# EDGAR Filing Document

**Accession Number:** 0001757898
**File Stem:** 0001628280-26-039136
**Filing Date:** 2026-5
**Character Count:** 500664
**Document Hash:** c36cbc6a150fe3dc1013b99bbada36d5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-039136.hdr.sgml**: 20260529

**ACCESSION NUMBER**: 0001628280-26-039136

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 131

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260529

**DATE AS OF CHANGE**: 20260529

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** STERIS plc
- **CENTRAL INDEX KEY:** 0001757898
- **STANDARD INDUSTRIAL CLASSIFICATION:** ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** L2
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38848
- **FILM NUMBER:** 261044222

**BUSINESS ADDRESS:**
- **STREET 1:** 70 SIR JOHN ROGERSON'S QUAY
- **CITY:** DUBLIN
- **STATE:** L2
- **ZIP:** 2
- **BUSINESS PHONE:** 35312322000

**MAIL ADDRESS:**
- **STREET 1:** 70 SIR JOHN ROGERSON'S QUAY
- **CITY:** DUBLIN
- **STATE:** L2
- **ZIP:** 2

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** STERIS Ltd
- **DATE OF NAME CHANGE:** 20181101

?xml version='1.0' encoding='ASCII'? ste-20260331

United States Securities and Exchange Commission

Washington, D. C. 20549

________________________________________________

FORM 10-K

**(Mark One)**

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended March 31, 2026** 

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Commission file number** 001-38848

**STERIS plc** 

(Exact name of registrant as specified in its charter)

---

| | | | |
|:---|:---|:---|:---|
| **Ireland** | **Ireland** | **Ireland** | **98-1455064**  |
| (State or other jurisdiction of<br>incorporation or organization) | (State or other jurisdiction of<br>incorporation or organization) | (State or other jurisdiction of<br>incorporation or organization) | (IRS Employer<br>Identification No.) |
| **70 Sir John Rogerson's Quay,** | **Dublin 2,** | **Ireland** | **D02 R296** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip code) |

---

353 1 232 2000

**(Registrant's telephone number, including area code)**

**SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:**

---

| | | |
|:---|:---|:---|
| Title of each class | Trading symbol(s) | Name of exchange on which registered |
| Ordinary Shares, $0.001 par value | STE | New York Stock Exchange |
| 2.700% Senior Notes due 2031 | STE/31 | New York Stock Exchange |
| 3.750% Senior Notes due 2051 | STE/51 | New York Stock Exchange |

---

**SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:** None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ⌧No □

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes □No ⌧

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ⌧&nbsp;&nbsp;&nbsp;&nbsp;No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ⌧ | Accelerated filer | ☐ |
| Non-accelerated filer  | □ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. □

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). &nbsp;&nbsp;&nbsp;&nbsp;Yes ☐ No ⌧

The aggregate market value of Ordinary Shares held by non-affiliates of the registrant as of September 30, 2025 was $24,222.3 million.

The number of Ordinary Shares outstanding as of May 27, 2026: 97,602,485

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Proxy Statement for the 2026 Annual Meeting – Part III

------

**Table of Contents**

---

| | | |
|:---|:---|:---|
|  |  | Page |
| Part I | Part I | Part I |
| Item 1 | <u>[Business](#i69eb2379839846d3ab4c1c1daf41db71_13)</u> | <u>[3](#i69eb2379839846d3ab4c1c1daf41db71_13)</u> |
| | <u>[Introduction](#i69eb2379839846d3ab4c1c1daf41db71_16)</u> | <u>[3](#i69eb2379839846d3ab4c1c1daf41db71_16)</u> |
| | <u>[Information Related to Business Segments](#i69eb2379839846d3ab4c1c1daf41db71_19)</u> | <u>[3](#i69eb2379839846d3ab4c1c1daf41db71_19)</u> |
| | <u>[Information with Respect to Our Business in General](#i69eb2379839846d3ab4c1c1daf41db71_22)</u> | <u>[4](#i69eb2379839846d3ab4c1c1daf41db71_22)</u> |
| Item 1A | <u>[Risk Factors](#i69eb2379839846d3ab4c1c1daf41db71_25)</u> | <u>[13](#i69eb2379839846d3ab4c1c1daf41db71_25)</u> |
| Item 1B | <u>[Unresolved Staff Comments](#i69eb2379839846d3ab4c1c1daf41db71_28)</u> | <u>[25](#i69eb2379839846d3ab4c1c1daf41db71_28)</u> |
| Item 1C | <u>[Cybersecurity](#i69eb2379839846d3ab4c1c1daf41db71_31)</u> | <u>[25](#i69eb2379839846d3ab4c1c1daf41db71_31)</u> |
| Item 2 | <u>[Properties](#i69eb2379839846d3ab4c1c1daf41db71_34)</u> | <u>[26](#i69eb2379839846d3ab4c1c1daf41db71_34)</u> |
| Item 3 | <u>[Legal Proceedings](#i69eb2379839846d3ab4c1c1daf41db71_37)</u> | <u>[27](#i69eb2379839846d3ab4c1c1daf41db71_37)</u> |
| Item 4 | <u>[Mine Safety Disclosures](#i69eb2379839846d3ab4c1c1daf41db71_40)</u> | <u>[27](#i69eb2379839846d3ab4c1c1daf41db71_40)</u> |
| Part II | Part II | Part II |
| Item 5 | <u>[Market for Registrant's Ordinary Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](#i69eb2379839846d3ab4c1c1daf41db71_46)</u> | <u>[28](#i69eb2379839846d3ab4c1c1daf41db71_46)</u> |
| Item 6 | <u>[Reserved](#i69eb2379839846d3ab4c1c1daf41db71_49)</u> | <u>[29](#i69eb2379839846d3ab4c1c1daf41db71_49)</u> |
| Item 7 | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operation](#i69eb2379839846d3ab4c1c1daf41db71_52)</u> | <u>[30](#i69eb2379839846d3ab4c1c1daf41db71_52)</u> |
| | <u>[Introduction](#i69eb2379839846d3ab4c1c1daf41db71_55)</u> | <u>[30](#i69eb2379839846d3ab4c1c1daf41db71_55)</u> |
| | <u>[Financial Measures](#i69eb2379839846d3ab4c1c1daf41db71_58)</u> | <u>[30](#i69eb2379839846d3ab4c1c1daf41db71_58)</u> |
| | <u>[Revenues-Defined](#i69eb2379839846d3ab4c1c1daf41db71_61)</u> | <u>[31](#i69eb2379839846d3ab4c1c1daf41db71_61)</u> |
| | <u>[General Overview and Executive Summary](#i69eb2379839846d3ab4c1c1daf41db71_64)</u> | <u>[31](#i69eb2379839846d3ab4c1c1daf41db71_64)</u> |
| | <u>[Non-GAAP Financial Measures](#i69eb2379839846d3ab4c1c1daf41db71_67)</u> | <u>[33](#i69eb2379839846d3ab4c1c1daf41db71_67)</u> |
| | <u>[Results of Operations](#i69eb2379839846d3ab4c1c1daf41db71_70)</u> | <u>[33](#i69eb2379839846d3ab4c1c1daf41db71_70)</u> |
| | <u>[Liquidity and Capital Resources](#i69eb2379839846d3ab4c1c1daf41db71_73)</u> | <u>[39](#i69eb2379839846d3ab4c1c1daf41db71_73)</u> |
| | <u>[Capital Expenditures](#i69eb2379839846d3ab4c1c1daf41db71_76)</u> | <u>[42](#i69eb2379839846d3ab4c1c1daf41db71_76)</u> |
| | <u>[Material Future Cash Obligations and Commercial Commitments](#i69eb2379839846d3ab4c1c1daf41db71_79)</u> | <u>[42](#i69eb2379839846d3ab4c1c1daf41db71_79)</u> |
| | <u>[Supplemental Guarantor Financial Information](#i69eb2379839846d3ab4c1c1daf41db71_82)</u> | <u>[43](#i69eb2379839846d3ab4c1c1daf41db71_82)</u> |
| | <u>[Critical Accounting Estimates and Assumptions](#i69eb2379839846d3ab4c1c1daf41db71_85)</u> | <u>[45](#i69eb2379839846d3ab4c1c1daf41db71_85)</u> |
| | <u>[Forward-Looking Statements](#i69eb2379839846d3ab4c1c1daf41db71_88)</u> | <u>[49](#i69eb2379839846d3ab4c1c1daf41db71_88)</u> |
| Item 7A | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i69eb2379839846d3ab4c1c1daf41db71_91)</u> | <u>[50](#i69eb2379839846d3ab4c1c1daf41db71_91)</u> |
| | <u>[Interest Rate Risk](#i69eb2379839846d3ab4c1c1daf41db71_94)</u> | <u>[50](#i69eb2379839846d3ab4c1c1daf41db71_94)</u> |
| | <u>[Foreign Currency Risk](#i69eb2379839846d3ab4c1c1daf41db71_97)</u> | <u>[50](#i69eb2379839846d3ab4c1c1daf41db71_97)</u> |
| | <u>[Commodity Risk](#i69eb2379839846d3ab4c1c1daf41db71_100)</u> | <u>[50](#i69eb2379839846d3ab4c1c1daf41db71_100)</u> |
| Item 8 | <u>[Financial Statements and Supplementary Data](#i69eb2379839846d3ab4c1c1daf41db71_103)</u> | <u>[51](#i69eb2379839846d3ab4c1c1daf41db71_103)</u> |
| Item 9 | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#i69eb2379839846d3ab4c1c1daf41db71_214)</u> | <u>[102](#i69eb2379839846d3ab4c1c1daf41db71_214)</u> |
| Item 9A | <u>[Controls and Procedures](#i69eb2379839846d3ab4c1c1daf41db71_217)</u> | <u>[102](#i69eb2379839846d3ab4c1c1daf41db71_217)</u> |
| Item 9B | <u>[Other Information](#i69eb2379839846d3ab4c1c1daf41db71_220)</u> | <u>[104](#i69eb2379839846d3ab4c1c1daf41db71_220)</u> |
| Item 9C | <u>[Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](#i69eb2379839846d3ab4c1c1daf41db71_223)</u> | <u>[104](#i69eb2379839846d3ab4c1c1daf41db71_223)</u> |
| Part III | Part III | Part III |
| Item 10 | <u>[Directors, Executive Officers and Corporate Governance](#i69eb2379839846d3ab4c1c1daf41db71_229)</u> | <u>[105](#i69eb2379839846d3ab4c1c1daf41db71_229)</u> |
| Item 11 | <u>[Executive Compensation](#i69eb2379839846d3ab4c1c1daf41db71_232)</u> | <u>[105](#i69eb2379839846d3ab4c1c1daf41db71_232)</u> |
| Item 12 | <u>[Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#i69eb2379839846d3ab4c1c1daf41db71_235)</u> | <u>[105](#i69eb2379839846d3ab4c1c1daf41db71_235)</u> |
| Item 13 | <u>[Certain Relationships and Related Transactions, and Director Independence](#i69eb2379839846d3ab4c1c1daf41db71_238)</u> | <u>[105](#i69eb2379839846d3ab4c1c1daf41db71_238)</u> |
| Item 14 | <u>[Principal Accountant Fees and Services](#i69eb2379839846d3ab4c1c1daf41db71_241)</u> | <u>[105](#i69eb2379839846d3ab4c1c1daf41db71_241)</u> |
| Part IV | Part IV | Part IV |
| Item 15 | <u>[Exhibits and Financial Statement Schedule](#i69eb2379839846d3ab4c1c1daf41db71_247)</u> | <u>[106](#i69eb2379839846d3ab4c1c1daf41db71_247)</u> |
| Item 16 | <u>[Form 10-K Summary](#i69eb2379839846d3ab4c1c1daf41db71_250)</u>  | <u>[109](#i69eb2379839846d3ab4c1c1daf41db71_250)</u> |
| | <u>[Signatures](#i69eb2379839846d3ab4c1c1daf41db71_253)</u> | <u>[110](#i69eb2379839846d3ab4c1c1daf41db71_253)</u> |

---

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<u>[**Table of Contents**](#i69eb2379839846d3ab4c1c1daf41db71_7)</u>

PART I

Throughout this Annual Report, STERIS plc and its subsidiaries together are called "STERIS," "the Company," "we," "us," or "our," unless otherwise noted. References in this Annual Report to a particular "year," "fiscal," "fiscal year," or "year-end" mean our fiscal year, which ends on March 31. For example, fiscal year 2026 ended on March 31, 2026.

ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS

**INTRODUCTION** 

STERIS is a leading global provider of products and services that support patient care with an emphasis on infection prevention. WE HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science products and services around the globe. We offer our Customers a unique mix of innovative products and services. These include: consumable products, such as detergents, endoscopy accessories, barrier products, instruments and tools; services, including equipment installation and maintenance, microbial reduction of medical devices, instrument and scope repair, laboratory testing, and outsourced reprocessing; capital equipment, such as sterilizers, surgical tables, and automated endoscope reprocessors; and connectivity solutions such as operating room ("OR") integration.

We operate and report our financial information in three reportable business segments: Healthcare, Applied Sterilization Technologies ("AST"), and Life Sciences. Previously, we had four reportable business segments; however, as a result of the fiscal 2025 divestiture of our Dental segment, Dental is presented as discontinued operations. Historical information has been retrospectively adjusted to exclude discontinued operations for comparability, as required. For more information, refer to Note 4 to our consolidated financial statements titled, "Discontinued Operations." Non-allocated operating costs that support the entire Company and items not indicative of operating trends are excluded from segment operating income. We describe our business segments in the section that follows, titled "Information Related to Business Segments" and Note 13 to our consolidated financial statements titled, "Business Segment Information."

The bulk of our revenues are derived from healthcare, medical device and pharmaceutical Customers. Much of the growth in these industries is driven by the aging of the population throughout the world, as an increasing number of individuals are entering their prime healthcare consumption years, and is dependent upon advancement in healthcare delivery, acceptance of new technologies, government policies, and general economic conditions.

In addition, there is increased demand for medical procedures, including preventive screenings such as endoscopies and colonoscopies; and a desire by our Customers to operate more efficiently, all of which are driving increased demand for many of our products and services.

**INFORMATION RELATED TO BUSINESS SEGMENTS** 

Our chief operating decision maker is our President and Chief Executive Officer ("CEO"). The CEO is responsible for performance assessment and resource allocation. The CEO regularly receives discrete financial information about each reportable segment and uses this information to assess performance and allocate resources. The accounting policies of the reportable segments are the same as those described in Note 1 to our consolidated financial statements titled, "Nature of Operations and Summary of Significant Accounting Policies," of this Annual Report.

**HEALTHCARE SEGMENT**

**Description of Business.** Our Healthcare segment provides a comprehensive offering for healthcare providers worldwide, focused on sterile processing departments and procedural centers, such as operating rooms and endoscopy suites. Our products and services range from infection prevention consumables and capital equipment, as well as services to maintain that equipment, to the repair of re-usable procedural instruments, to outsourced instrument reprocessing services. In addition, our procedural products also include endoscopy accessories, instruments, and capital equipment infrastructure used primarily in operating rooms, ambulatory surgery centers, endoscopy suites, and other procedural areas.

**Products Offered.** Our products include cleaning chemistries and sterility assurance products, automated endoscope reprocessing systems and tracking products, endoscopy accessories, instruments, washers, sterilizers and other pieces of capital equipment essential to the operations of a sterile processing department and equipment used directly in the procedure rooms, including surgical tables, lights, equipment management services, and connectivity solutions.

**Services Offered.** Our Healthcare segment service employees install, maintain, upgrade, repair, and troubleshoot capital equipment throughout the world. We offer various preventive maintenance programs and repair services to support the effective operation of capital equipment over its lifetime. Our Healthcare segment also provides comprehensive instrument, devices, and endoscope repair and maintenance services (on-site or at one of our dedicated facilities), custom process improvement consulting and outsourced instrument sterile processing (on-site at the hospital and in off-site reprocessing centers).

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<u>[**Table of Contents**](#i69eb2379839846d3ab4c1c1daf41db71_7)</u>

**Customer Concentration.** Our Healthcare segment sells consumables, services and capital equipment to Customers in many countries throughout the world. For the year ended March 31, 2026, no Customer represented more than 10% of the Healthcare segment's total revenues.

**Competition.** We compete with a number of large companies that have significant product portfolios and global reach, as well as a number of small companies with very limited product offerings and operations in one or a limited number of countries. On a product basis, competitors include 3M, Baxter, Boston Scientific, Belimed, Ecolab, Fortive, Getinge, Karl Storz, Olympus, Ruhof, SteelCo, Stryker, Skytron and Wassenburg. On a service line basis, competitors include BBraun, Crothall, Olympus and Pentax.

**AST SEGMENT**

**Description of Business.** Our AST segment supports medical device and pharmaceutical manufacturers through a global network of contract sterilization and laboratory testing facilities, and integrated sterilization equipment and control systems. Our technology-neutral offering supports Customers every step of the way, from testing through sterilization.

**Services Offered.** We offer a wide range of sterilization modalities and an array of testing services that complement the manufacturing of single-use, sterile products. Our facilities are located in regions with a concentration of medical device and pharmaceutical manufacturing throughout the Americas, Europe, and Asia. Our technical professionals support Customers in all phases of product development, materials testing, and process validation. Our AST segment also provides service support to our global installed base of integrated sterilization equipment and control systems, including installation, preventive maintenance, updates, repairs, and troubleshooting.

**Products Offered.** We support Customers with process controls and monitoring systems, and integrated sterilization equipment, including accelerators, product handling, and automation.

**Customer Concentration.** Our AST segment's services are offered to Customers throughout the world. For the year ended March 31, 2026, no Customer represented more than 10% of the segment's revenues.

**Competition.** AST operates in a highly regulated industry and competes with Sterigenics, other smaller contract sterilization companies, other manufacturers of sterilization equipment and control systems, and manufacturers that sterilize products in-house.

**LIFE SCIENCES SEGMENT**

**Description of Business.** Our Life Sciences segment provides a comprehensive offering of products and services designed to support biopharmaceutical and medical device manufacturing facilities, in particular those focused on aseptic manufacturing. Our portfolio includes a full suite of consumable products, equipment maintenance, specialty services, and capital equipment.

**Products Offered.** Our products include pharmaceutical detergents, cleanroom disinfectants and sterilants, pharmaceutical grade and research sterilizers and washers, sterility assurance and maintenance products, vaporized hydrogen peroxide room decontamination systems and sterilizers, and high purity water and pure steam generators.

**Services Offered.** Our Life Sciences segment service employees install, maintain, upgrade, repair, and troubleshoot equipment throughout the world. We offer various preventive maintenance programs and repair services to support the effective operation of capital equipment over its lifetime.

**Customer Concentration.** Our Life Sciences segment sells consumables, services and capital equipment to Customers globally. For the year ended March 31, 2026, no Customer represented more than 10% of the Life Sciences segment's total revenues.

**Competition.** Our Life Sciences segment operates in highly regulated environments where the most intense competition results from technological innovations, product performance, convenience and ease of use, and overall cost-effectiveness. We compete for pharmaceutical Customers with a number of large companies that have significant product portfolios and global reach, as well as a number of small companies with very limited product offerings and operations in one or a limited number of countries. Competitors include Belimed, Contec, Ecolab, Fedegari, Getinge, and Stilmas.

**INFORMATION WITH RESPECT TO OUR BUSINESS IN GENERAL**

**Sources and Availability of Raw Materials.** We purchase raw materials, sub-assemblies, components, and other supplies needed in our operations from numerous suppliers in the United States and internationally. These raw materials and supplies are generally available from several suppliers and in sufficient quantities. We have long-term supply contracts for certain materials for which there are few suppliers, or those that are single-sourced in certain regions of the world, such as ethylene oxide ("EO") and radioisotope cobalt-60 ("cobalt-60"), which are necessary to our AST operations. In addition, we continue to expand our irradiation processing capacity with accelerator-based technologies, in order to help mitigate the potential cobalt-60 supply risk.

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<u>[**Table of Contents**](#i69eb2379839846d3ab4c1c1daf41db71_7)</u>

**Intellectual Property.** We protect our technology and products by, among other means, obtaining United States and foreign patents. There can be no assurance, however, that any patent will provide adequate protection for the technology, system, product, service, or process it covers. In addition, the process of obtaining and protecting patents can be long and expensive. We also rely upon trade secrets, technical know-how, and continuing technological innovation to develop and maintain our competitive position.

As of March 31, 2026, we held 606 United States patents and 2,402 patents in other jurisdictions and had 94 United States patent applications and 235 patent applications pending in other jurisdictions. Patents for individual products extend for varying periods according to the date of filing or grant and legal term of patents in various countries where a patent is obtained. The actual protection a patent provides varies from country to country and depends in part upon the type of patent, the scope of its coverage, and the availability of legal remedies in each country.

Our products are sold around the world under various brand names and trademarks. We consider our brand names and trademarks to be valuable in the marketing of our products. As of March 31, 2026, we had a total of approximately 2,079 trademark registrations worldwide.

**Quality Assurance.** We manufacture, assemble, and package products in several countries. Each of our production facilities is dedicated to particular processes and products. Our success depends upon Customer confidence in the quality of our production process and the integrity of the data that supports our product safety and effectiveness. We have implemented a harmonized, global Quality Management System to support the quality and integrity of scientific information and production processes.

We are subject to strict regulatory compliance and quality standards to ensure the safety and supply of our products and services. The STERIS quality system is scoped and designed to achieve quality from incoming materials through the design, development, manufacture, storage, handling and distribution of our products and delivery of services. To monitor compliance with these standards, internal and third-party assessments of our quality and regulatory systems are conducted. FDA and Regulatory Authorities worldwide periodically conduct inspections of our manufacturing and contract sterilization facilities to confirm compliance. In connection with an inspection, the FDA may initiate enforcement actions, e.g., warning letters, consent decrees, sanctions, injunctions, etc., beyond inspectional findings. In fiscal 2026, STERIS was not the subject of any FDA or Regulatory Authority enforcement actions. Additionally, STERIS had zero products listed in the FDA's MedWatch Safety Alerts for Human Medical Products database.

We have in place processes to monitor and support compliance with product and service regulations worldwide, including design controls, product changes, labeling and advertising, marketing materials, good manufacturing practices, and adverse event reporting requirements. We take prompt action whenever we are alerted to regulatory or field-safety issues with a STERIS product. Following immediate assessment, we take corrective action, including voluntary product recalls, when needed. We examine underlying issues and root cause and work to resolve these to avoid recurrence. STERIS had no Class I recalls in fiscal 2026, 2025 or 2024.

**Continuous Improvement.** Continuous improvement is fundamental to how we operate at STERIS. We apply Lean principles across manufacturing, service operations, back office, and support functions through our Improvement framework. Our Improvement framework establishes a consistent foundation for problem solving, standard work, and performance management while enabling local ownership, creativity, and innovation. We assess system maturity and opportunity for improvement across core dimensions—including culture, training and development, routine management and strategic alignment, 5S, value stream mapping, kaizen management, integration with new product development ("NPD"), and key performance indicators.

Our efforts are designed to deliver better outcomes for Customers, Shareholders, and Associates. By targeting key areas, we strengthen performance, agility, and value. In manufacturing and service operations, we apply flow and cellular production concepts and cross-train Associates to increase flexibility and throughput. We also assess opportunities to in-source, outsource, or adopt technology to drive value.

We extend these principles to back office and support functions where Improvement tools streamline workflows, reduce waste, and improve service delivery.

A dedicated Continuous Improvement team partners with the business to coach, build capability, and accelerate results. Through kaizen events, tiered daily management, and natural work team initiatives, we foster a culture where Associates are empowered to drive change. This mindset is supported at all levels of the Company, reinforcing alignment, engagement, and sustainable long-term performance.

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**Government Regulation.** Our business is subject to various degrees of governmental regulation in the countries in which we operate. In the United States, the Food and Drug Administration ("FDA"), the Environmental Protection Agency ("EPA"), the Occupational Safety and Health Administration ("OSHA"), the Nuclear Regulatory Commission ("NRC"), and other governmental authorities regulate the development, manufacture, sale, and distribution of our products and services. Our international operations are subject to a broad range of government regulations across multiple jurisdictions, including country-specific rules and regulations and U.S. regulations applicable to our international operations. Government regulations require detailed inspection of, and controls over, research and development, clinical investigations, product approvals and manufacturing, marketing and promotion, sampling, distribution, record-keeping, storage, and disposal practices.

Compliance with applicable regulations involves significant ongoing expense. Past, current or future regulations, their interpretation, or their application could have a material adverse impact on our operations. Also, additional governmental regulation may be passed that could prevent, delay, revoke, or result in the rejection of regulatory clearance of our products. We cannot predict the effect on our operations resulting from current or future governmental regulation or the interpretation or application of these regulations.

If we fail to comply with any applicable regulatory requirements, penalties could be imposed on us. For more information about the risks we face regarding regulatory requirements, see Part I, Item 1A of this Annual Report titled, "Risk Factors." We are subject to extensive regulatory requirements and must receive and maintain regulatory clearance or approval for many products and operations. Failure to receive or maintain, or delays in receiving, clearance or approvals may hurt our revenues, profitability, financial condition, or value.

In the past, we have received warning letters, paid civil penalties, conducted product recalls and field corrections, and been subject to other regulatory penalties. We believe that we are currently compliant in all material respects with applicable regulatory requirements. However, there can be no assurance that future or current regulatory, governmental, or private action will not have a material adverse effect on us or on our performance, results, or financial condition.

**Environmental Matters.** We are subject to various laws and governmental regulations concerning environmental matters and employee safety and health in Ireland, the United States and other countries. We have made, and continue to make, significant investments to comply with these laws and regulations. We cannot predict the future capital expenditures or operating costs required to comply with environmental laws and regulations. We believe that we are currently compliant with applicable environmental, health, and safety requirements in all material respects. However, there can be no assurance that future or current regulatory, governmental, or private action will not have a material adverse effect on our performance, results, or financial condition. Please refer to Note 12 to our consolidated financial statements titled, "Commitments and Contingencies" for further information.

In the future, if a loss contingency related to environmental matters, employee safety, health or conditional asset retirement obligations which is estimable and probable is significantly greater than the current recorded amount, we would record an additional liability for the obligation and it may result in a material impact on net income for the annual or interim period during which the liability is recorded. The investigation and remediation of environmental obligations generally occur over an extended period of time, and therefore we do not know if these events would have a material adverse effect on our financial condition, liquidity, or cash flow, nor can there be any assurance that such liabilities would not have a material adverse effect on our performance, results, or financial condition.

**Competition.** The markets in which we operate are highly competitive and generally highly regulated. Competition is intense in all of our business segments and includes many large and small competitors. Brand, design, quality, safety, ease of use, serviceability, price, product features, warranty, delivery, service, and technical support are important competitive factors to us. We expect to face continued competition in the future as new infection prevention, sterile processing, contamination control, gastrointestinal and surgical support products and services enter the market. We believe many organizations are working with a variety of technologies and sterilizing agents.

We believe that our long-term competitive position depends on our success in discovering, developing, and marketing innovative, cost-effective products and services. We devote significant resources to research and development efforts, and we believe STERIS is positioned as a global competitor in the search for technological innovations. In addition to research and development, we invest in quality control, Customer training programs, distribution systems, technical services, and other information services. In addition to organic opportunities, acquisitions are a key part of our long-term strategy for growth.

There can be no assurance that we will develop significant new products or services, or that the new products or services we provide or develop in the future will be more commercially successful than those provided or developed by our competitors. In addition, some of our existing or potential competitors may have greater resources than us. Therefore, a competitor may succeed in developing and commercializing products more rapidly than we do. Competition, as it relates to our business segments and product categories, is discussed in more detail in the section above titled, "Information Related to Business Segments."

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**Methods of Distribution.** Sales and service activities are supported by a staff of regionally based clinical specialists, system planners, corporate account managers, and in-house Customer service and field support departments. We also contract with distributors and dealers.

Customer training is important to our business. We provide a variety of courses at Customer locations, at our training and education centers, and over the internet. Our training programs help Customers understand the science, technology, and operation of our products and services. Many of our operator training programs are approved by professional certifying organizations and offer continuing education credits to eligible course participants.

**Seasonality.** Our financial results have, from time to time, exhibited seasonal patterns. In particular, capital equipment revenues within our Healthcare segment have historically been higher in the fourth quarter of our fiscal year. However, we cannot guarantee that these patterns will persist.

**Backlog.** We define backlog as the amount of unfilled capital equipment purchase orders at a point in time. At March 31, 2026, we had a backlog of $490.7 million. Of this amount, $392.1 million and $98.7 million related to our Healthcare and Life Sciences segments, respectively. At March 31, 2025, we had backlog orders of $452.9 million. Of this amount, $369.2 million and $83.7 million related to our Healthcare and Life Sciences segments, respectively. Backlog increased in fiscal 2026 due to the timing of shipments and the benefit of acquisitions.

**Availability of Securities and Exchange Commission Filings.** We make available free of charge on or through our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and amendments to these reports, as soon as reasonably practicable after we electronically file such material with, or furnish such material to, the Securities and Exchange Commission ("SEC"). You may access these documents, as well as other SEC filings related to the Company, on the Investor Relations page of our website at <u>http://www.steris-ir.com</u>. You may also obtain copies of these documents by accessing the SEC's website at <u>http://www.sec.gov</u>. The content on or accessible through any website referred to in this Annual Report on Form 10-K is not incorporated by reference into this Form 10-K unless expressly noted.

We also make available free of charge on our website our Corporate Governance Guidelines, our Director Code of Ethics, and our Code of Business Conduct, as well as the Charters of the Audit Committee, the Compensation and Organization Development Committee, the Nominating and Governance Committee, and the Compliance and Technology Committee of the Company's Board of Directors.

**CORPORATE RESPONSIBILITY** 

Our Corporate Responsibility function is led by the Vice President of Corporate Responsibility & Safety. The Corporate Responsibility function, with support from our CEO, General Counsel and other senior executives, works to actively develop and refine our Environmental, Social and Governance ("ESG") strategies, programs, and policies. The Corporate Responsibility function works closely with our Global Sustainability Steering Committee to build ESG values and implement strategies, programs, and policies across the Company. The Global Sustainability Steering Committee is a cross-functional team of senior leadership, subcommittee chairs, and subject matter experts spanning our businesses and Legal, Investor Relations, Continuous Improvement, Compliance, Facilities, and Health, Safety and Environment functions. The Corporate Responsibility team regularly updates the Nominating and Governance Committee of our Board of Directors regarding its activities, including evaluating carbon emissions, preparing for regulatory requirements, reporting ESG metrics, and reviewing ESG ratings.

Key performance indicators and metrics have been established for those areas we believe to be relevant and potentially significant to our business. Certain of these disclosures relate to Sustainability Accounting Standards Board ("SASB") Standards for Medical Equipment & Supplies that we have identified to be closely aligned with our business. Our reporting against the SASB Standards is a voluntary disclosure aligned with our focus on financial materiality. We seek to provide investors with useful, relevant and meaningful sustainability information and have selected metrics under the SASB Standards. We describe below how we continuously monitor and track our policies and activities in the areas of ethical business practices, energy and environmental conservation, employees and human capital management, and quality.

**ETHICAL BUSINESS PRACTICES** 

**Code of Business Conduct.** Our Code of Business Conduct sets the standard for legal and ethical behavior, addressing topics such as bribery and corruption, supply chain transparency, proper behavior in the workplace, and avoiding conflicts of interest.

**Anti-Bribery and Anti-Corruption.** We are committed to conducting our business fairly, honorably, with integrity and in compliance with the law in all jurisdictions where we operate. Our policy prohibits bribery and corruption in any form, and we explain our commitment in our Statement on Anti-Corruption Policies and Procedures. As an ongoing due diligence measure, we have established a program to recognize those sales and marketing intermediaries who demonstrate an elevated commitment to compliance. Through this Commercial Compliance Program, we acknowledge organizations that have not only met STERIS's standard ethical requirements for inclusion in our network but have also taken additional steps, such as adopting their own code of conduct and training their employees on their own firm's ethical values, to ensure compliant behavior. In fiscal 2026, STERIS incurred no monetary losses as a result of legal proceedings associated with bribery or corruption.

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We regularly assess the risks associated with our business, including the risk of potential corruption or bribery in the environments where we do business, and we have designed our management systems to respond accordingly. As part of our anti-corruption program, our employees and third-party intermediaries are subject to mandatory comprehensive anti-bribery and anti-corruption training online. The training covers the various forms that corruption can take, red flags, and individuals' roles in our anti-bribery and anti-corruption efforts.

In accordance with our policy, we engage a third-party due diligence firm to perform background checks, including bribery and corruption, before entering into commercial relationships with sales and marketing intermediaries, and other service providers. We communicate our bribery and corruption policies and expectations to our officers, Directors, employees, and sales and marketing intermediaries. It is the expectation of the Company that all of the aforementioned individuals comply with the requirements set forth in our policy and relevant rules and regulations.

**Supplier Code of Conduct.** Our expectations for ethical behavior extend beyond STERIS to our Suppliers as well. Our Supplier Code of Conduct defines the minimum requirements and expectations for all Suppliers and their subcontractors. Suspicions of supplier non-compliance are promptly investigated and addressed. We believe in conducting business with integrity and honesty and in accordance with all applicable laws and regulations of the countries in which we operate. We expect our suppliers to comply with the laws of the countries in which they operate, including but not limited to the European Union Customs Code, the EU Restriction of Hazardous Substances Directive, the UK Modern Slavery Act, the US Foreign Corrupt Practices Act, the UK Bribery Act, the US Dodd-Frank Conflict Minerals Rules, applicable data privacy laws, and all applicable local labor and employment laws.

**Conflict Minerals Sourcing Policy**. We file reports with the SEC disclosing our use of tin, tantalum, tungsten, and gold ("conflict minerals" or "3TG") in products sold anywhere in the world. In accordance with these legal requirements and as a part of the overall commitment to responsible sourcing, we are working with our suppliers to ensure transparency to the smelter/refining source for 3TG materials used in our products. Furthermore, we seek to identify the countries of origin of the 3TG in our products and the smelter/refiners that process the 3TG in our products. We undertake this effort to promote responsible sourcing. Because of our general downstream position in the supply chain, we rely on our suppliers for information. We expect suppliers to respond to our requests for complete transparency about the sources whose 3TG materials are used in our products and to conduct due diligence measures to ensure the information provided is accurate, up-to-date and complete. This Policy applies to all suppliers of products and materials to the Company and to all our affiliates. We will consider taking various progressive actions with respect to suppliers who do not make reasonable efforts to cooperate with our requests for information or requests to take corrective actions to enable us to identify smelters and refiners in our supply chains.

**Managing Risk, Compliance and Ethics.** We have an Enterprise Risk Management process ("ERM") to manage risk, which is led by our Chief Compliance and Quality Officer. Identifying and managing key risks to our business operations are essential to our future growth, profitability, and successful execution of strategic plans. We are committed to understanding and managing these risks through a consistent approach to risk assessment, monitoring, reporting, and mitigation. Key management sponsors are responsible for participating in the risk assessment process, including a periodic review with the Board of Directors. The objective of ERM is to identify key risks, the potential impacts of control failures with compliance implications, identify key mitigating activities, develop potential improvements for managing the risks, and to ensure execution of oversight activities on a monthly, annual or as needed basis.

We require all employees to be lawful and ethically responsible in all business practices. We expect all employees to comply with all Company policies, applicable laws, and the principles outlined in our Code of Business Conduct.

Using the STERIS Integrity Helpline or Webline, employees can anonymously report potential Code of Conduct concerns. A management Ethics Committee meets monthly to monitor and investigate reports of Code of Business Conduct violations and provides quarterly reporting to the Board of Directors' Compliance and Technology Committee. With respect to financial matters, reports are provided to the Board of Directors' Audit Committee. With respect to human resources related matters, reports are provided to the Board of Directors' Compensation and Organization Development Committee.

The STERIS Code of Business Conduct covers ethical marketing and off-label promotion. In fiscal 2026, STERIS incurred no monetary losses as a result of legal proceedings associated with false marketing claims.

Senior members of STERIS's leadership team are involved in numerous industry associations that focus on setting the standards and driving change. We hold seats and actively participate on the boards of AdvaMed and the Medical Device Manufacturers Association ("MDMA"). We are also an active member of the Association for the Advancement of Medical Instrumentation ("AAMI") and MedTech Europe. AdvaMed has over 600 member companies and promotes policies that foster the highest ethical standards, timely patient access to safe and effective products, and economic policies that reward value creation. The AdvaMed Code of Ethics on Interactions with Health Care Professionals ("AdvaMed Code") facilitates ethical interactions between MedTech companies and health care professionals to ensure that medical decisions are based on the best interests of the patient. STERIS has adopted and requires compliance with the AdvaMed Code.

MDMA is the leading voice representing the interests of innovative and entrepreneurial medical technology companies. MDMA's goal is to provide patients and clinicians with timely access to safe and effective medical technologies that improve

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the quality of life. AAMI is a nonprofit organization founded in 1967. It is a diverse community of more than 15,000 professionals united by one important mission-supporting the healthcare community in the development, management, and use of safe and effective healthcare technology. MedTech Europe is the European trade association for the medical technology industry including diagnostics, medical devices and digital health. MedTech Europe's purpose is to make innovative medical technology available to more people, while helping healthcare systems move towards a more sustainable path. The MedTech Europe Code of Ethical Business Practice regulates all aspects of the industry's relationship with Healthcare Professionals and Healthcare Organizations, to ensure that all interactions are ethical and professional at all times and to maintain the trust of regulators and patients. STERIS has adopted and requires compliance with the MedTech Europe Code of Ethical Business Practice.

**ENERGY, GHG EMISSIONS AND ENVIRONMENTAL CONSERVATION** 

We are subject to various laws and governmental regulations concerning environmental matters and employee safety and health in Ireland, the United States and other countries. We have made, and continue to make, significant investments to comply with these laws and regulations. Our Continuous Improvement objectives include efforts to improve energy and water efficiency and reduce or eliminate certain chemicals used in, and wastes generated from, our operations thereby reducing the impact of our operations on the environment. We actively monitor and take steps to manage the risks associated with environmental matters, none of which we consider material at this time.

STERIS tracks greenhouse gas ("GHG") emissions, and we complete the annual Carbon Disclosure Project ("CDP") questionnaire. CDP is an internationally recognized nonprofit organization that collects and reports environmental metrics. Currently, we report our direct (Scope 1) and indirect (Scope 2) energy use and emissions. We recognize that a significant portion of our carbon impact is as a result of our value chain, outside of electricity and energy consumption at our global sites. We also report aggregate Scope 3 (upstream and downstream) emissions in our most recent CDP response and on our website. STERIS has committed to set near-term company-wide emission reductions. Our status can be viewed on the Science Based Targets Initiative ("SBTi") website.

We have a broad and comprehensive portfolio of sterilization and disinfection products that support the procedural spaces within hospitals, endoscopy and surgery centers as well as pharmaceutical and medical device Customers. When we think about new products or next generation products, part of our effort is to reduce the environmental impact of what we do. At STERIS, our commitment to sustainability is integrated with our Responsible Product Design. We create solutions that prioritize human health while reducing waste and climate impact through purposeful innovation. For example, V-PRO Sterilizers and VAPROX HC Sterilant are designed with sustainability at the core, helping hospitals meet their environmental goals without compromising performance or patient safety.

