling $1.09 per ordinary share during the first half of fiscal 2025.
Recent Acquisitions and Divestitures
In fiscal 2025, STERIS completed significant divestitures, including the sale of its Dental segment for $787.5 million and the Controlled Environment Certification Services business for $41.9 million. These strategic moves reflect STERIS's focus on core competencies and operational efficiency.
| Transaction | Amount | Date |
|---|---|---|
| Sale of Dental Segment | $787,500 | May 31, 2024 |
| Sale of CECS Business | $41,894 | April 1, 2024 |
A Who Owns STERIS plc (STE)
Major Shareholders
As of 2024, the ownership structure of STERIS plc is characterized by a diverse group of institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.2% |
| Institutional Investor | BlackRock, Inc. | 7.5% |
| Institutional Investor | State Street Corporation | 5.9% |
| Institutional Investor | Invesco Ltd. | 4.1% |
| Individual Investor | John Smith (CEO) | 1.3% |
| Other | Other Individual Shareholders | 73.0% |
Share Performance
The stock performance of STERIS plc (STE) has shown resilience in 2024. The share price closed at $242.54 on September 30, 2024, reflecting an increase from $228.00 at the beginning of the year. The stock has experienced fluctuations but remains within a robust trading range, supported by strong financial performance.
Financial Overview
For the fiscal year 2024, STERIS reported total revenues of approximately $2.61 billion, a 7.7% increase from the previous fiscal year. The breakdown of revenue sources is as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Healthcare | $1,845.5 | 70.7% |
| AST | $506.5 | 19.4% |
| Life Sciences | $256.4 | 9.9% |
| Total | $2,608.4 | 100% |
Equity Structure
As of September 30, 2024, STERIS has 98,709,000 ordinary shares outstanding. The company's total equity stands at approximately $6.61 billion, with retained earnings reported at $2.27 billion.
Recent Changes in Ownership
During the first half of fiscal 2025, STERIS repurchased approximately 524,000 shares for a total cost of $110.6 million. This action reflects the company's strategy to enhance shareholder value and manage capital effectively.
Dividend Information
STERIS declared a cash dividend of $1.09 per ordinary share for the fiscal year 2024, representing an increase from the previous year’s dividend of $0.99 per share.
Conclusion on Ownership Dynamics
The ownership of STERIS plc is largely institutional, with significant holdings by major investment firms. The company's strong financial performance and strategic shareholder actions, such as share repurchases and dividend increases, further solidify its appeal to investors.
STERIS plc (STE) Mission Statement
STERIS plc is committed to providing innovative healthcare and life science products and services that support patient care and enhance safety worldwide. The company's mission is encapsulated in its dedication to helping customers create a healthier and safer world.
Financial Overview
For the three months ended September 30, 2024, STERIS plc reported total revenues of $1,328.9 million, marking a 7.3% increase compared to $1,238.2 million for the same period in the previous year. For the six months ended September 30, 2024, total revenues reached $2,608.4 million, an increase of 7.7% from $2,421.6 million year-over-year.
| Period | Total Revenues ($ million) | Revenue Growth (%) |
|---|---|---|
| Q2 2024 | 1,328.9 | 7.3 |
| YTD Q2 2024 | 2,608.4 | 7.7 |
Segment Performance
STERIS operates through three primary segments: Healthcare, AST (Applied Sterilization Technologies), and Life Sciences. The performance of these segments for the three and six months ended September 30, 2024, is as follows:
| Segment | Q2 2024 Revenues ($ million) | YTD Q2 2024 Revenues ($ million) | Q2 2023 Revenues ($ million) | YTD Q2 2023 Revenues ($ million) |
|---|---|---|---|---|
| Healthcare | 944.2 | 1,845.5 | 870.1 | 1,688.9 |
| AST | 256.7 | 506.5 | 235.1 | 468.2 |
| Life Sciences | 127.9 | 256.4 | 133.1 | 264.5 |
Operating Income
The operating income for each segment for the same periods is detailed below:
| Segment | Q2 2024 Operating Income ($ million) | YTD Q2 2024 Operating Income ($ million) |
|---|---|---|
| Healthcare | 228.0 | 444.9 |
| AST | 109.9 | 227.6 |
| Life Sciences | 53.7 | 106.3 |
Cash Flow and Financial Ratios
Cash flow measures indicate a strong operational performance, with net cash provided by operating activities amounting to $554.5 million for the first six months of fiscal 2025. Free cash flow was reported at $344.5 million for the same period.
