STE · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

STERIS plc · 2026-11-05 · Importance 25 · Surprise 32

Gross profit percentage for the second quarter of fiscal 2027 increased to 44.7% from 44.2%, while six-month gross profit percentage increased to 45.3% from 44.7%. In the quarter, pricing added 130 basis points, tariff refunds added 130 basis points, and mix added 10 basis points; material costs reduced margin by 90 basis points and restructuring costs by 50 basis points. For the six months, pricing and tariff refunds added 110 and 80 basis points, respectively, while material costs, labor and overhead, and restructuring reduced margin by 50, 40, and 30 basis points, respectively.

Key facts

• STERIS gross profit percentage was 44.7% in the second quarter of fiscal 2027 versus 44.2% in the second quarter of fiscal 2026; pricing, tariff refunds and mix contributed 130, 130 and 10 basis points, partly offset by material costs (90), restructuring (50), adjustments and other charges (40), labor and overhead (20), energy (10), and acquisitions (10) basis points. source
• STERIS gross profit percentage was 45.3% for the first six months of fiscal 2027 versus 44.7% for the same period of fiscal 2026; pricing, tariff refunds, productivity and mix added 110, 80, 20 and 20 basis points, partly offset by material costs (50), adjustments and other charges (40), labor and overhead (40), restructuring (30), and acquisitions (10) basis points. source
• STERIS states that increased operating costs, pricing pressure including from inflation, customer loss, and business disruption could exceed expectations and erode profit margins. source