STERIS plc

Previous wording

As you read the MD&A, it may be helpful to refer to information in our consolidated financial statements contained herein, which present the results of our operations for the second quarter and first half of fiscal 2025 and fiscal 2024. It may also be helpful to refer to our Annual Report on Form 10-K for the year ended March 31, 2024, which was filed with the Securities and Exchange Commission ("SEC") on May 29, 2024, including information in Item 1, "Business," Part I, Item 1A, "Risk Factors," and Note 12 to our consolidated financial statements titled, "Commitments and Contingencies," and Part II, Item 1A, "Risk Factors" of this Quarterly Report, for a discussion of some of the matters that can adversely affect our business and results of operations.

Current wording

As you read the MD&A, it may be helpful to refer to information in our consolidated financial statements contained herein, which present the results of our operations for the third quarter and first nine months of fiscal 2025 and fiscal 2024. It may also be helpful to refer to our Annual Report on Form 10-K for the year ended March 31, 2024, which was filed with the Securities and Exchange Commission ("SEC") on May 29, 2024, including information in Item 1, "Business," Part I, Item 1A, "Risk Factors," and Note 12 to our consolidated financial statements titled, "Commitments and Contingencies," and Part II, Item 1A, "Risk Factors" of this Quarterly Report, for a discussion of some of the matters that can adversely affect our business and results of operations.

Previous wording

Acquisitions and Divestitures. During the firstsix months of fiscal 2025, we completed several tuck-in acquisitions, which continued to expand our product and service offerings in the Healthcare and AST segments. Total aggregate consideration was approximately$17.5 million.

Current wording

Acquisitions and Divestitures. During the first nine months of fiscal 2025, we completed several tuck-in acquisitions which continued to expand our product and service offerings in the Healthcare and AST segments. Total aggregate consideration was approximately$53.7 million.

Previous wording

Acquisition and integration expenses totaled$3.2 million and$5.5 million for the three and six months ended September 30, 2024, respectively. Acquisition and integration expenses totaled$15.8 million and$18.0 million for the three and six months ended September 30, 2023, respectively. The decrease in acquisition and integration expenses for the three and six months ended September 30, 2024 is primarily due to charges related to the acquisition of assets from BD and a fair value adjustment related to a building held for sale from a previous acquisition during fiscal 2024. Acquisition and integration expenses are reported in the Selling, general and administrative expenses line of our Consolidated Statements of Income and include, but are not limited to, investment banker, advisory, legal and other professional fees, and certain employee-related expenses.

Current wording

Acquisition and integration expenses totaled$3.8 million and$9.2 million for the three and nine months ended December 31, 2024, respectively. Acquisition and integration expenses totaled$6.3 million and$24.3 million for the three and nine months ended December 31, 2023, respectively. The decrease in acquisition and integration expenses for the three and nine months ended December 31, 2024 is primarily due to charges related to the acquisition of assets from BD and a fair value adjustment related to a building held for sale from a previous acquisition during fiscal 2024. Acquisition and integration expenses are reported in the Selling, general and administrative expenses line of our Consolidated Statements of Income and include, but are not limited to, investment banker, advisory, legal and other professional fees, and certain employee-related expenses.

Previous wording

On April 1, 2024, we completed the sale of the Controlled Environment Certification Services business. We recorded net proceeds of$41.9 million and recognized a pre-tax gain on the sale of$19.2 million in fiscal 2025. The business generated approximately$35.0 million in revenues in fiscal 2024.

Current wording

On April 1, 2024, we completed the sale of the Controlled Environment Certification Services ("CECS") business. We recorded net proceeds of$41.9 million and recognized a pre-tax gain on the sale of$19.3 million in fiscal 2025. The business generated approximately$35.0 million in revenues in fiscal 2024.

Previous wording

Highlights. Revenues increased 7.3% to $1,328.9 million for the three months ended September 30, 2024, as compared to $1,238.2 million for the same period in the prior year. Revenues increased 7.7% to $2,608.4 million for the six months ended September 30, 2024, as compared to $2,421.6 million for the same period in the prior year. The increases reflect higher volume, including the added volume from the acquisition of assets from BD in the Healthcare segment, and pricing.