In Fiscal 2023, the European Commission's Corporate Sustainability Reporting Directive ("CSRD") became effective. The CSRD expands the number of companies required to publicly report ESG-related information and defines the ESG-related information that companies are required to report in accordance with European Sustainability Reporting Standards ("ESRS"). We are making significant efforts in gathering baseline information, strengthening our internal controls, and evaluating our current ESG data. As part of this project, we continue to evaluate our ability to report in accordance with the Task Force on Climate-Related Financial Disclosures ("TCFD") framework in response to evolving regulatory disclosure requirements.

**EMPLOYEES AND HUMAN CAPITAL MANAGEMENT**

**Strategy and Overview.** People are the key to our success, which is reflected in our two core values of people and teamwork. We are committed to the safety and success of our people. We expect the performance of every person to continually improve with personal initiative and proper support. We expect our people to treat each other with mutual respect. Our ideal business team is engaged, diverse, inclusive and talented, and we create programs and policies in support of these goals.

We believe unity of purpose and teamwork enables us to do far more together than we could individually. We draw strength from each other and encourage communication with fairness, candor, respect and courage. Our collaboration turns interesting ideas into great products and services for our Customers.

Our senior management team and Board receive regular updates on our people, including data and metrics on retention, engagement and safety which are used to determine our human resources priorities, programs and training.

We are committed to upholding human rights in all our operations globally and respect human rights as recognized by the principles of the United Nations Global Compact. We strongly oppose all forms of slavery, servitude, forced labor, child labor and human trafficking.

**Employees by Segment.** During the course of fiscal 2026, we averaged approximately 18,000 employees throughout the world of which less than 12% are represented by work councils or labor unions. We believe we generally have good relations with our employees.

The average number of persons employed by STERIS plc and its subsidiaries during each of the following fiscal years was as follows:

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| | | |
|:---|:---|:---|
| | Fiscal 2026 | Fiscal 2025 |
| Healthcare | 12496 | 12341 |
| AST | 3489 | 3502 |
| Life Sciences | 837 | 834 |
| Corporate | 1115 | 1110 |
| **Total employees** | 17937 | 17787 |

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We strive to recruit the best available people who are aligned with and embody our core values. We are committed to equality and assessing candidates based on qualifications. We believe that our success is dependent on attracting and retaining people from a cross-section of our communities who understand their markets, and in doing so we continue to create a competitive advantage for STERIS.

As we hire Associates, we do so without regard to race, color, social or economic status, religion, national origin, marital status, age, veteran status, sexual orientation, gender identity, or any protected status. It is the policy of the Company to make all decisions regarding employment, including hiring, compensation, training, promotions, transfers, or lay-offs, based on the job requirements and skills of the individuals and utilizing the principle of equal employment opportunity without discrimination. We have biennial training on anti-harassment, except where required annually.

Total directors and employees distribution by gender is shown in the table below:

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| | | | | |
|:---|:---|:---|:---|:---|
| | March 31, 2026 | March 31, 2026 | March 31, 2025 | March 31, 2025 |
| | Male | Female | Male | Female |
| Non-Executive Directors | 6 | 2 | 6 | 3 |
| Senior Managers | 748 | 330 | 718 | 289 |
| Other employees of the Company | 11359 | 5662 | 11282 | 5730 |

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Directors and United States employees by race is shown in the table below:

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| | | | | |
|:---|:---|:---|:---|:---|
| | March 31, 2026 | March 31, 2026 | March 31, 2025 | March 31, 2025 |
| | White | Minority <sup>(1)</sup> | White | Minority <sup>(1)</sup> |
| Non-Executive Directors | 62% | 38% | 67% | 33% |
| Senior Managers | 86% | 14% | 86% | 14% |
| Other employees of the Company | 60% | 40% | 60% | 40% |

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<sup>(1)</sup> A minority person is defined as a person who identifies as American Indian/Alaskan Native, Asian, Black or African American, Hispanic or Latino, Native Hawaiian or Other Pacific Island, or two or more races.

**Health, Safety & Environment.** We realize the importance of Health, Safety & Environment ("HSE") to the well-being of our Customers, employees, community, the environment, and ultimately our shareholders. To that end, our HSE teams and management are committed to supporting HSE programs with ongoing involvement through our continuous improvement process. Our ultimate goal is to be an incident-free company. The cornerstone of this initiative is the belief that incidents result from unsafe acts or conditions, both of which are preventable. We apply OSHA recordkeeping practices worldwide. Key metrics for purposes of benchmarking performance include Total Recordable Incident Rate ("TRIR") and Lost-time Incident Rate ("LTIR") injury and illness incident rates, both of which are presented in the table below:

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| | | | | |
|:---|:---|:---|:---|:---|
| | STERIS | STERIS | Industry Benchmarks <sup>(2)</sup> | Industry Benchmarks <sup>(2)</sup> |
| | Fiscal 2026 | Fiscal 2025 | Average | Best in Class |
| Total Recordable Incident Rate <sup>(1)</sup> | 1.03 | 1.11 | 2.50 | 1.43 |
| Lost-time Incident Rate <sup>(1)</sup> | 0.32 | 0.38 | 1.25 | 0.42 |

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<sup>(1</sup><sup>)</sup> We apply OSHA recordkeeping practices worldwide. All rates are based on 100 full-time employees ("FTE") working one year. 100 FTEs equals 200,000 work hours. TRIR includes work-related injuries or illnesses requiring medical attention beyond first-aid. LTIR includes work-related injuries or illnesses that cause an employee to be away from work at least one full day after the date of the incident.

<sup>(2)</sup> Our external benchmarks include the OSHA average and 1st Quartile injury/illness rates which are derived from 2022 Bureau of Labor Statistics data.

Our annual workplace injury prevention results are within the manufacturing sector's best-in-class performance as defined by the Bureau of Labor Statistics.

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We have chosen to align our environmental management system with the ISO 14001 standard, which sets out the criteria that a company or organization can follow to establish an effective environmental management system. Designed for any type of organization, regardless of its activity or sector, it can provide assurance that environmental impact is being measured, controlled and improved in a holistic manner. We currently have four facilities that are ISO 14001 accredited locations and three facilities that are 45001 accredited locations. Our HSE teams and management are committed to supporting HSE programs with ongoing involvement in aligning HSE management systems to ISO 14001 and ISO 45001 standards, internal compliance reviews, and developing HSE training content and platforms.

The OSHA Voluntary Protection Program ("VPP") Star Award recognizes employers who have implemented effective safety and health management systems and maintain injury and illness rates below national Bureau of Labor Statistics averages for their industry. We currently have 14 locations that hold the OSHA VPP Star Award.

We utilize internal HSE management systems and compliance audits designed to identify percent compliance of our global operations against our standards.

**Employee Engagement and Development.** We believe that engaged employees are more productive, innovative, and satisfied in their work. Examples of how we engage our employees include quarterly video updates, a robust intranet for communication with our global teams and various communications efforts within each department. In addition, our global human resources team has programs focused on career development and training for employees at all levels.

Our employee turnover rate was 13% and 16% for fiscal 2026 and 2025, respectively, and we are continuously working towards a goal of achieving a rate of 10% or less, excluding retirements and reductions in force. Although reductions in force are sometimes necessary, we work to avoid them, and they must always be approved by executive management. We encourage all employees to participate in our regular engagement survey which is administered by a third party on a confidential basis. This process has been valuable in helping us recognize what we do well and foster an open conversation about how we can make STERIS an even better place to work. We are pleased to report that 87% of our employees completed our pulse survey in fiscal 2026. The pulse survey results are grouped around four key themes: Employee Engagement; Leadership Effectiveness; Inclusion and Belonging; and Job and Work Experience. The results indicate strong favorability in each of these areas. Moreover, this year's survey allows us to measure progress by comparing results against the baseline established in the initial pulse survey in fiscal 2025.

**Compensation and Benefits.** Our total rewards offerings include an array of programs to support our employees' financial, physical, and mental well-being, including providing competitive salaries, variable performance pay, healthcare benefits, tuition assistance, paid time off, annual merit increases, and incentive plans based on the national norms of employees' location of employment. Total employee compensation is presented in the table below:

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| | | |
|:---|:---|:---|
| (in millions) | Fiscal 2026 | Fiscal 2025 |
| Wages and salaries | $**1342.3** | $1273.4 |
| Commission and incentive plans | **251.6** | 210.5 |
| Social security costs | **113.3** | 111.0 |
| Share-based compensation expense | **61.7** | 57.4 |
| Pension and post-retirement benefits expense | **49.8** | 43.6 |
| Other, primarily employee benefits | **169.6** | 154.6 |
| **Total employee costs** | $**1988.3** | $1850.5 |

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**INFORMATION ABOUT OUR EXECUTIVE OFFICERS**

The following table presents certain information regarding our executive officers at March 31, 2026. All executive officers serve at the pleasure of the Board of Directors.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Karen L. Burton | 58 | Senior Vice President and Chief Financial Officer |
| Daniel A. Carestio | 53 | President and CEO |
| Mary Clare Fraser | 55 | Senior Vice President and Chief Human Resources Officer |
| Kenneth E. Kohler | 63 | Senior Vice President and General Manager, AST |
| Julia K. Madsen | 61 | Senior Vice President and General Manager, Life Sciences |
| Cary L. Majors | 51 | Senior Vice President and President, Healthcare |
| Lindsey M. McGowan | 46 | Chief Compliance and Quality Officer |
| Renato G. Tamaro | 57 | Vice President and Corporate Treasurer |
| J. Adam Zangerle | 59 | Senior Vice President, General Counsel, and Company Secretary |

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The following discussion provides a summary of each executive officer's recent business experience through March 31, 2026:

**Karen L. Burton** serves as Senior Vice President and Chief Financial Officer. She assumed this role in August 2025. From January 2017 to August 2025, Ms. Burton served as Vice President and Chief Accounting Officer. Previously, Ms. Burton also served as Controller from January 2017 until December 2023. She joined STERIS in September 2004.

**Daniel A. Carestio** serves as President and CEO. He assumed this role in July 2021. From August 2018 to July 2021, he served as Senior Vice President and Chief Operating Officer. From February 2018 to August 2018, he served as Senior Vice President, Sterilization and Disinfection. From August 2015 to February 2018, he served as Senior Vice President, STERIS AST and Life Sciences. He joined STERIS in September 1997.

**Mary Clare Fraser** serves as Senior Vice President and Chief Human Resources Officer. She assumed this role in May 2022. She joined STERIS in July 2020 as the Vice President and Chief Human Resources Officer. From February 2003 to July 2020, she held various positions with Parker-Hannifin Corporation, a global motion control technologies company, serving most recently from September 2019 to July 2020, as Vice President Human Resources of its Aerospace Group and from March 2017 to September 2019 as its Corporate Director of Human Resources.

**Kenneth E. Kohler** serves as Senior Vice President and General Manager, AST. He assumed this role in February 2024. Previously, Mr. Kohler served from November 2015 to February 2024 as Vice President and General Manager of AST Americas. He joined STERIS in May 1988.

**Julia K. Madsen** serves as Senior Vice President and General Manager, Life Sciences. She assumed this role in July 2020. From August 2015 to July 2020, she served as Vice President and General Manager Life Sciences, Consumables. She joined STERIS in September 1995.

**Cary L. Majors** serves as Senior Vice President and President, Healthcare. He assumed this role in August 2022. From August 2019 to August 2022, he served as Senior Vice President, Americas Commercial Operations. From April 2014 to August 2019 he served as Vice President, North America Commercial Operations. He joined STERIS in April 2003.

**Lindsey M. McGowan** serves as Chief Compliance and Quality Officer. She assumed this role in January 2026. From September 2023 to December 2025, she served as Vice President, Quality. From September 2019 to September 2023, she served as Vice President, AST Quality Operations. She joined STERIS in May 2006.

**Renato G. Tamaro** serves as Vice President and Corporate Treasurer. He assumed this role in August 2017. From March 2006 to July 2017, he served as Assistant Treasurer. He joined STERIS in August 2003.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J. Adam Zangerle** serves as Senior Vice President, General Counsel, and Company Secretary. He assumed this role in July 2018. From July 2013 to July 2018, he served as Vice President, General Counsel, and Secretary. He joined STERIS in November 1997.

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ITEM 1A. RISK FACTORS

This section describes certain risk factors that could affect our business, financial condition and results of operations. You should consider these risk factors when evaluating the forward-looking statements contained in this Annual Report on Form 10-K, because our actual results and financial condition might differ materially from those projected in the forward-looking statements should these risks occur. We face other risks besides those highlighted below. These other risks include additional uncertainties not presently known to us or that we currently believe are immaterial, but may ultimately have a significant impact. In addition, the impacts of ongoing geopolitical conflicts may also exacerbate any of these risks, which could have a material effect on us. Although the risks are organized by headings, and each risk is discussed separately, many are interrelated. Should any of these risks, described below or otherwise, actually occur, our business, financial condition, performance, prospects, value, or results of operations could be negatively affected.

**LEGAL, REGULATORY AND TAX RISKS**

**Doing Business Internationally** 

***Changes in economic climate may adversely affect us.***

Adverse economic cycles or conditions, and Customer, regulatory or government responses to those cycles or conditions, have affected and could further affect our results of operations. The onset of these cycles or conditions may not be foreseeable and there can be no assurance when they will begin to improve after they occur. There also can be no assurance as to the strength or length of any recovery from a business downturn or recession. Credit and liquidity problems may make it difficult for some businesses to access credit markets and obtain financing and may cause some businesses to curtail spending to conserve cash in anticipation of persistent business slowdowns and liquidity needs. If our Customers have difficulty financing their purchases due to tight credit markets or related factors or because of other operational or utilization problems they may be experiencing or otherwise decide to curtail their purchases, our business could be adversely affected. Our exposure to bad debt losses could also increase if Customers are unable to pay for products previously ordered and delivered.

Some of our Customers are governmental entities or other entities that rely on government healthcare systems or government funding. If government funding for healthcare becomes limited or restricted in countries in which we operate, including as a result of the impacts of a pandemic or its residual effects, our Customers may be unable to pay their obligations on a timely basis or to make payment in full and it may become necessary to increase reserves. In addition, there can be no assurance that there will not be an increase in collection difficulties. Prospectively, additional adverse effects resulting from these conditions may include decreased healthcare utilization, further pricing pressure on our products and services, and/or weaker overall demand for our products and services, particularly capital products.

***The effects of geopolitical instability may adversely affect us and create significant risks and uncertainties for our business, with the ultimate impact dependent on future developments, which are highly uncertain and unpredictable.***

Geopolitical instability has negatively impacted, and could in the future negatively impact, the global and U.S. economies, including by causing supply chain disruptions, rising inflation, volatility in capital markets and foreign currency exchange rates, rising interest rates, reduced consumer and Customer demand, economic slowdowns and recessions and heightened cybersecurity risks. The extent to which such geopolitical instability, including changes to trade policy, adversely affects our business, financial condition and results of operations, as well as our liquidity and capital profile, may depend on future developments that are highly uncertain and unpredictable. If geopolitical instability or evolving trade policy materially affects us, it may also have the effect of heightening other risks related to our business.

The potential impacts of geopolitical instability, which may result from the actions of state and non-state actors, include supply chain and logistics disruptions, financial impacts including volatility in foreign exchange and interest rates, increased inflationary pressure on raw materials and energy, reduced consumer and Customer demand, economic slowdowns and recessions and other risks, including an elevated risk of cybersecurity threats and the potential for new or further sanctions, tariffs or changes to international trade policy.

Furthermore, the U.S. and other countries have announced and enacted changes, and planned changes, to international trade policy, including increasing tariffs on imports, and potentially renegotiating or terminating existing trade agreements. The international trade environment is highly dynamic, and such changes, and retaliatory responses thereto, continue to evolve. Tariffs, trade restrictions and other changes to international trade policies may result in increased production costs and product pricing, supply chain disruptions, limited access to end markets, lower profitability, increasing inability of consumers and Customers to pay, reduced consumer and Customer demand, economic slowdowns and recessions and uncertainty related to planning long-term investments and strategies, and may have other competitive effects, including those exacerbated by competitors with different supply chain footprints, each of which could have a material adverse effect on our business. In addition, the United States-Mexico-Canada Agreement ("USMCA") requires a formal six-year joint evaluation of the agreement. The first such review is expected to commence on July 1, 2026, the sixth anniversary of the agreement's entry into

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force. The U.S. has solicited feedback from the trading community regarding the operation of the USMCA, and the joint review could result in changes, including, for example, the processes by which goods qualify for preferential treatment, the tariffs applicable to products or other restrictions on the movement of goods within the region under the USMCA. Changes to the USMCA could adversely affect our manufacturing operations and those of our suppliers in Canada and Mexico and impact our ability to manufacture and market products or source materials at competitive prices, which could have a material adverse effect on our financial condition and results of operations. We cannot predict the ultimate scope, duration, or impact of current or future tariff measures, changes to existing trade agreements, such as the USMCA, or the imposition of other trade restrictions.

We may also need to make material changes to our global production footprint and workforce as a result of geopolitical developments or changes to trade policy, which could require significant capital expenditures and could result in asset impairments and other charges, including restructuring charges, any of which could be material. The duration and scope of all such changes that have been and will ultimately be implemented are not known at this time, and as such, any resulting impacts on our business are uncertain.

***Compliance with multiple, and potentially conflicting, international laws and regulations, import and export limitations, anti-corruption laws, and exchange controls may be difficult, burdensome or expensive.***

We are subject to compliance with various laws and regulations, including the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, and similar anti-bribery laws, which generally prohibit companies and their intermediaries from making improper payments to officials for the purpose of obtaining or retaining business. We are also subject to limitations on trade with sanctioned persons or persons in sanctioned countries and exchange controls. While our employees and agents are required to comply with these laws and regulations, our internal policies and procedures may not protect us from violations of these laws, which violations could affect financial condition, results of operations, or cash flows.

**Healthcare Policy and Reimbursement** 

***Changes in healthcare policy or government and other third-party payor reimbursement levels to healthcare providers, or failure to meet healthcare reimbursement or other requirements, might negatively impact our business.***

We sell many of our products and services to hospitals and other healthcare providers and pharmaceutical manufacturers. Many of these Customers are subject to or supported by government programs or receive reimbursement for services from third-party payors, such as government programs, including Medicare and Medicaid in the U.S., private insurance plans, and managed care programs. Reimbursement systems vary significantly by country. Government-managed healthcare systems control reimbursement for healthcare services in many countries. Public budgetary constraints or uncertainties, which may be exacerbated by public health crises, may significantly impact the ability of hospitals, pharmaceutical manufacturers, and other Customers supported by such systems to purchase our products. Government or other third-party payors may deny or change coverage, reduce their current levels of reimbursement for healthcare services, or otherwise implement measures to regulate pricing or contain costs. In addition, our costs may increase more rapidly than reimbursement levels or permissible pricing increases or we may not satisfy the standards or requirements for reimbursement.

Various healthcare reform proposals have emerged and may in the future emerge at the federal and state level, and we are unable to predict which, if any, of those proposals will be enacted or the level of government funding of healthcare in any country in which we operate. For example, in 2025, the United States passed the One Big Beautiful Bill Act (the "OBBBA") which may reduce Medicaid funding, result in decreased Medicaid reimbursements and negatively impact Customers who purchase our products and services.

**Product and Service Related Regulations and Claims** 

***We are subject to extensive regulatory requirements and must receive and maintain regulatory clearance or approval for many products and operations. Failure to receive or maintain, or delays in receiving, clearance or approvals may negatively impact our revenues, profitability, financial condition, or value.***

Our operations are subject to extensive regulation in the countries where we do business. In the U.S., our products and services are regulated by the FDA and other regulatory authorities. In many foreign countries, sales of our products and services are subject to extensive regulations that may or may not be comparable to those of the FDA. In Europe, our products are regulated primarily by country and community regulations of those countries within the European Economic Area and must conform to the requirements of those authorities.

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Government regulation applies to nearly all aspects of testing, manufacturing, safety, labeling, storing, recordkeeping, reporting, promoting, distributing, and importing or exporting of medical devices, products, and services. In general, unless an exemption applies, a sterilization, decontamination or medical device or product or service must receive regulatory approval or clearance before it can be marketed or sold. Modifications to existing products or the marketing of new uses for existing products also may require regulatory approvals, approval supplements or clearances. If there are delays in and/or we are unable to obtain any required approvals, approval supplements or clearances for any modification to a previously cleared or approved device, we may be required to cease manufacturing and sale, or recall or restrict the use of such modified device, pay fines, or take other action until such time as appropriate clearance or approval is obtained. Any protraction or de-prioritization or delay in regulatory review could materially affect our ongoing device design, development, and commercialization plans.

Regulatory agencies may refuse to grant approval or clearance, or review and disagree with our interpretation of approvals or clearances, or with our decision that regulatory approval is not required or has been maintained. Regulatory submissions may require the provision of additional data and may be time consuming and costly, and their outcome is uncertain. Regulatory agencies may also change policies and procedures, change or reduce staff, adopt additional regulations, or revise existing regulations, each of which could prevent or delay approval or clearance of devices, or could impact our ability to market a previously cleared, approved, or unregulated device. Our failure to comply with the regulatory requirements of the FDA or other applicable regulatory requirements in the U.S. or elsewhere might subject us to administratively or judicially imposed sanctions. These sanctions include, among others, warning letters, fines, civil penalties, criminal penalties, loss of tax benefits, injunctions, product seizure, recalls, suspensions or restrictions, re-labeling, detention, and/or debarment.

***Our products are subject to recalls and restrictions, even after receiving U.S. or foreign regulatory clearance or approval.***

Ongoing medical device reporting regulations require that we report to appropriate governmental authorities in the U.S. and/or other countries when our products cause or contribute to a death or serious injury or malfunction in a way that would be reasonably likely to contribute to a death or serious injury if the malfunction were to reoccur. Governmental authorities can require product recalls or impose restrictions for product design, manufacturing, labeling, clearance, or other issues. For the same reasons, we may voluntarily elect to recall or restrict the use of a product. Any recall or restriction could divert managerial and financial resources and might harm our reputation among our Customers and other healthcare professionals who use or recommend our products and services.

***We may be adversely affected by product liability claims or other legal actions or regulatory or compliance matters***.

We face an inherent business risk of exposure to product liability claims and other legal and regulatory actions. A significant increase in the number, severity, amount, or scope of these claims and actions may, as described above with respect to recalls and restrictions, result in substantial costs and harm our reputation or otherwise adversely affect product sales and our business. Product liability claims and other legal and regulatory actions may also distract management from other business responsibilities.

We are also subject to a variety of other types of claims, proceedings, investigations, and litigation initiated by government agencies or third parties and other potential risks and liabilities. These include compliance matters, product regulation or safety, taxes, employee benefit plans, employment discrimination, health and safety, environmental, antitrust, customs, import/export, government contract compliance, financial controls or reporting, intellectual property, allegations of misrepresentation, false claims or false statements, commercial claims, claims regarding promotion of our products and services, or other similar or different matters. Any such claims, proceedings, investigations or litigation, regardless of the merits, might result in substantial costs, restrictions on product use or sales, or otherwise negatively impact our business.

Administratively or judicially imposed or agreed sanctions might include warning letters, fines, civil penalties, criminal penalties, loss of tax benefits, injunctions, product seizure, recalls, suspensions or restrictions, re-labeling, detention, and/or debarment. We also might be required to take actions such as payment of substantial amounts, or revision of financial statements, or to take, or be subject to, the following types of actions with respect to our products, services, or business: redesign, re-label, restrict, or recall products; cease manufacturing and selling products; seizure of product inventory; comply with a court injunction restricting or prohibiting further marketing and sale of products or services; comply with a consent decree, which could result in further regulatory constraints; dedication of significant internal and external resources and costs to respond to and comply with legal and regulatory issues and constraints; respond to claims, litigation, and other proceedings brought by Customers, users, governmental agencies, and others; disruption of product improvements and product launches; discontinuation of certain product lines or services; or other restrictions or limitations on product sales, use or operation, or other activities or business practices.

Some product replacements or substitutions may not be possible or may be prohibitively costly or time consuming. The impact of any legal, regulatory, or compliance claims, proceeding, investigation, or litigation, is difficult to predict.

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We maintain product liability and other insurance with coverages believed to be adequate. However, product liability or other claims may exceed insurance coverage limits, fines, penalties and regulatory sanctions may not be covered by insurance, or insurance may not continue to be available or available on commercially reasonable terms. Additionally, our insurers might deny claim coverage for valid or other reasons or may become insolvent.

***Our business and financial condition could be adversely affected by difficulties in acquiring or maintaining a proprietary intellectual ownership position.***

To maintain our competitive position for our products, we need to obtain patent or other proprietary rights for new and improved products and to maintain and enforce our existing patents and other proprietary rights. We typically apply for patents in the U.S. and in strategic other countries. We may also acquire patents through acquisitions. We may encounter difficulties in obtaining or protecting patents.

We rely on a combination of patents, trademarks, trade secrets, know-how, and confidentiality agreements to protect the proprietary aspects of our technology. These measures afford only limited protection, and competitors may gain access to our intellectual property and proprietary information. Litigation may be necessary to enforce or defend our intellectual property rights, to protect our trade secrets, and to determine the validity and scope of our proprietary rights. Litigation may also be brought against us claiming that we have violated the intellectual property rights of others. Litigation may be costly and may divert management's attention from other matters. Additionally, in some foreign countries with weaker intellectual property rights, it may be difficult to maintain and enforce patents and other proprietary rights or defend against claims of infringement.

**Tax Risks**

***We may be adversely impacted by changes in tax laws or challenges to our tax positions, and our effective tax rate is uncertain and may vary from expectations, which could have a material impact on our results of operations and earnings per share.***

We are subject to the tax laws at the federal, state or provincial, and local government levels in the many jurisdictions in which we operate or sell our products or services. Tax laws may change in ways that adversely affect our tax positions, effective tax rate and cash flow. These tax laws are extremely complex and subject to varying interpretations, and we are subject to tax examinations in various jurisdictions that may assess additional tax liabilities against us. Our tax reporting positions may be challenged by relevant tax authorities, we may incur significant expense in our efforts to defend those challenges, and we may be unsuccessful in such efforts. Developments in examinations and challenges may materially change our provision for taxes in the affected periods and may differ materially from our historical tax accruals. Any of these risks may have a materially adverse impact on our business operations, our cash flows, our financial position or results of operations and our effective tax rate.

In addition, there can be no assurance that we will be able to maintain any particular worldwide effective corporate tax rate. We cannot give any assurance as to what our effective tax rate will be in the future because of, among other things, uncertainty regarding the tax policies of the jurisdictions in which we and our affiliates operate and uncertainty of earnings across geographies. Further, our effective tax rate may increase as a result of withholding taxes incurred in connection with cross-border cash movements to fund operations, investments, and shareholder returns. These transfers may be subject to withholding taxes, and increases in such taxes or changes in applicable tax laws could place upward pressure on our effective tax rate. Our actual effective tax rate may vary from our expectations, and such variance may be material. Additionally, tax laws or their implementation and applicable tax authority practices in any particular jurisdiction could change in the future, possibly on a retroactive basis, and any such change could have a material adverse impact on us and our affiliates. In addition, the GloBE rules, which have been or are expected to be implemented in most of the jurisdictions where we have operations, and the CAMT (both defined and discussed in more detail below) may adversely impact our effective corporate tax rate.

***Current economic and political conditions make tax rules in any jurisdiction subject to significant change.***

The One Big Beautiful Bill Act (the "OBBBA") was signed into law on July 4, 2025. Some limited guidance has been issued clarifying the application of some of the provisions in this legislation, and more guidance is expected to be issued in the near future with respect to a number of income tax provisions in the OBBBA. The law did not have a material impact on our fiscal 2026 consolidated financial statements, and we do not expect it to have a material impact on our effective tax rate in future years. However, we are unable to fully predict the overall impact that the OBBBA and additional guidance may have on our business. Furthermore, some non-U.S. jurisdictions have raised tax rates, and it is reasonable to expect that other global taxing authorities will be reviewing current legislation for potential modifications.

In August 2022, the Inflation Reduction Act (the "IRA") was signed into law. One of the provisions in the IRA added a corporate alternative minimum tax ("CAMT") to the U.S. Internal Revenue Code of 1986, as amended (the "Code"), beginning for fiscal years 2023. Although we do not expect to be subject to the CAMT regime for fiscal years through 2026, we continue to monitor our status under the CAMT rules. If in the future we become subject to CAMT, and if our regular income tax

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liability in the U.S. is lower than the income tax liability calculated under the CAMT provisions, we will be subject to additional income taxes in the U.S.

In addition, further changes in the tax laws of other jurisdictions will likely arise, including as a result of the base erosion and profit shifting ("BEPS") project undertaken by the Organization for Economic Cooperation and Development ("OECD"). The OECD, which represents a coalition of member countries, has issued recommendations that, in some cases, would make substantial changes to numerous long-standing tax positions and principles. Following the issuance of such recommendation, in December 2022, the European Union issued a directive to adopt Global Base Erosion laws ("GloBE" or "Pillar Two") in the EU member countries, in most cases beginning in fiscal year 2024. Most EU member countries and many non-EU member countries have already adopted local legislation based on GloBE Model Rules. Some of the countries that have not yet adopted GloBE are expected to do so in the near future. In addition, the GloBE rules have certain transition period provisions that apply to certain intercompany transactions occurring between December 1, 2021 and the effective date of the GloBE rules in a given jurisdiction. These transition period provisions may have an adverse impact on our effective tax rate, and subject us to additional income tax, in some of the jurisdictions that adopt the GloBE rules. OECD continues to issue guidance under GloBE which could result in amendments and modifications of the local GloBE rules and further uncertainty of GloBE's impact on our income tax expense. In the most recent guidance, issued in January of 2026, OECD modified, among other things, certain rules relating to the one-year extension of the transitional country-by-country reporting safe harbor and the addition of both a permanent simplified effective tax rate safe harbor and a substance-based tax incentive safe harbor. This guidance also introduced a so-called "side-by-side" safe harbor pursuant to which multinational groups with an ultimate parent entity (or a "UPE") located in a qualifying jurisdiction are effectively exempt from certain GloBE taxes. At this time, only the United States is included on the list of qualifying jurisdictions allowing U.S.-parented multinational companies to avoid such GloBE taxes. While we have substantial presence in the U.S., we do not anticipate to benefit from the side-by-side safe harbor at this time, because we are a multinational enterprise with a UPE organized in Ireland. As a result, the GloBE rules could subject us to additional income taxes in the jurisdictions that adopted GloBE if our effective corporate tax rate in those jurisdictions (determined under the GloBE rules) is below 15%. Accordingly, the GloBE rules could increase tax uncertainty and adversely impact our provision for income taxes.

***Changes in tax treaties and trade agreements could negatively impact our costs, results of operations and earnings per share.***

Legislative and regulatory action may be taken in the U.S. which, if ultimately adopted, could override or otherwise adversely impact tax treaties upon which we rely or broaden the circumstances under which STERIS plc would be considered a U.S. resident, each of which could materially and adversely affect our tax obligations. We cannot predict the outcome of any specific legislative or regulatory proposals. However, if proposals are adopted that have the effect of disregarding our organization in Ireland or limiting our ability as an Irish company to take advantage of tax treaties with the U.S., we could be subject to increased taxation and/or potentially significant expense. Further, our organization under the laws of Ireland could be challenged by the IRS. Should the IRS assert that we should be treated as a U.S. corporation for U.S. federal tax purposes, we could be subject to substantial additional U.S. tax liability and non-U.S. holders of our ordinary shares would be subject to U.S. withholding tax on the gross amount of any dividends we paid to such shareholders. For Irish tax purposes, we are expected, regardless of our U.S. tax resident status, to be treated as an Irish tax resident. Consequently, if we are treated as a U.S. corporation for U.S. federal tax purposes, we could be liable for both U.S. and Ireland taxes, which could have a material adverse effect on our financial condition and results of operations.

On June 7, 2017, several countries, including many countries in which we operate and have subsidiaries, adopted the OECD's Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the "MLI"), which generally is meant to prevent treaty abuse, improve dispute resolution, prevent the artificial avoidance of permanent establishment status and neutralize the effect of hybrid mismatch agreements. The MLI came into effect on July 1, 2018. The MLI may modify effected tax treaties making it more difficult for us to obtain advantageous tax-treaty benefits. The number of affected tax treaties could eventually be significant. To date, more than 100 jurisdictions have joined the BEPS MLI, out of which most jurisdictions have ratified, accepted, or approved the MLI, and it covers almost 2,000 bilateral tax treaties worldwide. Signatories include jurisdictions from all continents and all levels of development and other jurisdictions are also actively working towards signature. As a result, our income may be taxed in jurisdictions where it is not currently taxed and at higher rates than it is currently taxed, all of which may increase our effective tax rate.

Existing free trade laws and regulations provide certain beneficial duties and tariffs for qualifying imports and exports, subject to compliance with the applicable classification and other requirements. Changes in laws and regulations or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from countries where we manufacture products could have a material adverse impact on our business and financial results.

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***Legislation relating to the denial of U.S. federal or state governmental contracts to U.S. companies that redomicile abroad could adversely affect our business.***

Various U.S. federal and state legislative proposals that would deny governmental contracts to redomiciled companies may, and future proposals could, adversely affect us if adopted into law. We are unable to predict the likelihood that any such proposed legislation might become law, the nature of regulations that may be promulgated under any future legislative enactments, or the effect such enactments or increased regulatory scrutiny could have on our business.

**BUSINESS AND OPERATIONAL RISKS**

***Our business environment is highly competitive, and if we fail to compete successfully, our revenues and results of operations may be negatively impacted***.

We operate in a highly competitive environment. Our businesses compete with other broad-line manufacturers, as well as many smaller businesses specializing in particular products or services, primarily on the basis of brand, design, quality, safety, ease of use, serviceability, price, product features, warranty, delivery, service, and technical support. We also continue to work with our suppliers to implement plans to improve our competitive position by reducing material costs and manufacturing inefficiencies and realize productivity gains and distribution and supply chain efficiencies. Maintaining and improving our competitive position will require continued investment by us in manufacturing, engineering, quality standards, marketing, Customer service and support of our distribution networks. We also face increased competition from new infection prevention, sterile processing, contamination control, surgical support, cleaning consumables, gastrointestinal endoscopy accessories, contract sterilization, and other products and services entering the market. Competitors and potential competitors also are attempting to develop alternate technologies and sterilizing agents, as well as disposable medical instruments and other devices designed to address the risk of contamination. In addition, we also face competition within our AST segment from our Customers who may insource their sterilization needs by utilizing their own technology and systems. If we cannot successfully implement our strategies to compete, our revenues and results of operations may be negatively impacted, which could adversely affect our business, financial condition and results of operations or our long-term prospects.

***Consolidations among our healthcare and pharmaceutical Customers may result in a loss of Customers or more significant pricing pressures***.

A number of our Customers have consolidated. These consolidations are due in part to healthcare cost reduction measures initiated by competitive pressures as well as legislators, regulators and third-party payors. This may result in greater pricing pressures on us and in some cases loss of Customers. Furthermore, consolidation in healthcare may continue, including as a result of trends regarding increasing vertical integration and corporate ownership. Additional consolidations could result in a loss of Customers or more significant pricing pressures.

***Supply chain disruption might increase our production costs, limit our production capabilities or curtail our operations.***

We purchase raw materials, fabricated and other components, and energy supplies from a variety of suppliers. Key raw materials include stainless steel, organic and inorganic chemicals, fuel, cobalt-60 and EO, and key components include plastic components, as well as various electronics including control boards and computer chips. The availability and prices of raw materials and energy supplies are subject to volatility and are influenced by worldwide economic conditions, speculative action, world supply and demand balances, inventory levels, availability of substitute materials, currency exchange rates, anticipated or perceived shortages, and other factors. In addition, administrations in the U.S. and other countries continue to announce plans to implement or increase tariffs and other trade barriers, and it remains unclear what the ultimate outcome of these policy changes will be on our supply chains. Also, certain of our key materials and components have a limited number of suppliers, and some are single-sourced in certain regions of the world, such as cobalt-60 and EO, which are necessary for our AST operations. Given the limited number of suppliers for such materials, they may become subject to supply shortages or unavailability or increasing prices which could have a negative impact on our operations. Further, changes in regulatory requirements regarding the use of these materials might disrupt or cause shutdowns of portions of our AST operations or have other adverse consequences. Shortages in supply, increased regulatory or security requirements, or increases in the price of any of the raw materials, components and energy supplies used in our operations may adversely affect us.

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***Our operations, and those of our suppliers, are subject to a variety of business continuity hazards and risks, any of which could interrupt production or operations or otherwise adversely affect our performance, results, or value.***

Business continuity hazards and other risks include: explosions, fires, earthquakes, public health crises, extreme weather conditions, and other disasters, including those associated with climate change; disruptions of supply chains, or distribution for certain products or commodities; utility or other mechanical failures; unscheduled downtime; labor difficulties; inability to obtain or maintain any required licenses or permits; disruption of communications; data security, preservation and redundancy disruptions; inability to hire or retain key management or employees; and regulation of the safety, security or other aspects of our operations.

The occurrence of these types of events has disrupted and may in the future disrupt or shut down operations, or otherwise adversely impact the production or profitability of a particular facility, or our operations as a whole. These events also might cause personal injury, loss of life, and other social and human effects (such as population dislocations), compliance costs and transition risks (such as regulatory or technology changes) or severe damage to or destruction of inventory, equipment, and other property, and for injuries occurring at our facilities or as a result of actions of our employees, result in liability claims against us. Although we maintain property and casualty insurance and liability and similar insurance of the types and in the amounts that we believe are appropriate for our business, there can be no assurance that we will be able to continue our insurance with acceptable terms, conditions or limits or that our insurance policies will provide adequate protection against all potential significant risks and liabilities.

***Expectations relating to corporate responsibility considerations expose us to potential liabilities, increased costs, reputational harm and other adverse effects on our business.***

Many governments, regulators, investors, employees, Customers and other stakeholders continue to be focused on corporate responsibility, including policies regarding climate change and greenhouse gas emissions. Other stakeholders, including governments, regulators, and elected officials have expressed concerns about or opposition to businesses' social commitments, and sustainability goals, and other ESG-focused policies, including concerns about or allegations of "greenwashing". Responding to these considerations involves risks and uncertainties, requires significant investments and is impacted by factors that may be outside our control. In addition, some stakeholders may disagree with our priorities, statements and initiatives and the focus of stakeholders may change and evolve over time. Stakeholders also may have very different views on where corporate focus should be placed, including differing or conflicting views of regulators or elected officials in the various jurisdictions in which we operate. For instance, the European Union has generally adopted more extensive sustainability reporting requirements and environmental regulations, while certain U.S. federal and state authorities have adopted or proposed measures that may restrict or penalize companies for adopting certain ESG-related practices, targets or investment criteria.

Any failure, or perceived failure, by us to achieve our goals, further our initiatives, adhere to our public statements, comply with federal, state or international laws and regulations or meet evolving and varied stakeholder expectations and standards could result in reputational harm or advocacy group campaigns or legal and regulatory proceedings against us that could materially adversely affect our business, reputation, results of operations, financial condition and stock price.