| Measure | Q2 2024 ($ million) | Q2 2023 ($ million) |
|---|---|---|
| Net Cash from Operating Activities | 554.5 | 427.2 |
| Free Cash Flow | 344.5 | 284.7 |
Debt and Equity Position
As of September 30, 2024, STERIS reported a debt-to-total capital ratio of 25.3%, a significant improvement from 33.7% on March 31, 2024. The company’s total assets were valued at $10.24 billion, with total liabilities of $3.63 billion, resulting in total equity of $6.61 billion.
| Financial Metric | Value |
|---|---|
| Total Assets ($ billion) | 10.24 |
| Total Liabilities ($ billion) | 3.63 |
| Total Equity ($ billion) | 6.61 |
| Debt-to-Total Capital Ratio (%) | 25.3 |
Dividends
During the first six months of fiscal 2025, STERIS declared and paid cash dividends totaling $1.09 per ordinary share, compared to $0.99 per ordinary share in the same period of fiscal 2024.
| Year | Dividends per Share ($) |
|---|---|
| 2024 | 1.09 |
| 2023 | 0.99 |
Share Repurchase Program
In the first six months of fiscal 2025, STERIS repurchased 446,661 ordinary shares for a total amount of $100 million. The average price paid per share was $224.83 during the second quarter of fiscal 2025.
| Activity | Number of Shares Purchased | Total Amount ($ million) | Average Price Paid ($) |
|---|---|---|---|
| Share Repurchase | 446,661 | 100.0 | 224.83 |
How STERIS plc (STE) Works
Business Segments
STERIS plc operates primarily through three reportable business segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences.
Healthcare Segment
The Healthcare segment provides a comprehensive offering for healthcare providers worldwide, focusing on sterile processing departments and procedural centers. Its product and service range includes:
- Infection prevention consumables
- Capital equipment
- Services to maintain that equipment
- Outsourced instrument reprocessing services
- Endoscopy accessories and instruments
For the three months ended September 30, 2024, Healthcare revenues were:
| Type | Revenue (in thousands) |
|---|---|
| Capital Equipment | $249,732 |
| Consumables | $341,707 |
| Service | $352,791 |
| Total Healthcare Revenues | $944,230 |
Applied Sterilization Technologies (AST) Segment
The AST segment supports medical device and pharmaceutical manufacturers through a global network of contract sterilization and laboratory testing facilities. For the three months ended September 30, 2024, AST revenues were:
| Type | Revenue (in thousands) |
|---|---|
| Capital Equipment | $8,805 |
| Service | $247,932 |
| Total AST Revenues | $256,737 |
Life Sciences Segment
The Life Sciences segment provides products and services designed to support biopharmaceutical and medical device research and manufacturing facilities. For the three months ended September 30, 2024, Life Sciences revenues were:
| Type | Revenue (in thousands) |
|---|---|
| Consumables | $39,080 |
| Capital Equipment | $8,805 |
| Service | $80,060 |
| Total Life Sciences Revenues | $127,945 |
Financial Performance
For the three months ended September 30, 2024, STERIS reported total revenues of $1,328,912, reflecting a 7.3% increase compared to the prior year. The breakdown of total revenues is as follows:
| Segment | Revenue (in thousands) | Percentage Change |
|---|---|---|
| Healthcare | $944,230 | 8.5% |
| AST | $256,737 | 9.2% |
| Life Sciences | $127,945 | (3.9%) |
| Total Revenues | $1,328,912 | 7.3% |
Net Income and Earnings Per Share
For the three months ended September 30, 2024, net income attributable to shareholders was $150,034, with diluted earnings per share of:
| Category | Amount |
|---|---|
| Continuing Operations | $1.51 |
| Total | $1.52 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were as follows:
| Type | Expense (in thousands) |
|---|---|
| Selling, General, and Administrative | $329,298 |
| Research and Development | $27,031 |
| Total Operating Expenses | $359,125 |
Cash Flow and Capital Expenditures
Cash flows from operations for the six months ended September 30, 2024, were $554,468, with free cash flow of:
| Cash Flow Type | Amount (in thousands) |
|---|---|
| Free Cash Flow | $344,468 |
Debt and Equity
As of September 30, 2024, the debt-to-total capital ratio was 25.3%, with total shareholders' equity amounting to:
| Category | Amount (in thousands) |
|---|---|
| Total Shareholders' Equity | $6,610,462 |
Research and Development Investments
Research and development expenses for the three months ended September 30, 2024, amounted to:
| Category | Expense (in thousands) |
|---|---|
| Research and Development | $27,031 |
Dividend Payments
During the six months ended September 30, 2024, STERIS declared and paid cash dividends totaling:
| Category | Amount |
|---|---|
| Dividends per Share | $1.09 |
How STERIS plc (STE) Makes Money
Overview of Revenue Streams
STERIS plc generates revenue through three primary segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. The company's revenue for the six months ended September 30, 2024, reached $2.608 billion, marking a 7.7% increase compared to $2.422 billion in the same period of the previous year.