Current wording

Highlights. Revenues increased 5.6% to $1,370.6 million for the three months ended December 31, 2024, as compared to $1,297.7 million for the same period in the prior year. Revenues increased 7.0% to $3,979.0 million for the nine months ended December 31, 2024, as compared to $3,719.3 million for the same period in the prior year. The increases reflect higher volume and pricing.

Previous wording

Gross profit percentage for the second quarter of fiscal 2025 was 43.6% compared to the gross profit percentage for the second quarter of fiscal 2024 of 44.1%. Gross profit percentage for the first six months of fiscal 2025 was 44.1% compared to the gross profit percentage for the first six months of fiscal 2024 of 44.4%. The decrease in gross profit percentage for the three and six periods reflects unfavorable impacts from labor and overhead costs, productivity, and adjustments and other charges that were partially offset by favorable impacts from pricing.

Current wording

Gross profit percentage for the third quarter of fiscal 2025 was 44.5% compared to the gross profit percentage for the third quarter of fiscal 2024 of 43.2%. The increase in gross profit percentage for the three month period reflects favorable impacts from pricing, mix, and productivity that were partially offset by unfavorable impacts from labor and overhead costs. Gross profit percentage for the first nine months of fiscal 2025 was 44.3% compared to the gross profit percentage for the first nine months of fiscal 2024 of 44.0%. The increase in gross profit percentage for the nine month period reflects favorable impacts from pricing, mix, and material costs that were partially offset by unfavorable impacts from labor and overhead costs.

Previous wording

Income from operations for the second quarter of fiscal 2025 was $219.7 million, compared to income from operations of $191.6 million for the second quarter of fiscal 2024. Income from operations for the first six months of fiscal 2025 was $405.2 million, compared to income from operations of $389.3 million for the first six months of fiscal 2024. The increase in income from operations for the three and six month periods is primarily due to increased volume, including added volume from the acquisition of assets from BD, and pricing, which was partially offset by increased labor costs.

Current wording

Income from operations for the third quarter of fiscal 2025 was $245.3 million, compared to income from operations of $226.5 million for the third quarter of fiscal 2024. Income from operations for the first nine months of fiscal 2025 was $650.5 million, compared to income from operations of $615.8 million for the first nine months of fiscal 2024. The increase in income from operations for the three and nine month periods is primarily due to increased volume and pricing, which was partially offset by increased labor costs and higher restructuring expenses.

Previous wording

Cash flows from operations were $554.5 million and free cash flow was $344.5 million for the first six months of fiscal 2025 compared to cash flows from operations of $427.2 million and free cash flow of $284.7 million for the first six months of fiscal 2024 (see the subsection below titled "Non-GAAP Financial Measures" for additional information and related reconciliation of cash flows from operations to free cash flow). The fiscal 2025 increase in cash flows from operations and free cash flow resulted from the increase in cash provided by working capital, primarily driven by higher collections on accounts receivable and improved inventory management when compared to the same prior year period.

Current wording

Cash flows from operations were $887.3 million and free cash flow was $588.1 million for the first nine months of fiscal 2025 compared to cash flows from operations of $718.5 million and free cash flow of $457.0 million for the first nine months of fiscal 2024 (see the subsection below titled "Non-GAAP Financial Measures" for additional information and related reconciliation of cash flows from operations to free cash flow). The fiscal 2025 increase in cash flows from operations and free cash flow resulted from the increase in cash provided by working capital, primarily driven by higher collections on accounts receivable and improved inventory management when compared to the same prior year period.

Previous wording

Our debt-to-total capital ratio was 25.3% at September 30, 2024 and 33.7% at March 31, 2024. During the first six months of fiscal 2025, we declared and paid cash dividends totaling $1.09 per ordinary share.

Current wording

Our debt-to-total capital ratio was 25.2% at December 31, 2024 and 33.7% at March 31, 2024. During the first nine months of fiscal 2025, we declared and paid cash dividends totaling $1.66 per ordinary share.

Previous wording

Additional information regarding our financial performance during the second quarter of fiscal 2025 is included in the subsection below titled “Results of Operations.”

Current wording

Additional information regarding our financial performance during the third quarter of fiscal 2025 is included in the subsection below titled “Results of Operations.”