Many of our Customers are also committing to, and may become subject to legal or regulatory requirements with respect to, long-term targets to reduce greenhouse gas emissions within their supply chains and associated emissions reporting. If we are unable to support Customers in fulfilling these obligations or achieving reductions, we may lose revenue if our Customers find other suppliers who are better able to support such efforts. A failure, or perceived failure, to respond to expectations of all key stakeholders could cause harm to our business and reputation and have a negative impact on the market price of our ordinary shares. Further, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on social and environmental disclosures and commitments. Such ratings are used by some investors to inform their investment or voting decisions. Unfavorable ratings could lead to negative investor sentiment toward us and/or our industry, which could have a negative impact on our access to and costs of capital.

***We may be adversely affected by global climate change or by existing and future legal, regulatory or market responses to such change.***

The long-term effects of climate change are difficult to assess and predict. The impacts may include social and human effects (such as population dislocations or harm to health and well-being), compliance costs and transition risks (such as regulatory or technology changes) and others. The effects could impair, for example, the availability and cost of energy (including utilities), and we may bear losses as a result.

The regulations surrounding greenhouse gas emissions disclosures and sustainability reporting have also continued to evolve, with compliance and other requirements varying by jurisdiction, which subjects us to transition risks. Governments, regulatory bodies and other stakeholders vary in their support of or opposition to sustainability and environmental matters in different jurisdictions in which we operate, which can lead to rapid shifts in reporting obligations and differing obligations across these jurisdictions. Both the standard setting and regulatory landscapes are also extremely complex and present

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significant compliance and communication challenges in light of these uncertain and varied approaches to greenhouse gas emissions disclosures and sustainability reporting. If our greenhouse gas emissions-related data, processes or reporting are incomplete or inaccurate, we fail to comply with relevant reporting frameworks or efficiency standards from existing or newly emerging regulations, or we become subject to expanded carbon pricing mechanisms, we may incur enhanced costs, monetary penalties and reputational harm, investor demand for our securities could decrease, or we could become subject to litigation or governmental investigations, any of which may have a material adverse effect on our financial condition and results of operations.

The introduction and evolution of climate- and sustainability-related laws, regulations and reporting requirements—many of which are not uniform across jurisdictions—can increase the complexity and cost of compliance and heighten our exposure to enforcement actions, litigation and reputational harm. For example, the European Union adopted the CSRD in 2023, and in 2025 the European Commission proposed amendments to the CSRD aimed at simplifying sustainability reporting in Europe. Such amendments entered into force in March 2026, with transposition into national law by EU member states required in 2027, while changes to the ESRS are expected to be finalized later in calendar year 2026. While the EU has adopted extensive requirements through CSRD and ESRS, which continue to evolve, other jurisdictions, including, for example, the United Kingdom and California, have their own sustainability reporting frameworks. Managing compliance across these inconsistent regimes is complex and costly, and may result in disclosures that emphasize different metrics, use different methodologies or reach different conclusions depending on the applicable frameworks. We may also face challenges in presenting consistent and comparable sustainability information to global stakeholders.

These changes, and any other new or pending legal or regulatory matters, may result in the expenditure of additional resources or costs to comply with such requirements, which could affect our financial condition, results of operations or cash flows.

***Our operations are subject to regulations and permitting, which may be changed or amended by the relevant authorities, and which may limit or eliminate our current operations or increase the complexity, burden, or expense of compliance, and regulated materials or processes that we use in our operations are, and may in the future become subject to litigation.***

Our AST segment is a technology-neutral contract sterilization service that offers our Customers a wide range of sterilization modalities through a worldwide network of over 60 contract sterilization and laboratory facilities. One of the modalities offered by our AST operations is EO sterilization. In the U.S., several regulators, including the EPA, FDA, and agencies at the state and local level, play a role in regulating the use of EO sterilization. In 2016, the EPA changed the cancer risk basis for EO and determined that EO is carcinogenic to humans. Announcements of the temporary or permanent closure of EO sterilization facilities operated by others have been associated with state and/or local regulatory or other legal action related to EO emissions at those facilities. Our AST operations have taken and will continue to take measures to comply with all applicable emissions regulations and to reduce emissions. However, no assurance can be given that current or future legislative or regulatory action, or current or future litigation to which we are or may become a party, will not significantly affect the costs of conducting our EO contract sterilization operations or impact the use of EO in our contract sterilization operations. A significant reduction in our EO contract sterilization activities may have a material adverse effect on our financial condition and results of operations. Further, we have settled claims of liability resulting from EO sterilization activities in the past and could in the future be liable for further material damages and fines as a result of legislative or regulatory action or litigation, and any current or future liability could exceed our insurance and indemnification coverage, if any, and have a material adverse effect on our financial condition. Additionally, for many medical devices, EO sterilization may be the only current method of sterilization that effectively sterilizes and does not damage the device during the sterilization process. In the event of regulatory, legislative, or legal action that curtails or eliminates EO sterilization, there could be a shortage of medical devices and consequently a decline in surgical procedures. A decline in surgical procedures could result in a decline in demand for the products and services provided by our Healthcare business, which may have a material adverse effect on our financial condition and results of operations.

***Our EO sterilization operations subject us to claims of liability and associated adverse effects***.

Some current or past operators of EO sterilization facilities, including us, have been the target of litigation on behalf of private plaintiffs alleging personal and other injuries as a result of exposure to emissions from such facilities and have experienced adverse judgments and entered into settlements. These developments, as well as other publicity related to EO litigation or regulatory activity, may increase the likelihood that we will continue to be subject to these claims or that we will be subject to more claims on behalf of similar plaintiffs in the future.

Although we believe we have valid defenses to such claims, there can be no assurance that we will prevail on the merits, as the outcome of trials before juries and other aspects of litigation can be highly unpredictable, and, as a result, we have chosen to pursue a settlement process with respect to certain pending cases in Illinois. Pursuant to binding confidential settlement agreements entered into in March and October 2025, we agreed to pay up to approximately $48.2 million to resolve substantially all of the claims for personal injury against a subsidiary related to EO exposure that are pending in the Circuit

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Court of Cook County, Illinois. A claims process regarding confidential settlement agreements is ongoing and subject to final court approval. Furthermore, some claims would be subject to further litigation if certain terms of the applicable settlement agreements are not fulfilled and we exercise our walkaway rights. Please refer to Note 12 to our consolidated financial statements titled "Commitments and Contingencies" for further information.

The financial impact of litigation, particularly mass tort action lawsuits, is also difficult to predict and a judgment entered or settlement reached in one case or group of cases is not necessarily representative of the outcome of other comparable cases. Regardless of the merits of the claims at issue or the ultimate outcome of cases, any future litigation related to our EO operations may be costly to defend, could result in an increase of our insurance premiums, reduction of limits and terms and could exhaust available insurance coverage. Defense of litigation may also result in diversion of management attention from other priorities, which could have a material adverse effect on our financial condition and results of operations.

***If our continuing efforts to create a Lean business, to in-source production and to support smart manufacturing to reduce costs are not successful, our profitability may be negatively impacted or our business otherwise might be adversely affected***.

We have undertaken various activities to incorporate Lean concepts and practices to more efficiently operate our business, including in-sourcing and smart manufacturing. We continue to look for opportunities to in-source production that is currently provided by third parties. These activities may not produce the full efficiencies and cost reduction benefits that we expect, or efficiencies and benefits might be delayed. Implementing these activities can be complex and time-consuming, and anticipated initial costs may exceed expectations. The failure to realize such efficiencies and cost reduction benefits, or increases in the costs of doing business related to in-sourced production, could adversely impact our financial condition and results of operations.

Similarly, we continue to invest in smart manufacturing to drive structural cost reduction in our facilities, including aligning work to more efficient manufacturing centers, implementing advanced manufacturing capabilities such as digital initiatives, automation and robots, and closing facilities that are not required to meet future capacity and work needs. Our success will depend on various factors, including our ability to either source or custom develop the necessary technology and components, and the digital transformation initiative's cost-effectiveness, utility and competitive positioning. If our digital transformation initiative fails to develop as we expect, or progresses more slowly than expected, such failure to realize efficiencies and cost reduction benefits could adversely impact our financial condition and results of operations.

***A pandemic or similar public health crisis could have a material adverse impact on our ability to staff our operations.***

There can be no assurances that our measures to protect the health and wellbeing of our employees in the event of future health crises will be sufficient to protect our employees or that they may not otherwise be exposed to an illness outside of our workplace. If a large or otherwise impactful number of our employees, including key employees, become ill, incapacitated or are otherwise unable or unwilling to continue working during any future health crises, our operations may be adversely impacted. Furthermore, restrictive measures implemented by us or governmental entities in response to a future pandemic or similar public health crisis could adversely impact our ability to hire and retain employees. Any failure to staff our operations resulting from an emergent public health crisis could adversely impact our financial condition and results of operations.

***Our business and results of operations may be adversely affected if we are unable to recruit and retain qualified management and other personnel.***

Our continued success depends, in large part, on our ability to hire and retain highly qualified people, and if we are unable to do so, our business and operations may be impaired or disrupted. There is no assurance that we will be successful in attracting replacements to fill vacant positions, retaining successors to fill retirements or employees moving to new positions, or otherwise retaining qualified personnel. In addition, the increasing complexity of legal, regulatory and compliance matters have created additional responsibilities for our management and other personnel and can create significant distraction or diversion of their attention, which could have a material adverse effect on our ability to attract and retain such personnel.

***We could experience a failure of a key information technology system, process or site or a breach of information security, including a cybersecurity breach of one or more key information technology systems, networks, processes, associated sites or service providers; failure to manage these and other risks associated with the use of sophisticated technology could materially impact our business.***

We rely extensively on information technology ("IT") systems to conduct business, including but not limited to interacting with Customers and suppliers, fulfilling orders, generating invoices, collecting and making payments, manufacturing and shipping products, providing Customer support, and fulfilling contractual obligations. In addition, we rely on networks and services, including internet sites, cloud and software-as-a-service solutions, data hosting, electronic payment systems, and processing facilities and tools and other hardware, software and technical applications and platforms, including some that employ artificial intelligence ("AI"), some of which are managed, hosted, provided and/or used by third-parties or their vendors, to assist in conducting our business. While we have been the previous target of cyberattacks and security breaches, none of these attacks or breaches to date have had a material adverse effect on the Company. We cannot guarantee that future

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cyberattacks, if successful, will not have a material effect on our business or financial results. Numerous and evolving cybersecurity threats continue to pose potential risks to the security of our IT systems, networks and services, as well as the confidentiality, availability and integrity of our data, and we may fail to sufficiently adapt to them. For instance, generative AI and other artificial intelligence technologies may be used by malicious actors to create more targeted phishing narratives, develop sophisticated malware, spread false information about us or our products, or otherwise enhance the social engineering and attack capabilities of such malicious actors.

Some of our products, services, and information technology systems contain or use open-source software, which poses additional risks, including potential security vulnerabilities, licensing compliance issues, and quality issues. A security breach, whether of our products, of our Customers' network security and systems or of third-party hosting services, could impact the use of such products and the security of information stored therein. While we have made investments seeking to address these threats, including monitoring of networks and systems, hiring of experts, employee training and security policies for employees and third-party providers, the techniques used in these attacks change frequently and may be difficult to detect for periods of time and we may face difficulties in anticipating and implementing adequate preventative measures. When cybersecurity incidents occur, we expect to follow our incident response policy and address them in accordance with applicable governmental regulations and other legal requirements. Our response to these incidents and our investments to protect our information technology infrastructure and data may not shield us from significant losses and potential liability or prevent any future interruption or breach of our systems. We maintain cyber liability insurance with terms, conditions, and limits believed to be adequate. However, cybersecurity-related liability or other claims may exceed insurance coverage limits, fines, penalties and regulatory sanctions may not be covered by insurance, or insurance may not continue to be available or available on commercially reasonable terms. Additionally, our insurers might deny claim coverage for valid or other reasons or may become insolvent.

If our IT systems are damaged or cease to function properly, the networks or service providers we rely upon fail to function properly, or we or one of our third-party providers suffer a loss or disclosure of our business or stakeholder information due to any number of causes ranging from catastrophic events or power outages to improper data handling or security breaches or other cyber incidents, and our business continuity plans do not effectively address these failures on a timely basis, we may be exposed to reputational, competitive and business harm as well as litigation and regulatory action. In the past, our Customers and resellers of our products have experienced cybersecurity attacks and incidents that have impacted their ability to do business, process payments and sell products, and there can be no assurance that future cybersecurity attacks and incidents affecting our Customers and resellers will not impact our business if and when they occur.

In addition, a large number of our employees, as well as those of our Customers and suppliers, work remotely part of the time, which may increase the risk of IT systems vulnerabilities and attacks and unauthorized access of information. Furthermore, future geopolitical conflicts could result in increases in cybersecurity incidents. The General Data Protection Regulation ("GDPR") is focused on the protection of personal data, not merely the privacy of personal data. The GDPR has created a range of compliance obligations and can impose significant financial penalties for noncompliance (including possible fines of up to 4% of global annual revenues for the preceding financial year or €20 million (whichever is higher) for the most serious infringements). Other legislative or governmental regulatory requirements may come into effect that may similarly increase our compliance obligations or significantly increase our exposure to financial penalties for noncompliance.

Likewise, governments and regulatory bodies worldwide are actively developing new laws, regulations and ethical guidelines governing AI use, including the European Union's Artificial Intelligence Act. Compliance with evolving and potentially inconsistent AI regulations across jurisdictions may be costly and complex. Failure to comply could result in significant penalties, restrictions on our use of AI, or reputational harm. The use of AI may also raise data privacy concerns, particularly if AI systems process sensitive health information subject to GDPR, HIPAA or other privacy regulations. If our competitors deploy AI technologies more effectively than we do, we may lose market share or be unable to maintain our competitive position. Failure to adequately manage AI-related risks could have a material adverse effect on our business, reputation, financial condition, and results of operations.

***Our debt level or access to credit markets may limit our financial and business flexibility.***

As of March 31, 2026, STERIS had approximately $1,931.7 million of indebtedness outstanding (net of deferred financing fees), which included $1,350.0 million of Senior Public Notes issued April 1, 2021, $557.8 million of Private Placement Senior Notes, and $37.8 million of borrowings outstanding under our Revolving Credit Facility (each as defined below). STERIS's ability to repay all the foregoing obligations will depend on, among other things, STERIS's financial position and performance, as well as prevailing market conditions and other factors beyond our control.

Our indebtedness could have important consequences to our shareholders, including increasing risk associated with general adverse economic and industry conditions, limiting our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements, requiring the use of a substantial portion of our cash flow from operations for the payment of principal and interest on indebtedness, thereby reducing our ability to use our cash flow to fund

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working capital, acquisitions, capital expenditures and general corporate matters, including dividend payments and stock repurchases, limiting our flexibility in planning for, or reacting to, changes in our business and our industry and creating a disadvantage compared to our competitors with less indebtedness.

In addition, our ability and the ability of our Customers, suppliers and other business counterparties to obtain indebtedness and the cost thereof is dependent on credit profiles, prevailing market interest rates and other factors. Credit rating downgrades, a high interest rate environment, market volatility, market disruptions and other factors may limit our and our Customers', suppliers' and other counterparties' access to credit markets or increase the cost of financing activities which may have an adverse effect on our operations.

**RISKS RELATED TO BUSINESS DEVELOPMENT** 

***We engage in acquisitions and affiliations, divestitures, and other business arrangements. Our growth may be adversely affected if we are unable to successfully identify and price strategic business candidates or otherwise optimize our business portfolio.***

Our success depends, in part, on strategic acquisitions and joint ventures, which are intended to complement or expand our businesses, divestiture of non-strategic businesses, and other assets, and other actions intended to optimize our portfolio of businesses. This strategy depends upon our ability to identify, appropriately price, and complete these types of business development transactions or arrangements and to obtain any necessary financing. In recent fiscal years we have made a number of acquisitions, joint ventures and dispositions. We may be unable to find or consummate future acquisitions, joint ventures opportunities and divestitures at acceptable prices and terms. We continually evaluate potential business developments opportunities in the ordinary course of business.

Competition for strategic business candidates may result in increases in costs and price for acquisition candidates and market valuation issues may reduce the value available for divestiture of non-strategic businesses. These types of transactions are also subject to a number of other risks and uncertainties, including: delays in realizing or failure to realize anticipated benefits of the transactions; a termination or delay in the consummation of acquisition or disposition transactions by counterparties; diversion of management's time and attention from other business concerns; difficulties in retaining key employees, Customers, or suppliers of the acquired or divested businesses; difficulties in maintaining uniform standards, controls, procedures and policies, or other integration or divestiture difficulties, including those that may expose us to greater cybersecurity risk; adverse effects on existing business relationships with suppliers or Customers; other events contributing to difficulties in generating future cash flows; risks associated with the assumption of contingent or other liabilities of acquisition targets or retention of liabilities for divested businesses and difficulties in obtaining financing.

Furthermore, assumptions that we have made with respect to acquisitions, dispositions or joint ventures, such as with respect to anticipated operating synergies or the costs associated with realizing such synergies, significant long-term cash flow generation, and the continuation of our investment grade credit profile, may not be realized. The processes involved with disposing of our businesses, entering into joint ventures or post-acquisition integration, as well as the implementation of other strategic initiatives, may result in the loss of key employees, the disruption of ongoing business, changes in strategy or inconsistencies in standards, controls, procedures and policies. There could also be potential unknown liabilities and unforeseen expenses that were not discovered or previously expected. Although we conduct what we believe to be a prudent level of investigation regarding the operating and financial condition of the businesses, product or service lines, assets or technologies we purchase, divest or invest in, an unavoidable level of risk remains regarding their actual operating and financial condition, as well as their strategic fit. We may not be able to ascertain actual value or understand potential liabilities until or after we actually assume operational control of these businesses, product or service lines, assets or technologies.

***Our investments in our business and product offerings may not be as successful as anticipated.***

From time to time, we may invest in technology, business infrastructure, new businesses, product offerings and manufacturing innovations and expansion of existing businesses, each of which may require substantial cash investments and management attention. We believe cost-effective investments are essential to business growth and profitability; however, significant investments are subject to typical risks and uncertainties inherent in developing a new business or expanding an existing business. The failure of any significant investment to provide expected returns or profitability could have a material adverse effect on our financial results and divert management attention from more profitable business operations.

***Our business realignment initiatives may not be as successful as anticipated.***

We execute organizational realignments to support our growth and cost management strategies. We also engage in initiatives aimed to increase productivity, efficiencies and cash flow and to reduce costs. If we are unable to successfully manage these and other organizational changes, the ability to complete such activities and realize anticipated synergies or cost savings as well as our results of operations and financial condition could be materially adversely affected. We cannot offer assurances that any of these initiatives will be beneficial to the extent anticipated, or that the estimated efficiency improvements, incremental cost savings or cash flow improvements will be realized as anticipated or at all.

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***Our acquisition activity and ability to grow organically may be adversely affected if we are unable to continue to access the financial markets***.

We have financed acquisitions through cash on hand, borrowings under our bank credit facilities and through public note offerings. Future acquisitions or other capital requirements and investments will necessitate additional cash. To the extent our existing sources of cash are insufficient to fund these or other future activities, we have in the past needed and may in the future need to raise additional funds through new or expanded financing arrangements, which could include further borrowings or equity issuances. There can be no assurance that we will be able to obtain additional funds on terms favorable to us, or at all, or that our existing bank credit facilities or other indebtedness can be replaced or refinanced when they mature or terminate.

***The integration of acquired businesses into STERIS or working arrangements with joint venture partners may not be as successful as anticipated.***

The integration of acquired businesses into STERIS as well as the entry into and operation of strategic joint ventures involves numerous operational, strategic, financial, accounting, legal, tax and other risks; potential liabilities associated with the acquired businesses or partners; and uncertainties related to design, operation and integration of internal controls over financial reporting. These risks and difficulties may result in the business performing differently than expected, in operational challenges, in strategic changes or in the failure to realize anticipated expense-related efficiencies. STERIS's existing businesses could also be negatively impacted by integration actions or the administration of joint ventures. Potential difficulties that may be encountered include, among other factors:

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;• the inability to successfully integrate the business of an acquired business into STERIS in a manner that permits STERIS to achieve the full revenue and cost savings anticipated from the acquisition; |
| &nbsp;&nbsp;&nbsp;&nbsp;• complexities associated with managing the larger, more complex, integrated business; |
| &nbsp;&nbsp;&nbsp;&nbsp;• not realizing anticipated operating synergies or incurring unexpected costs to realize such synergies; |
| &nbsp;&nbsp;&nbsp;&nbsp;• integrating personnel from acquired businesses into STERIS while maintaining focus on providing consistent, high-quality products and services; |
| &nbsp;&nbsp;&nbsp;&nbsp;• potential unknown liabilities and unforeseen expenses; |
| &nbsp;&nbsp;&nbsp;&nbsp;• loss of key employees; |
| &nbsp;&nbsp;&nbsp;&nbsp;• integrating relationships with Customers, vendors and business partners; |
| &nbsp;&nbsp;&nbsp;&nbsp;• performance shortfalls as a result of the diversion of management's attention caused by integration or joint venture activities; and |
| &nbsp;&nbsp;&nbsp;&nbsp;• the disruption of, or the loss of momentum in a new business and STERIS's ongoing business or inconsistencies in standards, controls, procedures and policies. |

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***Past and future business acquisitions may not be as accretive to STERIS's earnings per share and cash flow from operations per share, which may negatively affect the market price of STERIS shares.***

Past and future acquisitions may not be as accretive to STERIS's earnings per share and cash flow from operations per share as expected. Future events and conditions could decrease or delay any expected accretion, result in dilution or cause greater dilution than is currently expected, including adverse changes in market conditions, production levels, operating results, competitive conditions, laws and regulations affecting STERIS, capital expenditure obligations, higher than expected integration costs, lower than expected synergies and general economic conditions.

Any decrease or delay of any accretion to STERIS's earnings per share or cash flow from operations per share could cause the price of the STERIS's ordinary shares to decline.

***STERIS has incurred and expects to incur significant transaction and related costs in connection with strategic transactions, which may be in excess of those anticipated.***

STERIS has incurred substantial expenses in connection with the negotiation and completion of past business acquisitions, dispositions and joint ventures, and expects to incur similar costs for any future strategic transactions. The anticipated benefits and cost savings from such initiatives may not be realized fully or at all, may take longer to realize than expected, may require more non-recurring costs and expenditures to realize than expected or could have other adverse effects that we do not currently foresee.

STERIS expects to incur non-recurring costs associated with the integrations of recent acquisitions into STERIS, joint ventures and working towards achieving desired synergies. These fees and costs have been, and may continue to be, substantial. The non-recurring expenses include, among others, employee retention costs, fees paid to financial, legal and accounting advisors, and severance and benefit costs.

STERIS also expects to incur and has incurred costs to consolidate facilities and systems. Additional unanticipated costs may be incurred in connection with strategic transactions. Although STERIS expects that the elimination of duplicative costs, as

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well as the realization of other efficiencies related to the integration of acquired businesses, should allow STERIS to offset integration-related costs over time, this net benefit may not be achieved in the near term, or at all.

STERIS may not achieve expected returns and benefits in connection with dispositions, which may require continued involvement in a divested business, such as through transition service agreements, guarantees, indemnities or other financial obligations. Under these arrangements, the performance of the divested business, or other conditions outside our control, could affect our future financial results. The costs described above, as well as other unanticipated costs and expenses, could have a material adverse effect on the financial condition and operating results.

***We have recorded goodwill and other intangible assets that could become impaired and result in material non-cash charges to our results of operation in the future.***

Our total assets include goodwill, intangibles and other long-lived assets. If we determine that these items have become impaired in the future, it may have a material adverse effect on our financial condition and results of operations. As of March 31, 2026, we had recorded goodwill of $4 billion and other intangible assets, net of accumulated amortization of $2 billion. Goodwill represents the excess of purchase price over the estimated fair value assigned to the net tangible and identifiable intangible assets of a business acquired. Goodwill is evaluated for impairment annually or more frequently, if indicators of impairment exist. If the impairment evaluations for goodwill indicate the carrying amount exceeds the estimated fair value, an impairment loss is recognized in an amount equal to that excess. Our operating results may be significantly impacted from both the impairment and the underlying trends in the business that triggered the impairment.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 1C. CYBERSECURITY

**Cybersecurity Risk Management and Strategy**

At STERIS, the ERM program is designed to identify, assess, and manage risks across STERIS's enterprise. Cybersecurity risk management is integrated into STERIS's ERM program, under which we regularly assess cybersecurity risks in accordance with what we believe are industry cybersecurity best practices. Further, we implement controls to protect the confidentiality, integrity and availability of STERIS's information systems and information. We maintain cybersecurity and incident response procedures to address our security standards and requirements and provide a framework for assessing and responding to cybersecurity threats and incidents. Additionally, as part of our ERM program, STERIS oversees and identifies risks associated with third-party service providers with whom we do business, which process includes due diligence, risk management assessments and contractual safeguards. We also maintain cyber liability insurance to help mitigate potential liabilities resulting from cybersecurity issues.

STERIS has an Executive Cybersecurity Steering Committee consisting of the Senior Vice President & Chief Financial Officer, the Vice President, Corporate Controller, the Vice President, Investor Relations & Corporate Communications, the Vice President & Chief Information Officer ("CIO"), the Vice President, Chief Compliance and Quality Officer, the Senior Vice President, General Counsel & Company Secretary, and the Vice President, Chief Information Security Officer ("CISO") that is responsible for providing governance, risk and compliance oversight for STERIS's incident response program, providing guidance and support for cybersecurity non-technical initiatives, and for verifying that appropriate actions are taken following an incident occurrence. We have adopted and maintain an incident response policy that covers our incident response program and the duties and responsibilities of our Incident Response Team ("IRT") responsible for managing and responding to cybersecurity incidents, including data breaches. Our IRT is led by the CISO and is comprised of senior management and others, including external resources, as required. Our incident response policy includes steps for detecting and investigating cybersecurity incidents, assessing the nature, scope, and severity of cybersecurity threats, identifying the impact of cybersecurity incidents, communicating cybersecurity incident disclosures, and implementing cybersecurity countermeasures and mitigation strategies. A subcommittee of our IRT reviews and assesses associated public reporting implications of cybersecurity incidents. Our process also includes informing the Board of Directors and the Audit Committee following a material cybersecurity incident.

We engage third-party security experts to support our risk assessment activities and to provide system security enhancements. Our program includes regular vulnerability and penetration testing (internal and external) of our enterprise systems by independent external security experts.

Education and awareness training on information security and data protection is conducted regularly for employees. Members of the IRT, the Executive Cybersecurity Steering Committee and the Board of Directors receive additional training on responding to cybersecurity incidents.

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Our Board of Directors has oversight responsibility for the ERM program, and delegates the risk management assessment and risk management approach, including risks related to cybersecurity, to its Audit Committee. Among other responsibilities, the Audit Committee is responsible for monitoring internal controls, including those related to cybersecurity risk.

Management is responsible for identifying, considering, and assessing material cybersecurity risks on an ongoing basis, establishing processes to monitor such potential cybersecurity risk exposures, putting in place appropriate mitigation measures and maintaining the cybersecurity program. Our cybersecurity program for our information systems is directed by our CIO and, with the cybersecurity team, our CIO monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents. Our CIO has a Bachelor of Science in Computer Engineering, a Master of Business Administration, and over 35 years of experience working in the information technology field, including approximately 20 years of CIO positions. Our CISO is CISSP-ISSMP and CISM certified and is part of a team of experienced information system security professionals with diverse certifications, including CISSP, CISM, CNSS, CEH, CySA+, CompTIA - Security+, CySA+, PenTest+, and CASP+ and others. Management, including the CIO and CISO, update the Audit Committee on a regular basis on our cybersecurity program, material cybersecurity risks, mitigation strategies, cybersecurity metrics, developments in cybersecurity and proposed updates to our cybersecurity program.

In fiscal year 2026, STERIS did not experience any known cyberattack or other attempted intrusion or other incident with respect to our information systems that materially affected or was likely to materially affect our business strategy, results of operations, financial condition or cash flows. However, despite our efforts, we cannot eliminate all risks from cybersecurity threats, or provide assurances that we have not experienced or will not experience in the future undetected cybersecurity incidents. For more information about these risks, please see "Item 1A Risk Factors" in this annual report on Form 10-K.

ITEM 2. PROPERTIES

The following discussion sets forth materially important properties of the Company and its subsidiaries as of March 31, 2026. The Company believes that its facilities are adequate for operations and are maintained in good condition. The Company is confident that, if needed, it will be able to acquire additional facilities at commercially reasonable rates.

The Company's principal executive office is located in Dublin, Ireland and its primary administrative offices are located in Mentor, OH (U.S.).

In our AST segment, we operate over 60 owned or leased facilities dedicated to delivering contract sterilization services. These strategically positioned locations are situated near Customer manufacturing and distribution sites, as well as key distribution corridors across Africa, Asia, Europe, and North America.

The Company operates approximately 250 locations representing sales, administrative, manufacturing and operational locations in the U.S. and more than 35 other countries, the majority of which are leased and support one or multiple business segments. In addition to these locations, the Company partners with third-party logistics service providers to streamline the distribution of product and materials. Operational locations are primarily comprised of service centers, manufacturing and distribution warehouses. Our locations are geographically spread to be in close proximity to our Customers to ensure timely delivery of products and services.

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Included among totals listed above, the Company owns and leases manufacturing facilities that support the Healthcare, Life Sciences, and AST segments. The locations we deem to be material are disclosed in the following table:

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| | |
|:---|:---|
| ***Location*** | ***Owned/Leased*** |
| Conroe, TX | Owned |
| Guadalupe, Mexico | Owned |
| Mentor, OH | Owned/Leased |
| Montgomery, AL | Owned/Leased |
| Plymouth, MN | Owned/Leased |
| Quebec City, Canada | Owned |
| St. Louis, MO | Owned/Leased |
| Leicester, England | Owned |
| Ottawa, Canada | Leased |
| Point Richmond, CA | Leased |
| Tuusula, Finland | Owned |
| Pomezia, Italy | Owned |
| Bishop's Stortford, England | Leased |
| Franklin Park, IL | Leased |
| Sharon Hill, PA | Owned |
| Tuttlingen, Germany | Leased |

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ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS

Information regarding our legal proceedings is included in Item 7 of Part II, Management's Discussion and Analysis, and Note 12 to our consolidated financial statements titled, "Commitments and Contingencies," and is incorporated herein by reference thereto.

ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;MINE SAFETY DISCLOSURES

None.

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PART II

ITEM 5. MARKET FOR REGISTRANT'S ORDINARY EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

**Market Information.** Our ordinary shares are traded on the New York Stock Exchange under the symbol "STE."

**Holders.** As of March 31, 2026, there were approximately 360 holders of record of our ordinary shares.

**Dividend Policy.** The Company's Board of Directors decides the timing and amount of any dividends we may pay. The Board expects to be able to continue to pay cash dividends for the foreseeable future.

**Purchases of Equity Securities by the Issuer and Affiliated Purchasers.** 

On May 3, 2023 our Board of Directors terminated the previous share repurchase program then in effect and authorized a new share repurchase program (the "Outgoing Repurchase Program") for the purchase of up to $500.0 million (exclusive of fees, commissions, and other charges), with no specified expiration date. As of March 31, 2026, there was $75.0 million (exclusive of fees, commissions, and other charges) of remaining availability under the Outgoing Repurchase Program.

Under the Outgoing Repurchase Program, the Company could repurchase its shares from time to time through open market purchases, including 10b5-1 plans. It also permitted share repurchases to be activated, suspended or discontinued at any time.

On May 5, 2026, the Board of Directors terminated the Outgoing Repurchase Program and authorized a new share repurchase program (the "New Repurchase Program") for the purchase of up to $1,000.0 million (exclusive of fees, commissions, and other charges).

Under the New Repurchase Program, we may repurchase our shares from time to time through open market purchases, including 10b5-1 plans. Any share repurchases may be activated, suspended or discontinued at any time. There is no limitation on the number of shares that can be repurchased in a year and there is no expiration date for the New Repurchase Program.

During fiscal 2026, we repurchased 0.9 million of our ordinary shares for the aggregate amount of $225.0 million (exclusive of fees, commissions, and other charges) pursuant to authorizations under the Outgoing Repurchase Program. This does not include 27 shares purchased during the year at an average price of $247.66 per share by the STERIS Corporation 401(k) Plan on behalf of an executive officer of the Company who may be deemed to be an affiliated purchaser.

During fiscal 2026, we obtained 0.1 million of our ordinary shares in the aggregate amount of $12.5 million in connection with share-based compensation award programs.

The following table presents information with respect to purchases STERIS made of its ordinary shares under the Outgoing Repurchase Program during the fourth quarter of fiscal year 2026:

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| | | | | |
|:---|:---|:---|:---|:---|
| | <br>Total Number of<br>Shares Purchased<br>(in millions) | <br>Average Price Paid<br>Per Share | <br>Total Number of<br>Shares Purchased as<br>Part of Publicly<br>Announced Plans<br>(in millions) | <br>Maximum Dollar Value of Shares that May Yet Be Purchased Under the<br>Plans at Period End <br>(in millions) |
| January 1-31 |  | $— |  | $150.0 |
| February 1-28 | 0.2 | $249.96 | 0.2 | 105.0 |
| March 1-31 | 0.1 | $239.27 | 0.1 | 75.0 |
| Total | 0.3 | $245.57 | 0.3 | $75.0 |

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ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;[RESERVED]

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ITEM 7.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

**INTRODUCTION**

In Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), we explain the general financial condition and the results of operations for STERIS and its subsidiaries including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• what factors affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• what our earnings and costs were in each period presented;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• why those earnings and costs were different from the year before;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• where our earnings came from;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• how this affects our overall financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• what our expenditures for capital projects were; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• where cash is expected to come from to fund future debt principal repayments, growth outside of core operations, repurchases of shares, cash dividends and future working capital needs.

The MD&A also analyzes and explains the annual changes in the specific line items in the Consolidated Statements of Income. As you read the MD&A, it may be helpful to refer to information in Item 1, "Business," Part I, Item 1A, "Risk Factors," and Note 12 to our consolidated financial statements titled, "Commitments and Contingencies" for a discussion of some of the matters that can adversely affect our business and results of operations. This information, discussion, and disclosure may be important to you in making decisions about your investments in STERIS.

**FINANCIAL MEASURES**

In the following sections of the MD&A, we may, at times, refer to financial measures that are not required to be presented in the consolidated financial statements under accounting principles generally accepted in the United States ("U.S. GAAP"). We sometimes use the following financial measures in the context of this report: backlog and debt-to-total capital ratio. We define these financial measures as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Backlog</u> – We define backlog as the amount of unfilled capital equipment purchase orders (excluding freight) at a point in time. We use this figure as a measure to assist in the projection of short-term financial results and inventory requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Debt-to-total capital ratio</u> – We define debt-to-total capital ratio as total debt divided by the sum of total debt and shareholders' equity. We use this figure as a financial liquidity measure to gauge our ability to borrow and fund growth.

We, at times, may also refer to financial measures which are considered to be "non-GAAP financial measures" under SEC rules. We have presented these financial measures because we believe that meaningful analysis of our financial performance is enhanced by an understanding of certain additional factors underlying that performance. These financial measures should not be considered an alternative to measures required by accounting principles generally accepted in the United States. Our calculations of these measures may differ from calculations of similar measures used by other companies, and you should be careful when comparing these financial measures to those of other companies. Additional information regarding these financial measures, including reconciliations of each non-GAAP financial measure, is available in the subsection of MD&A titled, "Non-GAAP Financial Measures."

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**REVENUES– DEFINED**

As required by Regulation S-X, we separately present revenues generated as either Product revenues or Service revenues on our Consolidated Statements of Income for each period presented. When we discuss revenues, we may, at times, refer to revenues summarized differently than the Regulation S-X requirements. The terminology, definitions, and applications of terms that we use to describe revenues may be different from terms used by other companies. We use the following terms to describe revenues:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Revenues</u> – Our revenues are presented net of sales returns and allowances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Product Revenues</u> – We define Product revenues as revenues generated from sales of consumable and capital equipment products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Service Revenues</u> – We define Service revenues as revenues generated from parts and labor associated with the maintenance, repair, and installation of our capital equipment. Service revenues also include outsourced reprocessing services and instrument and scope repairs, as well as revenues generated from contract sterilization and laboratory services offered through our AST segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Capital Equipment Revenues</u> – We define capital equipment revenues as revenues generated from sales of capital equipment, which includes steam and gas sterilizers, low temperature liquid chemical sterilant processing systems, automated endoscope reprocessors, pure steam/water systems, surgical lights and tables, and integrated operating rooms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Consumable Revenues</u> – We define consumable revenues as revenues generated from sales of the consumable family of products, which includes dedicated consumables used in our capital equipment, gastrointestinal endoscopy accessories, instruments and tools, sterility assurance products, barrier protection solutions, and cleaning consumables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Recurring Revenues</u> – We define recurring revenues as revenues generated from sales of consumable products and Service revenues.

**GENERAL OVERVIEW AND EXECUTIVE SUMMARY**

STERIS is a leading global provider of products and services that support patient care with an emphasis on infection prevention. WE HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science products and services around the globe. We offer our Customers a unique mix of innovative products and services. These include: consumable products, such as detergents, endoscopy accessories, barrier products, instruments and tools; services, including equipment installation and maintenance, microbial reduction of medical devices, instrument and scope repair, laboratory testing, and outsourced reprocessing; capital equipment, such as sterilizers, surgical tables, and automated endoscope reprocessors; and connectivity solutions such as OR integration.

We operate and report our financial information in three reportable business segments: Healthcare, AST, and Life Sciences. Previously, we had four reportable business segments; however, as a result of the fiscal 2025 divestiture of our Dental segment, Dental is presented as discontinued operations. Historical information has been retrospectively adjusted to exclude discontinued operations for comparability, as required. For more information, refer to Note 4 to our consolidated financial statements titled, "Discontinued Operations." Non-allocated operating costs that support the entire Company and items not indicative of operating trends are excluded from segment operating income. We describe our business segments in Note 13 to our consolidated financial statements titled, "Business Segment Information."

The bulk of our revenues are derived from healthcare, medical device and pharmaceutical Customers. Much of the growth in these industries is driven by the aging of the population throughout the world, as an increasing number of individuals are entering their prime healthcare consumption years, and is dependent upon advancement in healthcare delivery, acceptance of new technologies, government policies, and general economic conditions.

In addition, there is increased demand for medical procedures, including preventive screenings such as endoscopies and colonoscopies; and a desire by our Customers to operate more efficiently, all of which are driving increased demand for many of our products and services.

**Acquisitions, Divestitures, and Investments**. During fiscal 2026, we completed two tuck-in acquisitions which continued to expand our product and service offerings in the Healthcare segment. Total aggregate consideration was approximately $23.4 million, including fair value of contingent consideration. We also purchased investments totaling $134.0 million, predominantly related to a noncontrolling equity investment in a non-U.S.-based healthcare product manufacturer.

During 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 $54.1 million.

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 during fiscal 2024.

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For more information regarding our recent acquisitions and divestitures, see Note 3 to our consolidated financial statements titled, "Business Acquisitions, Divestitures, and Investments."

**Discontinued Operations.** On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787.5 million, subject to customary adjustments, and up to an additional $12.5 million in contingent payment had the Dental business achieved certain revenue targets in fiscal 2025. No amounts have been recorded or are expected to be recorded with respect to this contingent consideration. The transaction was structured as an equity sale and closed on May 31, 2024. A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the divestiture of our Dental segment and determined that those conditions for discontinued operations presentation had been met prior to March 31, 2024. The Dental segment results of operations have been reclassified as income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented. Our Consolidated Statements of Cash Flows include the financial results of the Dental segment through the date of sale on May 31, 2024. A majority of the proceeds received from the sale were utilized to pay off existing debt.

