Steris PLC (NYSE:STE) stock rose 8.99% (As on May 15, 11:37:50 AM UTC-4, Source: Google Finance) after the company forecast annual profit above analysts’ estimate, banking on strength in its biggest segment that sells sterilization products. Adjusted net income for the fourth quarter of fiscal 2025 was $270.3 million compared with the previous year’s fourth quarter of $240.1 million. Healthcare revenue as reported grew 5% in the fourth quarter to $1.1 billion compared with $1.0 billion in the fourth quarter of fiscal 2024. This performance reflected 13% improvement in service revenue, 6% growth in consumable revenue, and a 4% decline in capital equipment revenue. Fiscal 2025 fourth quarter revenue for Applied Sterilization Technologies (AST) increased 9% as reported to $273.9 million compared with $250.9 million in the same period last year. This performance reflected 6% growth in service revenue and an increase in capital equipment revenue. Life Sciences fourth quarter revenue as reported decreased 7% to $149.5 million compared with $160.6 million in the fourth quarter of fiscal 2024, primarily due to the divestiture of the CECS business on April 1, 2024 and a decline in capital equipment revenue. This performance reflected 8% growth in consumable revenue offset by a 16% decline in capital equipment revenue and a 21% decline in service revenue.

Moreover, net cash provided by operations for fiscal 2025 was $1.15 billion, compared with $973.3 million in fiscal 2024. Free cash flow for fiscal 2025 was $787.2 million compared with $620.3 million in the prior year period.

STE in the first quarter of FY25 has reported the adjusted earnings per share of $2.74, beating the analysts’ estimates for the adjusted earnings per share of $2.59, according to data compiled by LSEG. The company had reported the adjusted revenue growth of 6 percent to $1.48 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $1.47.

Steris expects fiscal 2026 adjusted per-share profit to be between $9.90 and $10.15, while analysts expect $9.87. It posted an adjusted profit of $9.22 per share during fiscal 2025. The company said its forecast for the year includes the negative impact of tariffs, which are estimated to reduce its pre-tax profit by about $30 million. Capital expenditures are anticipated to be approximately $375 million and free cash flow is expected to be approximately $770 million.