Previous wording

The following table summarizes the calculation of our free cash flow for the six months ended September 30, 2024 and 2023:

Current wording

The following table summarizes the calculation of our free cash flow for the nine months ended December 31, 2024 and 2023:

Previous wording

In the following subsections, we discuss our earnings and the factors affecting them for the second quarter and first six months of fiscal 2025 compared to the same fiscal 2024 period. We begin with a general overview of our operating results and then separately discuss earnings for our operating segments.

Current wording

In the following subsections, we discuss our earnings and the factors affecting earnings for the third quarter and first nine months of fiscal 2025 compared to the same fiscal 2024 periods. We begin with a general overview of our operating results and then separately discuss earnings for our operating segments.

Previous wording

Revenues. The following tables compare our revenues for the three and six months ended September 30, 2024 to the revenues for the three and six months ended September 30, 2023:

Current wording

Revenues. The following tables compare our revenues for the three and nine months ended December 31, 2024 to the revenues for the three and nine months ended December 31, 2023:

Previous wording

Service revenues increased 9.1% for the three months ended September 30, 2024, as compared to the same period in the prior year, reflecting growth in the Healthcare and AST segments, which was partially offset by a decline in the Life Sciences segment caused by the divestiture of the Controlled Environment Certification Services ("CECS") business. Consumable revenues increased by 13.2% for the three months ended September 30, 2024, as compared to the same period in the prior year, reflecting growth in the Healthcare and Life Sciences segments. Capital equipment revenues decreased 3.6% for the three months ended September 30, 2024, as compared to the same period in the prior year, reflecting declines in the Life Sciences and Healthcare segments.

Current wording

Service revenues increased 10.4% for the three months ended December 31, 2024, as compared to the same period in the prior year, reflecting growth in the Healthcare and AST segments, which was partially offset by a decline in the Life Sciences segment, due to the divestiture of the CECS business. Consumable revenues increased by 9.6% for the three months ended December 31, 2024, as compared to the same period in the prior year, reflecting growth in the Healthcare and Life Sciences segments. Capital equipment revenues decreased 8.2% for the three months ended December 31, 2024, as compared to the same period in the prior year, reflecting declines in the Life Sciences and Healthcare segments.

Previous wording

United States revenues increased 7.7% to $979.5 million for the three months ended September 30, 2024, as compared to $909.7 million for the same period in the prior year, reflecting growth in service and consumable revenues, partially offset by a decline in capital equipment revenues.

Current wording

United States revenues increased 5.5% to $1,002.6 million for the three months ended December 31, 2024, as compared to $950.0 million for the same period in the prior year, reflecting growth in service and consumable revenues, partially offset by a decline in capital equipment revenues.

Previous wording

Revenues from other foreign locations increased 6.0% to $326.6 million for the three months ended September 30, 2024, as compared to $308.2 million for the same period in the prior year, reflecting growth in the Europe, Middle East & Africa ("EMEA"), Latin America, and Asia Pacific regions, partially offset by a decline in the Canadian region.

Current wording

Revenues from other foreign locations increased 4.8% to $343.9 million for the three months ended December 31, 2024, as compared to $328.2 million for the same period in the prior year, reflecting growth in the Europe, Middle East & Africa ("EMEA"), Asia Pacific, and Latin American regions, partially offset by a decline in Canada.

Previous wording

Revenues increased 7.7% to $2,608.4 million for the six months ended September 30, 2024, as compared to $2,421.6 million for the same period in the prior year. The increase reflects organic growth, primarily in the Healthcare segment, due to the benefits of higher volume, including the added volume from the acquisition of assets from BD, and pricing.

Current wording

Revenues increased 7.0% to $3,979.0 million for the nine months ended December 31, 2024, as compared to $3,719.3 million for the same period in the prior year. The increase reflects the benefits of higher volume, primarily in our Healthcare segment due to organic growth as well as the added volume from the acquisition of assets from BD, and pricing.

Previous wording

Service revenues increased 9.2% for the six months ended September 30, 2024, as compared to the same period in the prior year, reflecting growth in the Healthcare and AST segments, which was partially offset by a decline in the Life Sciences segment caused by the divestiture of the CECS business. Consumable revenues increased by 16.9% for the six months ended September 30, 2024, as compared to the same period in the prior year, reflecting growth in the Healthcare and Life Sciences segments. Capital equipment revenues decreased 6.8% for the six months ended September 30, 2024, as compared to the same period in the prior year, reflecting declines in the Healthcare and Life Sciences segments.