For more information, see Note 4 to our consolidated financial statements titled "Discontinued Operations."

**U.S. Tax Reform**. On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act ("OBBBA") which contains substantial changes to its tax policies. Business provisions in the OBBBA, some of which were extensions of those established in the Tax Cuts and Jobs Act, include favorable cost recovery allowances, changes to U.S. international tax rules, and changes to energy and environmental related incentives. The law has multiple effective dates, with certain provisions applicable to fiscal years beginning after fiscal 2026. The law did not have a material impact on our consolidated financial statements for fiscal 2026, and we do not expect it to have a material impact on our effective tax rate in the future.

**Highlights.** Revenues increased $476.4 million, or 8.7%, to $5,935.9 million for the year ended March 31, 2026, as compared to $5,459.5 million for the year ended March 31, 2025. These increases reflect higher volume and pricing, as well as favorable impacts from foreign currency movements.

Our gross profit percentage increased to 44.2% for fiscal 2026 as compared to 44.0% for fiscal 2025. Favorable impacts from pricing, operational improvements and lower restructuring costs, and productivity were partially offset by unfavorable impacts from tariffs and inflation.

Fiscal 2026 income from operations increased 27.1% to $1,101.8 million over fiscal 2025 income from operations of $866.6 million. This increase was primarily due to increased pricing, volume, and lower restructuring and litigation costs, which were partially offset by inflation and tariffs.

Cash flows provided by operating activities were $1,341.4 million and free cash flow was $982.9 million in fiscal 2026 compared to cash flows provided by operating activities of $1,148.1 million and free cash flow of $787.2 million in fiscal 2025 (see subsection of MD&A titled, "Non-GAAP Financial Measures" for additional information and related reconciliation of cash flows from operations to free cash flow). The increase in cash flows from operations and free cash flow during the period was driven primarily by improvements in net income, which more than offset the significantly lower contribution from working capital when compared to the prior year.

Our debt-to-total capital ratio was 21.3% at March 31, 2026. We have paid quarterly dividends each year since 2005 and have increased the dividend each consecutive year, including an increase during fiscal 2026 to $0.63 per share.

**Outlook.** In fiscal 2027 and beyond, we expect to manage our costs, grow our business with internal product and service development, invest in greater capacity and efficiency, and augment these value creating methods with potential acquisitions of additional products and services. Please refer to "Information With Respect to Our Business In General" in Item 1."Business" to this Annual Report on Form 10-K.

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**NON-GAAP FINANCIAL MEASURES**

We, at times, refer to financial measures which are considered to be "non-GAAP financial measures" under the Securities and Exchange Commission rules. We, at times, also refer to our results of operations excluding certain transactions or amounts that are non-recurring or are not indicative of future results, in order to provide meaningful comparisons between the periods presented.

These non-GAAP financial measures are not intended to be, and should not be, considered separately from or as an alternative to the most directly comparable U.S. GAAP financial measures.

These non-GAAP financial measures are presented 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. These amounts are disclosed so that the reader has the same financial data that management uses with the belief that it will assist investors and other readers in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented.

We believe that the presentation of these non-GAAP financial measures, when considered along with our U.S. GAAP financial measures and the reconciliation to the corresponding U.S. GAAP financial measures, provides the reader with a more complete understanding of the factors and trends affecting our business than could be obtained absent this disclosure. It is important for the reader to note that the non-GAAP financial measures used may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

We define free cash flow as net cash provided by operating activities as presented in the Consolidated Statements of Cash Flows less purchases of property, plant, equipment, and intangibles (capital expenditures) plus proceeds from the sale of property, plant, equipment, and intangibles, which are also presented within investing activities in the Consolidated Statements of Cash Flows. We use this as a measure to gauge our ability to pay cash dividends, fund growth outside of core operations, fund future debt principal repayments, and repurchase shares.

The following table summarizes the calculation of our free cash flow for the years ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
| | Years Ended March 31, | Years Ended March 31, |
| (in millions) | 2026 | 2025 |
| Net cash provided by operating activities | $**1341.4** | $1148.1 |
| Purchases of property, plant, equipment and intangibles | **(369.0)** | (370.1) |
| Proceeds from the sale of property, plant, equipment and intangibles | **10.5** | 9.2 |
| **Free cash flow** | $**982.9** | $787.2 |

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**RESULTS OF OPERATIONS**

In the following subsections, we discuss our performance and the factors affecting it. We begin with a general overview of our operating results and then separately discuss earnings for our operating segments. As a result of the fiscal 2025 divestiture of our Dental segment, Dental is presented as discontinued operations. Historical information has been retrospectively adjusted to reflect these changes for comparability, as required. Therefore, the discussion within this Results of Operations section excludes discontinued operations and relates solely to our continuing operations.

The discussion of factors affecting our performance for the year ended March 31, 2025 compared to the fiscal year ended March 31, 2024 is included in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II of our Annual Report on Form 10-K for the year ended March 31, 2025.

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**FISCAL 2026 AS COMPARED TO FISCAL 2025**

***Revenues.*** The following table compares our revenues, in total and by type and geography, for the year ended March 31, 2026 to the year ended March 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Years Ended March 31, | Years Ended March 31, | | Percent |
| (dollars in millions) | 2026 | 2025 | Change | Change |
| **Total revenues** | $**5935.9** | $5459.5 | $476.4 | 8.7% |
| **Revenues by type:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Service revenues | **2875.8** | 2587.9 | 287.9 | 11.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumable revenues | **1808.4** | 1685.9 | 122.5 | 7.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital equipment revenues | **1251.7** | 1185.7 | 66.0 | 5.6% |
| **Revenues by geography** <sup>(1)</sup>**:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ireland revenues | **108.5** | 107.3 | 1.1 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;United States revenues | **4333.8** | 4007.6 | 326.2 | 8.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign revenues | **1493.7** | 1344.6 | 149.1 | 11.1% |

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<sup>(1)</sup> Allocation of revenues by geography is based on the location of delivery or distribution of products or location where services are performed.

Revenues increased $476.4 million, or 8.7%, to $5,935.9 million for the year ended March 31, 2026, as compared to $5,459.5 million for the year ended March 31, 2025. These increases reflect higher volume, primarily due to organic growth and increased pricing across all three segments, as well as the favorable impacts of foreign currency movements.

Service revenues for fiscal 2026 increased $287.9 million, or 11.1% over fiscal 2025, reflecting growth across all segments. Consumable revenues for fiscal 2026 increased $122.5 million, or 7.3%, over fiscal 2025, reflecting growth in the Healthcare and Life Sciences segments. Capital equipment revenues for fiscal 2026 increased by $66.0 million, or 5.6%, over fiscal 2025, reflecting growth in the Healthcare and Life Sciences segments, partially offset by a decline in the AST segment.

Ireland revenues for fiscal 2026 were $108.5 million, representing an increase of $1.1 million, or 1.0%, over fiscal 2025 revenues of $107.3 million, reflecting growth in service revenues, partially offset by a decline in capital equipment revenues.

United States revenues for fiscal 2026 were $4,333.8 million, representing an increase of $326.2 million, or 8.1%, over fiscal 2025 revenues of $4,007.6 million, reflecting growth in service, consumable, and capital equipment revenues.

Revenues from other foreign locations for fiscal 2026 were $1,493.7 million, representing an increase of $149.1 million, or 11.1%, over the fiscal 2025 revenues of $1,344.6 million. The increase reflects growth across all geographic regions.

***Gross Profit.*** The following table compares our gross profit for the year ended March 31, 2026 to the year ended March 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Years Ended March 31, | Years Ended March 31, | Change | Percent<br>Change |
| (dollars in millions) | 2026 | 2025 | Change | Percent<br>Change |
| **Gross profit:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | $**1434.6** | $1357.3 | $77.3 | 5.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | **1191.9** | 1045.4 | 146.5 | 14.0% |
| **Total gross profit** | $**2626.5** | $2402.8 | $223.7 | 9.3% |
| **Gross profit percentage:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | **46.9%** | 47.3% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | **41.4%** | 40.4% |  |  |
| **Total gross profit percentage** | **44.2%** | 44.0% |  |  |

---

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. Our gross profit percentage increased to 44.2% for fiscal 2026 as compared to 44.0% for fiscal 2025. Favorable impacts from pricing (120 basis points), operational improvements and lower restructuring costs (70 basis points), and productivity (50 basis points) were partially offset by unfavorable impacts from tariffs (80 basis points), inflation (70 basis points), materials costs (30 basis points), mix (30 basis points), and currency (10 basis points).

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***Operating Expenses.*** The following table compares our operating expenses for the year ended March 31, 2026 to the year ended March 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Years Ended March 31, | Years Ended March 31, | Change | Percent<br>Change |
| (in millions) | 2026 | 2025 | Change | Percent<br>Change |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general, and administrative | $**1407.7** | $1334.3 | $73.4 | 5.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | **112.9** | 107.6 | 5.3 | 4.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Illinois EO litigation settlement | **—** | 48.2 | (48.2) | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring expenses | **4.1** | 46.0 | (42.0) | (91.1)% |
| **Total operating expenses** | $**1524.7** | $1536.1 | $(11.4) | (0.7)% |

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NM - Not meaningful

***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 5.5% in fiscal 2026 over fiscal 2025. The increase in SG&A during the fiscal year ended March 31, 2026, compared to the fiscal year ended March 31, 2025, is primarily attributable to increased compensation and benefit costs, dealer commissions, and bad debt expense, which were partially offset by lower costs associated with our EO litigation.

***Research and Development.*** Research and development expenses increased $5.3 million in fiscal 2026 over fiscal 2025. 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 improving innovation governance processes and leveraging technology to accelerate development initiatives to launch critical capital and consumable products. During fiscal 2026, our investments in research and development have continued to be focused on, but were not limited to, enhancing capabilities of sterile processing technologies, procedural products and accessories, and devices and support accessories used in gastrointestinal endoscopy procedures.

***Illinois EO Litigation Settlement***. On March 3, 2025, the Company entered into binding confidential term sheets ("Term Sheets") with plaintiffs' counsel, as well as settlement agreements with several plaintiffs in cases which were at the time scheduled for trial in fiscal 2026. On October 29, 2025, the Company entered into binding confidential settlement agreements ("Settlement Agreements") with plaintiffs' counsel, containing terms and provisions consistent with the Term Sheets. The Settlement Agreements are expected to lead to resolution of substantially all of the claims for personal injury related to EO that are currently pending in the Circuit Court of Cook County, Illinois. We recorded an expense of $48.2 million related to this settlement in fiscal 2025. For more information, refer to Note 12 to our consolidated financial statements titled, "Commitments and Contingencies."

***Restructuring Expenses.*** In May 2024, we adopted and announced a targeted restructuring plan (the "Restructuring Plan"). This plan includes a strategic shift in our approach to the Healthcare surgical business in Europe, as well as other actions including the impairment of an internally developed X-ray accelerator, product rationalizations and facility consolidations. Approximately 300 positions have been eliminated. These restructuring actions were designed to enhance profitability and improve efficiency, which we realized beginning in fiscal 2025 and 2026. As of March 31, 2026, the execution of our Restructuring Plan is substantially complete.

The following table summarizes our total pre-tax restructuring expenses recorded in fiscal 2026 related to the Restructuring Plan:

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| | | |
|:---|:---|:---|
| **Restructuring Plan** | **Years Ended March 31,** | **Years Ended March 31,** |
| (in millions) | 2026 | 2025 |
| Severance and other compensation related costs | $**2.6** | $29.0 |
| Lease and other contract termination and other costs | **1.5** | 12.4 |
| Product rationalization <sup>(1)</sup> | **(0.7)** | 16.2 |
| Accelerated depreciation and amortization and asset impairment | **—** | 4.7 |
| **Total Restructuring Expense** | $**3.4** | $62.3 |

---

<sup>(1)</sup> Recorded in Cost of revenues on the Consolidated Statements of Income.

The Restructuring Plan expenses incurred during fiscal 2026 and 2025 primarily related to actions taken in our Healthcare segment. Total pre-tax restructuring expense of $110.1 million has been recorded relating to the Restructuring Plan since inception, of which $33.9 million has been recorded in Cost of revenues.

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Liabilities related to restructuring activities are recorded as current liabilities in the accompanying Consolidated Balance Sheets within "Accrued payroll and other related liabilities" and "Accrued expenses and other." The following table summarizes our restructuring liability balances:

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| | |
|:---|:---|
| (in millions) | **Restructuring Plan** |
| **Balance at March 31, 2024** | $0.7 |
| Fiscal 2025 charges | 41.4 |
| Payments | (23.7) |
| **Balance at March 31, 2025** | $18.4 |
| Fiscal 2026 Charges | **4.1** |
| Payments | **(15.4)** |
| **Balance at March 31, 2026** | $**7.1** |

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***Non-Operating Expenses, Net.*** Non-operating expenses, net consists of interest expense on debt, offset by interest earned on cash, cash equivalents, short-term investment balances, losses (gains) related to disposal activities, and other expense (income) related to our equity investments, including our equity earnings and amortization of basis differences arising from our investments. The following table compares our net non-operating expenses, net for the year ended March 31, 2026 to the year ended March 31, 2025:

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| | | | |
|:---|:---|:---|:---|
| | Years Ended March 31, | Years Ended March 31, | |
| (in millions) | 2026 | 2025 | Change |
| **Non-operating expenses, net:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | $**60.7** | $86.3 | $(25.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and miscellaneous income | **(9.8)** | (8.4) | (1.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense (income), net | **3.5** | (7.4) | 10.9 |
| **Non-operating expenses, net** | $**54.4** | $70.4 | $(16.0) |

---

Interest expense decreased $25.6 million during fiscal 2026 as compared to fiscal 2025, primarily due to the lower principal amount of debt outstanding. For more information, refer to Note 8 to our consolidated financial statements titled, "Debt."

Interest and miscellaneous income increased during fiscal 2026, as compared to fiscal 2025, by $1.4 million and is driven by higher interest income.

Other expense, net was $3.5 million during fiscal 2026, primarily reflecting a disposal-related fixed asset impairment, as well as amortization related to a noncontrolling equity investment, which were partially offset by a gain on the sale of a building. Other income, net during fiscal 2025 was $7.4 million and primarily related to the gain recorded from the sale of our CECS business, which was partially offset by a loss recorded on an equity investment. For more information on our fixed assets, refer to Note 7 to our consolidated financial statements, titled "Property, Plant, and Equipment." For more information on our equity investments, refer to Note 3 to our consolidated financial statements, titled "Business Acquisitions, Divestitures, and Investments."

***Income Tax Expense.*** The following table compares our tax expense and effective income tax rates for the years ended March 31, 2026 and March 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Years Ended March 31, | Years Ended March 31, | Change | Percent<br>Change |
| (dollars in millions) | 2026 | 2025 | Change | Percent<br>Change |
| Income tax expense | $**262.2** | $184.7 | $77.6 | 42.0% |
| Effective income tax rate | **25.0%** | 23.2% |  |  |

---

The effective income tax rates from continuing operations for fiscal 2026 was 25.0% compared to 23.2% for fiscal 2025. The fiscal 2026 effective tax rate from continuing operations increased when compared to 2025, primarily due to changes in geographic mix of income and unfavorable discrete items, including withholding taxes. Additional information regarding our income tax expense and effective income tax rate is included in Note 10 to our consolidated financial statements titled, "Income Taxes."

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***Business Segment Results of Operations.*** 

We operate and report our financial information in three reportable business segments: Healthcare, AST, and Life Sciences. Previously, we had four reportable business segments; however, as a result of the fiscal 2025 divestiture of our Dental segment, Dental is presented as discontinued operations. Historical information has been retrospectively adjusted to reflect these changes for comparability, as required.

Our Healthcare segment provides a comprehensive offering for healthcare providers worldwide, focused on sterile processing departments and procedural centers, such as operating rooms and endoscopy suites. Our products and services range from infection prevention consumables and capital equipment, as well as services to maintain that equipment; to the repair of re-usable procedural instruments; to outsourced instrument reprocessing services. In addition, our procedural products also include endoscopy accessories, instruments, and capital equipment infrastructure used primarily in operating rooms, ambulatory surgery centers, endoscopy suites, and other procedural areas.

Our AST segment supports medical device and pharmaceutical manufacturers through a global network of contract sterilization and laboratory testing facilities, and integrated sterilization equipment and control systems. Our technology-neutral offering supports Customers every step of the way, from testing through sterilization.

Our Life Sciences segment provides a comprehensive offering of products and services designed to support biopharmaceutical and medical device manufacturing facilities, in particular those focused on aseptic manufacturing. Our portfolio includes a full suite of capital equipment, consumable products, equipment maintenance and specialty services.

We disclose a measure of segment income that is consistent with the way management operates and views the business. The accounting policies for reportable segments are the same as those for the consolidated Company.

For more information regarding our segments please refer to Note 13 to our consolidated financial statements titled, "Business Segment Information," and Item 1, "Business."

The following table compares business segment revenues as well as impacts from acquisitions, divestitures, and foreign currency movements for the year ended March 31, 2026 to the year ended March 31, 2025.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Years ended March 31,** | **Years ended March 31,** | **Years ended March 31,** | **Years ended March 31,** | **Years ended March 31,** | **Years ended March 31,** | **Years ended March 31,** | **Years ended March 31,** |
| | **As reported, U.S. GAAP** | **As reported, U.S. GAAP** | **Impact of Acquisitions** | **Impact of Divestitures** | **Impact of Foreign Currency Movements** | **U.S. GAAP Growth** | **Organic Growth** | **Constant Currency Organic Growth** |
| (dollars in millions) | 2026 | 2025 | 2026 | 2025 | 2026 | 2026 | 2026 | 2026 |
| **Segment revenues:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Healthcare | $**4208.6** | $3878.7 | $**2.4** | $— | $**33.5** | 8.5% | **8.4%** | 7.6% |
| &nbsp;&nbsp;&nbsp;AST | **1138.5** | 1038.6 | **—** |  | **30.8** | 9.6% | **9.6%** | 6.7% |
| &nbsp;&nbsp;&nbsp;Life Sciences | **588.8** | 542.3 | **—** |  | **10.1** | 8.6% | **8.6%** | 6.7% |
| **Total** | $**5935.9** | $5459.5 | $**2.4** | $— | $**74.4** | 8.7% | **8.7%** | 7.3% |

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Organic revenue growth and constant currency organic revenue growth are non-GAAP financial measures of revenue performance. Organic revenue growth is calculated by removing the impact of acquisitions and divestitures for one year following the respective transaction from the GAAP revenue growth. Constant currency organic revenue growth is subject to a further adjustment to eliminate the impact of foreign currency movements.

Healthcare revenues increased 8.5% in fiscal 2026, as compared to fiscal 2025, reflecting growth across service, consumable, and capital revenues of 11.8%, 7.2%, and 5.7%, respectively. The constant currency organic growth of 7.6% is primarily due to increased volume, impacting revenues by a mid-single digit percentage, as well as increased pricing, impacting revenues by a low-single digit percentage.

The Healthcare segment's backlog at March 31, 2026 amounted to $392.1 million. The Healthcare segment's backlog at March 31, 2025 was $369.2 million. The increase is due to the timing of shipments and the benefit of acquisitions.

AST revenues increased 9.6% in fiscal 2026, as compared to fiscal 2025. The constant currency organic growth of 6.7% is primarily due to increased pricing, impacting revenues by a mid-single digit percentage, as well as increased volume, impacting revenues by a low-single digit percentage, with service growth partially offset by a decline in capital equipment.

Life Sciences revenues increased 8.6% in fiscal 2026, as compared to fiscal 2025 reflecting growth across capital, consumable, and service revenues of 15.5%, 7.6%, and 4.9% , respectively. The constant currency organic growth of 6.7% is

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primarily due to increased volume, impacting revenues by a mid-single digit percentage, as well as increased pricing, impacting revenues by a low-single digit percentage.

The Life Sciences backlog at March 31, 2026 and 2025 amounted to $98.7 million and $83.7 million, respectively. The increase is due to timing of shipments.

The following table compares business segment and Corporate operating income for the year ended March 31, 2026 to the year ended March 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Years ended March 31, | Years ended March 31, | | Percent |
| (dollars in millions) | 2026 | 2025 | Change | Change |
| **Income (loss) from operations before adjustments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Healthcare | $**1036.4** | $971.5 | $64.8 | 6.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AST | **524.7** | 465.6 | 59.1 | 12.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life Sciences | **251.0** | 229.4 | 21.5 | 9.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | **(430.1)** | (399.0) | (31.1) | 7.8% |
| **Total income from operations before adjustments** | $**1381.9** | $1267.5 | $114.4 | 9.0% |
| **Less: Adjustments** |  |  |  |  |
| Amortization of acquired intangible assets <sup>(1)</sup> | $**265.0** | $273.8 |  |  |
| Acquisition and integration related charges <sup>(2)</sup> | **6.2** | 11.2 |  |  |
| Tax restructuring costs <sup>(3)</sup> | **0.5** | 0.1 |  |  |
| Amortization of inventory and property "step up" to fair value <sup>(1)</sup> | **5.0** | 5.4 |  |  |
| Restructuring charges <sup>(4)</sup> | **3.4** | 62.3 |  |  |
| Illinois EO litigation settlement <sup>(5)</sup> | **—** | 48.2 |  |  |
| **Total income from operations** | $**1101.8** | $866.6 |  |  |

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<sup>(1)</sup> For more information regarding our recent acquisitions and divestitures, refer to Note 3 to our consolidated financial statements titled, "Business Acquisitions, Divestitures, and Investments."

<sup>(2)</sup> Acquisition and integration related charges include transaction costs and integration expenses associated with acquisitions.

<sup>(3)</sup> Costs incurred in tax restructuring.

<sup>(4)</sup> For more information regarding the restructurings, refer to Note 2 to our consolidated financial statements titled, "Restructuring."

<sup>(5)</sup> For more information regarding the Illinois EO litigation settlement, refer to Note 12 to our consolidating financial statements titled "Commitments and Contingencies."

The Healthcare segment's operating income increased $64.8 million to $1,036.4 million in fiscal year 2026, as compared to $971.5 million in fiscal year 2025. The increase in operating income is primarily due to the benefits of higher volume, pricing, and productivity, which were partially offset by increased tariff costs and inflation. The segment's operating margins were 24.6% for fiscal year 2026 and 25.0% for fiscal year 2025. Operating margin declined as tariff costs and inflation more than offset the margin expansion otherwise driven by volume, pricing, and productivity.

The AST segment's operating income increased $59.1 million to $524.7 million in fiscal year 2026, as compared to $465.6 million in fiscal year 2025. The AST segment's operating margins were 46.1% for fiscal year 2026 and 44.8% for fiscal year 2025. The increase in operating income and margin for the year is primarily due to higher pricing and volume, which were partially offset by increased labor inflation costs.

The Life Sciences segment's operating income increased $21.5 million to $251.0 million in fiscal year 2026, as compared to $229.4 million in fiscal year 2025. The segment's operating margins were 42.6% for fiscal year 2026 and 42.3% for fiscal year 2025. The increase in operating income and margin for the year is primarily due to the benefit of higher volume and pricing, which were partially offset by increased inflation and tariff costs.

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**LIQUIDITY AND CAPITAL RESOURCES** 

The following table summarizes significant components of our cash flows for the years ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
| | Years Ended March 31, | Years Ended March 31, |
| (dollars in millions) | 2026 | 2025 |
| Net cash provided by operating activities | $**1341.4** | $1148.1 |
| Net cash (used in) provided by investing activities | **(512.5)** | 388.8 |
| Net cash used in financing activities | **(568.2)** | (1572.4) |
| Debt-to-total capital ratio | **21.3%** | 23.6% |
| Free cash flow | $**982.9** | $787.2 |

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***Net Cash Provided By Operating Activities*** – The net cash provided by our operating activities was $1,341.4 million for the year ended March 31, 2026, compared to $1,148.1 million for the year ended March 31, 2025. Net cash provided by operating activities increased in fiscal 2026 by 16.8% over fiscal 2025, and was driven primarily by improvements in net income, which more than offset the significantly lower contribution from working capital in fiscal 2026 compared with fiscal 2025.

***Net Cash Provided By/Used In Investing Activities*** – The net cash used in our investing activities was $512.5 million for the year ended March 31, 2026, compared to net cash provided by our investing activities of $388.8 million for the year ended March 31, 2025. The following discussion summarizes the significant changes in our investing cash flows for the years ended March 31, 2026 and 2025:

• <u>Purchases of property, plant, equipment, and intangibles</u> – Capital expenditures totaled $369.0 million in fiscal 2026 compared to $370.1 million in fiscal 2025.

• <u>Proceeds from the sale of businesses</u> – During fiscal 2025, we received proceeds of $814.6 million primarily from the sales of our Dental segment and our CECS businesses. For more information, refer to Note 3 to our consolidated financial statements titled, "Business Acquisitions, Divestitures, and Investments" and Note 4 to our consolidated financial statements titled "Discontinued Operations."

• <u>Purchases of investments</u> – During fiscal 2026, we purchased $134.0 million in investments, predominantly related to a noncontrolling equity investment in a non-U.S.-based healthcare product manufacturer. During fiscal 2025, we purchased $10.8 million in equity investments and convertible notes related to funding the development of intellectual property and access to new markets. For more information on our equity investments, refer to Note 3 to our consolidated financial statements titled, "Business Acquisitions and Divestitures."

• <u>Acquisition of businesses, net of cash acquired</u> – During fiscal 2026 and 2025, we used $20.1 million and $54.1 million, respectively, to acquire businesses. For more information on these acquisitions refer to Note 3 to our consolidated financial statements titled, "Business Acquisitions, Divestitures, and Investments."

***Net Cash Used In Financing Activities*** – Net cash used in financing activities was $568.2 million for the year ended March 31, 2026, compared to net cash used in financing activities of $1,572.4 million for the year ended March 31, 2025. The following discussion summarizes the significant changes in our financing cash flows for the years ended March 31, 2026 and 2025:

• <u>Payments on term loans</u> – During fiscal 2025, we repaid $638.1 million of our term loans. Our fiscal 2025 repayments were made with the proceeds from the sale of the Dental segment and funds generated from our operations. For more information on our term loans, refer to Note 8 to our consolidated financial statements titled, "Debt."

• <u>Payments on Private Placement Senior Notes</u> – During fiscal 2026 and 2025, we repaid $125.0 million and $80.0 million of Private Placement Senior Notes, respectively, upon maturity. For more information on our Private Placement Senior Notes, refer to Note 8 to our consolidated financial statements titled, "Debt."

• <u>Payments/Proceeds under credit facilities, net</u> – Net proceeds under credit facilities totaled $3.0 million for fiscal 2026 compared to net payments under credit facilities of $446.3 million for fiscal 2025. The fiscal 2025 payments were made using proceeds from the sale of the Dental segment and funds generated by our operations. At the end of fiscal 2026, $37.8 million of debt was outstanding under our bank credit facility, compared to $34.8 million at the end of fiscal 2025. We provide additional information about our bank credit facility in Note 8 to our consolidated financial statements titled, "Debt."

• <u>Repurchases of ordinary shares</u> – During both fiscal 2026 and 2025, we obtained 0.1 million of our ordinary shares in connection with share-based compensation award programs in the aggregate amount of $12.5 million and $11.3 million,

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respectively. During fiscal 2026, we repurchased 0.9 million of our ordinary shares in the aggregate amount of $225.0 million (exclusive of fees, commissions, and other charges) through our Outgoing Repurchase Program. During fiscal 2025, we repurchased 0.9 million of our ordinary shares for the aggregate amount of $200.0 million (exclusive of fees, commissions, and other charges) through our Outgoing Repurchase Program. On May 5, 2026, the Board of Directors terminated the Outgoing Repurchase Program and authorized the New Repurchase Program for the purchase of up to $1,000.0 million (exclusive of fees, commissions, and other charges). We provide additional information about our share repurchases, the Outgoing Repurchase Program and the New Repurchase Program in Note 15 to our consolidated financial statements titled, "Repurchases of Ordinary Shares."

• <u>Cash dividends paid to ordinary shareholders</u> – During fiscal 2026, we paid cash dividends totaling $241.8 million or $2.46 per outstanding share. During fiscal 2025, we paid cash dividends totaling $219.9 million or $2.23 per outstanding share.

• <u>Stock option and other equity transactions, net</u> – We generally receive cash for issuing shares upon the exercise of options under our employee stock option program. During fiscal 2026 and fiscal 2025, we received cash proceeds totaling $32.9 million and $25.5 million, respectively, under these programs.

***Cash Flow Measures.*** The net cash provided by our operating activities was $1,341.4 million in fiscal 2026 compared to $1,148.1 million in fiscal 2025. Free cash flow was $982.9 million in fiscal 2026, compared to $787.2 million in fiscal 2025 (see subsection above titled "Non-GAAP Financial Measures" for additional information and related reconciliation of cash flows from operations to free cash flow). The increase in free cash flow during the period was driven primarily by improvements in net income, which more than offset the significantly lower contribution from working capital in fiscal 2026 compared with fiscal 2025.

Our debt-to-total capital ratio was 21.3% at March 31, 2026 and 23.6% at March 31, 2025.

**Sources of Credit.** Our sources of credit as of March 31, 2026 are summarized in the following table:

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| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) | Maximum<br>Amounts<br>Available | Reductions in<br>Available Credit<br>Facility for Other<br>Financial Instruments | March 31, 2026 Amounts Outstanding | March 31, 2026 Amounts <br>Available |
| **Sources of Credit** |  |  |  |  |
| Private Placement Senior Notes | $**557.8** |  | $**557.8** | $**—** |
| Revolving Credit Facility <sup>(1)</sup> | **1100.0** | **9.8** | **37.8** | **1052.5** |
| Senior Public Notes | **1350.0** |  | **1350.0** | **—** |
| **Total Sources of Credit** | $**3007.8** | $**9.8** | $**1945.6** | $**1052.5** |

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<sup>(1)</sup> At March 31, 2026, there were $9.8 million of letters of credit outstanding under the Revolving Credit Agreement.

Our sources of funding from credit as of March 31, 2026 are summarized below:

***•*** On October 7, 2024, STERIS plc ("Parent"), STERIS Corporation ("Corporation"), STERIS Limited ("Limited"), and STERIS Irish FinCo Unlimited Company ("FinCo"), each as a borrower and guarantor, entered into a credit agreement with various financial institutions as lenders, and JPMorgan Chase Bank, N.A., as administrative agent (the "Revolving Credit Agreement") providing for a $1,100.0 million revolving credit facility (the "Revolving Credit Facility"), which replaced a prior credit agreement, dated as of March 19, 2021.

• The Revolving Credit Agreement provides for revolving credit borrowings, swing line borrowings and letters of credit, with sublimits for swing line borrowings and letters of credit. The Revolving Credit Agreement may be increased in specified circumstances by up to $625.0 million in the discretion of the lenders. The Revolving Credit Agreement matures on the date that is five years after October 7, 2024, and all unpaid borrowings, together with accrued and unpaid interest thereon, are repayable on that date. The Revolving Credit Facility bears interest from time to time, at either the Base Rate or the Relevant Rate, as defined in and calculated under and as in effect from time to time under the Revolving Credit Agreement, plus the Applicable Margin, as defined in the Revolving Credit Agreement. The Applicable Margin is determined based on the Debt Rating of Parent, as defined in the Revolving Credit Agreement. Base Rate Advances are payable quarterly in arrears and Term Benchmark Advances are payable at the end of the relevant interest period therefor, but in no event less frequently than every three months. Swingline borrowings bear interest at a rate to be agreed by the applicable swingline lender and the applicable borrower, subject to a cap in the case of swingline borrowings denominated in U.S. Dollars equal to the Base Rate plus the Applicable Margin for Base Rate Advances plus the Facility Fee. There is no premium or penalty for prepayment of Base Rate Advances, but prepayments of Term Benchmark Advances are generally subject to a breakage fee. Advances may be extended in U.S. Dollars or in specified alternative currencies ("Alternative Currency Advances"). Alternative Currency Advances are limited in the aggregate to the equivalent of $625.0 million.

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• On April 1, 2021, FinCo completed an offering of $1,350.0 million in aggregate principal amount, of its senior notes in two separate tranches: (i) $675.0 million aggregate principal amount of the FinCo's 2.700% Senior Notes due 2031 (the "2031 Notes") and (ii) $675.0 million aggregate principal amount of the FinCo's 3.750% Senior Notes due 2051 (the "2051 Notes" and, together with the 2031 Notes, the "Senior Public Notes"). The Senior Public Notes were issued pursuant to an Indenture, dated as of April 1, 2021 (the "Base Indenture"), among FinCo, Parent, Corporation and Limited (collectively "the Guarantors") and U.S. Bank National Association as trustee (the "Trustee"), as supplemented by the First Supplemental Indenture, dated as of April 1, 2021, among FinCo, the Guarantors and the Trustee (together with the Base Indenture, the "Indenture"). Each of the Guarantors guaranteed the Senior Public Notes jointly and severally on a senior unsecured basis. The 2031 Notes will mature on March 15, 2031 and the 2051 Notes will mature on March 15, 2051. The Senior Public Notes will bear interest at the rates set forth above. Interest on the Senior Public Notes is payable on March 15 and September 15 of each year until their respective maturities.

• As of March 31, 2026, a total of $37.8 million was outstanding under the Revolving Credit Agreement, based on currency exchange rates as of March 31, 2026. At March 31, 2026, we had $1,052.5 million of unused funding available under the Revolving Credit Agreement. The Revolving Credit Agreement includes a sub-limit that reduces the maximum amount available to us by letters of credit outstanding. At March 31, 2026, there was $9.8 million in letters of credit outstanding under the Revolving Credit Agreement.

Our outstanding Private Placement Senior Notes at March 31, 2026 were as follows:

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| | | | |
|:---|:---|:---|:---|
| (in millions) | Applicable Note Purchase Agreement | Maturity Date | U.S. Dollar Value at March 31, 2026 |
| $25,000 Senior notes at 3.55% | 2012 Private Placement | December 2027 | $**25.0** |
| $125,000 Senior notes at 3.55% | 2015 Private Placement | May 2027 | **125.0** |
| $100,000 Senior notes at 3.70% | 2015 Private Placement | May 2030 | **100.0** |
| $50,000 Senior notes at 3.93% | 2017 Private Placement | February 2027 | **50.0** |
| €60,000 Senior notes at 1.86% | 2017 Private Placement | February 2027 | **68.9** |
| $45,000 Senior notes at 4.03% | 2017 Private Placement | February 2029 | **45.0** |
| €20,000 Senior notes at 2.04% | 2017 Private Placement | February 2029 | **23.0** |
| £45,000 Senior notes at 3.04% | 2017 Private Placement | February 2029 | **59.5** |
| €19,000 Senior notes at 2.30% | 2017 Private Placement | February 2032 | **21.8** |
| £30,000 Senior notes at 3.17% | 2017 Private Placement | February 2032 | **39.7** |
| **Total Private Placement Senior Notes** |  |  | $**557.8** |

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The Private Placement Senior Notes were issued as follows:

• On February 27, 2017, Limited issued and sold an aggregate principal amount of $95.0 million, €99.0 million, and £75.0 million of senior notes (collectively, the "2017 senior notes") in a private placement to certain institutional investors in an offering that was exempt from the registration requirements of the Securities Act of 1933. These notes have maturities of between 10 years and 15 years from the issue date. The agreement governing these notes contains leverage and interest coverage covenants.

• On May 15, 2015, Corporation issued and sold $350.0 million of senior notes (the "2015 senior notes") in a private placement to certain institutional investors in an offering that was exempt from the registration requirements of the Securities Act of 1933. These notes have maturities of 10 years to 15 years from the issue date. The agreement governing these notes contains leverage and interest coverage covenants.

• In December 2012 and in February 2013, Corporation issued and sold $200.0 million of senior notes (collectively, the "2012 senior notes") in a private placement to certain institutional investors in offerings that were exempt from the registration requirements of the Securities Act of 1933. The agreement governing the notes contains leverage and interest coverage covenants.

• On March 19, 2021, Corporation as issuer, and Parent, Limited and FinCo, as guarantors, entered into (1) a First Amendment to Amended and Restated Note Purchase Agreement dated March 5, 2019 (which had amended and restated certain note purchase agreements originally dated December 4, 2012) for the 2012 senior notes (the "2012 Amendment"), and (2) a First Amendment to Amended and Restated Note Purchase Agreement dated March 5, 2019 (which had amended and restated certain note purchase agreements originally dated March 31, 2015) for the 2015 senior notes (the "2015 Amendment"). Also on March 19, 2021, Limited, as issuer, and Parent, Corporation and FinCo, as guarantors, entered into a First Amendment to Amended and Restated Note Purchase Agreement dated March 5, 2019 (which had amended and

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restated a certain note purchase agreement originally dated January 23, 2017) for the 2017 senior notes (together with the 2012 Amendment and the 2015 Amendment, the "NPA Amendments"). The NPA Amendments provided, among other things, for the waiver of certain repurchase rights of the note holders and increased the size of certain baskets to more closely align with other current credit agreement baskets.

At March 31, 2026, we were in compliance with all financial covenants associated with our indebtedness. For additional information on our sources of funding and credit, refer to Note 8 to our consolidated financial statements titled, "Debt."

**CAPITAL EXPENDITURES**

Our capital expenditure program is a component of our long-term strategy. This program includes, among other things, investments in new and existing facilities, business expansion projects, cobalt-60, information technology enhancements, and research and development advances. During fiscal 2026, our capital expenditures amounted to $369.0 million. We use cash provided by operating activities and our cash and cash equivalent balances to fund capital expenditures. In fiscal 2027, we plan to continue to invest in facility expansions, particularly within our Healthcare and AST segments, and in ongoing maintenance for existing facilities. We will also commence a multi-year project to invest in upgraded technology to support our service and sales workflows within our Healthcare and Life Sciences segments.

**MATERIAL FUTURE CASH OBLIGATIONS AND COMMERCIAL COMMITMENTS**

***Cash Requirements.*** We intend to use our existing cash and cash equivalent balances and cash generated from operations to fund capital expenditures and meet our other liquidity needs. Our capital requirements depend on many uncertain factors, including our rate of sales growth, our Customers' acceptance of our products and services, the costs of obtaining adequate manufacturing capacities, the timing and extent of our research and development projects, changes in our operating expenses and other factors. To the extent that existing and anticipated sources of cash are not sufficient to fund our future activities, we may need to raise additional funds through additional borrowings or the sale of equity securities. There can be no assurance that our financing arrangements will provide us with sufficient funds or that we will be able to obtain any additional funds on terms favorable to us or at all.

