STERIS plc

Good day, everybody, and welcome to the Staris PLC Second Quarter 2025 Earnings Call. All participants today will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star, then two. Please note, today's event is being recorded. I would now like to turn the call over to Julie Winter and Best Relations. Please go ahead.

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 Crestio, 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 express written consent of Staris 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 questions, I will hand the call over to Mike.

Thank you, Julie, and good morning, everyone. It is 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. Reflecting the decline in gross margin, EBIT margin decreased 30 basis points to 22.2% of revenue compared with last year. The adjusted effective tax rate in the quarter was 22.7%. Net income from continuing operations in the quarter was $212.2 million, and adjusted earnings per share from continuing operations were $2.14, a 15% increase over last year. Capital expenditures for the first half of fiscal 2025 totaled $210 million, and depreciation and amortization totaled $228 million. Capital expenditures were higher year over year, mainly due to timing. We continue to pay down debt during the quarter, ending with $2.2 billion in total debt. Total debt to EBITDA at quarter end was approximately 1.5 times gross leverage. Free cash flow for the first half of fiscal 2025 was $344.5 million, right at the halfway mark of our full-year guidance of approximately $700 million. With that, I will turn the call over to Dan for his remarks.