Current wording

Service revenues increased 9.6% for the nine months ended December 31, 2024, as compared to the same period in the prior year, reflecting growth in the Healthcare and AST segments, which was partially offset by a decline in the Life Sciences segment, due to the divestiture of the CECS business. Consumable revenues increased by 14.3% for the nine months ended December 31, 2024, as compared to the same period in the prior year, reflecting growth in the Healthcare and Life Sciences segments. Capital equipment revenues decreased 7.3% for the nine months ended December 31, 2024, as compared to the same period in the prior year, reflecting declines in the Healthcare and Life Sciences segments.

Previous wording

United States revenues increased 9.1% to $1,926.4 million for the six months ended September 30, 2024, as compared to $1,765.4 million for the same period in the prior year, reflecting growth in consumable and service revenues, partially offset by a decline in capital equipment revenues.

Current wording

United States revenues increased 7.9% to $2,929.0 million for the nine months ended December 31, 2024, as compared to $2,715.4 million for the same period in the prior year, reflecting growth in consumable and service revenues, partially offset by a decline in capital equipment revenues.

Previous wording

Revenues from other foreign locations increased 3.5% to $637.0 million for the six months ended September 30, 2024, as compared to $615.7 million for the same period in the prior year. The increase reflects growth within the EMEA, Latin America, and Asia Pacific regions, which was partially offset by declines in the Canadian region.

Current wording

Revenues from other foreign locations increased 3.9% to $980.9 million for the nine months ended December 31, 2024, as compared to $943.9 million for the same period in the prior year. The increase reflects growth within the EMEA, Latin America, and Asia Pacific regions, which was partially offset by declines in Canada.

Previous wording

Gross Profit. Our gross profit is affected by the volume, pricing, and mix of sales of our products and services, as well as the costs associated with the products and services that are sold. The following tables compare our gross profit for the three and six months ended September 30, 2024 to the three and six months ended September 30, 2023:

Current wording

Gross Profit. Our gross profit is affected by the volume, pricing, and mix of sales of our products and services, as well as the costs associated with the products and services that are sold. The following tables compare our gross profit for the three and nine months ended December 31, 2024 to the three and nine months ended December 31, 2023:

Previous wording

Gross profit percentage for thesecond quarter of fiscal 2025 was 43.6% compared to the gross profit percentage for thesecond quarter of fiscal 2024 of 44.1%. Unfavorable impacts from labor and overhead costs (160 basis points), productivity (60 basis points), and adjustments and other charges (50 basis points) were partially offset by favorable impacts from pricing (130 basis points), mix (40 basis points), material costs (30 basis points), and divestitures (20 basis points).

Current wording

Gross profit percentage for thethird quarter of fiscal 2025 was 44.5% compared to the gross profit percentage for thethird quarter of fiscal 2024 of 43.2%. Favorable impacts from pricing (130 basis points), mix (80 basis points), productivity (70 basis points), divestitures (20 basis points), and acquisitions (10 basis points), were partially offset by unfavorable impacts from labor and overhead costs (140 basis points), adjustments and other charges (30 basis points), and material costs (10 basis points).

Previous wording

Gross profit percentage for the first six months of fiscal 2025 was 44.1% compared to gross profit percentage for the first six months of fiscal of 2024 of 44.4%. Unfavorable impacts from labor and overhead costs (140 basis points), adjustments and other charges (60 basis points), productivity (40 basis points), and acquisitions (10 basis points) were partially offset by favorable impacts from pricing (140 basis points), material costs (50 basis points), divestitures (20 basis points), and mix (10 basis points).

Current wording

Gross profit percentage for the first nine months of fiscal 2025 was 44.3% compared to gross profit percentage for the first nine months of fiscal of 2024 of 44.0%. Favorable impacts from pricing (140 basis points), mix (30 basis points), material costs (30 basis points), and divestitures (20 basis points), were partially offset by unfavorable impacts from labor and overhead costs (140 basis points) and adjustments and other charges (50 basis points).

