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STERIS plc’s $600 Million Expansion — A $700 Million Chemistry Business Gets Bigger!

STERIS plc reported its financial and operational results for the first quarter of fiscal 2027, showing modest growth across its key segments amid a complex operating environment. The company achieved 7% as-reported revenue growth and 6% constant currency organic revenue growth, driven by both volume increases and pricing actions. Gross margin expanded by 70 basis points to 46%, supported by favorable pricing and productivity gains, though partially offset by inflationary pressures. EBIT margin rose by 100 basis points to 23.8% of revenue, aided by gross margin improvements, currency benefits, and cost discipline. Adjusted net income increased 11% year-over-year to $253.4 million, with earnings per diluted share reaching $2.59. However, the adjusted effective tax rate rose to 25.9% from 23.5%, reflecting unfavorable discrete items. Free cash flow declined to $279.6 million from $326.5 million principally due to reduced working capital contributions despite higher net income. Capital expenditures totaled $87.