Our material future cash obligations and commercial commitments as of March 31, 2026 are presented in the following tables. Commercial commitments include standby letters of credit, letters of credit required as security under our self-insured risk retention policies, and other potential cash outflows resulting from events that require us to fulfill commitments.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Payments due by March 31, | Payments due by March 31, | Payments due by March 31, | Payments due by March 31, | Payments due by March 31, | |
| (in millions) | 2027 | 2028 | 2029 | 2030 | 2031 and thereafter | Total |
| Material Future Cash Obligations: |  |  |  |  |  |  |
| Debt | $118.9 | $150.0 | $127.5 | $37.8 | $1511.5 | $1945.6 |
| Operating leases | 42.1 | 31.1 | 22.1 | 14.9 | 77.8 | 188.1 |
| Purchase obligations | 124.4 | 11.3 |  |  |  | 135.7 |
| Benefit payments under defined benefit plans | 6.0 | 6.1 | 6.3 | 6.6 | 43.1 | 68.1 |
| Trust assets available for benefit payments under defined benefit plans | (6.0) | (6.1) | (6.3) | (6.6) | (43.1) | (68.1) |
| Benefit payments under other post-retirement benefits plans | 0.9 | 0.8 | 0.7 | 0.6 | 2.5 | 5.4 |
| Total Material Future Cash Obligations | $286.3 | $193.2 | $150.3 | $53.3 | $1591.8 | $2274.9 |

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The table above includes only the principal amounts of our material future cash obligations. We provide information about the interest component of our long-term debt in the subsection of MD&A titled, "Liquidity and Capital Resources," and in Note 8 to our consolidated financial statements titled, "Debt."

Purchase obligations shown in the table above relate to minimum purchase commitments with suppliers for materials purchases and long-term construction contracts.

The table above excludes contributions we make to our defined contribution plans. Our future contributions to the defined contribution plans depend on uncertain factors, such as the amount and timing of employee contributions and discretionary employer contributions. We provide additional information about our defined benefit pension plans, defined contribution plan, and other post-retirement benefits plan in Note 11 to our consolidated financial statements titled, "Benefit Plans."

The table above also excludes potential obligations related to our investment activities of approximately $211.0 million (based on contractual amounts, excluding working capital adjustments), including arrangements that provide for the potential

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acquisition of the remaining equity interests in an investee, as well as contingent consideration arrangements. The timing and ultimate amount of any such obligations cannot be determined at this time, as they are contingent on the occurrence of specified events or conditions and, in certain cases, future operating performance.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Amount of Commitment Expiring March 31, | Amount of Commitment Expiring March 31, | Amount of Commitment Expiring March 31, | Amount of Commitment Expiring March 31, | Amount of Commitment Expiring March 31, | |
| (in millions) | 2027 | 2028 | 2029 | 2030 | 2031 and thereafter | Totals |
| Commercial Commitments: |  |  |  |  |  |  |
| Letters of credit and surety bonds | $141.6 | $2.3 | $0.3 | $1.4 | $1.5 | $147.2 |
| Letters of credit as security for self-insured risk retention policies | 14.1 |  |  |  |  | 14.1 |
| Total Commercial Commitments | $155.7 | $2.3 | $0.3 | $1.4 | $1.5 | $161.3 |

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**SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION**

Parent and its wholly-owned subsidiaries, Limited and Corporation, each have provided guarantees of the obligations of FinCo, a wholly-owned subsidiary issuer, under Senior Public Notes issued by FinCo on April 1, 2021 and of certain other obligations relating to the Senior Public Notes. The Senior Public Notes are guaranteed, jointly and severally, on a senior unsecured basis. The Senior Public Notes and the related guarantees are senior unsecured obligations of FinCo and the Guarantors, respectively, and are equal in priority with all other unsecured and unsubordinated indebtedness of FinCo and the Guarantors, respectively, from time to time outstanding, including, as applicable, under the Private Placement Senior Notes and borrowings under the Revolving Credit Facility.

All of the liabilities of non-guarantor direct and indirect subsidiaries of Parent, other than FinCo, Limited and Corporation, including any claims of trade creditors, are effectively senior to the Senior Public Notes.

FinCo's main objective and source of revenues and cash flows is the provision of short- and long-term financing for the activities of Parent and its subsidiaries.

The ability of our subsidiaries to pay dividends, interest and other fees to FinCo and ability of FinCo and Guarantors to service the Senior Public Notes may be restricted by, among other things, applicable corporate and other laws and regulations as well as agreements to which our subsidiaries are or may become a party.

The following is a summary of these guarantees:

**Guarantees of Senior Notes**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Parent Company Guarantor – STERIS plc

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Subsidiary Issuer – STERIS Irish FinCo Unlimited Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Subsidiary Guarantor – STERIS Limited

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Subsidiary Guarantor – STERIS Corporation

The guarantee of a Guarantor will be automatically and unconditionally released and discharged:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of a subsidiary Guarantor, upon the sale, transfer or other disposition (including by way of consolidation or merger) of such subsidiary Guarantor, other than to the Parent or a subsidiary of the Parent and as permitted by the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of a subsidiary Guarantor, upon the sale, transfer or other disposition of all or substantially all the assets of such subsidiary Guarantor, other than to the Parent or a subsidiary of the Parent and as permitted by the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of a subsidiary Guarantor, at such time as such subsidiary Guarantor is no longer a borrower under or no longer guarantees any material credit facility (subject to reinstatement in specified circumstances);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upon the legal defeasance or covenant defeasance of the Senior Public Notes or the discharge of FinCo's obligations under the Indenture in accordance with the terms of the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as described in accordance with the terms of the Indenture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of Parent, if FinCo ceases for any reason to be a subsidiary of Parent; provided that all guarantees and other obligations of Parent in respect of all other indebtedness under any material credit facility of FinCo terminate upon FinCo ceasing to be a subsidiary of Parent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upon such Guarantor delivering to the trustee an officer's certificate and an opinion of counsel, each stating that all conditions precedent provided for in the Indenture relating to such transaction or release have been complied with.

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The obligations of each Guarantor under its guarantee are expressly limited to the maximum amount that such Guarantor could guarantee without such guarantee constituting a fraudulent conveyance. Each Guarantor that makes a payment under its guarantee will be entitled upon payment in full of all guaranteed obligations under the indenture to a contribution from each Guarantor in an amount equal to such other Guarantor's pro rata portion of such payment based on the respective net assets of all the Guarantors at the time of such payment determined in accordance with U.S. GAAP.

The following tables present summarized results of operations for the year ended March 31, 2026 and summarized balance sheet information at March 31, 2026 and 2025 for the obligor group of the Senior Public Notes. The obligor group consists of Parent, FinCo, and the other Guarantors. The summarized financial information is presented after elimination of (i) intercompany transactions and balances among the guarantors and issuer and (ii) equity in earnings from and investments in any subsidiary that is a non-guarantor or issuer. Transactions with non-issuer and non-guarantor subsidiaries have been presented separately.

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| | |
|:---|:---|
| **Summarized Results of Operations**<br><br>(in millions) |<br>**Twelve Months Ended**<br>**March 31,**<br>**2026** |
| &nbsp;&nbsp;&nbsp;Revenues | $**3313.3** |
| &nbsp;&nbsp;&nbsp;Gross profit  | **1820.3** |
| &nbsp;&nbsp;&nbsp;Operating costs arising from transactions with non-issuers and non-guarantors - net | **716.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Income from operations | **914.1** |
| &nbsp;&nbsp;&nbsp;Non-operating income (expense) arising from transactions with subsidiaries that are non-issuers and non-guarantors - net | **1121.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $**1179.7** |

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| | | |
|:---|:---|:---|
| | **At March 31,** | **At March 31,** |
| **Summarized Balance Sheet Information**<br>(in millions) | **2026** | **2025** |
| Receivables due from non-issuers and non-guarantor subsidiaries | $**21513.5** | $19931.5 |
| Other current assets | **1039.2** | 830.5 |
| **Total current assets** | $**22552.7** | $20762.0 |
| Non-current receivables due from non-issuers and non-guarantor subsidiaries | $**1280.3** | $1278.4 |
| Goodwill | **298.0** | 297.2 |
| Other non-current assets | **639.9** | 632.6 |
| **Total non-current assets** | $**2218.1** | $2208.2 |
| Payables due to non-issuers and non-guarantor subsidiaries | $**25938.3** | $23557.2 |
| Other current liabilities | **510.0** | 333.7 |
| **Total current liabilities** | $**26448.3** | $23891.0 |
| Non-current payables due to non-issuers and non-guarantor subsidiaries | $**285.9** | $285.6 |
| Other non-current liabilities | **1820.7** | 2060.8 |
| **Total non-current liabilities** | $**2106.6** | $2346.4 |

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**Credit Ratings**

STERIS's Senior Public Notes have been assigned the following credit ratings:

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| | | | |
|:---|:---|:---|:---|
| | **Standard & Poor's** | **Moody's** | **Fitch** |
| Credit Ratings <sup>(1)</sup> | BBB | Baa2 | BBB |

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<sup>(1)</sup> Effective May 20, 2026

Each of the credit rating agencies reviews its rating periodically and there is no guarantee our current credit ratings will remain the same. If our credit ratings were lowered, our ability to access the debt markets, our cost of funds, and other terms for new debt issuances could be adversely impacted.

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**CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS**

The following subsections describe our most critical accounting estimates, and assumptions. Our accounting policies and recently issued accounting pronouncements are more fully described in Note 1 to our consolidated financial statements titled, "Nature of Operations and Summary of Significant Accounting Policies."

**Estimates and Assumptions.** Our discussion and analysis of financial condition and results of operations is based on our consolidated financial statements that were prepared in accordance with United States generally accepted accounting principles. We make certain estimates and assumptions that we believe to be reasonable when preparing these financial statements. These estimates and assumptions involve judgments with respect to numerous factors that are difficult to predict and are beyond management's control. As a result, actual amounts could be materially different from these estimates. We periodically review these critical accounting policies, estimates, assumptions, and the related disclosures with the Audit Committee of the Company's Board of Directors.

**Revenue Recognition.** Revenue is recognized when obligations under the terms of the contract are satisfied and control of the promised products or services has transferred to the Customer. Revenues are measured at the amount of consideration that we expect to be paid in exchange for the products or services. Product revenues are recognized when control passes to the Customer, which is generally based on contract or shipping terms. Service revenues are recognized when the Customer benefits from the service, which occurs either upon completion of the service or as it is provided to the Customer. Our Customers include end users as well as dealers and distributors who market and sell our products. Our revenues are not contingent upon resale by the dealer or distributor, and we have no further obligations related to bringing about resale. Our standard return and restocking fee policies are applied to sales of products. Shipping and handling costs charged to Customers are included in Product revenues. The associated expenses are treated as fulfillment costs and are included in Cost of revenues. Revenues are reported net of sales and value-added taxes collected from Customers.

We have individual Customer contracts that offer discounted pricing. Dealers and distributors may be offered sales incentives in the form of rebates. We reduce revenues for discounts and estimated returns, rebates, and other similar allowances in the same period the related revenues are recorded. The reduction in revenues for these items is estimated based on historical experience and trend analysis to the extent that it is probable that a significant reversal of revenues will not occur. Estimated returns are recorded gross on the Consolidated Balance Sheets.

In transactions that contain multiple performance obligations, such as when products, maintenance services, and other services are combined, we recognize revenues as each product is delivered or service is provided to the Customer. We allocate the total arrangement consideration to each performance obligation based on its relative standalone selling price, which is the price for the product or service when it is sold separately.

Payment terms vary by the type and location of the Customer and the products or services offered. Generally, the time between when revenues are recognized and when payment is due is not significant. We do not evaluate whether the selling price contains a financing component for contracts that have a duration of less than one year.

We do not capitalize sales commissions as substantially all of our sales commission programs have an amortization period of one year or less.

Certain costs to fulfill a contract are capitalized and amortized over the term of the contract if they are recoverable, directly related to a contract and generate resources that we will use to fulfill the contract in the future. At March 31, 2026, assets related to costs to fulfill a contract were not material to our consolidated financial statements.

**Inventories and Reserves.** Inventories are stated at the lower of their cost and net realizable value determined by the first-in, first-out cost method. Inventory costs include material, labor, and overhead.

We review inventory on an ongoing basis, considering factors such as deterioration and obsolescence. We record an allowance for estimated losses when the facts and circumstances indicate that particular inventories will not be usable. If future market conditions vary from those projected, and our estimates prove to be inaccurate, we may be required to write-down inventory values and record an adjustment to Cost of revenues.

**Asset Impairment Losses.** Property, plant, equipment, and identifiable intangible assets are reviewed for impairment when events and circumstances indicate that the carrying value of such assets may not be recoverable. Impaired assets are recorded at the lower of carrying value or estimated fair value. We conduct this review on an ongoing basis and, if impairment exists, we record the loss in the Consolidated Statements of Income during that period.

When we evaluate assets for impairment, we make certain judgments and estimates, including interpreting current economic indicators and market valuations, evaluating our strategic plans with regards to operations, historical and anticipated performance of operations, and other factors. If we incorrectly anticipate these factors, or unexpected events occur, our operating results could be materially affected.

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**Purchase Accounting and Goodwill.** Assets and liabilities of the business acquired are accounted for at their estimated fair values as of the acquisition date. Any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired is recorded as goodwill. We supplement management expertise with valuation specialists in performing appraisals to assist us in determining the fair values of assets acquired and liabilities assumed. These valuations require us to make estimates and assumptions, especially with respect to intangible assets. We generally amortize our intangible assets over their estimated useful lives with the exception of indefinite lived intangible assets. We do not amortize goodwill, but we evaluate it annually for impairment. Therefore, the allocation of the purchase price to intangible assets and goodwill has a significant impact on future operating results.

We evaluate the recoverability of recorded goodwill amounts annually, or when evidence of potential impairment exists. We may consider qualitative indicators of the fair value of a reporting unit when it is unlikely that a reporting unit has impaired goodwill. We may also utilize a discounted cash flow analysis that requires certain assumptions and estimates be made regarding market conditions and our future profitability. In those circumstances, we test goodwill for impairment by reviewing the book value compared to the fair value at the reporting unit level. We calculate the fair value of our reporting units based on the present value of estimated future cash flows. Management's judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows to measure fair value. Assumptions used in our impairment evaluations, such as forecasted growth rates and cost of capital, are consistent with internal projections and operating plans. We believe such assumptions and estimates are also comparable to those that would be used by other marketplace participants.

We evaluate indefinite lived intangible assets annually, or when evidence of potential impairment exists. We evaluate several qualitative indicators and assumptions, and trends that influence the valuation of the assets to determine if any evidence of potential impairment exists.

**Income Taxes.** Our provision for income taxes is based on our current period income, changes in deferred income tax assets and liabilities, income tax rates, changes in uncertain tax benefits, and tax planning opportunities available to us in the various jurisdictions in which we operate. Tax laws are complex and subject to different interpretations by the taxpayer and the respective governmental taxing authorities. We use judgment in determining our annual effective income tax rate and evaluating our tax positions. We prepare and file tax returns based on our interpretation of tax laws and regulations, and we record estimates based on these judgments and interpretations. We cannot be sure that the tax authorities will agree with all of the tax positions taken by us. The actual income tax liability for each jurisdiction in any year can, in some instances, ultimately be determined several years after the tax return is filed and the financial statements are published.

We evaluate our tax positions using the recognition threshold and measurement attribute in accordance with current accounting guidance. We determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, we presume that the position will be examined by the appropriate taxing authority and that the taxing authority will have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The appropriate unit of account for determining what constitutes an individual tax position, and whether the more-likely-than-not recognition threshold is met for a tax position, is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence. We review and adjust our tax estimates periodically because of ongoing examinations by and settlements with the various taxing authorities, as well as changes in tax laws, regulations and precedent.

We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities. We regularly review our deferred tax assets for recoverability and establish a valuation allowance based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences, and the implementation of tax planning strategies. If we are unable to generate sufficient future taxable income in certain tax jurisdictions, or if there is a material change in the effective income tax rates or time period within which the underlying temporary differences become taxable or deductible, we could be required to increase our valuation allowance, which would increase our effective income tax rate and could result in an adverse impact on our consolidated financial position, results of operations, or cash flows.

We believe that adequate accruals have been made for income taxes. Differences between the estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material adverse effect on our consolidated financial position, but could possibly be material to our consolidated results of operations or cash flows for any one period.

Additional information regarding income taxes is included in Note 10 to our consolidated financial statements titled, "Income Taxes."

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**Contingencies.** We are, and will likely continue to be, involved in a number of legal proceedings, government investigations, and claims, which we believe generally arise in the course of our business, given our size, history, complexity, and the nature of our business, products, Customers, regulatory environment, and industries in which we participate. These legal proceedings, investigations and claims generally involve a variety of legal theories and allegations, including, without limitation, personal injury (e.g., slip and falls, burns, vehicle accidents), product liability or regulation (e.g., based on product operation or claimed malfunction, failure to warn, failure to meet specification, or failure to comply with regulatory requirements), product exposure (e.g., claimed exposure to chemicals, gases, asbestos, contaminants, radiation), property damage (e.g., claimed damage due to leaking equipment, fire, vehicles, chemicals), commercial claims (e.g., breach of contract, economic loss, warranty, misrepresentation), financial (e.g., taxes, reporting), employment (e.g., wrongful termination, discrimination, benefits matters), and other claims for damage and relief.

We record a liability for such contingencies to the extent we conclude that their occurrence is both probable and estimable and believe we have adequately reserved for our current litigation and claims that are probable and estimable. In the event that the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range. We consider many factors in making these assessments, including the professional judgment of experienced members of management and our legal counsel. We have made estimates as to the likelihood of unfavorable outcomes and the amounts of such potential losses. Further, we believe that the ultimate outcome of pending lawsuits and claims will not have a material adverse effect on our consolidated financial position or results of operations taken as a whole. Due to their inherent uncertainty, however, there can be no assurance of the ultimate outcome or effect of current or future litigation, investigations, claims or other proceedings. For certain types of claims, we presently maintain insurance coverage for personal injury and property damage and other liability coverages in amounts and with deductibles that we believe are prudent, and we may also have contractual indemnification rights against certain liabilities, but there can be no assurance that either will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against us. We record expected recoveries under applicable contracts when we are assured of recovery. Additional information regarding our commitments and contingencies is included in Note 12 to our consolidated financial statements titled, "Commitments and Contingencies."

We are subject to taxation from United States federal, state and local, and foreign jurisdictions. Tax positions are settled primarily through the completion of audits within each individual jurisdiction or the closing of statutes of limitation. Changes in applicable tax law or other events may also require us to revise past estimates. We describe income taxes further in Note 10 to our consolidated financial statements titled, "Income Taxes" in this Annual Report on Form 10-K.

**Benefit Plans.** We provide defined benefit pension plans for certain employees and retirees. In addition, we sponsor an unfunded post-retirement benefits plan for two groups of United States retirees. Benefits under this plan include retiree life insurance and retiree medical insurance, including prescription drug coverage.

Employee pension and post-retirement benefits plans are a cost of conducting business and represent obligations that will be settled in the future and therefore, require us to use estimates and make certain assumptions to calculate the expense and liabilities related to the plans. Changes to these estimates and assumptions can result in different expense and liability amounts. Future actual experience may be significantly different from our current expectations. We believe that the most critical assumptions used to determine net periodic benefit costs and projected benefit obligations are the expected long-term rate of return on plan assets and the discount rate. A summary of significant assumptions used to determine the March 31, 2026 projected benefit obligations and the fiscal 2026 net periodic benefit costs is as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Synergy Health plc | Isotron BV | Synergy Health Daniken AG | Synergy Health Radeberg | Synergy Health Allershausen | Harwell Dosimeters Ltd | U.S. Post-<br>Retirement Benefits Plan |
| Funding Status | **Funded** | **Funded** | **Unfunded** | **Unfunded** | **Unfunded** | **Funded** | **Unfunded** |
| Assumptions used to determine March 31, 2026 |  |  |  |  |  |  |  |
| Benefit obligations: |  |  |  |  |  |  |  |
| Discount rate | **6.10%** | **4.30%** | **1.20%** | **3.80%** | **3.01%** | **5.85%** | **5.00%** |
| Assumptions used to determine fiscal 2026 |  |  |  |  |  |  |  |
| Net periodic benefit costs: |  |  |  |  |  |  |  |
| Discount rate | **5.80%** | **3.80%** | **1.20%** | **2.00%** | **2.20%** | **5.85%** | **5.00%** |
| Expected return on plan assets | **5.30%** | **3.80%** | **1.30%** | **n/a** | **n/a** | **n/a** | **n/a** |

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NA – Not applicable.

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We develop our expected long-term rate of return on plan assets assumptions by evaluating input from third-party professional advisors, taking into consideration the asset allocation of the portfolios, and the long-term asset class return expectations. Generally, net periodic benefit costs increase as the expected long-term rate of return on plan assets assumption decreases. Holding all other assumptions constant, lowering the expected long-term rate of return on plan assets assumption for our funded defined benefit pension plans by 50 basis points would have increased the fiscal 2026 benefit costs by less than $0.4 million.

We develop our discount rate assumptions by evaluating input from third-party professional advisers, taking into consideration the current yield on country specific investment grade long-term bonds which provide for similar cash flow streams as our projected benefit obligations. Generally, the projected benefit obligations and the net periodic benefit costs both increase as the discount rate assumption decreases. Holding all other assumptions constant, lowering the discount rate assumption for our defined benefit pension plans and for the other post-retirement benefits plan by 50 basis points would have decreased the fiscal 2026 net periodic benefit costs by less than $0.2 million and would have increased the projected benefit obligations by approximately $7.6 million at March 31, 2026.

We recognize an asset for the overfunded status or a liability for the underfunded status of defined benefit pension and post-retirement benefit plans in our balance sheets. This amount is measured as the difference between the fair value of plan assets and the benefit obligation (the projected benefit obligation for pension plans and the accumulated post-retirement benefit obligation for other post-retirement benefit plans). Changes in the funded status of the plans are recorded in other comprehensive income in the year they occur. We measure plan assets and obligations as of the balance sheet date. Note 11 to our consolidated financial statements titled, "Benefit Plans," contains additional information about our pension and other post-retirement welfare benefits plans.

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**FORWARD-LOOKING STATEMENTS** 

This Form 10-K may contain statements concerning certain trends, expectations, forecasts, estimates, or other forward-looking information affecting or relating to STERIS or its industry, products or activities that are intended to qualify for the protections afforded "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 and other laws and regulations. Forward-looking statements speak only as to the date the statement is made and may be identified by the use of forward-looking terms such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "targets," "forecasts," "outlook," "impact," "potential," "confidence," "improve," "optimistic," "deliver," "orders," "backlog," "comfortable," "trend," and "seeks," or the negative of such terms or other variations on such terms or comparable terminology.

Many factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, those identified in Part I, Item 1A, "Risk Factors" in this Annual Report on Form 10-K. Other potential risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements include, without limitation: (a) the impact on STERIS and its operations of any legislation, regulations or orders, including but not limited to any new trade, regulations or orders, that may be implemented by the U.S. administration or Congress, or of any responses thereto by non-U.S. governments; (b) operating costs, pressure on pricing (including, without limitation, as a result of inflation), Customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, Customers, clients or suppliers) being greater than expected and leading to erosion of profit margins; (c) the potential of international unrest, military conflicts, economic downturns, currency fluctuations and cybersecurity events and any resulting effects on STERIS's anticipated growth, performance or other results; (d) changes in healthcare policy or government or other third-party payor reimbursement levels; (e) the possibility that compliance with laws, court rulings, certifications, regulations, or other regulatory actions, or the outcome of any pending or threatened litigation, including the EO litigation, may delay, limit or prevent new product or service introductions, impact production, supply and/or marketing of existing products or services, result in uncovered costs, or otherwise affect STERIS's performance, results, prospects or value; (f) changes in tax laws or interpretations or the adoption of certain income tax treaties in jurisdictions where we operate that could increase our consolidated tax liabilities, including changes in tax laws that would result in STERIS being treated as a U.S. resident for U.S. federal tax purposes, or the impact of tariffs and/or other trade barriers as a result of STERIS's corporate structure; (g) the impacts of increasing consolidation and competition within our industry, which may exert pressure on our pricing strategy, manufacturing strategy or lead to decreasing demand for our products and services; (h) the effects on our operations resulting from labor-related issues, such as strikes, unsuccessful union negotiations and other workforce disruptions or from our inability to recruit or retain management and other personnel; (i) the level of STERIS's indebtedness limiting financial flexibility or increasing future borrowing costs; (j) the effects of changes in credit availability and pricing, as well as the ability of STERIS and STERIS's Customers and suppliers to adequately access the credit markets, on favorable terms or at all, when needed; and (k) the possibility that anticipated financial results, anticipated revenues, productivity improvements, cost savings, growth synergies, and other anticipated benefits of acquisitions, restructuring efforts, and divestitures will not be realized or will be less than anticipated due to unknown or inestimable liabilities, impairments, or increases in expected integration costs or difficulties in connection with the integration of acquired businesses.

Unless legally required, STERIS does not undertake to update or revise any forward-looking statements even if events make clear that any projected results, express or implied, will not be realized.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the ordinary course of business, we are exposed to various risks, including, but not limited to, interest rate, foreign currency, and commodity risks. These risks are described in the sections that follow.

**INTEREST RATE RISK**

As of March 31, 2026, we had $1,907.8 million in fixed rate senior notes outstanding. As of March 31, 2026, we had $37.8 million in outstanding borrowings under our Revolving Credit Agreement which are exposed to changes in interest rates. Based upon our debt structure at March 31, 2026, a hypothetical 100 basis point increase in floating interest rates would increase annual interest expense by approximately $0.4 million. We monitor our interest rate risk, but do not engage in any hedging activities using derivative financial instruments. For additional information regarding our debt structure, refer to Note 8 to our consolidated financial statements titled, "Debt."

**FOREIGN CURRENCY RISK**

We are exposed to the impact of foreign currency exchange fluctuations. This foreign currency exchange risk arises when we conduct business in a currency other than the U.S. dollar. For most operations, local currencies have been determined to be the functional currencies. The financial statements of subsidiaries are translated to their U.S. dollar equivalents at end-of-period exchange rates for assets and liabilities and at average currency exchange rates for revenues and expenses. Translation adjustments for subsidiaries whose local currency is their functional currency are recorded as a component of accumulated other comprehensive income (loss) within equity. Note 20 to our consolidated financial statements titled, "Reclassifications out of Accumulated Other Comprehensive Income (Loss)," contains additional information about the impact of translation on accumulated other comprehensive income (loss) and equity. Transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized in the Consolidated Statements of Income. Since we operate internationally and approximately 27% of our revenues and 26% of our Cost of revenues are generated outside the United States, foreign currency exchange rate fluctuations can significantly impact our financial position, results of operations, and competitive position.

We enter into foreign currency forward contracts to hedge monetary assets and liabilities denominated in foreign currencies, including intercompany transactions. We may also hold foreign currency forward contracts to hedge a portion of our expected non-U.S. dollar denominated earnings against our reporting currency, the U.S. dollar. We do not use derivative financial instruments for speculative purposes. At March 31, 2026, we held foreign net currency forward contracts to buy 210.0 million Mexican pesos, and to sell 4.0 million Australian dollars and 7.0 million New Zealand dollars.

**COMMODITY RISK**

We are dependent on basic raw materials, sub-assemblies, components, and other supplies used in our operations. Our financial results could be affected by the availability and changes in prices of these materials. Some of these materials are sourced from a limited number of suppliers or only a single supplier. These materials are also key source materials for our competitors. Therefore, if demand for these materials rises, we may experience increased costs and/or limited or unavailable supplies. As a result, we may not be able to acquire key production materials on a timely basis, which could impact our ability to produce products and satisfy incoming sales orders on a timely basis. In addition, the costs of these materials can rise suddenly and result in significantly higher costs of production. We believe that we have adequate sources of supply for many of our key materials and energy sources. Where appropriate, we enter into long-term supply contracts as a basis to guarantee a reliable supply. We may also enter into commodity swap contracts to hedge price changes in commodities that impact raw materials included in our Cost of revenues. At March 31, 2026, we held commodity swap contracts to buy 0.6 million pounds of nickel.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE

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| | |
|:---|:---|
|  | Page |
| <u>[Report of Independent Registered Public Accounting Firm (PCAOB ID:](#i69eb2379839846d3ab4c1c1daf41db71_106)</u>42<u>[)](#i69eb2379839846d3ab4c1c1daf41db71_106)</u> | <u>[52](#i69eb2379839846d3ab4c1c1daf41db71_106)</u> |
| Consolidated Financial Statements: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Balance Sheets](#i69eb2379839846d3ab4c1c1daf41db71_109)</u> | <u>[54](#i69eb2379839846d3ab4c1c1daf41db71_109)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Income](#i69eb2379839846d3ab4c1c1daf41db71_115)</u> | <u>[55](#i69eb2379839846d3ab4c1c1daf41db71_115)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Comprehensive Income (Loss)](#i69eb2379839846d3ab4c1c1daf41db71_118)</u> | <u>[56](#i69eb2379839846d3ab4c1c1daf41db71_118)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows](#i69eb2379839846d3ab4c1c1daf41db71_124)</u> | <u>[57](#i69eb2379839846d3ab4c1c1daf41db71_124)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Shareholder's Equity](#i69eb2379839846d3ab4c1c1daf41db71_127)</u> | <u>[58](#i69eb2379839846d3ab4c1c1daf41db71_127)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements](#i69eb2379839846d3ab4c1c1daf41db71_133)</u> | <u>[59](#i69eb2379839846d3ab4c1c1daf41db71_133)</u> |
| Financial Statement Schedule: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Schedule II - Valuation of Qualifying Accounts](#i69eb2379839846d3ab4c1c1daf41db71_211)</u> | <u>[101](#i69eb2379839846d3ab4c1c1daf41db71_211)</u> |

---

------

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of STERIS plc

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of STERIS plc and subsidiaries (the Company) as of March 31, 2026 and 2025, the related consolidated statements of income, comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended March 31, 2026, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at March 31, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2026, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated May 29, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

------

---

| | |
|:---|:---|
| *Description of*<br>*the Matter* | ***Uncertain Tax Positions***<br>As discussed in Note 10 to the consolidated financial statements, the Company received two notices of deficiency from the U.S. Internal Revenue Service (the "IRS") regarding deemed dividend inclusions and associated withholding tax for fiscal year 2018. The IRS adjustments would result in a cumulative tax liability of approximately $50.0 million, excluding any interest and penalties, if ultimately assessed. The Company believes it is more-likely-than-not that they will be able to sustain the tax benefit recognized in the U.S. and has not recorded a liability for an uncertain tax position related to this matter.<br>Auditing management's analysis of tax positions related to the lack of deemed dividend inclusions and associated withholding tax for fiscal year 2018 was challenging as the analysis is highly judgmental due to complex interpretations of tax laws and legal rulings. In addition, periodic reassessment is required to evaluate changes impacting these tax positions, including regulatory changes, litigation and examination activity. |

---

---

| | |
|:---|:---|
| *How We*<br>*Addressed the*<br>*Matter in Our Audit* | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company's accounting process for uncertain tax positions. For example, we tested controls over management's identification of uncertain tax positions and its application of the recognition and measurement principles, including management's review of the facts and circumstances, including current year developments, and the corresponding tax laws relied upon to conclude that it is currently more-likely-than-not that they will realize the benefit recorded.<br>Our audit procedures included, among others, assessing the Company's correspondence with the relevant tax authorities related to current year developments. With the assistance of our income tax professionals, we evaluated evidence of the status of the dispute with the IRS, including inquiries of and written representations from management and correspondence with external counsel engaged in the matter. We also evaluated the adequacy of the Company's disclosures included in Note 10 to the consolidated financial statements in relation to the matter. |

---

We have served as the Company's auditor since 1989.

/s/ Ernst & Young LLP

Cleveland, Ohio

May 29, 2026

------

 **STERIS PLC AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

**(in millions, except par value)**

---

| | | |
|:---|:---|:---|
| March 31, | 2026 | 2025 |
| **Assets** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**439.6** | $171.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable (net of allowances of $27.3 and $24.4, respectively) | **1092.8** | 1044.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | **631.8** | 581.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | **230.4** | 203.8 |
| **Total current assets** | **2394.6** | 2000.8 |
| Property, plant, and equipment, net | **2161.2** | 1956.5 |
| Lease right-of-use assets, net | **155.2** | 156.4 |
| Goodwill | **4194.8** | 4095.7 |
| Intangibles, net | **1620.0** | 1854.4 |
| Other assets | **211.4** | 83.0 |
| **Total assets** | $**10737.2** | $10146.8 |
| **Liabilities and equity** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $**338.8** | $280.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued income taxes | **28.6** | 21.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and other related liabilities | **221.1** | 192.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term lease obligations | **35.8** | 34.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short term indebtedness | **118.9** | 125.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other | **401.9** | 368.1 |
| **Total current liabilities** | **1145.0** | 1022.2 |
| Long-term indebtedness | **1812.8** | 1918.7 |
| Deferred income taxes, net | **390.7** | 403.7 |
| Long-term lease obligations | **119.6** | 124.6 |
| Other liabilities | **71.7** | 61.9 |
| **Total liabilities** | $**3540.0** | $3531.1 |
| **Commitments and contingencies (see Note 12)** |  |  |
| Ordinary shares, with $0.001 par value; 500.0 shares authorized; 97.8 and 98.3 ordinary shares issued and outstanding, respectively | **4280.9** | 4420.4 |
| Retained earnings | **3015.9** | 2475.3 |
| Accumulated other comprehensive loss | **(113.1)** | (292.3) |
| **Total shareholders' equity** | **7183.6** | 6603.4 |
| Noncontrolling interests | **13.6** | 12.4 |
| **Total equity** | **7197.2** | 6615.8 |
| **Total liabilities and equity** | $**10737.2** | $10146.8 |

---

See notes to consolidated financial statements.

------

**STERIS PLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF INCOME**

**(in millions, except per share amounts)**

---

| | | | |
|:---|:---|:---|:---|
| Years Ended March 31, | 2026 | 2025 | 2024 |
| **Revenues:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | $**3060.1** | $2871.6 | $2764.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | **2875.8** | 2587.9 | 2374.7 |
| **Total revenues** | **5935.9** | 5459.5 | 5138.7 |
| **Cost of revenues:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | **1625.5** | 1514.3 | 1516.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | **1683.9** | 1542.5 | 1404.5 |
| **Total cost of revenues** | **3309.4** | 3056.8 | 2920.5 |
| **Gross profit** | **2626.5** | 2402.8 | 2218.2 |
| **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general, and administrative | **1407.7** | 1334.3 | 1252.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | **112.9** | 107.6 | 103.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Illinois EO litigation settlement | **—** | 48.2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring expense | **4.1** | 46.0 | 26.0 |
| **Total operating expenses** | **1524.7** | 1536.1 | 1382.0 |
| **Income from operations** | **1101.8** | 866.6 | 836.1 |
| **Non-operating expenses, net:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **60.7** | 86.3 | 144.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and miscellaneous income | **(9.8)** | (8.4) | (11.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense (income), net | **3.5** | (7.4) |  |
| **Total non-operating expenses, net** | **54.4** | 70.4 | 133.3 |
| **Income from continuing operations before income tax expense** | **1047.3** | 796.2 | 702.8 |
| Income tax expense | **262.2** | 184.7 | 149.5 |
| **Income from continuing operations, net of income tax** | **785.1** | 611.6 | 553.3 |
| **Income (loss) from discontinued operations, net of income tax** | **—** | 4.5 | (173.2) |
| **Net income** | **785.1** | 616.1 | 380.1 |
| **Less: Net income attributable to noncontrolling interests** | **2.8** | 1.4 | 1.8 |
| **Net income attributable to shareholders** | $**782.3** | $614.6 | $378.2 |
| **Net income (loss) per share attributable to shareholders - Basic:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing Operations | $**7.97** | $6.19 | $5.58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued Operations | $**—** | $0.05 | $(1.75) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**7.97** | $6.24 | $3.83 |
| **Net income (loss) per share attributable to shareholders - Diluted:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing Operations | $**7.93** | $6.16 | $5.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued Operations | $**—** | $0.05 | $(1.74) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**7.93** | $6.20 | $3.81 |
| **Cash dividends declared per ordinary share outstanding** | $**2.46** | $2.23 | $2.03 |

---

See notes to consolidated financial statements.

------

**STERIS PLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)**

**(in millions)**

---

| | | | |
|:---|:---|:---|:---|
| Years Ended March 31, | 2026 | 2025 | 2024 |
| **Net income** | $**785.1** | $616.1 | $380.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Net income attributable to noncontrolling interests | **2.8** | 1.4 | 1.8 |
| **Net income attributable to shareholders** | $**782.3** | $614.6 | $378.2 |
| **Other comprehensive income (loss)** |  |  |  |
| Defined benefit plan changes | **(0.6)** | 0.1 | (0.7) |
| Change in cumulative foreign currency translation adjustment | **179.7** | 36.2 | (7.2) |
| Total other comprehensive income (loss) attributable to shareholders | **179.2** | 36.3 | (7.9) |
| **Comprehensive income attributable to shareholders** | $**961.5** | $651.0 | $370.3 |

---

See notes to consolidated financial statements.

------

 **STERIS PLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

 **(in millions)**

---

| | | | |
|:---|:---|:---|:---|
| Years Ended March 31, | 2026 | 2025 | 2024 |
| **Operating activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $**785.1** | $616.1 | $380.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by <br>operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, depletion, and amortization | **486.5** | 476.2 | 565.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | **(16.9)** | (76.5) | (131.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | **61.7** | 57.4 | 56.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on the disposal of property, plant, equipment, <br>and intangibles, net | **3.6** | 5.7 | 25.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on classification as held for sale | **—** |  | 206.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sale of businesses and investments, net | **(0.3)** | 6.4 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of inventory fair value adjustments | **—** |  | 4.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other items | **(5.6)** | (3.7) | 12.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | **(25.1)** | (28.8) | (128.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | **(24.0)** | 73.1 | (37.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | **(22.7)** | (50.3) | (1.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | **51.1** | 33.6 | (19.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accruals and other, net | **47.8** | 38.9 | 40.0 |
| **Net cash provided by operating activities** | **1341.4** | 1148.1 | 973.3 |
| **Investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant, equipment, and intangibles | **(369.0)** | (370.1) | (360.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of property, plant, equipment, and intangibles | **10.5** | 9.2 | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of businesses | **—** | 814.6 | 9.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of investments | **—** |  | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments | **(134.0)** | (10.8) | (1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of businesses, net of cash acquired | **(20.1)** | (54.1) | (546.3) |
| **Net cash (used in) provided by investing activities** | **(512.5)** | 388.8 | (887.4) |
| **Financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on term loans | **—** | (638.1) | (60.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on Private Placement Senior Notes | **(125.0)** | (80.0) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds (payments) under credit facilities, net | **3.0** | (446.3) | 181.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred financing fees and debt issuance costs | **—** | (2.3) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related deferred or contingent consideration | **(0.4)** | (0.4) | (6.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchases of ordinary shares | **(235.5)** | (211.3) | (11.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash dividends paid to ordinary shareholders | **(241.8)** | (219.9) | (200.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions to noncontrolling interest holders | **(1.4)** | (2.1) | (1.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions from noncontrolling interest holders | **—** | 2.5 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock option and other equity transactions, net | **32.9** | 25.5 | 10.5 |
| **Net cash used in financing activities** | **(568.2)** | (1572.4) | (85.2) |
| Effect of exchange rate changes on cash and cash equivalents | **7.2** | 0.2 | (2.1) |
| Increase (decrease) in cash and cash equivalents | **267.9** | (35.3) | (1.3) |
| Cash and cash equivalents at beginning of period | **171.7** | 207.0 | 208.4 |
| Cash and cash equivalents at end of period | $**439.6** | $171.7 | $207.0 |

---

See notes to consolidated financial statements.