Previous wording

Operating Expenses. The following table compares our operating expenses for the three and six months ended September 30, 2024 to the three and six months ended September 30, 2023:

Current wording

Operating Expenses. The following table compares our operating expenses for the three and nine months ended December 31, 2024 to the three and nine months ended December 31, 2023:

Previous wording

Selling, General, and Administrative Expenses. Significant components of total selling, general, and administrative expenses (“SG&A”) are compensation and benefit costs, fees for professional services, travel and entertainment expenses, facility costs, and other general and administrative expenses. SG&A increased 0.3% and 4.7% in the three and six month periods ended September 30, 2024, respectively, compared to the same prior year periods. The fiscal 2025 increase is primarily attributable to increased compensation, including benefit costs, as well as increases in professional fees.

Current wording

Selling, General, and Administrative Expenses. Significant components of total selling, general, and administrative expenses (“SG&A”) are compensation and benefit costs, fees for professional services, travel and entertainment expenses, facility costs, and other general and administrative expenses. SG&A increased 8.8% and 6.1% in the three and nine month periods ended December 31, 2024, respectively, compared to the same prior year periods. The fiscal 2025 increase is primarily attributable to increased benefit costs, as well as legal costs associated with our ethylene oxide litigation. For more information regarding our ongoing litigation, refer to Note 10 to our consolidated financial statements titled, "Commitments and Contingencies."

Previous wording

Research and Development. Research and development expenses increased 2.9% and 3.2% in the three and six month periods ended September 30, 2024, respectively, compared to the same prior year periods. Research and development expenses are influenced by the number and timing of in-process projects and labor hours and other costs associated with these projects. Our research and development initiatives continue to emphasize new product development, product improvements, and the development of new technological platform innovations. During fiscal 2025, our investments in research and development have continued to be focused on, but were not limited to, enhancing capabilities of sterile processing combination technologies, procedural products and accessories, and devices and support accessories used in gastrointestinal endoscopy procedures.

Current wording

Research and Development. Research and development expenses increased 8.3% and 4.9% in the three and nine month periods ended December 31, 2024, respectively, compared to the same prior year periods. Research and development expenses are influenced by the number and timing of in-process projects and labor hours and other costs associated with these projects. Our research and development initiatives continue to emphasize new product development, product improvements, and the development of new technological platform innovations. During fiscal 2025, our investments in research and development have continued to be focused on, but were not limited to, enhancing capabilities of sterile processing combination technologies, procedural products and accessories, and devices and support accessories used in gastrointestinal endoscopy procedures.

Previous wording

The Restructuring Plan expenses incurred during the three and six months ended September 30, 2024 primarily related to actions taken within our Healthcare segment. Total pre-tax restructuring expense of $75.3 million has been recorded relating to the Restructuring Plan since inception, of which $20.7 million has been recorded in Cost of revenues. We expect to incur additional costs through the remainder of fiscal 2025 for severance and other compensation related costs and lease and other contract termination and other costs, of approximately $25.0 million.

Current wording

The Restructuring Plan expenses incurred during the three and nine months ended December 31, 2024 primarily related to actions taken within our Healthcare segment. Total pre-tax restructuring expense of $77.5 million has been recorded relating to the Restructuring Plan since inception, of which $20.7 million has been recorded in Cost of revenues. We expect to incur additional costs, primarily for lease and other contract termination and other costs, of approximately $20.0 million, predominantly through the remainder of fiscal 2025.

Previous wording

Non-Operating Expenses, Net. The following tables compare our net non-operating expenses for the three and six months ended September 30, 2024 and 2023:

Current wording

Non-Operating Expenses, Net. The following tables compare our net non-operating expenses for the three and nine months ended December 31, 2024 and 2023:

Previous wording

Interest expense decreased $17.3 million and $19.2 million during the second quarter and first six months of fiscal 2025, respectively, as compared to the prior year periods, primarily due to the lower principal amount of debt outstanding as well as lower interest rates on floating rate debt. For more information, refer to Note 7 to our consolidated financial statements titled, "Debt."

Current wording

Interest expense decreased $19.9 million and $39.1 million during the third quarter and first nine months of fiscal 2025, respectively, as compared to the prior year periods, primarily due to the lower principal amount of debt outstanding as well as lower interest rates on floating rate debt. For more information, refer to Note 7 to our consolidated financial statements titled, "Debt."

Previous wording

Interest and miscellaneous income decreased $0.1 million and $0.2 million during the second quarter and first six months of fiscal 2025, respectively.

