STERIS plc

you may press star then 1 on your touchtone phone. And to withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Ms. Julie Winter. Please go ahead.

Thank you, Jack, and good morning, everyone. As usual, speaking on today's call will be Mike Tokich, our Senior Vice President and CFO, and Dan Cressio, our President and CEO. I do have a few words of caution before we open for comments. This webcast contains time-sensitive information and 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 Staris' 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. DERIS's 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.

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 third quarter performance from continuing operations. For the third quarter, total revenue as reported grew 6%, with constant currency organic revenue also growing 6% for the quarter, driven by volume as well as 240 basis points of price. Gross margin for the quarter increased 90 basis points compared with the prior year to 44.6%. Positive price and productivity offset labor inflation. EBIT margin decreased 10 basis points to 23.3% of revenue compared with last year's third quarter. Litigation expense associated with our ethylene oxide trial, which began in December, as well as increased healthcare benefit costs from higher utilization by employees of our healthcare benefits program accounted for over $10 million of additional expense year-over-year in the third quarter. The adjusted effective tax rate in the quarter was 24.5%. The year-over-year increase is attributable to unfavorable discrete items. Net income from continuing operations in the quarter was $229 million. Adjusted earnings per diluted share from continuing operations was $2.32, an 11% increase over last year. We are pleased with our ability to grow earnings double digits all year with the help of lower interest expense following the divestiture of the dental segment. Capital expenditures for the first nine months of fiscal 2025 totaled $299 million, and depreciation and amortization totaled $354 million. Capital expenditures were higher year over year, mainly due to timing. We continued 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 nine months of fiscal 2025 was $588 million, well on track to achieve our full-year guidance of approximately $700 million. With that, I'll turn the call over to Dan for his remarks.