------

**STERIS PLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY** 

**(in millions, except per share amounts)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Ordinary Shares | Ordinary Shares | Retained<br>Earnings | Accumulated<br>Other<br>Comprehensive<br>Loss | Non-controlling<br>Interest | Total<br>Equity |
| | Number | Amount | | | | |
| **Balance at March 31, 2023** | 98.6 | $4486.4 | $1911.5 | $(320.7) | $10.0 | $6087.2 |
| Comprehensive income: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income |  |  | 378.2 |  | 1.8 | 380.1 |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss |  |  |  | (7.9) |  | (7.9) |
| Repurchases of ordinary shares | (0.1) | (10.2) | (1.6) |  |  | (11.8) |
| Equity compensation programs and other | 0.3 | 67.0 |  |  |  | 67.0 |
| Cash dividends – $2.03 per ordinary share |  |  | (200.6) |  |  | (200.6) |
| Distributions to noncontrolling interest holders |  |  |  |  | (1.6) | (1.6) |
| Contributions from noncontrolling interest holders |  |  |  |  | 3.0 | 3.0 |
| Other changes in noncontrolling interest |  |  |  |  | (0.1) | (0.1) |
| **Balance at March 31, 2024** | 98.9 | 4543.2 | 2087.6 | (328.7) | 13.2 | 6315.3 |
| Comprehensive income: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income |  |  | 614.6 |  | 1.4 | 616.1 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  | 36.3 |  | 36.3 |
| Repurchases of ordinary shares | (1.0) | (205.6) | (7.1) |  |  | (212.7) |
| Equity compensation programs and other | 0.4 | 82.9 |  |  |  | 82.9 |
| Cash dividends – $2.23 per ordinary share |  |  | (219.9) |  |  | (219.9) |
| Distributions to noncontrolling interest holders |  |  |  |  | (2.1) | (2.1) |
| Contributions from noncontrolling interest holders |  |  |  |  | 2.5 | 2.5 |
| Divestiture of joint venture interest |  |  |  |  | (2.6) | (2.6) |
| Other changes in noncontrolling interest |  |  |  |  | (0.1) | (0.1) |
| **Balance at March 31, 2025** | 98.3 | $4420.4 | $2475.3 | $(292.3) | $12.4 | $6615.8 |
| Comprehensive income: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | **—** | **—** | **782.3** | **—** | **2.8** | **785.1** |
| &nbsp;&nbsp;&nbsp;Other comprehensive income | **—** | **—** | **—** | **179.2** | **—** | **179.2** |
| Repurchases of ordinary shares | **(1.0)** | **(236.1)** | **—** | **—** | **—** | **(236.1)** |
| Equity compensation programs and other | **0.5** | **96.6** | **—** | **—** | **—** | **96.6** |
| Cash dividends – $2.46 per ordinary share | **—** | **—** | **(241.8)** | **—** | **—** | **(241.8)** |
| Distributions to noncontrolling interest holders | **—** | **—** | **—** | **—** | **(1.4)** | **(1.4)** |
| Other changes in noncontrolling interest | **—** | **—** | **—** | **—** | **(0.1)** | **(0.1)** |
| **Balance at March 31, 2026** | **97.8** | $**4280.9** | $**3015.9** | $**(113.1)** | $**13.6** | $**7197.2** |

---

See notes to consolidated financial statements.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Nature of Operations.** STERIS is a leading global provider of products and services that support patient care with an emphasis on infection prevention. WE HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science products and services around the globe. We offer our Customers a unique mix of innovative products and services. These include: consumable products, such as detergents, endoscopy accessories, barrier products, instruments and tools; services, including equipment installation and maintenance, microbial reduction of medical devices, instrument and scope repair, laboratory testing, and outsourced reprocessing; capital equipment, such as sterilizers, surgical tables, and automated endoscope reprocessors; and connectivity solutions such as operating room ("OR") integration.

We operate and report our financial information in three reportable business segments: Healthcare, Applied Sterilization Technologies ("AST"), and Life Sciences. Previously, we had four reportable business segments, however, as a result of the fiscal 2025 divestiture of our Dental segment, Dental is presented as discontinued operations. Historical information has been retrospectively adjusted to reflect these changes for comparability purposes, as required. We describe our business segments in Note 13 titled "Business Segment Information."

Our fiscal year ends on March 31. References in this Annual Report to a particular "year," "fiscal," "fiscal year," or "year-end" mean our fiscal year. The significant accounting policies applied in preparing the accompanying consolidated financial statements of the Company are summarized below.

**Principles of Consolidation.** We use the consolidation method to report our investment in our subsidiaries. Therefore, the accompanying consolidated financial statements include the financial statements of the Company and its wholly-owned and majority-owned subsidiaries. We eliminate intercompany accounts and transactions when we consolidate these financial statements. Investments in equity of unconsolidated affiliates, over which the Company has significant influence, but not control, over the financial and operating polices, are accounted for primarily using the equity method. Transactions between the Company and our unconsolidated affiliates are eliminated to the extent of the Company's ownership interest until such amounts are realized through transactions with third parties.

Our reporting currency is United States Dollars (USD). Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures.

**Discontinued Operations.** On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787.5 million, subject to customary adjustments, and up to an additional $12.5 million in contingent payment had the Dental business achieved certain revenue targets in fiscal 2025. No amounts have been recorded or are expected to be recorded with respect to this contingent consideration. The transaction was structured as an equity sale and closed on May 31, 2024. A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the divestiture of our Dental segment and determined that those conditions for discontinued operations presentation had been met prior to March 31, 2024. The Dental segment results of operations have been classified as income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented. Our Consolidated Statements of Cash Flows include the financial results of the Dental segment through the date of sale on May 31, 2024. For additional information regarding this transaction and its effect on our financial reporting, refer to Note 4 titled, "Discontinued Operations" and Note 13 titled, "Business Segment Information."

**Use of Estimates.** We make certain estimates and assumptions when preparing financial statements according to accounting principles generally accepted in the United States ("U.S. GAAP") that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available.

**Cash Equivalents.** Cash equivalents are all highly liquid investments with a maturity of three months or less when purchased. We invest our excess cash in short-term instruments including money market funds, money market deposit accounts, bank savings accounts, and time deposits with major banks and financial institutions. We select investments in accordance with the criteria established in our investment policy. Our investment policy specifies, among other things, maturity, credit quality and concentration restrictions with the objective of preserving capital and maintaining adequate liquidity.

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Revenue Recognition and Associated Liabilities.** Revenue is recognized when obligations under the terms of the contract are satisfied and control of the promised products or services have transferred to the Customer. Revenues are measured at the amount of consideration that we expect to be paid in exchange for the products or services. Product revenues are recognized when control passes to the Customer, which is generally based on contract or shipping terms. Service revenues are recognized when the Customer benefits from the service, which occurs either upon completion of the service or as it is provided to the Customer. Our Customers include end users as well as dealers and distributors who market and sell our products. Our revenues are not contingent upon resale by the dealer or distributor, and we have no further obligations related to bringing about resale. Our standard return and restocking fee policies are applied to sales of products. Shipping and handling costs charged to Customers are included in Product revenues. The associated expenses are treated as fulfillment costs and are included in Cost of revenues. Revenues are reported net of sales and value-added taxes collected from Customers.

We have individual Customer contracts that offer discounted pricing. Dealers and distributors may be offered sales incentives in the form of rebates. We reduce revenues for discounts and estimated returns, rebates, and other similar allowances in the same period the related revenues are recorded. The reduction in revenues for these items is estimated based on historical experience and trend analysis to the extent that it is probable that a significant reversal of revenues will not occur. Estimated returns are recorded gross on the Consolidated Balance Sheets.

In transactions that contain multiple performance obligations, such as when products, maintenance services, and other services are combined, we recognize revenues as each product is delivered or service is provided to the Customer. We allocate the total arrangement consideration to each performance obligation based on its relative standalone selling price, which is the price for the product or service when it is sold separately.

Payment terms vary by the type and location of the Customer and the products or services offered. Generally, the time between when revenues are recognized and when payment is due is not significant. We do not evaluate whether the selling price contains a financing component for contracts that have a duration of less than one year.

We do not capitalize sales commissions as substantially all of our sales commission programs have an amortization period of one year or less.

Certain costs to fulfill a contract are capitalized and amortized over the term of the contract if they are recoverable, directly related to a contract and generate resources that we will use to fulfill the contract in the future. At March 31, 2026, assets related to costs to fulfill a contract were not material to our consolidated financial statements.

Refer to Note 13 titled, "Business Segment Information" for disaggregation of revenues.

***Product Revenues***

Product revenues consist of revenues generated from sales of consumables and capital equipment. These contracts are primarily based on a Customer's purchase order and may include a distributor, dealer or group purchasing organization ("GPO") agreement. We recognize revenues for sales of products when control passes to the Customer, which generally occurs either when the products are shipped or when they are received by the Customer. Revenues related to capital equipment products are deferred until installation is complete if the capital equipment and installation are highly integrated and form a single performance obligation.

***Service Revenues***

Within our Healthcare and Life Sciences segments, Service revenues include revenues generated from parts and labor associated with the maintenance, repair and installation of capital equipment. These contracts are primarily based on a Customer's purchase order and may include a distributor, dealer, or GPO agreement. For maintenance, repair and installation of capital equipment, revenues are recognized upon completion of the service. Healthcare service revenues also include outsourced reprocessing services and instrument repairs. Contracts for outsourced reprocessing services are primarily based on an agreement with a Customer, ranging in length from several months to 20 years. Outsourced reprocessing services revenues are recognized ratably over the contract term using a time-based input measure, adjusted for volume and other performance metrics, to the extent that it is probable that a significant reversal of revenues will not occur. Contracts for instrument repairs are primarily based on a Customer's purchase order, and the associated revenues are recognized upon completion of the repair.

We also offer preventive maintenance and separately priced extended warranty agreements to our Customers, which require us to maintain and repair products over the duration of the contract. Generally, these contract terms are cancellable without penalty and range from one to five years. Amounts received under these Customer contracts are initially recorded as a service liability and are recognized as Service revenues ratably over the contract term using a time-based input measure.

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

Within our AST segment, Service revenues include contract sterilization and laboratory services, as well as service support for our installed base of capital equipment. Sales contracts for contract sterilization and laboratory services are primarily based on a Customer's purchase order and associated Customer agreement, and revenues are generally recognized upon completion of the service.

***Contract Liabilities***

Payments received from Customers are based on invoices or billing schedules as established in contracts with Customers. Deferred revenue is recorded when payment is received in advance of performance under the contract. Deferred revenues are recognized as revenues upon completion of the performance obligation, which generally occurs within one year. During fiscal 2026, we recognized revenues of $51.5 million that were included in our contract liability balance at the beginning of the period. During fiscal 2025, we recognized revenues of $65.1 million that were included in our contract liability balance at the beginning of the period.

Refer to Note 9 titled, "Additional Consolidated Balance Sheet Information" for deferred revenues balances.

***Service Liabilities***

Payments received in advance of performance for cancellable preventive maintenance and separately priced extended warranty contracts are recorded as service liabilities. Service liabilities are recognized as revenues as performance is rendered under the contract.

Refer to Note 9 titled, "Additional Consolidated Balance Sheet Information" for service liability balances.

***Remaining Performance Obligations***

Remaining performance obligations reflect only the performance obligations related to agreements for which we have a firm commitment from a Customer to purchase, and exclude variable consideration related to unsatisfied performance obligations. With regard to products, these remaining performance obligations include orders for capital equipment and consumables where control of the products has not passed to the Customer. With regard to service, these remaining performance obligations primarily include installation, certification, and outsourced reprocessing services. As of March 31, 2026, the transaction price allocated to remaining performance obligations was approximately $1,366.2 million. We expect to recognize approximately 56% of the transaction price within one year and approximately 35% beyond one year. The remainder has yet to be scheduled for delivery.

**Accounts Receivable.** Accounts receivable are presented at their face amount, less allowances for sales returns and uncollectible accounts. Accounts receivable consist of amounts billed and currently due from Customers and amounts earned but unbilled. We may obtain and perfect a security interest in products sold where allowed by laws and regulations when we have a concern with the Customer's risk profile.

We maintain an allowance for uncollectible accounts receivable for estimated losses in the collection of amounts owed by Customers. We estimate the allowance based on analyzing a number of factors, including amounts written off historically, Customer payment practices, and general economic conditions. We also analyze significant Customer accounts on a regular basis and record a specific allowance when we become aware of a specific Customer's inability to pay. As a result, the related accounts receivable are reduced to an amount that we reasonably believe is collectible.

We maintain an allowance for sales returns based upon known returns and estimated returns for both capital equipment and consumables. We estimate returns of capital equipment and consumables based upon recent historical experience.

**Inventories, net.** Inventories are stated at the lower of their cost and net realizable value determined by the first-in, first-out cost method. Inventory costs include material, labor, and overhead.

We review inventory on an ongoing basis, considering factors such as deterioration, obsolescence, and other items. We record an allowance for estimated losses when the facts and circumstances indicate that particular inventories will not be usable. If future market conditions vary from those projected, and our estimates prove to be inaccurate, we may be required to write-down inventory values and record an adjustment to Cost of revenues.

**Property, Plant, and Equipment.** Our property, plant, and equipment consists of land and land improvements, buildings and leasehold improvements, machinery and equipment, information systems, cobalt-60, and construction in progress. Property, plant, and equipment are presented at cost less accumulated depreciation and depletion. We capitalize additions and improvements. Repairs and maintenance are charged to expense as they are incurred.

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

Land is not depreciated and construction in progress is not depreciated until placed in service. Depreciation of most assets is computed on the cost less the estimated salvage value by using the straight-line method over the estimated remaining useful lives. Depletion of radioisotope is computed using the annual decay factor of the material, which is similar to the sum-of-the-years-digits method.

We generally depreciate or deplete property, plant, and equipment over the useful lives presented in the following table:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Asset Type | Useful Life<br>(years) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land improvements | 3-40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings and leasehold improvements | 2-50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment | 2-20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information Systems | 2-20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cobalt-60 | 20 |

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When we sell, retire, or dispose of property, plant, and equipment, we remove the asset's cost and accumulated depreciation from our Consolidated Balance Sheet. We recognize the net gain or loss on the sale or disposition in the Consolidated Statements of Income in the period when the transaction occurs.

**Interest.** We capitalize interest costs incurred during the construction of long-lived assets. We capitalized interest costs of $12.0 million and $7.2 million for the years ended March 31, 2026 and 2025, respectively. Total interest expense for the years ended March 31, 2026, 2025, and 2024 was $60.7 million, $86.3 million, and $144.4 million, respectively.

**Identifiable Intangible Assets.** Our identifiable intangible assets include product technology rights, trademarks, licenses, non-compete agreements, and Customer and vendor relationships. We record these assets at cost, or when acquired as part of a business acquisition, at estimated fair value. Determining the fair value of identifiable intangible assets requires management's judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to forecasted revenue growth rates, forecasted profit margins, and Customer attrition rates, among other items. We generally amortize identifiable intangible assets over periods ranging from 5 to 20 years using the straight-line method. Our intangible assets also include indefinite lived assets including certain trademarks and tradenames that were acquired in connection with business combinations. These assets are tested at least annually for impairment.

**Investments.** Investments in marketable securities are stated at fair value. Changes in the fair value of these investments are recorded in the Other (income) expense line of the Consolidated Statements of Income. Investments without readily determinable fair values, are measured at cost, less any impairment, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer.

The cost of equity method investments includes the purchase price plus transaction-related costs that are directly attributable to the investments. The investments are subsequently adjusted to recognize the Company's proportionate share of the investees' earnings or losses, distributions received, amortization of basis differences, and impairments, if any, with the impacts on our earnings recorded within Other (income) expense on the Consolidated Statements of Income.

Where the cost of the Company's investment exceeds our proportionate share of the underlying book value of our investees' net assets, the excess is attributed to basis differences between the fair value and carrying amount of the identifiable assets and liabilities. Basis differences associated with depreciable or amortizable assets are amortized over their estimated useful lives.

These investments are included in Other assets on our Consolidated Balance Sheets.

**Asset Impairment Losses.** Property, plant, equipment, and identifiable intangible assets are reviewed for impairment when indicators of impairment exist and circumstances indicate that the carrying value of such assets may not be recoverable. Impaired assets are recorded at the lower of carrying value or estimated fair value. We monitor for such indicators on an ongoing basis and if an impairment exists, we record the loss in the Consolidated Statements of Income during that period. We also evaluate our equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable.

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Asset Retirement Obligations.** We incur retirement obligations for certain assets. We record initial liabilities for the asset retirement obligations ("ARO") at fair value. Recognition of ARO includes estimating the present value of a liability and offsetting asset, the subsequent accretion of that liability and depletion of the asset, and a periodic review of the ARO liability estimates and discount rates used in the analysis. We provide additional information about our asset retirement obligations in Note 7 titled, "Property, Plant, and Equipment."

**Acquisitions of Business.** Assets acquired and liabilities assumed in a business combination are accounted for at fair value on the date of acquisition. Costs related to the acquisition are expensed as incurred.

**Goodwill.** We perform our annual impairment test for goodwill in the third quarter of each year. We may consider qualitative indicators of the fair value of a reporting unit when it is unlikely that a reporting unit has impaired goodwill. We may also utilize a discounted cash flow analysis that requires certain assumptions and estimates be made regarding market conditions and our future profitability. We review the book value compared to the fair value at the reporting unit level. We calculate the fair value of our reporting units based on the present value of estimated future cash flows. Management's judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows to measure fair value. Assumptions used in our impairment evaluations, such as forecasted growth rates and cost of capital, are consistent with internal projections, strategic plans, and operating plans. We believe such assumptions and estimates are also comparable to those that would be used by other marketplace participants.

**Self-Insurance Liabilities.** We record a liability for self-insured risks that we retain for general and product liabilities, workers' compensation, and automobile liabilities based on actuarial calculations. We use our historical loss experience and actuarial methods to calculate the liability. This liability includes estimates for both known losses and incurred but not reported claims. We review the assumptions used to calculate the estimated liability at least annually to evaluate the adequacy of the amount recorded. We maintain insurance policies to cover losses greater than our estimated liability, which are subject to the terms and conditions of those policies. We are also self-insured for certain employee medical claims. We estimate a liability for incurred but not reported claims based upon recent claims experience. Liability amounts are recorded in the "Accrued expenses and other" and "Other liabilities" lines of our Consolidated Balance Sheets.

**Benefit Plans.** We sponsor defined benefit pension plans. We also sponsor a post-retirement benefits plan for certain former employees. We determine our costs and obligations related to these plans by evaluating input from third-party professional advisers. These costs and obligations are affected by assumptions including the discount rate, expected long-term rate of return on plan assets, the annual rate of change in compensation for eligible employees, estimated changes in costs of healthcare benefits, and other factors. We review the assumptions used on an annual basis.

We recognize an asset for the overfunded status or a liability for the underfunded status of defined benefit pension and post-retirement benefits plans in our Consolidated Balance Sheets. This amount is measured as the difference between the fair value of plan assets and the benefit obligation (the projected benefit obligation for pension plans and the accumulated post-retirement benefit obligation for other post-retirement benefit plans). Changes in the funded status of the plans are recorded in other comprehensive income in the year they occur. We measure plan assets and obligations as of the balance sheet date. We provide additional information about our pension and other post-retirement benefits plans in Note 11 titled, "Benefit Plans."

**Foreign Currency Translation.** Our reporting currency is United States Dollars ("USD"). Most of our operations use their local currency as their functional currency. Financial statements of subsidiaries are translated into USD using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate for each period for revenues, expenses, gains and losses. Translation adjustments for subsidiaries whose local currency is their functional currency are recorded as a component of accumulated other comprehensive income (loss) within equity. Transactions with equity method investees are recorded in their transactional currency and converted to the functional currency of the investor. The carrying amount of the investment is translated from the functional currency of the investor to USD, with translation adjustments recorded in accumulated other comprehensive income (loss) within equity. Transaction gains and losses resulting from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized as incurred in the accompanying Consolidated Statements of Income, except for certain intercompany balances designated as long-term in nature.

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Forward and Swap Contracts.** We enter into foreign currency forward contracts to hedge assets and liabilities denominated in foreign currencies, including intercompany transactions. We may also enter into commodity swap contracts to hedge price changes in nickel that impact raw materials included in our Cost of revenues. We may also hold foreign currency forward contracts to hedge a portion of our expected non-U.S. dollar denominated earnings against our reporting currency, the U.S. dollar. We do not use derivative financial instruments for speculative purposes. These contracts are marked to market, with gains and losses recognized within Selling, general, and administrative expenses or Cost of revenues in the accompanying Consolidated Statements of Income.

**Warranty.** Warranties are provided on the sale of certain of our products and services and an accrual for estimated future claims is recorded at the time revenues are recognized. We estimate warranty expense based primarily on historical warranty claim experience.

**Shipping and Handling.** We record shipping and handling costs in Cost of revenues. Shipping and handling costs charged to Customers are recorded as revenues in the period the product revenues are recognized.

**Advertising Expenses.** Costs incurred for communicating, advertising and promoting our products are generally expensed when incurred as a component of Selling, general, and administrative expenses. We incurred $20.3 million, $19.9 million, and $25.5 million of advertising costs during the years ended March 31, 2026, 2025, and 2024, respectively.

**Research and Development.** We incur research and development costs associated with commercial products and expense these costs as incurred. If a Customer reimburses us for research and development costs, the costs are charged to the related contracts as Cost of revenues.

**Income Taxes.** We defer income taxes for all temporary differences between pre-tax financial and taxable income and between the book and tax basis of assets and liabilities. We record valuation allowances to reduce net deferred tax assets to an amount that we expect will more-likely-than-not be realized. In making such a determination, we consider all available information, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and if applicable, any carryback claims that can be filed. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes and the effective tax rate.

We evaluate uncertain tax positions in accordance with a two-step process. The first step is recognition: The determination of whether or not it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, we presume that the position will be examined by the appropriate tax authority and that the tax authority will have full knowledge of all relevant information. The second step is measurement: A tax position that meets the more-likely-than-not threshold is measured to determine the amount of benefit to recognize in the financial statements. The measurement process requires the determination of the range of possible settlement amounts and the probability of achieving each of the possible settlements. The tax position is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. No tax benefits are recognized for positions that do not meet the more-likely-than-not threshold. Tax positions that previously failed to meet the more-likely-than-not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold are derecognized in the first subsequent financial reporting period in which the threshold is no longer met. We describe income taxes further in Note 10 titled, "Income Taxes."

**Share-Based Compensation.** We describe share-based compensation in Note 16 titled, "Share-Based Compensation." We measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The expense is classified as Cost of revenues, Selling, general, and administrative expenses or Research and development expenses in a manner consistent with the employee's compensation and benefits. These costs are recognized in the Consolidated Statements of Income over the period during which an employee is required to provide service in exchange for the award.

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Restructuring.** We recognize restructuring expenses associated with actions designed to enhance profitability and improve efficiency of our operations. Severance and other compensation related costs include severance, medical benefits, and other termination benefits. For ongoing benefit arrangements, a liability is recognized when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. For one-time benefit arrangements, a liability is incurred and must be accrued at the date the plan is communicated to employees, unless they will be retained beyond a minimum retention period. In this case, the liability is calculated at the date the plan is communicated to employees and is accrued ratably over the future service period. Asset impairment expenses primarily relate to adjustments in the carrying value of facilities and machinery and equipment associated with restructuring actions to their estimated fair value. In addition, the remaining useful lives of other property, plant, and equipment associated with the restructuring actions are re-evaluated, which may result in the acceleration of depreciation and amortization of certain assets. Other restructuring expenses are expensed as incurred. Product rationalization charges relate to inventory write-downs and are recognized in Cost of revenues in the Consolidated Statements of Income. For additional information regarding our recent restructurings, refer to Note 2 titled, "Restructuring."

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

***Recently Issued Accounting Standards Impacting the Company***

Recently Issued Accounting Standards Impacting the Company are presented in the following table:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Standard** | **Date of Issuance** | **Description** | **Date of Adoption** | **Effect on the financial statements or other significant matters** |
| Standards that have been adopted in fiscal 2026 | Standards that have been adopted in fiscal 2026 | Standards that have been adopted in fiscal 2026 | Standards that have been adopted in fiscal 2026 | Standards that have been adopted in fiscal 2026 |
| ASU 2023-09 "Income Taxes (Topic 740) Improvements to Income Tax Disclosures." | December 2023 | The standard provides guidance to enhance disclosures related to effective tax rate reconciliations, requiring separate disclosure of certain categories and further disaggregation of items that meet a quantitative threshold. It also addresses disclosures of income taxes paid (net of refunds), requiring disaggregation by federal, state, and foreign, and disclosure of individual jurisdictions that meet a quantitative threshold. The standard also requires disclosure of income (loss) from continuing operations before income taxes, disaggregated between domestic and foreign, and income tax expense (or benefit) disaggregated by federal, state, and foreign. Finally, the standard removes the requirement for certain disclosures related to changes in unrecognized tax benefits and certain amounts of temporary differences. The amendments in this standard are effective for annual periods beginning after December 15, 2024. | Fourth Quarter Fiscal 2026 | We adopted this standard on a prospective basis in fiscal 2026. Refer to Note 10 titled, "Income Taxes" for enhanced disclosures. |
| Standards that have not yet been adopted. | Standards that have not yet been adopted. | Standards that have not yet been adopted. | Standards that have not yet been adopted. | Standards that have not yet been adopted. |
| ASU 2024-03<br>"Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses." | November 2024 | The standard provides guidance to enhance disclosures related to the disaggregation of income statement expenses. The standard requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses which includes purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption. The standard also requires amounts that are already required to be disclosed under U.S. GAAP in the same disclosure as the other disaggregation requirements, disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and disclosure of the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. The amendments in this standard are effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. | NA | We are currently assessing the impact of this standard update on our disclosures in the notes to the consolidated financial statements. |

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

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| | | | | |
|:---|:---|:---|:---|:---|
| ASU 2025-05<br>"Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets." | July<br>2025 | The standard introduces a practical expedient allowing entities to assume current economic conditions, as of the balance sheet date, remain unchanged when estimating expected credit losses for current trade receivables and contract assets. The guidance is effective for fiscal years beginning after December 15, 2025, including interim periods, with early adoption permitted. | NA | We are currently assessing the impact of this standard update on our disclosures in the notes to the consolidated financial statements. |
| ASU 2025-06 "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) Targeted Improvements to the Accounting for Internal-Use Software | September 2025 | The standard removes all references to prescriptive and sequential software development stages and requires entities to begin capitalizing software costs when management has both authorized and committed to funding the software project, and it is probable that the project will both be completed and the software will be used to perform the function intended. Capitalized internal-use software costs are now subject to the same disclosure requirements as property, plant, and equipment (PPE), even if they are presented as intangible assets or under a different line item. The amendments in this standard are effective for annual periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods, with early adoption permitted. | NA | We are in the process of evaluating the impact that the standard update will have on our consolidated financial statements. |
| ASU 2025-10 "Government Grants (Topic 832)<br>Accounting for Government Grants Received by Business Entities" | December 2025 | The standard provides authoritative guidance on the recognition, measurement, presentation, and disclosure of government grants received by business entities. The standard defines a government grant as a transfer of a monetary or tangible nonmonetary asset from a government to a business entity in a nonexchange transaction and requires a grant to be recognized only when it is probable that the entity will comply with the grant's conditions and that the grant will be received. The amendments introduce an accounting model largely based on International Accounting Standard (IAS) 20, under which grants related to assets or income are recognized over the periods in which the related costs or expenses are incurred. The standard also amends Topic 832, which previously included only disclosure requirements, and provides guidance on presentation and repayment of grants. The guidance excludes certain transactions such as income tax items, below-market interest rate loans, and government guarantees from its scope. The amendments are effective for annual periods beginning after December 15, 2028 (including interim periods within those annual periods) for public business entities and one year later for all other entities. Early adoption is permitted. | NA | We are in the process of evaluating the impact that the standard update will have on our consolidated financial statements. |

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. RESTRUCTURING**

In May 2024, we adopted and announced a targeted restructuring plan (the "Restructuring Plan"). This plan includes a strategic shift in our approach to the Healthcare surgical business in Europe, as well as other actions including the impairment of an internally developed X-ray accelerator, product rationalizations and facility consolidations. Approximately 300 positions have been eliminated. These restructuring actions were designed to enhance profitability and improve efficiency. As of March 31, 2026, the execution of our Restructuring Plan is substantially complete.

The following table summarizes our total pre-tax restructuring expenses recorded in fiscal 2026 and 2025 related to the Restructuring Plan:

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| | | | |
|:---|:---|:---|:---|
| (in millions) |  |  |  |
| **Restructuring Plan** |  |  |  |
| Years Ended March 31, | 2026 | 2025 | 2024 |
| Severance and other compensation related costs | $**2.6** | $29.0 | $0.7 |
| Lease and other contract termination and other costs | **1.5** | 12.4 |  |
| Product rationalization <sup>(1)</sup> | **(0.7)** | 16.2 | 18.3 |
| Accelerated depreciation and amortization and asset impairment | **—** | 4.7 | 25.4 |
| **Total Restructuring Expense** | $**3.4** | $62.3 | $44.4 |

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<sup>(1)</sup> Recorded in Cost of revenues on the Consolidated Statements of Income.

The Restructuring Plan expenses incurred during fiscal 2026 and 2025 primarily related to actions taken in our Healthcare and AST segments. Total pre-tax restructuring expense of $110.1 million has been recorded relating to the Restructuring Plan since inception, of which $33.9 million has been recorded in Cost of revenues.

Liabilities related to restructuring activities are recorded as current liabilities in the accompanying Consolidated Balance Sheets within "Accrued payroll and other related liabilities" and "Accrued expenses and other." The following table summarizes our restructuring liability balances:

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| | |
|:---|:---|
| (in millions) | **Restructuring Plan** |
| **Balance at March 31, 2024** | $0.7 |
| Fiscal 2025 charges | 41.4 |
| Payments | (23.7) |
| **Balance at March 31, 2025** | $18.4 |
| Fiscal 2026 charges | **4.1** |
| Payments | **(15.4)** |
| **Balance at March 31, 2026** | $**7.1** |

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**3. BUSINESS ACQUISITIONS, DIVESTITURES, AND INVESTMENTS**

***Fiscal 2026 Acquisitions***

During fiscal 2026, we completed two tuck-in acquisitions, recorded at fair value, which continued to expand our product and service offerings in the Healthcare segment. Total aggregate consideration was approximately $23.4 million, including the fair value of potential contingent consideration.

Purchase price allocations are based on the latest draft valuations and remain preliminary. As we finalize the fair value of assets acquired and liabilities assumed, additional purchase price adjustments and associated deferred taxes may be recorded during the remaining measurement period, not to exceed one year from closing.

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

***Fiscal 2026 Investments***

During fiscal 2026, we purchased $134.0 million in investments, predominantly related to a noncontrolling equity investment representing an approximately one-third ownership interest in a non-U.S.-based healthcare product manufacturer accounted for under the equity method. In connection with the equity method investment, the Company entered into arrangements that provide rights (and, in certain cases, obligations) that could result in the Company acquiring the remaining equity interests in the investee upon the occurrence of specified events or conditions. The potential acquisition would be for a purchase price that is proportionate to the Company's initial investment, subject to customary working capital adjustments, on a debt-free, cash-free basis. The timing of such acquisition, if any, would depend on the terms of those arrangements and the satisfaction of the applicable conditions.

***Fiscal 2025 Acquisitions***

During 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 $54.1 million.

***Fiscal 2024 Acquisitions***

On August 2, 2023 we purchased the surgical instrumentation, laparoscopic instrumentation and sterilization container assets from Becton, Dickinson and Company (NYSE: BDX) ("BD"). The acquired assets from BD were integrated into our Healthcare segment. The acquisition was accounted for as a business combination in accordance with ASC 805.

The purchase price of the acquisition was $539.8 million. The acquisition also qualified for a tax benefit related to tax deductible goodwill, with a present value of approximately $60.0 million. The purchase price of the acquisition was financed with borrowings from our existing credit facility. For more information, refer to Note 8 titled, "Debt."

In addition to the acquisition of assets from BD, we completed two tuck-in acquisitions during fiscal 2024, which expanded our product and service offerings in the AST and Healthcare segments. Total aggregate consideration was approximately $6.9 million, net of cash acquired.

***Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations***

The table below summarizes the allocation of the purchase price to the net assets acquired based on fair values at the acquisition dates for our fiscal 2026, 2025, and 2024 acquisitions.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) | **Fiscal Year 2026** <sup>(1)</sup> | **Fiscal Year 2025** | **Fiscal Year 2024** | **Fiscal Year 2024** |
|  | All Acquisitions | All Acquisitions | BD | Other Acquisitions |
| Cash | $**0.4** | $— | $— | $0.4 |
| Accounts receivable | **5.0** | 1.3 |  | 1.5 |
| Inventory | **12.2** | 1.2 | 31.8 | 0.7 |
| Property, plant, and equipment | **2.9** | 21.2 | 7.9 | 0.2 |
| Lease right-of-use assets, net | **1.0** | 4.6 | 1.7 |  |
| Other assets | **1.9** | 4.3 |  |  |
| Intangible assets | **9.2** | 15.9 | 303.0 | 2.9 |
| Goodwill | **8.8** | 10.6 | 197.1 | 2.5 |
| **Total assets** | **41.4** | 59.2 | 541.5 | 8.2 |
| Current liabilities | **(17.3)** | (2.1) |  | (0.6) |
| Non-current liabilities | **(0.7)** | (2.9) | (1.7) | (0.7) |
| **Total liabilities** | **(18.0)** | (5.1) | (1.7) | (1.3) |
| **Net assets** | $**23.4** | $54.1 | $539.8 | $6.9 |

---

<sup>(</sup><sup>1)</sup> Purchase price allocation is preliminary as of March 31, 2026, as valuations have not been finalized.

Goodwill is the excess of the consideration transferred over the net assets recognized and represents the expected revenues and cost synergies of the combined company and assembled workforce. No portion of the goodwill recognized in fiscal 2026 was deductible for tax purposes. The deductible portion of goodwill recognized as a result of fiscal 2025 and fiscal 2024 acquisitions was $0.4 million and $195.7 million, respectively.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

Acquisition related transaction and integration costs totaled $6.2 million, $11.2 million, and $25.5 million for the fiscal years ended March 31, 2026, 2025, and 2024, respectively. Acquisition and integration expenses declined in fiscal 2026 as we completed fewer acquisitions during fiscal 2026 as compared to prior years. These costs are included in Selling, general, and administrative expenses in the Consolidated Statements of Income and include, but are not limited to, investment banker, advisory, legal and other professional fees, and certain employee-related expenses.

**<u>Divestitures</u>**

***Fiscal 2025***

On April 11, 2024, the Company announced its plan to sell its Dental segment for total cash consideration of $787.5 million, subject to customary adjustments, and up to an additional $12.5 million in contingent payment had the Dental business achieved certain revenue targets in fiscal 2025. No amounts have been recorded or are expected to be recorded with respect to this contingent consideration. The transaction was structured as an equity sale and closed on May 31, 2024. The disposal of the Dental segment met the criteria to be presented as a discontinued operation. For more information refer to Note 4 titled "Discontinued Operations."

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 $19.3 million in fiscal 2025. The business generated approximately $35.0 million in revenues in fiscal 2024.

**4. DISCONTINUED OPERATIONS**

On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787.5 million, subject to customary adjustments, and up to an additional $12.5 million in contingent payment had the Dental business achieved certain revenue targets in fiscal 2025. No amounts have been recorded or are expected to be recorded with respect to this contingent consideration. The transaction was structured as an equity sale and closed on May 31, 2024. A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the fiscal 2025 divestiture of our Dental segment and determined that those conditions for discontinued operations presentation had been met prior to March 31, 2024. The Dental segment results of operations have been classified as income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented. Our Consolidated Statements of Cash Flows include the financial results of the Dental segment through the date of sale on May 31, 2024. A majority of the proceeds received from the sale were utilized to pay off existing debt.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The following table summarizes the major line items constituting income (loss) of discontinued operations associated with the Dental segment for the years ended March 31, 2025, and 2024:

---

| | | |
|:---|:---|:---|
| (in millions) |  |  |
| Years Ended March 31, | 2025 | 2024 |
| **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | $63.9 | $407 |
| **Cost of revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | 35.1 | 226.9 |
| **Gross profit:** | 28.8 | 180.1 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general, and administrative | 13.5 | 199.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment loss |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 0.4 | 3.0 |
| **Income (loss) from operations** <sup>(1)</sup> | 15.0 | (22.4) |
| **Non-operating expenses (income), net** |  |  |
| **Pre-tax loss on sale** <sup>(2)</sup> | (14.0) | (206.4) |
| **Income (loss) before income tax expense** | 1.0 | (228.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit | (3.6) | (55.6) |
| **Income (loss) from discontinued operations, net of income tax** | $4.5 | $(173.2) |

---

<sup>(1)</sup> Income from operations for the year ended March 31, 2025 includes two months of operating results prior to the transaction close on May 31, 2024 and excludes depreciation and amortization of property, plant, equipment, and intangible assets subsequent to the held for sale classification as of March 2, 2024.

<sup>(2)</sup> Fiscal 2025 pre-tax loss on sale driven by sale price adjustments relating to working capital. Fiscal 2024 amount relates to accrued transaction costs and the estimated accrued loss included in held for sale as of March 31, 2024.

The effective income tax rates for the years ended March 31, 2025 and 2024 were (371.0)%, and 24.3%, respectively. Our fiscal 2025 tax rate was driven by favorable discrete items.

Significant non-cash operating items and capital expenditures related to discontinued operations are reflected in the statement of cash flows as follows:

---

| | | |
|:---|:---|:---|
| (in millions) | 2025 | 2024 |
| **Operating activities of discontinued operations:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, depletion, and amortization <sup>(1)</sup> | $— | $115.2 |
| **Investing activities of discontinued operations:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant, equipment, and intangibles | $(0.4) | $(9.2) |

---

<sup>(1)</sup> We concluded that the criteria to report assets held for sale was met on March 2, 2024, as such we did not depreciate or amortize related property, plant, equipment and intangible assets subsequent to this date.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**5. GOODWILL AND INTANGIBLE ASSETS**

Changes to the carrying amount of goodwill for the years ended March 31, 2026 and 2025 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) | Healthcare | AST | Life Sciences | Total |
| **Balance at March 31, 2024** | $2500.9 | $1387.6 | $182.2 | $4070.7 |
| Goodwill acquired | 2.1 | 8.5 |  | 10.6 |
| Measurement period adjustments to acquired goodwill |  | (0.5) | (11.6) | (12.1) |
| Foreign currency translation adjustments and other | 6.3 | 19.9 | 0.3 | 26.4 |
| **Balance at March 31, 2025** | $2509.3 | $1415.4 | $170.9 | $4095.7 |
| Goodwill acquired | **8.8** | **—** | **—** | **8.8** |
| Measurement period adjustments to acquired goodwill | **—** | **—** | **—** | **—** |
| Divestiture | **—** | **—** | **—** | **—** |
| Foreign currency translation adjustments and other | **21.0** | **66.8** | **2.6** | **90.4** |
| **Balance at March 31, 2026** | $**2539.0** | $**1482.3** | $**173.5** | $**4194.8** |

---

See Note 3 titled, "Business Acquisitions, Divestitures, and Investments," for additional information regarding our recent business acquisitions and divestitures.