Current wording

Interest and miscellaneous income increased $0.4 million and $0.2 million during the third quarter and first nine months of fiscal 2025, respectively.

Previous wording

Loss on sale of business and equity investment was $6.2 million during the second quarter of fiscal 2025 and relates to a loss recorded on an equity investment. Gain on sale of business and equity investment was $12.6 million for the first six months of fiscal 2025 and primarily relates to the sale of our CECS business, which was partially offset by a loss recorded on an equity investment. For more information on our equity investments, refer to Note 17 to our consolidated financial statements titled, "Fair Value Measurements." For more information on our divestiture activity, refer to Note 3 to our consolidated financial statements titled, "Business Acquisitions and Divestitures."

Current wording

Gain on sale of business and equity investment was $0.1 million during the third quarter of fiscal 2025. Gain on sale of business and equity investment was $12.7 million for the first nine months of fiscal 2025 and primarily relates to the sale of our CECS business, which was partially offset by a loss recorded on an equity investment. For more information on our equity investments, refer to Note 17 to our consolidated financial statements titled, "Fair Value Measurements." For more information on our divestiture activity, refer to Note 3 to our consolidated financial statements titled, "Business Acquisitions and Divestitures."

Previous wording

Income Taxes. The following tables compare our tax expense and effective income tax rates for the three and six months ended September 30, 2024 and 2023:

Current wording

Income Taxes. The following tables compare our tax expense and effective income tax rates for the three and nine months ended December 31, 2024 and 2023:

Previous wording

The effective income tax rates from continuing operations for the three month periods ended September 30, 2024 and 2023 were 22.3% and 22.5%, respectively. The effective income tax rates from continuing operations for the six month periods ended September 30, 2024 and 2023 were 21.3% and 22.1%, respectively. The fiscal 2025 effective tax rates decreased when compared to fiscal 2024, primarily due to changes in geographic mix of projected profits and an increase in favorable discrete items.

Current wording

The effective income tax rates from continuing operations for the three month periods ended December 31, 2024 and 2023 were 24.2% and 21.6%, respectively. The effective income tax rates from continuing operations for the nine month periods ended December 31, 2024 and 2023 were 22.4% and 21.9%, respectively. The fiscal 2025 effective tax rates increased when compared to fiscal 2024, primarily due to unfavorable discrete items recorded in fiscal 2025 and changes in geographic mix of projected profits.

Previous wording

For the three and six months ended September 30, 2024 and 2023, revenues from a single Customer did not represent ten percent or more of the Healthcare, AST or Life Sciences segment revenues.

Current wording

For the three and nine months ended December 31, 2024 and 2023, revenues from a single Customer did not represent ten percent or more of the Healthcare, AST or Life Sciences segment revenues.

Previous wording

The following tables compare business segment revenues as well as impacts from acquisitions, divestitures, and foreign currency movements for the three and six months ended September 30, 2024 and 2023.

Current wording

The following tables compare business segment revenues as well as impacts from acquisitions, divestitures, and foreign currency movements for the three and nine months ended December 31, 2024 and 2023.

Previous wording

Healthcare revenues increased 8.5% to $944.2 million for the three months ended September 30, 2024, as compared to $870.1 million for the same prior year period. This increase reflects growth in service and consumable revenues of 14.1% and 11.7%, respectively, which was partially offset by a decline in capital equipment revenues of 2.0%. The constant currency organic growth of 7.1% is primarily due to increased volume, impacting revenues by a mid-single digit percentage, as well as increased pricing. Healthcare revenues increased 9.3% to $1,845.5 million for the six months ended September 30, 2024, as compared to $1,688.9 million for the same prior year period. This increase reflects growth in consumable and service revenues of 16.8% and 14.2%, respectively, which was partially offset by a decline in capital equipment revenues of 5.8%. The constant currency organic growth of 6.2% is primarily due to increased volume, impacting revenues by a mid-single digit percentage, as well as increased pricing.

