STERIS (STE) Investor presentation summary

Business overview and strategy

• Operates a diversified, recurring revenue model focused on compliance in highly regulated healthcare and life sciences sectors.

• Serves healthcare providers, medical device, and aseptic pharma manufacturers, with a balanced revenue stream of ~$6 billion and 18,000 associates worldwide.

• Maintains a disciplined capital allocation strategy, targeting organic and M&A-driven growth, with conservative leverage.

• Mission centers on supporting patient care and infection prevention through innovative products and services.

Segment performance and growth drivers

• Healthcare segment (71% of revenue) targets hospitals and procedural centers, showing 11% CAGR and 24.6% operating margin, with mid- to high-single digit organic growth outlook.

• Applied Sterilization Technologies (AST, 19% of revenue) provides contract sterilization, with 8% CAGR, 46.1% margin, and high-single digit organic growth outlook.

• Life Sciences (10% of revenue) serves biopharma manufacturing, with 3% CAGR, 42.6% margin, and mid-single digit organic growth outlook.

• Approximately 80% of total revenue is recurring, supporting stability and long-term growth.

Financial performance and outlook

• Achieved $5.9B in revenue and $1.4B adjusted EBIT in FY26, with 14% and 15% five-year CAGRs, respectively.

• Constant currency organic revenue averaged 9% growth over five years; adjusted EPS reached $10.17 in FY26.

• Fiscal 2027 outlook projects 7-8% reported revenue growth, 6-7% constant currency organic growth, adjusted EPS of $11.10–$11.30, and $850M free cash flow.

• Long-term objectives include mid- to high-single digit organic revenue growth, double-digit adjusted EPS growth, and annual margin expansion of 50–75 bps.