We evaluate the recoverability of recorded goodwill and indefinite-lived intangible assets annually during the third fiscal quarter, or when indicators of potential impairment exist. Our goodwill is assessed at the reporting unit level which is equivalent to the Company's reportable operating segments.

During our annual reviews for fiscal 2026, 2025, and 2024, there were no indicators that impairment of goodwill or indefinite-lived intangible assets was more likely than not.

Identifiable intangible assets are also reviewed for impairment when events and circumstances indicate that the carrying value of such assets may not be recoverable. Impaired assets are recorded at the lower of carrying value or estimated fair value. We conduct this review on an ongoing basis, and, if impairment exists, we record the loss in the Consolidated Statements of Income during that period.

When we evaluate these assets for impairment, we make certain judgments and estimates, including interpreting current economic indicators and market valuations, evaluating our strategic plans with regards to operations, historical and anticipated performance of operations, and other factors. It is possible that unfavorable developments related to these factors in the near term could result in an impairment loss relative to intangible assets. Such an impairment loss may be material to our results of operations in the period recorded.

Information regarding our intangible assets is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) | 2026 | 2026 | 2025 | 2025 |
| March 31, | Gross<br>Carrying<br>Amount | Accumulated<br>Amortization | Gross<br>Carrying<br>Amount | Accumulated<br>Amortization |
| &nbsp;&nbsp;&nbsp;&nbsp; Customer relationships | $**2655.8** | $**1344.0** | $2564.3 | $1067.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-compete agreements | **—** | **—** | 15.1 | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Patents and technology | **456.6** | **303.0** | 480.3 | 294.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trademarks and tradenames | **235.8** | **106.8** | 247.9 | 105.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Supplier relationships | **54.8** | **29.2** | 54.8 | 26.5 |
| **&nbsp;&nbsp;&nbsp;&nbsp; Total** | $**3403.0** | $**1783.0** | $3362.4 | $1508.0 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

Certain trademarks and tradenames obtained as a result of business combinations are indefinite-lived assets. The approximate carrying value of these assets at March 31, 2026 and March 31, 2025 was $14.3 million. We evaluate our indefinite-lived intangible assets annually during the third quarter or when evidence of potential impairment exists. No impairment was recognized for fiscal years 2026, 2025 or 2024.

Total amortization expense for intangible assets was $268.2 million, $276.2 million, and $268.3 million for the years ended March 31, 2026, 2025, and 2024, respectively. Based upon the current amount of intangible assets subject to amortization, the amortization expense for each of the five succeeding fiscal years is estimated to be as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in millions) | 2027 | 2028 | 2029 | 2030 | 2031 |
| Estimated amortization expense | $253.1 | $248.2 | $246.3 | $241.3 | $209.1 |

---

The estimated annual amortization expense presented in the preceding table has been calculated based upon March 31, 2026 currency exchange rates.

**6. INVENTORIES, NET**

Components of our inventories are presented in the following table.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |
| &nbsp;&nbsp;&nbsp;March 31, | 2026 | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp; Raw materials | $**225.4** | $213.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Work in process | **90.7** | 83.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finished goods | **355.2** | 334.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserve for excess and obsolete inventory | **(39.4)** | (49.8) |
| **Inventories, net** | $**631.8** | $581.3 |

---

**7. PROPERTY, PLANT, AND EQUIPMENT**

Information related to the major categories of our depreciable assets is as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |
| &nbsp;&nbsp;&nbsp; March 31, | 2026 | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land and land improvements <sup>(1)</sup> | $**112.3** | $106.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings and leasehold improvements | **903.6** | 832.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment | **1434.3** | 1205.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information systems | **316.3** | 282.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Radioisotope | **829.9** | 749.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction in progress <sup>(1)</sup> | **509.5** | 512.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total property, plant, and equipment** | **4105.9** | 3687.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: accumulated depreciation and depletion | **(1944.6)** | (1731.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Property, plant, and equipment, net** | $**2161.2** | $1956.5 |

---

<sup>(1)</sup> Land is not depreciated. Construction in progress is not depreciated until placed in service.

Depreciation and depletion expense were $218.3 million, $199.7 million and $181.7 million, for the years ended March 31, 2026, 2025, and 2024, respectively.

**Asset Retirement Obligations** 

We provide contract sterilization services including Gamma irradiation which utilizes cobalt-60 in the form of cobalt pencils. We have incurred asset retirement obligations (ARO) associated with the future disposal of these assets once depleted. Recognition of ARO includes: the present value of a liability and offsetting asset, the subsequent accretion of that liability and depletion of the asset, and the periodic review of the ARO liability estimates and discount rates used in the analysis.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The following table summarizes the activity in the liability for asset retirement obligations.

---

| | |
|:---|:---|
| (in millions) | Asset Retirement Obligations |
| **Balance at March 31, 2024** | $13.7 |
| Liabilities incurred during the period | 0.6 |
| Liabilities settled during the period | (0.1) |
| Accretion expense and change in estimate | 0.3 |
| Foreign currency and other | (0.1) |
| **Balance at March 31, 2025** | $14.4 |
| Liabilities incurred during the period | **1.0** |
| Liabilities settled during the period | **—** |
| Accretion expense and change in estimate | **0.3** |
| Foreign currency and other | **(0.4)** |
| **Balance at March 31, 2026** | $**15.3** |

---

**8. DEBT**

Indebtedness as of March 31, 2026 and 2025 was as follows:

---

| | | |
|:---|:---|:---|
| (in millions) | March 31,<br>2026 | March 31,<br>2025 |
| **Short-term debt** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private Placement Senior Notes | **118.9** | 125.0 |
| **Total short-term debt** | $**118.9** | $125.0 |
| **Long-term debt** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private Placement Senior Notes | $**438.9** | $549.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revolving Credit Facility | **37.8** | 34.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred financing costs | **(13.8)** | (15.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Public Notes | **1350.0** | 1350.0 |
| **Total long-term debt** | $**1812.8** | $1918.7 |
| **Total debt** | $**1931.7** | $2043.7 |

---

***Revolving Credit Facility***

On October 7, 2024, STERIS plc ("Parent"), STERIS Corporation ("Corporation"), STERIS Limited ("Limited"), and STERIS Irish FinCo Unlimited Company ("FinCo"), each as a borrower and guarantor, entered into a credit agreement with various financial institutions as lenders, and JPMorgan Chase Bank, N.A., as administrative agent (the "Revolving Credit Agreement") providing for a $1,100.0 million revolving credit facility (the "Revolving Credit Facility"), which replaced a prior credit agreement, dated as of March 19, 2021.

The Revolving Credit Agreement provides for revolving credit borrowings, swing line borrowings and letters of credit, with sublimits for swing line borrowings and letters of credit. The Revolving Credit Agreement may be increased in specified circumstances by up to $625.0 million in the discretion of the lenders. The Revolving Credit Agreement matures on the date that is five years after October 7, 2024, and all unpaid borrowings, together with accrued and unpaid interest thereon, are repayable on that date. The Revolving Credit Facility bears interest from time to time, at either the Base Rate or the Relevant Rate, as defined in and calculated under and as in effect from time to time under the Revolving Credit Agreement, plus the Applicable Margin, as defined in the Revolving Credit Agreement. The Applicable Margin is determined based on the Debt Rating of Parent, as defined in the Revolving Credit Agreement. Base Rate Advances are payable quarterly in arrears and Term Benchmark Advances are payable at the end of the relevant interest period therefor, but in no event less frequently than every three months. Swingline borrowings bear interest at a rate to be agreed by the applicable swingline lender and the applicable borrower, subject to a cap in the case of swingline borrowings denominated in U.S. Dollars equal to the Base Rate plus the Applicable Margin for Base Rate Advances plus the Facility Fee. There is no premium or penalty for prepayment of Base Rate Advances, but prepayments of Term Benchmark Advances are generally subject to a breakage fee. Advances may be extended

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

in U.S. Dollars or in specified alternative currencies ("Alternative Currency Advances"). Alternative Currency Advances are limited in the aggregate to the equivalent of $625.0 million.

As of March 31, 2026 a total of $37.8 million of borrowings were outstanding under the Revolving Credit Facility.

***Senior Public Notes***

On April 1, 2021, FinCo completed an offering of $1,350.0 million in aggregate principal amount, of its senior notes in two separate tranches: (i) $675.0 million aggregate principal amount of FinCo's 2.700% Senior Notes due 2031 (the "2031 Notes") and (ii) $675.0 million aggregate principal amount of FinCo's 3.750% Senior Notes due 2051 (the "2051 Notes" and, together with the 2031 Notes, the "Senior Public Notes"). The Senior Public Notes were issued pursuant to an Indenture, dated as of April 1, 2021, among FinCo, as the issuer, Parent, Corporation and Limited (together Parent, Corporation and Limited, the "Guarantors") and U.S. Bank National Association, as trustee (the "Trustee"), as supplemented by the First Supplemental Indenture, dated as of April 1, 2021, among FinCo, the Guarantors and the Trustee. Each of the Guarantors guaranteed the Senior Public Notes jointly and severally on a senior unsecured basis. The 2031 Notes will mature on March 15, 2031 and the 2051 Notes will mature on March 15, 2051. The Senior Public Notes will bear interest at the rates set forth above. Interest on the Senior Public Notes is payable on March 15 and September 15 of each year until their respective maturities.

***Private Placement Senior Notes***

Our outstanding Private Placement Senior Notes at March 31, 2026 and 2025 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) | Applicable Note Purchase Agreement | Maturity Date | U.S. Dollar Value at March 31, 2026 | U.S. Dollar Value at March 31, 2025 |
| $25,000 Senior notes at 3.55% | 2012 Private Placement | December 2027 | $**25.0** | $25.0 |
| $125,000 Senior notes at 3.45% | 2015 Private Placement | May 2025 | **—** | 125.0 |
| $125,000 Senior notes at 3.55% | 2015 Private Placement | May 2027 | **125.0** | 125.0 |
| $100,000 Senior notes at 3.70% | 2015 Private Placement | May 2030 | **100.0** | 100.0 |
| $50,000 Senior notes at 3.93% | 2017 Private Placement | February 2027 | **50.0** | 50.0 |
| €60,000 Senior notes at 1.86%  | 2017 Private Placement | February 2027 | **68.9** | 65.0 |
| $45,000 Senior notes at 4.03%  | 2017 Private Placement | February 2029 | **45.0** | 45.0 |
| €20,000 Senior notes at 2.04%  | 2017 Private Placement | February 2029 | **23.0** | 21.7 |
| £45,000 Senior notes at 3.04% | 2017 Private Placement | February 2029 | **59.5** | 58.2 |
| €19,000 Senior notes at 2.30% | 2017 Private Placement | February 2032 | **21.8** | 20.6 |
| £30,000 Senior notes at 3.17%  | 2017 Private Placement | February 2032 | **39.7** | 38.8 |
| **Total Private Placement Senior Notes** | **Total Private Placement Senior Notes** |  | $**557.8** | $674.2 |

---

On February 27, 2017, Limited issued and sold an aggregate principal amount of $95.0 million, €99.0 million, and £75.0 million, of senior notes (collectively, the "2017 senior notes") in a private placement to certain institutional investors in an offering that was exempt from the registration requirements of the Securities Act of 1933. These notes have maturities of between 10 years and 15 years from the issue date. The agreement governing these notes contains leverage and interest coverage covenants.

On May 15, 2015, Corporation issued and sold $350.0 million of senior notes (the "2015 senior notes"), in a private placement to certain institutional investors in an offering that was exempt from the registration requirements of the Securities Act of 1933. These notes have maturities of 10 years to 15 years from the issue date. The agreement governing these notes contains leverage and interest coverage covenants.

In December 2012, and in February 2013 Corporation issued and sold $200.0 million of senior notes (collectively, the "2012 senior notes"), in a private placement to certain institutional investors in offerings that were exempt from the registration requirements of the Securities Act of 1933. The agreement governing the notes contains leverage and interest coverage covenants.

On March 19, 2021, Corporation as issuer, and Parent, Limited and FinCo, as guarantors, entered into (1) a First Amendment to Amended and Restated Note Purchase Agreement dated March 5, 2019 (which had amended and restated certain note purchase agreements originally dated December 4, 2012) for the 2012 senior notes (the "2012 Amendment"), and

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(2) a First Amendment to Amended and Restated Note Purchase Agreement dated March 5, 2019 (which had amended and restated certain note purchase agreements originally dated March 31, 2015) for the 2015 senior notes (the "2015 Amendment"). Also on March 19, 2021, Limited, as issuer, and Parent, Corporation and FinCo, as guarantors, entered into a First Amendment to Amended and Restated Note Purchase Agreement dated March 5, 2019 (which had amended and restated a certain note purchase agreement originally dated January 23, 2017) for the 2017 senior notes (together with the 2012 Amendment and the 2015 Amendment, the "NPA Amendments"). The NPA Amendments provided, among other things, for the waiver of certain repurchase rights of the note holders and increased the size of certain baskets to more closely align with other current credit agreement baskets.

At March 31, 2026, we were in compliance with all financial covenants associated with our indebtedness.

The combined annual aggregate amount of maturities of our outstanding debt by fiscal year is as follows:

---

| | |
|:---|:---|
| (in millions) |  |
| 2027 | $118.9 |
| 2028 | 150.0 |
| 2029 | 127.5 |
| 2030 | 37.8 |
| 2031 and thereafter | 1511.5 |
| **Total** | $1945.6 |

---

Supplemental cash flow information related to debt is as follows::

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |  |
| &nbsp;&nbsp;&nbsp;Years Ended March 31, | 2026 | 2025 | 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the year for interest | $**64.7** | $89.4 | $142.2 |

---

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**9. ADDITIONAL CONSOLIDATED BALANCE SHEET INFORMATION**

Additional information related to our Consolidated Balance Sheets is as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |
| &nbsp;&nbsp;&nbsp;March 31, | 2026 | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Accrued payroll and other related liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation and related items | $**63.7** | $69.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued vacation/paid time off | **16.7** | 16.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued bonuses | **97.5** | 66.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued employee commissions | **39.6** | 37.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other post-retirement benefits obligations-current portion | **0.9** | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other employee benefit plans' obligations-current portion | **2.7** | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total accrued payroll and other related liabilities** | $**221.1** | $192.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Accrued expenses and other:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues | $**59.1** | $57.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service liabilities | **137.5** | 107.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Self-insured and related risk reserves-current portion | **14.5** | 15.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Illinois EO litigation settlement<sup>(1)</sup> | **43.2** | 48.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued dealer commissions | **32.5** | 32.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued warranty | **17.5** | 16.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset retirement obligation-current portion | **0.5** | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | **6.2** | 7.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **90.9** | 82.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total accrued expenses and other** | $**401.9** | $368.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Self-insured risk reserves-long-term portion | $**24.8** | $24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other post-retirement benefits obligations-long-term portion | **4.3** | 4.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined benefit pension plans obligations-long-term portion | **4.1** | 3.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other employee benefit plans obligations-long-term portion | **1.6** | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued long-term income taxes | **0.3** | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset retirement obligation-long-term portion | **14.7** | 13.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **21.9** | 12.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total other liabilities** | $**71.7** | $61.9 |

---

<sup>(1)</sup> Pursuant to the terms of our settlement agreement, settlement funds have been deposited into escrow. The corresponding escrow asset is included in the Prepaid expenses and other current assets line of our Consolidated Balance Sheets.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**10. INCOME TAXES** 

We present a reconciliation of the effective global income tax rate from the Irish national trading rate, our country of domicile. The total provision for income taxes for the year ended March 31, 2026 can be reconciled to the tax computed at the Ireland statutory trading income tax rate, presented in accordance with the requirements of newly adopted ASU 2023-09, as follows:

---

| | | |
|:---|:---|:---|
| | **Year Ended March 31, 2026** | **Year Ended March 31, 2026** |
|<br>(dollars in millions) | **Amount** | **Percentage** |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax at national statutory rate | $**130.9** | **12.5%** |
| &nbsp;&nbsp;&nbsp;&nbsp;National nontaxable, nondeductible items | **(0.1)** | **— %** |
| &nbsp;&nbsp;&nbsp;&nbsp;National cross-border laws | **7.3** | **0.7%** |
| &nbsp;&nbsp;&nbsp;&nbsp;National other | **3.1** | **0.3%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign tax effects, U.S. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statutory rate differential | **62.9** | **6.0%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal credits | **(6.1)** | **(0.6)%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local taxes, net | **30.8** | **2.9%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity based compensation | **(7.0)** | **(0.7)%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding taxes | **19.8** | **1.9%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign-derived deduction eligible income | **(8.5)** | **(0.8)%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **10.9** | **1.0%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign tax effects, U.K. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statutory rate differential | **6.8** | **0.6%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **0.3** | **— %** |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign tax effects, other jurisdictions | **12.2** | **1.2%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Global changes in uncertain tax positions | **(1.6)** | **(0.2)%** |
| &nbsp;&nbsp;&nbsp;&nbsp;All other, net | **0.6** | **0.2%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Provision for Income Taxes | $**262.2** | **25.0%** |

---

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The total provision for income taxes for the years ended March 31, 2025 and March 31, 2024 can be reconciled to the tax computed at the Ireland statutory tax rate, presented before adoption of ASU 2023-09, as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;Years Ended March 31, | 2025 | 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;National statutory tax rate | 12.5% | 12.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in accruals for uncertain tax positions | (0.1)% | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. state and local taxes, net of federal income tax expense (benefit) | 2.8% | 2.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in valuation allowances | 0.7% | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. research and development credit | (0.6)% | (0.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. foreign income tax credit | (0.7)% | (0.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Difference in non-Ireland tax rates | 9.9% | 8.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. federal audit adjustments | (0.3)% | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess tax benefit for equity compensation | (0.8)% | (0.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax rate changes on deferred tax assets and liabilities | —% | (0.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. tax reform impact, GILTI and FDII | (0.3)% | (0.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other, net | 0.1% | (0.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Provision for Income Taxes** | 23.2% | 21.3% |

---

Our effective tax rate is affected by i) the tax rates in Ireland (our country of domicile), the United States, and other jurisdictions in which we operate, and ii) the relative amount of income before income taxes by geography. Income before income taxes by geography are based on the geographic location of our operations to which such earnings are attributable. Transactions between two or more of the entities within our group occur routinely and involve the sale of goods and services, loans and related interest, intellectual property and related royalties, and shared costs. The pricing used in these transactions is consistent with the prices that would be charged between unrelated parties in accordance with our interpretation of current tax regulations. Income before income taxes by geography includes the transfer of income before income taxes that results from these transactions.

We operate a global financing structure using a wholly-owned financing company domiciled in Ireland, FinCo, which has a material impact on the relative amount of income before income taxes by geography. In each of the years presented, FinCo contributed a significant majority of the pre-tax income of Ireland operations. Its activities are driven by funding needs for acquisitions, capital investments, and working capital. A significant majority of FinCo's income before income taxes during the years presented was driven by loans to our operations in the United States in response to such funding needs.

Significant transactions not indicative of operating trends that impacted the amount of income before income taxes by geography and resulting provision for income tax and effective tax rate include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In fiscal 2026, there were no significant transactions of this nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In fiscal 2025, income from continuing operations before income taxes, in the United States and Other locations, was impacted by $62.3 million of expenses associated with restructuring. This resulted in approximately $6.0 million of an increase to our valuation allowance in Other locations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In fiscal 2024, income from continuing operations before income taxes, in the United States and Other locations, was impacted by $44.4 million of expenses associated with restructuring. This resulted in approximately $2.6 million of an increase to our valuation allowance in Other locations.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

Income from continuing operations before income taxes of our domestic and foreign operations based on the geographic locations of our operations was as follows:

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |  |
| &nbsp;&nbsp;&nbsp;Years Ended March 31, | 2026 | 2025 | 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States operations | $**725.3** | $559.5 | $491.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ireland operations | **56.7** | 62.5 | 51.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other locations operations | **265.3** | 174.2 | 159.4 |
|  | $**1047.3** | $796.2 | $702.8 |

---

The components of the provision for income taxes related to income from continuing operations consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |  |
| &nbsp;&nbsp;&nbsp;Years Ended March 31, | 2026 | 2025 | 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Current:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States federal | $**162.2** | $145.2 | $133.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States state and local | **38.1** | 32.4 | 26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ireland | **17.6** | 12.9 | 7.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other locations | **61.2** | 51.3 | 51.3 |
|  | **279.1** | 241.7 | 218.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Deferred:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States federal | **(8.3)** | (43.1) | (43.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States state and local | **0.9** | (5.0) | (11.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ireland | **(0.2)** | (0.6) | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other locations | **(9.3)** | (8.3) | (13.5) |
|  | **(16.9)** | (57.1) | (69.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Provision for Income Taxes** | $**262.2** | $184.7 | $149.5 |

---

**Unrecognized Tax Benefits.** We classify uncertain tax positions and related interest and penalties as long-term liabilities within "Other liabilities" in our accompanying Consolidated Balance Sheets, unless they are expected to be paid within 12 months, in which case, the uncertain tax positions would be classified as Current liabilities within the "Accrued income taxes" line in our accompanying Consolidated Balance Sheets. We recognize interest and penalties related to unrecognized tax benefits within the "Income tax expense" line in our accompanying Consolidated Statements of Income.

A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:

---

| | | |
|:---|:---|:---|
| (in millions) | 2026 | 2025 |
| **Unrecognized Tax Benefits Balance at April 1** | $**1.8** | $2.2 |
| Increases for tax provisions of current year |  |  |
| Decreases for tax provisions of prior year | **(1.6)** | (0.3) |
| **Unrecognized Tax Benefits Balance at March 31** | $**0.2** | $1.8 |

---

We recognized interest and penalties related to uncertain tax positions in the provision for income taxes. As of March 31, 2026 and 2025, we had $0.1 million accrued for interest and penalties. If all unrecognized tax benefits were recognized, the net impact on the provision for income tax expense would be $0.2 million. The decrease in the balance of unrecognized tax benefits from prior year is due to the expiration of old positions.

We operate in numerous taxing jurisdictions and are subject to regular examinations by various United States federal, state and local, as well as foreign jurisdictions. We are no longer subject to United States federal examinations for years before fiscal 2018 and, with limited exceptions, we are no longer subject to United States state and local, or non-United States, income tax

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

examinations by tax authorities for years before fiscal 2018. We remain subject to tax authority audits in various jurisdictions wherever we do business.

In November 2023, we received two Notices of Deficiency from the IRS regarding the previously disclosed deemed dividend inclusions and associated withholding tax matter. The notices relate to the fiscal and calendar year 2018. The IRS adjustments would result in a cumulative tax liability of approximately $50.0 million, excluding any interest and penalties, if ultimately assessed. We are contesting the IRS's assertions and have filed petitions with the U.S. Tax Court. We have not established reserves related to these notices. An unfavorable outcome is not expected to have a material adverse impact on our consolidated financial position but could be material to our consolidated results of operations and cash flows for any one period.

We estimate that the tax benefit from our Costa Rica Tax Holiday is $7.4 million (or $0.07 per fully diluted share), annually. The Tax Holiday runs fully exempt from income tax through 2031.

**Deferred Taxes.** The significant components of the deferred tax assets and liabilities recorded in our accompanying balance sheets at March 31, 2026 and 2025 were as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |
| &nbsp;&nbsp;&nbsp;March 31, | 2026 | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Deferred Tax Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Post-retirement benefit accrual | $**1.3** | $1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation | **34.5** | 29.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net operating loss carryforwards | **25.7** | 35.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | **13.3** | 13.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance | **2.2** | 2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Illinois EO Litigation Settlement | **11.0** | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income | **24.3** | 24.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt & other allowances | **4.7** | 3.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research & experimental expenditures | **47.5** | 40.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases <sup>(1)</sup> | **36.1** | 37.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign tax credit carryforwards | **10.3** | 8.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **17.4** | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Deferred Tax Assets** | **228.3** | 224.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Valuation allowance | **29.0** | 30.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Deferred Tax Assets** | **199.3** | 194.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Deferred Tax Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and depletion | **116.8** | 97.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases <sup>(1)</sup> | **35.4** | 36.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangibles | **418.1** | 441.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension | **3.8** | 3.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **3.0** | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Deferred Tax Liabilities** | **577.1** | 581.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Deferred Tax Liabilities**<sup>(2)</sup> | $**(377.8)** | $(386.9) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(1)</sup> For more information regarding our operating leases, see Note 12 titled, "Commitments and Contingencies."

<sup>(2)</sup> A portion of the Net Deferred Tax Liabilities is presented in the "Other Assets" line of our Consolidated Balance Sheets.

At March 31, 2026, we had U.S. federal operating loss carryforwards of $6.3 million, which remain subject to a 20 year carryforward period. Additionally, we had non-U.S. operating loss carry forwards of $86.4 million. Although the majority of the non-U.S. carryforwards have indefinite expiration periods, those carryforwards that have definite expiration periods will expire if unused between fiscal years 2027 and 2047. In addition, we have a pre-valuation allowance tax benefits balance of $2.3 million related to U.S. state operating loss carryforwards. If unused, these state operating loss carryforwards will expire

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

between fiscal years 2027 and 2047. At March 31, 2026, we had $13.2 million of pre-valuation allowance tax credit carryforwards. These credit carryforwards can be used through fiscal 2036.

We review the need for a valuation allowance against our deferred tax assets. A valuation allowance of $29.0 million has been applied to a portion of the net deferred tax assets because we do not believe it is more-likely-than-not that we will receive future benefit. The valuation allowance decreased during fiscal 2026 by $1.6 million.

Other than the tax expense previously recorded for the one-time transition tax on unremitted earnings of non-US subsidiaries, no additional provision has been made for income taxes on undistributed earnings of foreign subsidiaries as the Company's position is that these amounts continue to be indefinitely reinvested. The amount of undistributed earnings of subsidiaries was approximately $3,000.0 million at March 31, 2026. It is not practicable to estimate the additional income taxes and applicable withholding taxes that would be payable on the remittance of such undistributed earnings.

On October 8, 2021, the OECD announced the OECD/G20 Inclusive Framework on BEPS, which agreed to a two-pillar solution to address tax challenges arising from digitalization of the economy. On December 20, 2021, the OECD released Pillar Two Model Rules defining the global minimum tax (GloBE), which calls for the taxation of large corporations at a minimum rate of 15%. The OECD continues to release additional guidance on the global minimum tax. The global minimum tax rules were effective from our fiscal year beginning April 1, 2024. We do not expect the impact to be material to the Company's consolidated financial statements.

Cash paid for income taxes (net of refunds received) for the year ended March 31, 2026, presented in accordance with the requirements of newly adopted ASU 2023-09, is as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |
| &nbsp;&nbsp;&nbsp;Year Ended March 31, | 2026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the year for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net, Ireland | $**8.4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net, U.S. | **231.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net, other locations | **49.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net of refunds, total | $**289.0** |

---

Cash paid for income taxes and cash received for refunds for the years ended March 31, 2025 and 2024, presented before adoption of ASU 2023-09, is as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |
| &nbsp;&nbsp;&nbsp;Years Ended March 31, | 2025 | 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the year for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 273.6 | 271.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash received during the year for income tax refunds | 9.5 | 19.2 |

---

**11. BENEFIT PLANS** 

In the United States, we sponsor an unfunded post-retirement welfare benefits plan for two groups of United States retirees. Benefits under this plan include retiree life insurance and retiree medical insurance, including prescription drug coverage.

We sponsor several defined benefit pension schemes outside the United States: two in the UK, one in the Netherlands, two in Germany, and one in Switzerland. The Synergy Health plc Retirement Benefit Scheme is a defined benefit (final salary) funded pension scheme. In previous years, Synergy sponsored a funded defined benefit arrangement in the Netherlands. This was a separate fund holding the pension scheme assets to meet long-term pension liabilities for past and present employees. Accrual of benefits ceased under the scheme effective January 1, 2013. The Synergy Radeberg and Synergy Allershausen Schemes are unfunded defined pension schemes and are closed to new entrants. The Synergy Daniken Scheme is a defined benefit funded pension scheme. As a result of our fiscal 2018 acquisition of Harwell Dosimeters Ltd, we also sponsor the Harwell Dosimeters Ltd Retirement Benefits Scheme which is a defined benefit funded pension scheme.

We recognize the funded status of our defined benefit pension and post-retirement benefit plans in our Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The funded status is measured as of March 31 each year and is calculated as the difference between the fair value of plan assets and the benefit obligation (which is the projected benefit obligation for pension plans and the accumulated post-retirement benefit obligation

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

for post-retirement benefit plans). Accumulated comprehensive income (loss) represents the net unrecognized actuarial losses and unrecognized prior service cost. These amounts will be recognized in net periodic benefit cost as they are amortized. We will recognize future changes to the funded status of these plans in the year the change occurs, through other comprehensive income.

**Obligations and Funded Status.** The following table reconciles the funded status of the defined benefit pension plans and the other post-retirement benefits plan to the amounts recorded on our Consolidated Balance Sheets at March 31, 2026 and 2025, respectively. Benefit obligation balances presented in the following table reflect the projected benefit obligations for our defined benefit pension plans and the accumulated other post-retirement benefit obligation for our post-retirement benefits plan. The measurement date of our defined benefit pension plans and other post-retirement benefits plan is March 31, for both periods presented.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Other<br>Post-Retirement<br>Benefits Plan | Other<br>Post-Retirement<br>Benefits Plan |
|  | 2026 | 2025 | 2026 | 2025 |
| **Change in Benefit Obligations:** |  |  |  |  |
| **Benefit Obligations at Beginning of Year** | $**90.7** | $96.4 | $**5.8** | $6.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Service cost | **0.7** | 0.7 | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior service cost | **2.4** |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest cost | **4.7** | 4.2 | **0.3** | .3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial gain | **(1.9)** | (9.1) | **(0.4)** | (.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits and expenses | **(6.2)** | (4.6) | **(0.5)** | (.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee contributions | **0.6** | 1.0 | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Curtailments/settlements | **(0.9)** |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact of foreign currency exchange rate changes | **2.9** | 2.1 | **—** |  |
| **Benefit Obligations at End of Year** | $**93.1** | $90.7 | $**5.2** | $5.8 |
| **Change in Plan Assets:** |  |  |  |  |
| **Fair Value of Plan Assets at Beginning of Year** | $**109.3** | $113.9 | $**—** | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Actual return on plan assets | **6.0** | (4.9) | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employer contributions | **0.7** | 1.2 | **0.5** | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee contributions | **0.6** | 1.0 | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits and expenses paid | **(6.0)** | (4.5) | **(0.5)** | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Curtailments/settlements | **(0.9)** |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact of foreign currency exchange rate changes | **3.2** | 2.6 | **—** |  |
| **Fair Value of Plan Assets at End of Year** | $**112.8** | $109.3 | $**—** | $— |
| **Funded Status of the Plans** | $**19.7** | $18.6 | $**(5.2)** | $(5.8) |

---

Amounts recognized in the Consolidated Balance Sheets consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Other Post-Retirement Benefits Plan | Other Post-Retirement Benefits Plan |
|  | 2026 | 2025 | 2026 | 2025 |
| Non-current assets | $**23.8** | $21.9 | $**—** | $— |
| Current liabilities | **—** |  | **(0.9)** | (1.0) |
| Non-current liabilities | **(4.1)** | (3.3) | **(4.3)** | (4.8) |
| **Net assets (liabilities)** | $**19.7** | $18.6 | $**(5.2)** | $(5.8) |

---

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The pre-tax amount of unrecognized actuarial net loss and unamortized prior service cost included in accumulated other comprehensive (loss) at March 31, 2026, was approximately $2.1 million and $1.8 million, respectively.

Defined benefit plans with an accumulated benefit obligation and projected benefit obligation exceeding the fair value of plan assets had the following plan assets and obligations at March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
| (in millions) | Defined Benefit Pension Plans | Defined Benefit Pension Plans |
|  | 2026 | 2025 |
| Aggregate fair value of plan assets | $**112.8** | $109.3 |
| Aggregate accumulated benefit obligations | **93.1** | 90.7 |
| Aggregate projected benefit obligations | **93.1** | 90.7 |

---

**Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income.** Components of the annual net periodic benefit cost of our defined benefit pension plans and our other post-retirement benefits plan were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (in millions) | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Other Post-Retirement Benefits Plan | Other Post-Retirement Benefits Plan | Other Post-Retirement Benefits Plan |
|  | 2026 | 2025 | 2024 | 2026 | 2025 | 2024 |
| Service cost | $**0.7** | $0.7 | $0.7 | $**—** | $— | $— |
| Interest cost | **4.7** | 4.2 | 4.1 | **0.3** | 0.3 | 0.3 |
| Expected return on plan assets | **(5.4)** | (4.9) | (6.1) | **—** |  |  |
| Prior service cost recognition | **—** |  |  | **—** |  |  |
| Net amortization and deferral | **—** |  |  | **—** | 0.1 | 0.2 |
| Curtailments/settlements | **—** |  |  | **—** |  |  |
| Net periodic benefit (credit) cost | $**0.2** | $0.1 | $(1.2) | $**0.3** | $0.4 | $0.5 |
| **Recognized in other comprehensive loss (income) before tax:** |  |  |  |  |  |  |
| Net loss (gain) occurring during year | $**0.2** | $0.6 | $2.6 | $**0.4** | $0.6 | $0.4 |
| Amortization of prior service credit | **(0.1)** | (0.1) | (0.1) | **—** |  |  |
| Amortization of net loss | **—** |  |  | **—** | (0.1) | (0.2) |
| **Total recognized in other comprehensive loss (income)** | **0.2** | 0.5 | 2.5 | **0.3** | 0.4 | 0.2 |
| **Total recognized in total benefits cost and other comprehensive loss (income)** | $**0.3** | $0.6 | $1.3 | $**0.6** | $0.9 | $0.8 |

---

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Assumptions Used in Calculating Benefit Obligations and Net Periodic Benefit Cost.** The following table presents significant assumptions used to determine the projected benefit obligations at March 31:

---

| | | |
|:---|:---|:---|
|  | 2026 | 2025 |
| **Discount Rate:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synergy Health plc Retirement Benefits Scheme | **6.10%** | 4.80% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Isotron BV Pension Plan | **4.30%** | 3.80% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synergy Health Daniken AG | **1.20%** | 1.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synergy Health Radeberg | **3.80%** | 3.80% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synergy Health Allershausen | **3.01%** | 2.82% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Harwell Dosimeters Ltd Retirement Benefits Scheme | **5.85%** | 5.65% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other post-retirement plan | **5.00%** | 5.00% |

---

The following table presents significant assumptions used to determine the net periodic benefit costs for the years ended March 31:

---

| | | | |
|:---|:---|:---|:---|
|  | 2026 | 2025 | 2024 |
| **Discount Rate:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synergy Health plc Retirement Benefits Scheme | **5.80%** | 5.80% | 4.70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Isotron BV Pension Plan | **3.80%** | 3.40% | 3.70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synergy Health Daniken AG | **1.20%** | 1.10% | 1.50% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synergy Health Radeberg | **2.00%** | 2.00% | 2.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synergy Health Allershausen | **2.20%** | 2.20% | 2.20% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Harwell Dosimeters Ltd Retirement Benefits Scheme | **5.85%** | 5.65% | 4.85% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other post-retirement plan | **5.00%** | 5.00% | 4.75% |
| **Expected Return on Plan Assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synergy Health plc Retirement Benefits Scheme | **5.30%** | 5.30% | 6.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Isotron BV Pension Plan | **3.80%** | 3.40% | 3.70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Synergy Health Daniken AG | **1.30%** | 1.10% | 1.50% |

---

The net periodic benefit cost and the actuarial present value of projected benefit obligations are based upon assumptions that we review on an annual basis. These assumptions may be revised annually based upon an evaluation of long-term trends, as well as market conditions that may have an impact on the cost of providing benefits.

We develop our expected long-term rate of return on plan assets assumptions by evaluating input from third-party professional advisers, taking into consideration the asset allocation of the portfolios and the long-term asset class return expectations.

We develop our discount rate assumptions by evaluating input from third-party professional advisers, taking into consideration the current yield on country specific investment grade long-term bonds which provide for similar cash flow streams as our projected obligations. Prior to fiscal 2026, we made assumptions regarding healthcare costs in computing our other post-retirement benefit obligation. The assumed rates of increase generally declined ratably over a five-year period from the assumed current year healthcare cost trend rate to the assumed long-term healthcare cost trend rates noted below. As of fiscal 2026, healthcare cost trend assumptions are no longer applied. Beginning in fiscal 2026, the plan limits healthcare costs to a capped monthly amount per participant.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Healthcare cost trend rate – medical | 8.50% | 7.50% |
| Healthcare cost trend rate – prescription drug | 8.50% | 7.50% |
| Long-term healthcare cost trend rate | 4.50% | 4.50% |

---

To determine the healthcare cost trend rates, we evaluated a combination of information, including ongoing claims cost monitoring, annual statistical analyses of claims data, reconciliation of forecasted claims against actual claims, review of trend

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

assumptions of other plan sponsors and national health trends, and adjustments for plan design changes, workforce changes, and changes in plan participant behavior.

**Plan Assets.** The investment policies for our plans are generally established by the local pension plan trustees and seek to maintain the plans' ability to meet liabilities and to comply with local minimum funding requirements. Plan assets are invested in diversified portfolios that provide adequate levels of return at an acceptable level of risk. The investment policies are reviewed at least annually and revised, as deemed appropriate to ensure that the objectives are being met. At March 31, 2026, the targeted allocation for the plans were approximately 30% equity investments and 70% fixed income investments.

Financial instruments included in pension plan assets are categorized into three tiers. These tiers include a fair value hierarchy of three levels, based on the degree of subjectivity inherent in the valuation methodology as follows:

Level 1 - Quoted prices for identical assets in active markets.

Level 2 - Quoted prices for similar assets in active markets with inputs that are observable, either directly or indirectly.

Level 3 - Unobservable prices or inputs in which little or no market data exists.

The fair value of our pension benefits plan assets at March 31, 2026 and 2025 by asset category is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Fair Value Measurements at March 31, 2026 | Fair Value Measurements at March 31, 2026 | Fair Value Measurements at March 31, 2026 | Fair Value Measurements at March 31, 2026 |
| &nbsp;&nbsp;&nbsp;(in millions) | Total | Quoted<br>Prices in<br>Active Markets<br>for Identical<br>Assets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Other<br>Unobservable<br>Inputs<br>(Level 3) |
| Cash | $**0.9** | $**0.9** | $**—** | $**—** |
| Insured annuities | **9.1** | **—** | **9.1** | **—** |
| Insurance contracts | **7.8** | **—** | **—** | **7.8** |
| Common and collective trusts valued at net asset value: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity security trusts | **31.3** | **—** | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt security trusts | **63.8** | **—** | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Plan Assets | $**112.8** | $**0.9** | $**9.1** | $**7.8** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Fair Value Measurements at March 31, 2025 | Fair Value Measurements at March 31, 2025 | Fair Value Measurements at March 31, 2025 | Fair Value Measurements at March 31, 2025 |
| &nbsp;&nbsp;&nbsp;(in millions) | Total | Quoted<br>Prices in<br>Active Markets<br>for Identical<br>Assets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Other<br>Unobservable<br>Inputs<br>(Level 3) |
| Cash | $0.4 | $0.4 | $— | $— |
| Insured annuities | 9.9 |  | 9.9 |  |
| Insurance contracts | 6.9 |  |  | 6.9 |
| Common and collective trusts valued at net asset value: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity security trusts | 39.8 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt security trusts | 52.3 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Plan Assets | $109.3 | $0.4 | $9.9 | $6.9 |

---

Collective investment trusts are measured at fair value using the net asset value per share practical expedient. These trusts have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during fiscal year 2026 due to the following:

---

| | |
|:---|:---|
| (in millions) | Insurance contracts |
| **Balance at March 31, 2024** | $6.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) related to assets still held at year-end | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers into Level 3 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency | 0.1 |
| **Balance at March 31, 2025** | $6.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers into Level 3 | **0.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency | **0.7** |
| **Balance at March 31, 2026** | $**7.8** |

---

**Cash Flows.** We contribute amounts to our defined benefit pension plans at least equal to the minimum amounts required by applicable employee benefit laws and local tax laws. We anticipate fiscal 2027 contributions to approximate those of fiscal 2026.

