STERIS (STE) Q3 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 5, 2026 astatine 9:12 AM CST 21 min read

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Feb. 5, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Daniel A. Carestio

• Chief Financial Officer — Karen Burton

• Executive Vice President — Julie Winter

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Karen Burton: And I bash person a fewer words to caution earlier we unfastened for comments. This webcast contains time-sensitive accusation that is lone arsenic of today. Any redistribution, retransmission, oregon rebroadcast of this telephone without the explicit written consent of STERIS is strictly prohibited. Some of the statements made during this reappraisal whitethorn beryllium considered forward-looking statements. Many important factors could origin existent results to disagree materially from those successful the forward-looking statements, including, without limitation, those hazard factors described successful STERIS' securities filings. The institution does not undertake to update oregon revise immoderate forward-looking statements arsenic a effect of caller accusation oregon aboriginal events oregon developments. STERIS' SEC filings are disposable done the institution and connected our website.

In addition, connected today's call, non-GAAP fiscal measures, including adjusted net per diluted share, adjusted operating income, changeless currency integrated gross growth, and escaped currency travel volition beryllium used. Additional accusation regarding these measures, including definitions, is disposable successful our property merchandise arsenic good arsenic reconciliations betwixt GAAP and non-GAAP fiscal measures. Non-GAAP fiscal measures are presented during this telephone with the intent of providing greater transparency to supplemental fiscal accusation utilized by absorption and the committee of directors successful their fiscal investigation and operational decision-making. With those cautions, I volition manus the telephone implicit to Karen.

Julie Winter: Thank you, Julie, and bully morning, everyone. It is my pleasance to beryllium with you this greeting to reappraisal the highlights of our third-quarter show from continuing operations. For the 3rd quarter, full as-reported gross grew 9%. Constant currency integrated gross grew 8% successful the quarter, driven by measurement arsenic good arsenic 200 ground points of price. Gross borderline for the 4th declined 70 ground points compared with the anterior twelvemonth to 43.9%. Positive terms and productivity, chiefly driven by volume, were much than offset by accrued tariffs and inflation. EBIT borderline decreased 40 ground points to 22.9% of gross compared with past year, chiefly driven by the diminution successful gross margin, which was somewhat mitigated by operating disbursal discipline.