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STERIS (STE) investor relations material
STERIS Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Second quarter revenue rose 10% year-over-year to $1.5 billion, with constant currency organic revenue up 9% driven by volume and pricing gains across all segments.
Adjusted earnings per diluted share increased 15% to $2.47, reflecting strong operational performance and margin expansion.
Free cash flow for the first half reached $527.7 million, supported by higher earnings and improved working capital.
Net income from continuing operations was $191.9 million for the quarter, up from $150.2 million year-over-year.
Income from operations increased to $265.8 million for the quarter, reflecting volume, pricing, and lower restructuring expenses.
Financial highlights
Gross margin increased to 44.3% for the quarter, up from 43.6% in the prior year, driven by positive price and productivity.
EBIT margin rose to 23.1% of revenue, mainly due to operating expense leverage.
Operating income for Q2 FY2026 was $265.8 million, up from $219.7 million in the prior year.
Effective tax rate for the quarter was 24.5%, up year-over-year due to discrete item adjustments and geographic mix.
Debt-to-total capital ratio decreased to 21.3% at quarter-end from 23.6% at the prior fiscal year-end.
Outlook and guidance
Fiscal 2026 as-reported revenue growth expected at 8%-9%, with constant currency organic revenue growth of 7%-8%.
Adjusted EPS guidance raised to $10.15-$10.30; EBIT margins expected to improve 10-20 basis points.
Free cash flow outlook increased to $850 million for fiscal 2026; CapEx guidance unchanged at $375 million.
Tariffs expected to reduce pre-tax profit by $45 million in FY2026.
Restructuring actions anticipated to improve operating income by approximately $25 million annually.
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