STERIS plc (NYSE:STE) Q2 2025 Results Conference Call November 7, 2024 9:00 AM ET

Company Participants

Julie Winter - Investor Relations
Mike Tokich - Senior Vice President & Chief Financial Officer
Dan Carestio - President & Chief Executive Officer

Conference Call Participants

Jacob Johnson - Stephens
Brett Fishbin - KeyBanc
Patrick Wood - Morgan Stanley
Michael Polark - Wolfe Research
Mike Matson - Needham & Company
Jason Bednar - Piper Sandler

Operator

Good day, everybody, and welcome to the STERIS plc Second Quarter 2025 Earnings Call. [Operator Instructions] Please note, today's event is being recorded. I would now like to turn the call over to Julie Winter, Investor Relations. Please go ahead.

Julie Winter

Thank you, Eric, and good morning, everyone. As usual, speaking on today's call will be Mike Tokich, our Senior Vice President and CFO; and Dan Carestio, our President and CEO. I do have a few words of caution before we open for comments.

This webcast contains time-sensitive information that is accurate only as of today. Any redistribution, retransmission or rebroadcast of this call without the expressed written consent of STERIS is strictly prohibited. Some of the statements made during this review are or may be considered forward-looking statements. Many important factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, those risk factors described in STERIS' securities filings. The company does not undertake to update or revise any forward-looking statements as a result of new information, or future events or developments. STERIS' SEC filings are available through the company and on our website.

In addition, on today's call, non-GAAP financial measures, including adjusted earnings per diluted share, adjusted operating income, constant currency organic revenue growth and free cash flow will be used. Additional information regarding these measures, including definitions, is available in our release as well as reconciliations between GAAP and non-GAAP financial measures. Non-GAAP financial measures are presented during this call with the intent of providing greater transparency to supplemental financial information used by management and the Board of Directors in their financial analysis and operational decision-making.

With those cautions, I will hand the call over to Mike.

Mike Tokich

Thank you, Julie, and good morning, everyone. It's once again my pleasure to be with you this morning to review the highlights of our second quarter performance from continuing operations. As you saw in the press release, we have continued the momentum from the start of the fiscal year. Total as-reported revenue grew 7% in the second quarter. Constant currency organic revenue also grew 7% in the quarter, driven by volume as well as 240 basis points of price. Gross margin for the quarter decreased 50 basis points compared with the prior year to 43.7%. Positive price and favorable material costs were offset by labor inflation and productivity.