Current wording

Healthcare revenues increased 6.5% to $976.0 million for the three months ended December 31, 2024, as compared to $916.2 million for the same prior year period. This increase reflects growth in service and consumable revenues of 13.5% and 8.7%, respectively, which was partially offset by a decline in capital equipment revenues of 4.5%. The constant currency organic growth of 6.5% is primarily due to increased volume, impacting revenues by a mid-single digit percentage, as well as increased pricing. Healthcare revenues increased 8.3% to $2,821.5 million for the nine months ended December 31, 2024, as compared to $2,605.2 million for the same prior year period. This increase reflects growth in both service and consumable revenues of 13.9%, which was partially offset by a decline in capital equipment revenues of 5.4%. The constant currency organic growth of 6.3% is primarily due to increased volume, impacting revenues by a mid-single digit percentage, as well as increased pricing.

Previous wording

The Healthcare segment's backlog at September 30, 2024 was $405.3 million. The Healthcare segment's backlog at September 30, 2023 was $457.1 million. The decrease is due to shortened lead times in fiscal 2024 due to improving supply chains, which drove strong shipments throughout fiscal 2024.

Current wording

The Healthcare segment's backlog at December 31, 2024 was $434.9 million. The Healthcare segment's backlog at December 31, 2023 was $449.4 million. The decrease is due to shortened lead times.

Previous wording

AST revenues increased 9.2% to $256.7 million for the three months ended September 30, 2024, as compared to $235.1 million for the same prior year period. The constant currency organic growth of 8.7% is primarily due to increased pricing, impacting revenues by a mid-single digit percentage, as well as increased volume. AST revenues increased 8.2% to $506.5 million for the six months ended September 30, 2024, as compared to $468.2 million for the same prior year period. The constant currency organic growth of 8.2% is primarily due to increased pricing, impacting revenues by a mid-single digit percentage, as well as increased volume.

Current wording

AST revenues increased 9.9% to $258.1 million for the three months ended December 31, 2024, as compared to $234.9 million for the same prior year period. The constant currency organic growth of 9.5% is primarily due to increased pricing and volume, both impacting revenues by a mid-single digit percentage. AST revenues increased 8.8% to $764.7 million for the nine months ended December 31, 2024, as compared to $703.1 million for the same prior year period. The constant currency organic growth of 8.6% is primarily due to increased pricing, impacting revenues by a mid-single digit percentage, as well as increased volume.

Previous wording

Life Sciences revenues decreased 3.9% to $127.9 million for the three months ended September 30, 2024, as compared to $133.1 million for the same prior year period. This decrease is partially due to the sale of the CECS business, resulting in a decline of 14.2% in service revenues. This decrease also reflects declines in capital equipment revenues of 35.1%, which was partially offset by growth in consumable revenues of 21.4%. The constant currency organic growth of 3.0% is primarily due to increased pricing, impacting revenues by a low single digit percentage. Life Sciences revenues decreased 3.1% to $256.4 million for the six months ended September 30, 2024, as compared to $264.5 million for the same prior year period. This decrease is partially due to the sale of the CECS business, resulting in a decline of 15.6% in service revenues. This decrease also reflects declines in capital equipment revenues of 25.5% which was partially offset by growth in consumable revenues of 17.2%. The constant currency organic growth of 3.6% is primarily due to increased pricing, impacting revenues by a low single digit percentage.

Current wording

Life Sciences revenues decreased 6.9% to $136.4 million for the three months ended December 31, 2024, as compared to $146.6 million for the same prior year period. This decrease is partially due to the sale of the CECS business, which more than offset other services growth, resulting in a decline of 12.0% in service revenues. This decrease also reflects declines in capital equipment revenues of 30.7%, which was partially offset by growth in consumable revenues of 14.3%. The constant currency organic loss of 1.5% is primarily due to decreased volume, impacting revenues by a low single digit percentage. Life Sciences revenues decreased 4.4% to $392.8 million for the nine months ended December 31, 2024, as compared to $411.1 million for the same prior year period. This decrease is partially due to the sale of the CECS business, which more than offset other services growth, resulting in a decline of 14.3% in service revenues. This decrease also reflects declines in capital equipment revenues of 27.6% which was partially offset by growth in consumable revenues of 16.2%. The constant currency organic growth of 1.8% is primarily due to increased pricing, impacting revenues by a low single digit percentage.

Previous wording

The Life Sciences backlog at September 30, 2024 was $75.6 million. The Life Sciences backlog at September 30, 2023 was $91.1 million. The decrease is primarily due to softening demand.

Current wording

The Life Sciences backlog at December 31, 2024 was $85.1 million. The Life Sciences backlog at December 31, 2023 was $85.0 million.