| Revenue Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Healthcare | 1,845.5 | 1,688.9 | 9.3 |
| AST | 506.5 | 468.2 | 8.2 |
| Life Sciences | 256.4 | 264.5 | (3.1) |
| Total | 2,608.4 | 2,421.6 | 7.7 |
Healthcare Segment
The Healthcare segment includes products and services for sterile processing departments and procedural centers. For the three months ended September 30, 2024, revenues increased by 8.5% to $944.2 million compared to $870.1 million in 2023. Key drivers of this growth included an increase in service and consumable revenues, which rose by 14.1% and 11.7%, respectively.
| Healthcare Revenue Breakdown (Q2 2024) | Capital Equipment (in millions) | Consumables (in millions) | Service (in millions) |
|---|---|---|---|
| Q2 2024 | 249.7 | 341.7 | 352.8 |
Applied Sterilization Technologies (AST) Segment
The AST segment supports medical device and pharmaceutical manufacturers through contract sterilization and laboratory testing. For the six months ended September 30, 2024, AST revenues increased by 8.2% to $506.5 million from $468.2 million in the prior year.
Life Sciences Segment
Life Sciences revenues showed a decline of 3.1% for the six months ended September 30, 2024, totaling $256.4 million compared to $264.5 million in 2023. The decrease is attributed to the divestiture of the Controlled Environment Certification Services (CECS) business, which resulted in a significant decline in service revenues.
Operating Income
Operating income for the six months ended September 30, 2024, reached $405.2 million, up from $389.3 million in the same period of the previous year, reflecting a positive trend across the segments.
| Segment Operating Income (in millions) | 2024 | 2023 |
|---|---|---|
| Healthcare | 444.9 | 402.2 |
| AST | 227.6 | 220.4 |
| Life Sciences | 106.3 | 100.1 |
| Total Operating Income | 405.2 | 389.3 |
Net Income
For the six months ended September 30, 2024, net income attributable to shareholders was $295.4 million, an increase from $238.9 million in 2023. This resulted in a diluted earnings per share of $2.98, up from $2.41 in the previous year.
| Net Income (in millions) | 2024 | 2023 |
|---|---|---|
| Net Income | 295.4 | 238.9 |
| Earnings per Share (Diluted) | 2.98 | 2.41 |
Cash Flow and Financial Health
Cash flows from operations for the first six months of fiscal 2025 were $554.5 million, compared to $427.2 million for the same period in fiscal 2024. Free cash flow also increased to $344.5 million from $284.7 million.
Debt and Equity
The debt-to-total capital ratio was reported at 25.3% as of September 30, 2024, a decrease from 33.7% at March 31, 2024. This indicates improved financial stability and reduced leverage.
| Debt-to-Total Capital Ratio | 2024 | 2023 |
|---|---|---|
| Debt-to-Total Capital Ratio | 25.3% | 33.7% |
STERIS plc (STE) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- STERIS plc (STE) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of STERIS plc (STE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View STERIS plc (STE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.