Mason Etoch

Mason Etoch followed up on Life Sciences capital equipment, asking about current market conditions and how customer conversations are evolving regarding U.S. onshoring and capacity expansions. He also sought an update on STERIS's tariff mitigation efforts and the potential to offset increased costs in FY2027.

Answer

Daniel Carestio, President and CEO, explained that STERIS benefits from manufacturing location shifts, especially in aseptic manufacturing, and sees a positive macro environment for Life Sciences. Karen Burton, CFO, outlined tariff mitigation efforts including product movement shifts, supplier negotiations, alternative suppliers, and productivity improvements. Julie Winter, Head of Investor Relations, clarified that the $10 million tariff increase is primarily due to metals and a mix shift towards capital equipment sales.

Mason Etoch followed up on Life Sciences capital equipment, asking about current market conditions and the impact of U.S. onshoring and capacity expansions on customer conversations. He also sought an update on STERIS's mitigation efforts for the increased tariff-related costs and the potential to offset these in FY2027.

Answer

Daniel Carestio, President and CEO, stated that STERIS benefits from manufacturing location shifts, particularly U.S. onshoring, as new aseptic manufacturing capacity is built. He noted a generally positive macro environment for pharma spending. Karen Burton, CFO, outlined tariff mitigation efforts including product movement shifts, supplier negotiations, alternative suppliers, and broader cost reductions. Julie Winter, Head of Investor Relations, clarified that the $10 million tariff increase is primarily due to higher capital equipment sales driving an uptick in metals exposure.