The company achieved a total organic revenue growth of 6.2% at constant currency in fiscal 2025. The Healthcare segment saw 6.1% constant currency organic growth, and the AST segment delivered 9.1% constant currency organic growth, primarily from increased volume and pricing.

STERIS completed the sale of its Dental segment for $787.5 million and the Controlled Environment Certification Services (CECS) business for $41.9 million in fiscal 2025, generating a pre-tax gain of $19.3 million. Concurrently, the company made several tuck-in acquisitions totaling $54.1 million to expand Healthcare and AST offerings.

Management's outlook for fiscal 2026 and beyond emphasizes growing the business through internal product and service development, investing in greater capacity, and augmenting these methods with potential acquisitions of additional products and services.

In May 2024, management adopted a targeted restructuring plan, including a strategic shift in the Healthcare surgical business in Europe and facility consolidations, eliminating approximately 300 positions. This plan is expected to improve income from operations by approximately $25.0 million annually starting fiscal 2026.

The company recorded a $48.150 million expense in fiscal 2025 for a settlement related to Illinois EO litigation, aiming to resolve substantially all personal injury claims. This proactive measure addresses a significant legal challenge, though it impacted operating expenses.

The increase in cash flows from operations in fiscal 2025 was primarily driven by improved working capital, specifically higher collections on accounts receivable and better inventory management compared to the prior year.

The filing highlights ongoing geopolitical instability as a significant risk, with potential negative impacts including supply chain disruptions, rising inflation, foreign currency volatility, and reduced consumer/customer demand, which could materially affect business operations.

The company operates in highly regulated environments (FDA, EPA, OSHA, NRC) and faces evolving international regulations like CSRD. Non-compliance or delays in approvals could negatively impact revenues and profitability, requiring significant investments in compliance initiatives.

While STERIS did not experience material cyberattacks in fiscal 2025, the filing acknowledges the continuous and evolving nature of cybersecurity threats. Potential breaches could impact IT systems, data confidentiality, and lead to reputational harm or significant financial penalties, including GDPR fines up to 4% of global annual revenues.

STERIS operates in highly competitive and regulated markets, facing numerous large and small competitors across its Healthcare, AST, and Life Sciences segments. Competition is based on factors like brand, design, quality, safety, price, and service, with new infection prevention products continually entering the market.

The company believes its long-term competitive position is dependent on its success in discovering, developing, and marketing innovative, cost-effective products and services. Significant resources are devoted to R&D to maintain its global competitive standing.

Consolidations among healthcare and pharmaceutical customers, driven by cost reduction measures, are noted as a factor that could result in greater pricing pressures and potential loss of customers for STERIS.

STERIS applies Lean principles across manufacturing, service operations, and back-office functions through its Minimum Standard of Lean (MSoL) framework. These efforts aim to strengthen performance, agility, and value by streamlining workflows and reducing waste.

Favorable impacts from productivity (20 basis points) and material costs (30 basis points) contributed to the gross profit percentage increase in fiscal 2025. The restructuring plan is also designed to enhance profitability and improve efficiency through actions like product rationalizations and facility consolidations.

The company acknowledges that certain key materials, such as cobalt-60 and ethylene oxide (EO), have a limited number of suppliers, posing risks of supply shortages, unavailability, or increasing prices. STERIS is expanding accelerator-based technologies to mitigate cobalt-60 supply risk.

Research and development expenses increased by $4.0 million in fiscal 2025, reaching $107.648 million. These investments are concentrated on new product development, product improvements, and the development of new technological platform innovations, particularly in sterile processing and gastrointestinal endoscopy.

As of March 31, 2025, STERIS held 607 United States patents and 2,315 patents in other jurisdictions, alongside approximately 2,145 trademark registrations worldwide. This extensive IP portfolio is considered valuable in marketing products and maintaining a competitive edge.

Part of the company's new product development effort includes reducing the environmental impact of its offerings, such as reformulating chemistries to eliminate metals-based ingredients and creating ultra-concentrate chemistries that reduce packaging waste and delivery frequency.

Total debt decreased to $2,043.7 million at March 31, 2025, from $3,206.1 million at March 31, 2024. This substantial reduction was primarily achieved by utilizing proceeds from the sale of the Dental segment to pay off existing debt.

The company increased its cash dividends declared per ordinary share to $2.23 in fiscal 2025 from $2.03 in fiscal 2024, marking consecutive annual increases since 2005. Additionally, STERIS repurchased $200.0 million of ordinary shares in fiscal 2025, with $300.0 million remaining under authorization.

Capital expenditures amounted to $370.1 million in fiscal 2025, up from $360.3 million in fiscal 2024, reflecting ongoing investments in new and existing facilities, business expansion projects, and information technology enhancements, particularly in Healthcare and AST segments.

STERIS's Total Recordable Incident Rate (TRIR) was 1.11 and Lost-time Incident Rate (LTIR) was 0.38 in fiscal 2025, both significantly below the industry benchmarks of 2.50 and 1.25, respectively. This demonstrates effective HSE programs and a commitment to an incident-free workplace.

The company tracks Scope 1, 2, and 3 GHG emissions and participates in the Carbon Disclosure Project. Efforts include improving energy and water efficiency, reducing chemical use, and developing products like ultra-concentrate chemistries designed to lessen environmental impact.

STERIS has an Enterprise Risk Management (ERM) process with Board oversight for risk management, including ESG. A dedicated Corporate Responsibility function, supported by a Global Sustainability Steering Committee, actively develops and refines ESG strategies, ensuring ethical business practices and anti-corruption policies.

The bulk of STERIS's revenues are driven by healthcare, medical device, and pharmaceutical customers. Growth is supported by the aging global population, increased demand for medical procedures like endoscopies, and customers' desire for more efficient operations.

While supply chain and labor costs moderated in fiscal 2025, the company notes that changes to trade policy, including potential tariffs, may drive new inflation risks. Adverse economic cycles and geopolitical instability are identified as factors that could impact financial results.

The company highlights the complexity of the global regulatory environment, including new data privacy regulations like GDPR and the European Commission’s CSRD. Compliance with these evolving regulations can be costly and may impact growth, though application dates for CSRD have been delayed.