Based upon the actuarial assumptions utilized to develop our benefit obligations at March 31, 2026, the following benefit payments are expected to be made to plan participants:

---

| | | |
|:---|:---|:---|
| (in millions) | Other Defined Benefit Pension Plans | Other Post-Retirement Benefits Plan |
| 2027 | $6.0 | $0.9 |
| 2028 | 6.1 | 0.8 |
| 2029 | 6.3 | 0.7 |
| 2030 | 6.6 | 0.6 |
| 2031 | 6.7 | 0.6 |
| 2032 and thereafter | 36.4 | 1.9 |

---

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the "Act") provides a prescription drug benefit for Medicare beneficiaries, a benefit we provide to Medicare eligible retirees covered by our post-retirement benefits plan. We have concluded that the prescription drug benefit provided in our post-retirement benefit plan is considered to be actuarially equivalent to the benefit provided under the Act and thus qualifies for the subsidy under the Act. Benefits are subject to a per capita per month cost cap and any costs above the cap become the responsibility of the retiree. Under the plan, the subsidy is applied to reduce the retiree responsibility. As a result, the expected future subsidy no longer reduces our accumulated post-retirement benefit obligation and net periodic benefit cost. We collected subsidies totaling approximately $0.2 million and $0.3 million, during fiscal 2026 and fiscal 2025, respectively, which reduced the retiree responsibility for costs in excess of the caps established in the post-retirement benefit plan.

**Defined Contribution Plans.** We maintain 401(k) defined contribution plans for eligible U.S. employees, a 401(k) defined contribution plan for eligible Puerto Rico employees and similar savings plans for certain employees in Canada, United Kingdom, Ireland, and Finland. We provide a match on a specified portion of an employee's contribution. The U.S. plan assets are held in trust and invested as directed by the plan participants. The Canadian plan assets are held by insurance companies. The aggregate fair value of the U.S. plan assets was $1,608.0 million at March 31, 2026. At March 31, 2026, the U.S. plan held 0.3 million STERIS ordinary shares with a fair value of $74.1 million. We paid dividends of $0.8 million, $0.9 million, and $0.9 million to the plan and participants on STERIS shares held by the plan for the years ended March 31, 2026, 2025, and 2024, respectively. We contributed approximately $50.2 million, $44.7 million, and $39.6 million, to the defined contribution plans for the years ended March 31, 2026, 2025, and 2024, respectively.

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

We also maintain a domestic non-qualified deferred compensation plan covering certain employees, which formerly allowed for the deferral of compensation for an employee-specified term or until retirement or termination. There have been no employee contributions made to this plan since fiscal 2012. The Plan was amended in fiscal 2012 to disallow deferrals of salary payable in 2012 and subsequent calendar years and of commissions and other incentive compensation payable in respect of the 2013 and subsequent fiscal years. We hold investments in mutual funds to satisfy future obligations of the plan. We account for these assets as available-for-sale securities and they are included in "Other assets" on our accompanying Consolidated Balance Sheets, with a corresponding liability for the plan's obligation recorded in Accrued expenses and other. The aggregate value of the assets was $1.3 million and $1.1 million at March 31, 2026 and March 31, 2025, respectively. Realized gains and losses on these investments are recorded in Other expense (income) within Non-operating expenses, net on our accompanying Consolidated Statements of Income. Changes in the fair value of the assets are recorded in Accumulated other comprehensive income (loss) on our accompanying Consolidated Balance Sheets.

**12. COMMITMENTS AND CONTINGENCIES**

We are, and will likely continue to be, involved in a number of legal proceedings, government investigations, and claims, which we believe generally arise in the course of our business, given our size, history, complexity, and the nature of our business, products, Customers, regulatory environment, and industries in which we participate. These legal proceedings, investigations and claims generally involve a variety of legal theories and allegations, including, without limitation, personal injury (e.g., slip and falls, burns, vehicle accidents), product liability or regulation (e.g., based on product operation or claimed malfunction, failure to warn, failure to meet specification, or failure to comply with regulatory requirements), product exposure (e.g., claimed exposure to chemicals, gases, asbestos, contaminants, radiation), property damage (e.g., claimed damage due to leaking equipment, fire, vehicles, chemicals), commercial claims (e.g., breach of contract, economic loss, warranty, misrepresentation), financial (e.g., taxes, reporting), employment (e.g., wrongful termination, discrimination, benefits matters), and other claims for damage and relief.

We record a liability for such contingencies to the extent we conclude that their occurrence is both probable and estimable and believe we have adequately reserved for our current litigation and claims that are probable and estimable. In the event that the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range. We consider many factors in making these assessments, including the professional judgment of experienced members of management and our legal counsel. We have made estimates as to the likelihood of unfavorable outcomes and the amounts of such potential losses. Further, we believe that the ultimate outcome of pending lawsuits and claims will not have a material adverse effect on our consolidated financial position or results of operations taken as a whole. Due to their inherent uncertainty, however, there can be no assurance of the ultimate outcome or effect of current or future litigation, investigations, claims or other proceedings. For certain types of claims, we presently maintain insurance coverage for bodily injury and third party property damage and other liability coverages in amounts and with retentions and deductibles that we believe are prudent, and we may also have contractual indemnification rights against certain liabilities, but there can be no assurance that either will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against us. We record expected recoveries under applicable contracts when we are assured of recovery.

Civil, criminal, regulatory or other proceedings involving our products or services, including the matters discussed herein, could possibly result in judgments, settlements or administrative or judicial decrees requiring us, among other actions, to pay damages or fines or effect recalls, or be subject to other governmental, Customer or other third party claims or remedies, which could materially affect our business, performance, prospects, value, financial condition, and results of operations. Further, the Company may incur material defense costs as a result of such proceedings, which may also divert management attention from other priorities.

From time to time, STERIS is also involved in legal proceedings as a plaintiff involving contract, patent protection, and other claims asserted by us. Gains, if any, from these proceedings are recognized when they are realized.

In addition, the Company may pursue opportunities to recover amounts previously paid in connection with certain legal or regulatory matters, tariffs or similar governmental charges, including the approximately $28 million of net replacement tariffs we paid pursuant to the International Economic Emergency Powers Act ("IEEPA"). Any such matters are subject to applicable processes and uncertainty, including timing of resolution, and we have not recorded a receivable related to these amounts as of March 31, 2026.

***Illinois EO Litigation Settlement***

A subsidiary of the Company was sued in Illinois state court by individual plaintiffs who worked or resided near a facility in Lake County, Illinois, where the subsidiary provided sterilization services using ethylene oxide ("EO") from January 2005 to

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

September 2008. The plaintiffs filed separate suits in which each alleges that they have been diagnosed with one or more types of cancer, allegedly resulting from exposure to EO emissions from the facility into the ambient air.

On March 3, 2025, the Company entered into binding confidential term sheets ("Term Sheets") with plaintiffs' counsel, as well as settlement agreements with several plaintiffs in cases which were at the time scheduled for trial in fiscal 2026. On October 29, 2025, the Company entered into binding confidential settlement agreements ("Settlement Agreements") with plaintiffs' counsel, containing terms and provisions consistent with the Term Sheets. The Settlement Agreements are expected to lead to resolution of substantially all of the claims for personal injury related to EO that are currently pending in the Circuit Court of Cook County, Illinois.

Pursuant to the Settlement Agreements, the Company agreed to pay up to $48.2 million to settle claims. We recorded a charge for this amount in fiscal 2025, and the remaining liability is included in the "Accrued expenses and other" line within our Consolidated Balance Sheets. None of the Settlement Agreements are an admission of liability or that emissions from the Waukegan, Illinois facility ever posed a safety hazard to the people who live or work in the surrounding areas. The Settlement Agreements establish a claims administration process that includes guidelines and procedures for administering individual settlements, which process has continued into fiscal 2027. The Company anticipates dismissal of all pending EO related claims brought by the covered plaintiffs upon completion of the claims administration process and approval by the court.

The Company may exercise walkaway rights with respect to the claims covered by the Settlement Agreements if certain agreed terms are not fulfilled, including if a substantial number of plaintiffs in such cases do not agree to settle or are disqualified under the applicable terms or the resulting settlements are ultimately not approved by the court. In the event it exercises its walkaway rights, the Company is prepared to continue to defend itself in the litigation and reserves all legal and factual defenses against such claims.

***Additional Information***

For additional information regarding these matters, see the risks and uncertainties described under the titles "product and service related regulations and claims" and "business and operational risks" in Item 1A. of this Annual Report on Form 10-K.

We are subject to taxation from United States federal, state and local, and foreign jurisdictions. Tax positions are settled primarily through the completion of audits within each individual jurisdiction or the closing of statutes of limitation. Changes in applicable tax law or other events may also require us to revise past estimates. We describe income taxes further in Note 10 to our consolidated financial statements titled, "Income Taxes" in this Annual Report on Form 10-K.

As of March 31, 2026 and 2025, our commercial commitments totaled $161.3 million and $127.4 million, respectively. Commercial commitments include standby letters of credit, letters of credit required as security under our self-insured risk retention policies, and other potential cash outflows resulting from an event that requires payment by us. Approximately $3.1 million and $10.9 million of the March 31, 2026 and 2025 totals, respectively, relate to letters of credit required as security under our self-insured risk retention policies.

As of March 31, 2026, we had minimum purchase commitments with suppliers for raw material purchases totaling $64.2 million. As of March 31, 2026, we also had commitments of $71.5 million for long term construction contracts.

***Leases***

We lease manufacturing, warehouse and office space, service facilities, vehicles, equipment and communication systems. Certain leases contain options that provide us with the ability to extend the lease term. Such options are included in the lease term when it is reasonably certain that the option will be exercised. We made an accounting policy election to not recognize lease assets or lease liabilities for leases with a lease term of twelve months or less.

We determine if an agreement contains a lease and classify our leases as operating or finance at the lease commencement date. Finance leases are generally those leases for which we will pay substantially all the underlying asset's fair value or will use the asset for all or a major part of its economic life, including circumstances in which we will ultimately own the asset. Lease assets arising from finance leases are included in Property, plant, and equipment, net and the liabilities are included in Other liabilities. For finance leases, we recognize interest expense using the effective interest method, and we recognize amortization expense on the lease asset over the shorter of the lease term or the useful life of the asset. Our finance leases are not material as of March 31, 2026 and for the twelve-month period then ended.

Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. As most leases do not provide an implicit

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

interest rate, we estimate an incremental borrowing rate to determine the present value of lease payments. Our estimated incremental borrowing rate reflects a secured rate based on recent debt issuances, our estimated credit rating, lease term, as well as publicly available data for instruments with similar characteristics. For operating leases, we recognize lease cost on a straight-line basis over the term of the lease. When accounting for leases, we combine payments for leased assets, related services and other components of a lease.

The components of operating lease expense recognized in income from continuing operations in the consolidated statements of income are as follows:

---

| | | | |
|:---|:---|:---|:---|
| (in millions) | Year Ended | Year Ended | Year Ended |
|  | March 31, 2026 | March 31, 2025 | March 31, 2024 |
| Fixed operating lease expense | $**45.2** | $46.5 | $41.3 |
| Variable operating lease expense | **32.6** | 21.3 | 24.4 |
| Total operating lease expense | $**77.8** | $67.8 | $65.8 |

---

Supplemental cash flow information related to operating leases is as follows:

---

| | | | |
|:---|:---|:---|:---|
| (in millions) | Year Ended | Year Ended | Year Ended |
|  | March 31, 2026 | March 31, 2025 | March 31, 2024 |
| Cash paid for amounts included in the measurement of operating lease liabilities | $**45.2** | $46.5 | $46.9 |
| Right-of-use assets obtained in exchange for operating lease obligations, net | $**17.1** | $29.8 | $24.7 |

---

Maturities of lease liabilities at March 31, 2026 are as follows:

---

| | |
|:---|:---|
| (in millions) | March 31,<br>2026 |
| 2027 | $**42.1** |
| 2028 | **31.1** |
| 2029 | **22.1** |
| 2030 | **14.9** |
| 2031 and thereafter | **77.8** |
| Total operating lease payments | $**188.1** |
| Less imputed interest | **32.7** |
| **Total operating lease liabilities** | $**155.4** |

---

In the preceding table, the future minimum annual rentals payable under noncancelable leases denominated in foreign currencies have been calculated using March 31, 2026 foreign currency exchange rates.

Supplemental information related to operating leases is as follows:

---

| | | |
|:---|:---|:---|
| | March 31,<br>2026 | March 31,<br>2025 |
| Weighted-average remaining lease term of operating leases | **8.8 years** | 9.1 years |
| Weighted-average discount rate of operating leases | **4.6%** | 4.5% |

---

**13. BUSINESS SEGMENT INFORMATION**

We operate and report our financial information in three reportable business segments: Healthcare, AST, and Life Sciences. Previously, we had four reportable business segments, however, as a result of the fiscal 2025 divestiture of our Dental segment, Dental is presented as discontinued operations. The Dental segment previously met the criteria for a reportable segment and has been removed from segment disclosures for all periods presented following its classification as discontinued operations. Historical information has been retrospectively adjusted to reflect these changes for comparability, as required. For more information, refer to Note 4 titled, "Discontinued Operations." Non-allocated operating costs that support the entire Company and items not indicative of operating trends are excluded from segment operating income. These costs include expenses

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

primarily include executive management costs, certain centralized finance, legal, human resources, information technology functions, global systems costs, and other corporate-level activities that are not directly attributable to the reportable segments.

Our Healthcare segment provides a comprehensive offering for healthcare providers worldwide, focused on sterile processing departments and procedural centers, such as operating rooms and endoscopy suites. Our products and services range from infection prevention consumables and capital equipment, as well as services to maintain that equipment; to the repair of re-usable procedural instruments; to outsourced instrument reprocessing services. In addition, our procedural products also include endoscopy accessories, instruments, and capital equipment infrastructure used primarily in operating rooms, ambulatory surgery centers, endoscopy suites, and other procedural areas.

Our AST segment supports medical device and pharmaceutical manufacturers through a global network of contract sterilization and laboratory testing facilities, and integrated sterilization equipment and control systems. Our technology-neutral offering supports Customers every step of the way, from testing through sterilization.

Our Life Sciences segment provides a comprehensive offering of products and services designed to support biopharmaceutical and medical device research and manufacturing facilities, in particular those focused on aseptic manufacturing. Our portfolio includes a full suite of capital equipment, consumable products, equipment maintenance and specialty services.

Our chief operating decision maker ("CODM") is our President and Chief Executive Officer ("CEO"). The CEO is responsible for performance assessment and resource allocation. The CEO regularly receives discrete financial information about each reportable segment and uses this information to assess performance and allocate resources. This information includes Revenues and Cost of revenues; Selling, general, and administrative expenses; and Research and development expenses for each reportable segment.

Segment operating income represents revenues less cost of revenues, selling, general and administrative expenses, and research and development expenses that are directly attributable to the segment. Segment operating income excludes amortization of acquired intangible assets, acquisition and integration-related charges, restructuring costs, costs incurred in tax restructuring initiatives, and other items that management does not consider indicative of segment operating performance. These excluded items are reported within the tables below to reconcile segment operating income to income from operations.

We disclose a measure of segment income that is consistent with the way management operates and views the business. The accounting policies for reportable segments are the same as those for the consolidated Company.

For the three years ended March 31, 2026, revenues from a single Customer did not represent ten percent or more of the Healthcare, AST or Life Sciences segment revenues.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

Information regarding our segments is presented in the following tables.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended March 31, 2026** | **Year Ended March 31, 2026** | **Year Ended March 31, 2026** | **Year Ended March 31, 2026** | **Year Ended March 31, 2026** | **Year Ended March 31, 2026** |
| &nbsp;&nbsp;&nbsp;(in millions) | Healthcare | AST | Life Sciences | Corporate | Company |
| **Revenues** | $**4208.6** | $**1138.5** | $**588.8** | $**—** | $**5935.9** |
| **Segment expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of revenues | **2422.5** | **552.8** | **262.7** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general, and administrative | **652.3** | **57.7** | **65.0** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | **97.5** | **3.3** | **10.3** |  |  |
| **Total income from operations before adjustments** | $**1036.4** | $**524.7** | $**251.0** | $**(430.1)** | $**1381.9** |
| **Less: Adjustments** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets <sup>(1)</sup> |  |  |  |  | **265.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition and integration related charges <sup>(2)</sup> |  |  |  |  | **6.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax restructuring costs <sup>(3)</sup> |  |  |  |  | **0.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of inventory and property "step up" to fair value <sup>(1)</sup> |  |  |  |  | **5.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges <sup>(4)</sup> |  |  |  |  | **3.4** |
| **Total income from operations** |  |  |  |  | $**1101.8** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended March 31, 2025** | **Year Ended March 31, 2025** | **Year Ended March 31, 2025** | **Year Ended March 31, 2025** | **Year Ended March 31, 2025** | **Year Ended March 31, 2025** |
| &nbsp;&nbsp;&nbsp;(in millions) | Healthcare | AST | Life Sciences | Corporate | Company |
| **Revenues** | $3878.7 | $1038.6 | $542.3 | $— | $5459.5 |
| **Segment expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of revenues | 2204.1 | 516.7 | 243.7 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general, and administrative | 610.0 | 52.5 | 59.8 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 93.1 | 3.8 | 9.4 |  |  |
| **Total income from operations before adjustments** | $971.5 | $465.6 | $229.4 | $(399.0) | $1267.5 |
| **Less: Adjustments** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets <sup>(1)</sup> |  |  |  |  | 273.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition and integration related charges <sup>(2)</sup> |  |  |  |  | 11.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax restructuring costs <sup>(3)</sup> |  |  |  |  | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of inventory and property "step up" to fair value <sup>(1)</sup> |  |  |  |  | 5.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges <sup>(4)</sup> |  |  |  |  | 62.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Illinois EO litigation settlement <sup>(5)</sup> |  |  |  |  | 48.2 |
| **Total income from operations** |  |  |  |  | $866.6 |

---

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended March 31, 2024** | **Year Ended March 31, 2024** | **Year Ended March 31, 2024** | **Year Ended March 31, 2024** | **Year Ended March 31, 2024** | **Year Ended March 31, 2024** |
| &nbsp;&nbsp;&nbsp;(in millions) | Healthcare | AST | Life Sciences | Corporate | Company |
| **Revenues** | $3613.0 | $954.0 | $571.7 | $— | $5138.7 |
| **Segment expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of revenues | 2083.9 | 458.4 | 283.9 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general, and administrative | 568.0 | 51.7 | 58.2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 89.8 | 4.1 | 8.3 |  |  |
| **Total income from operations before adjustments** | $871.4 | $439.7 | $221.3 | $(348.5) | $1184.0 |
| **Less: Adjustments** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets <sup>(1)</sup> |  |  |  |  | 266.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition and integration related charges <sup>(2)</sup> |  |  |  |  | 25.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax restructuring costs <sup>(3)</sup> |  |  |  |  | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss on divestiture of businesses <sup>(1)</sup> |  |  |  |  | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of inventory and property "step up" to fair value <sup>(1)</sup> |  |  |  |  | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges <sup>(4)</sup> |  |  |  |  | 44.4 |
| **Total income from operations** |  |  |  |  | $836.1 |

---

<sup>(1)</sup> For more information regarding our recent acquisitions and divestitures, refer to Note 3 titled, "Business Acquisitions, Divestitures, and Investments"

<sup>(2)</sup> Acquisition and integration related charges include transaction costs and integration expenses associated with acquisitions.

<sup>(3)</sup> Costs incurred in tax restructuring.

<sup>(4)</sup> For more information regarding our restructuring efforts, refer to Note 2 titled, "Restructuring".

<sup>(5)</sup> For more information regarding our Illinois EO litigation settlement, refer to Note 12 titled, "Commitments and Contingencies".

Assets include the current and long-lived assets directly attributable to the segment based on the management of the location or on utilization. Certain corporate assets were allocated to the reportable segments based on revenues. Assets attributed to sales and distribution locations are only allocated to the Healthcare and Life Sciences segments.

Individual facilities, equipment, and intellectual properties are utilized by both the Healthcare and Life Sciences segments at varying levels over time. As a result, an allocation of total assets, capital expenditures, and depreciation and amortization is not meaningful to the individual performance of the Healthcare and Life Sciences segments. Therefore, their respective amounts are reported together.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |
| &nbsp;&nbsp;&nbsp;March 31, | 2026 | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Healthcare and Life Sciences | $**7146.8** | $6806.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AST | **3590.4** | 3340.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**10737.2** | $10146.8 |

---

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;Years Ended March 31, | 2026 | 2025 | 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Capital Expenditures** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Healthcare and Life Sciences | $**130.6** | $142.8 | $114.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AST | **238.4** | 227.2 | 237.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Capital Expenditures** | $**369.0** | $370.1 | $351.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Depreciation, Depletion, and Amortization** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Healthcare and Life Sciences | $**329.8** | $334.2 | $322.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AST | **156.8** | 142.0 | 127.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Depreciation, Depletion, and Amortization** | $**486.5** | $476.2 | $450.1 |

---

Financial information for each of our United States and international geographic areas is presented in the following table. Revenues are attributed to the geographic areas based on the location of these operations and their Customers. Property, plant, and equipment, net are those assets that are identified within the operations in each geographic area.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |
| &nbsp;&nbsp;&nbsp;March 31, | 2026 | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Property, Plant, and Equipment, Net** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ireland | $**88.1** | $74.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States | **1094.4** | 1008.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other locations | **978.7** | 872.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Property, Plant, and Equipment, Net** | $**2161.2** | $1956.5 |

---

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |  |
| &nbsp;&nbsp;&nbsp;Years Ended March 31, | 2026 | 2025 | 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Revenues:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ireland | $**108.5** | $107.3 | $82.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States | **4333.8** | 4007.6 | 3751.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other locations | **1493.7** | 1344.6 | 1304.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Revenues** | $**5935.9** | $5459.5 | $5138.7 |

---

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | | | |
|:---|:---|:---|:---|
| (in millions) |  |  |  |
| Years Ended March 31, | 2026 | 2025 | 2024 |
| Healthcare: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital equipment | $**1095.9** | $1037.2 | $1091.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumables | **1496.6** | 1396.0 | 1248.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | **1616.0** | 1445.4 | 1273.1 |
| **Total Healthcare Revenues** | $**4208.6** | $3878.7 | $3613.0 |
| AST: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital equipment | $**20.0** | $30.9 | $14.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | **1118.5** | 1007.6 | 939.5 |
| **Total AST Revenues** | $**1138.5** | $1038.6 | $954.0 |
| Life Sciences: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital equipment | $**135.7** | $117.5 | $155.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumables | **308.3** | 286.7 | 251.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | **144.8** | 138.1 | 164.6 |
| **Total Life Sciences Revenues** | $**588.8** | 542.3 | 571.7 |
| **Total Revenues** | $**5935.9** | $5459.5 | $5138.7 |

---

**14. SHARES AND PREFERRED SHARES**

**Ordinary Shares**

We calculate basic earnings per share based upon the weighted average number of shares outstanding. We calculate diluted earnings per share based upon the weighted average number of shares outstanding plus the dilutive effect of share equivalents calculated using the treasury stock method. Income from continuing operations is used as the benchmark to determine whether share equivalents are dilutive or anti-dilutive. Earnings per share is calculated independently for earnings per share from continuing operations and earnings per share from discontinued operations. The sum of earnings per share from continuing operations and earnings per share from discontinued operations may not equal total company earnings per share due to rounding. The following is a summary of shares and share equivalents outstanding used in the calculations of basic and diluted earnings per share:

---

| | | | |
|:---|:---|:---|:---|
| (shares in millions) |  |  |  |
| Years ended March 31, | 2026 | 2025 | 2024 |
| **Denominator**: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding—basic | **98.2** | 98.6 | 98.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dilutive effect of share equivalents | **0.4** | 0.5 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding and share equivalents—diluted | **98.7** | 99.1 | 99.4 |

---

Options to purchase the following number of shares were outstanding but excluded from the computation of diluted earnings per share because the combined exercise prices, unamortized fair values, and assumed tax benefits upon exercise were greater than the average market price for the shares during the periods, so including these options would be anti-dilutive:

---

| | | | |
|:---|:---|:---|:---|
| (shares in millions) | | | |
| Years ended March 31, | 2026 | 2025 | 2024 |
| **Number of ordinary share options** | **0.6** | 0.7 | 0.6 |

---

**Additional Authorized Shares**

The Company has an additional authorized share capital of 50,000,000 preferred shares of $0.001 par value each, plus 25,000 deferred ordinary shares of €1.00 par value each, in order to satisfy minimum statutory capital requirements for all Irish public limited companies.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**15. REPURCHASES OF ORDINARY SHARES**

On May 3, 2023 our Board of Directors terminated the previous share repurchase program and authorized a new share repurchase program (the "Outgoing Repurchase Program") for the purchase of up to $500.0 million (exclusive of fees, commissions, and other charges), with no specified expiration date. As of March 31, 2026, there was $75.0 million (exclusive of fees, commissions, and other charges) of remaining availability under the Outgoing Repurchase Program.

Under the Outgoing Repurchase Program, the Company could repurchase its shares from time to time through open market purchases, including 10b5-1 plans. It also permitted share repurchases to be activated, suspended or discontinued at any time.

On May 5, 2026, the Board of Directors terminated the Outgoing Repurchase Program and authorized a new share repurchase program (the "New Repurchase Program") for the purchase of up to $1,000.0 million (exclusive of fees, commissions, and other charges).

Under the New Repurchase Program, we may repurchase our shares from time to time through open market purchases, including 10b5-1 plans. Any share repurchases may be activated, suspended or discontinued at any time. There is no limitation to the number of shares that can be repurchased in a year and there is no expiration date for the New Repurchase Program.

During fiscal 2026, we repurchased 0.9 million of our ordinary shares for the aggregate amount of $225.0 million (exclusive of fees, commissions, and other charges) pursuant to authorizations under the Outgoing Repurchase Program. During fiscal 2025, we repurchased 0.9 million of our ordinary shares for the aggregate amount of $200.0 million (exclusive of fees, commissions, and other charges) pursuant to the authorizations under the Outgoing Repurchase Program. During fiscal 2024, we had no share repurchase activity pursuant to Outgoing Repurchase Program authorizations.

During fiscal 2026, we obtained 0.1 million of our ordinary shares in the aggregate amount of $12.5 million in connection with share-based compensation award programs. During fiscal 2025, we obtained 0.1 million of our ordinary shares in the aggregate amount of $11.3 million in connection with share-based compensation award programs. During fiscal 2024, we obtained 0.1 million of our ordinary shares in the aggregate amount of $11.8 million in connection with share-based compensation award programs.

**16. SHARE-BASED COMPENSATION**

We maintain a long-term incentive plan that makes available shares for grants, at the discretion of the Board of Directors or Compensation and Organizational Development Committee of the Board of Directors, to officers, directors, and key employees in the form of stock options, restricted shares, restricted share units, stock appreciation rights and share grants. We satisfy share award incentives through the issuance of new ordinary shares. In recent years, grants have been limited to stock options, restricted shares, and restricted share units.

Stock option awards to employees generally vest and become nonforfeitable in increments of 25% per year over a four-year period, with full vesting four years after the date of grant. Historically, restricted stock awards to employee recipients generally cliff vested on the fourth anniversary of the grant date if the recipient remained in continuous employment through that date. Beginning with fiscal 2024 grants, Company restricted stock (and restricted stock units) generally cliff vest over a three year period after the grant date. However, employees who are grantees of restricted stock and have attained age 55 and been employed for at least five years at the time of the grant or meet these criteria during the term of the grant and are employed in the U.S. or in a few other foreign jurisdictions, or employees who have 25 years of service at the time of grant or meet that criterion during the term of the grant, will be subject to installment vesting rules over the applicable vesting period. Awards to certain employees in the U.S. or a few other jurisdictions may provide for continued vesting after "retirement," if certain conditions are met. As of March 31, 2026, 1.7 million shares remained available for grant under the long-term incentive plan.

The fair value of share-based stock option compensation awards was estimated at their grant date using the Black-Scholes-Merton option pricing model. This model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable, characteristics that are not present in our option grants. If the model permitted consideration of the unique characteristics of employee stock options, the resulting estimate of the fair value of the stock options could be different. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Consolidated Statements of Income. The expense is classified as Cost of revenues or Selling, general, and administrative expenses in a manner consistent with the employee's compensation and benefits.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The following weighted-average assumptions were used for options granted during fiscal 2026, fiscal 2025 and fiscal 2024:

---

| | | | |
|:---|:---|:---|:---|
| | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Risk-free interest rate | **4.02%** | 4.21% | 3.59% |
| Expected life of options | **6.1 years** | 6.1 years | 6.0 years |
| Expected dividend yield of stock | **1.12%** | 0.94% | 1.08% |
| Expected volatility of stock | **28.16%** | 28.42% | 27.92% |

---

The risk-free interest rate is based upon the U.S. Treasury yield curve. The expected life of options is reflective of historical experience, vesting schedules and contractual terms. The expected dividend yield of stock represents our best estimate of the expected future dividend yield. The expected volatility of stock is derived by referring to our historical stock prices over a time frame similar to that of the expected life of the grant. An estimated forfeiture rate of 2.21%, 2.07% and 2.22% was applied in fiscal 2026, 2025 and 2024 respectively. This rate is calculated based upon historical activity and represents an estimate of the granted options not expected to vest. If actual forfeitures differ from this calculated rate, we may be required to make additional adjustments to compensation expense in future periods. The assumptions used above are reviewed at the time of each significant option grant, or at least annually.

A summary of share option activity is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Number of<br>Options | Weighted<br>Average<br>Exercise<br>Price | Average<br>Remaining<br>Contractual<br>Term | Aggregate<br>Intrinsic<br>Value<br>(in millions) |
| **Outstanding at March 31, 2025** | 1823883 | $185.51 |  |  |
| Granted | **187058** | **265.21** |  |  |
| Exercised | **(287514)** | **123.46** |  |  |
| Forfeited | **(6560)** | **245.47** |  |  |
| **Outstanding at March 31, 2026** | **1716867** | $**204.51** | **5.7 years** | $**49.7** |
| **Exercisable at March 31, 2026** | **1223025** | $**186.44** | **4.7 years** | $**49.6** |

---

We estimate that 0.5 million of the non-vested stock options outstanding at March 31, 2026 will ultimately vest.

The aggregate intrinsic value in the table above represents the total pre-tax difference between the $221.13 closing price of our ordinary shares on March 31, 2026 over the exercise prices of the stock options, multiplied by the number of options outstanding or outstanding and exercisable, as applicable. The aggregate intrinsic value is not recorded for financial accounting purposes, and the value changes daily based on the daily changes in the fair market value of our ordinary shares.

The total intrinsic value of stock options exercised during the years ended March 31, 2026, 2025 and 2024 was $36.7 million, $30.7 million and $18.2 million, respectively. Net cash proceeds from the exercise of stock options were $32.9 million, $25.5 million and $10.5 million for the years ended March 31, 2026, 2025 and 2024, respectively. The tax benefit from stock option exercises was $8.0 million, $7.6 million and $5.5 million for the years ended March 31, 2026, 2025 and 2024, respectively.

The weighted average grant date fair value of stock option grants was $69.59, $67.81 and $54.60 for the years ended March 31, 2026, 2025 and 2024, respectively.

A summary of the non-vested restricted share and restricted share unit activity is presented below:

---

| | | | |
|:---|:---|:---|:---|
| | Number of<br>Restricted<br>Shares | Number of Restricted Share Units | Weighted-Average<br>Grant Date<br>Fair Value |
| Non-vested at March 31, 2025 | 449131 | 29555 | $214.21 |
| Granted | **167055** | **17298** | **241.42** |
| Vested | **(137143)** | **(2644)** | **207.10** |
| Forfeited | **(22963)** | **(13920)** | **220.81** |
| **Non-vested at March 31, 2026** | **456080** | **30289** | $**226.73** |

---

Restricted shares and restricted share unit grants are valued based on the closing stock price at the grant date. The value of restricted shares and units at the time of grant that vested during fiscal 2026 was $31.3 million.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

As of March 31, 2026, there was a total of $42.6 million in unrecognized compensation cost related to non-vested share-based compensation granted under our share-based compensation plans. We expect to recognize the cost over a weighted average period of 1.5 years.

**17. FINANCIAL AND OTHER GUARANTEES**

We generally offer a limited parts and labor warranty on capital equipment. The specific terms and conditions of those warranties vary depending on the product sold and the countries where we conduct business. We record a liability for the estimated cost of product warranties at the time Product revenues are recognized. The amounts we expect to incur on behalf of our Customers for the future estimated cost of these warranties are recorded as a current liability on the accompanying Consolidated Balance Sheets. Factors that affect the amount of our warranty liability include the number and type of installed units, historical and anticipated rates of product failures, and material and service costs per claim. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary.

Changes in our warranty liability during the periods presented are as follows:

---

| | | | |
|:---|:---|:---|:---|
| (in millions) |  |  |  |
| Years Ended March 31, | 2026 | 2025 | 2024 |
| **Balance, Beginning of Year** | $**16.3** | $15.4 | $13.4 |
| Warranties issued during the period | **20.9** | 19.2 | 18.1 |
| Settlements made during the period | **(19.8)** | (18.2) | (16.1) |
| **Balance, End of Year** | $**17.5** | $16.3 | $15.4 |

---

**18. DERIVATIVES AND HEDGING**

We utilize foreign currency forward contracts to hedge a portion of our monetary assets and liabilities denominated in foreign currencies, including intercompany transactions. Within each fiscal year, we also utilize foreign currency forward contracts to hedge a portion of our expected non-U.S. dollar-denominated earnings against our reporting currency, the U.S. dollar. Further, we utilize commodity swap contracts to hedge price changes in nickel that impact raw materials included in our Cost of revenues.

These contracts are not designated as hedging instruments and do not receive hedge accounting treatment; therefore, changes in their fair value are not deferred but are recognized immediately in the Consolidated Statements of Income. We do not use derivative financial instruments for speculative purposes.

At March 31, 2026, we held foreign currency forward contracts to buy 210.0 million Mexican pesos; and to sell 7.0 million New Zealand dollars and 4.0 million Australian dollars. At March 31, 2026, we held commodity swap contracts to buy 0.6 million pounds of nickel.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Asset Derivatives | Asset Derivatives | Liability Derivatives | Liability Derivatives |
| (in millions) | Fair Value at | Fair Value at | Fair Value at | Fair Value at |
| Balance Sheet Location | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 |
| Prepaid & Other | $**0.2** | $0.1 | $**—** | $— |
| Accrued expenses and other | **—** |  | **0.7** | 0.6 |

---

The following table presents the impact of derivative instruments and their location within the Consolidated Statements of Income:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) | Location of (loss) gain recognized in income | Amount of (loss) gain recognized in income | Amount of (loss) gain recognized in income | Amount of (loss) gain recognized in income |
| (in millions) | Location of (loss) gain recognized in income | Years Ended March 31, | Years Ended March 31, | Years Ended March 31, |
| (in millions) | Location of (loss) gain recognized in income | &nbsp;&nbsp;2026 | &nbsp;&nbsp;2025 | &nbsp;&nbsp;2024 |
| Foreign currency forward contracts | Selling, general, and administrative | $**(0.5)** | $2.0 | $1.3 |
| Commodity swap contracts | Cost of revenues | **(0.6)** | (0.2) | (1.6) |

---

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**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**19. FAIR VALUE MEASUREMENTS**

Fair value is defined as the price that would be received to sell an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of financial assets and liabilities using available market information and generally accepted valuation methodologies. The inputs used to measure fair value are classified into three tiers. These tiers include Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the entity to develop its own assumptions. The following table shows the fair value of our financial assets and liabilities at March 31, 2026 and March 31, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (in millions) |  |  | Fair Value Measurements | Fair Value Measurements | Fair Value Measurements | Fair Value Measurements | Fair Value Measurements | Fair Value Measurements |
| At March 31, | Carrying Value | Carrying Value | Quoted Prices<br>in Active Markets<br>for Identical Assets | Quoted Prices<br>in Active Markets<br>for Identical Assets | Significant Other<br>Observable Inputs | Significant Other<br>Observable Inputs | Significant<br>Unobservable<br>Inputs | Significant<br>Unobservable<br>Inputs |
| At March 31, |  |  | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 |
| At March 31, | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 |
| **Assets:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**439.6** | $171.7 | $**439.6** | $171.7 | $**—** | $— | $**—** | $— |
| &nbsp;&nbsp;Forward and swap contracts <sup>(1)</sup> | **0.2** | 0.1 | **—** |  | **0.2** | 0.1 | **—** |  |
| &nbsp;&nbsp;Deferred compensation plan <sup>(2)</sup> | **1.3** | 1.1 | **1.3** | 1.1 | **—** |  | **—** |  |
| &nbsp;&nbsp;&nbsp;Other investments | **3.2** | 3.0 | **3.2** | 3.0 | **—** |  | **—** |  |
| **Liabilities:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Forward and swap contracts <sup>(1)</sup> | $**0.7** | $0.6 | $**—** | $— | $**0.7** | $0.6 | $**—** | $— |
| &nbsp;&nbsp;Deferred compensation plan <sup>(2)</sup> | **1.5** | 1.2 | **1.5** | 1.2 | **—** |  | **—** |  |
| &nbsp;&nbsp;Total debt <sup>(3)</sup> | **1931.7** | 2043.7 | **—** |  | **1666.4** | 1756.5 | **—** |  |
| &nbsp;&nbsp;Contingent consideration obligations <sup>(4)</sup> | **6.1** | 3.2 | **—** |  |  |  | **6.1** | 3.2 |

---

<sup>(1)</sup> The fair values of forward and swap contracts are based on period-end forward rates and reflect the value of the amount that we would pay or receive for the contracts involving the same notional amounts and maturity dates.

<sup>(2)</sup> We maintain a frozen domestic non-qualified deferred compensation plan covering certain employees, which allowed for the deferral of payment of previously earned compensation for an employee-specified term or until retirement or termination. Amounts deferred can be allocated to various hypothetical investment options (compensation deferrals have been frozen under the plan). We hold investments to satisfy the future obligations of the plan. Employees who made deferrals are entitled to receive distributions of their hypothetical account balances (amounts deferred, together with earnings (losses)). Changes in the fair value of these investments are recorded in the Other expense (income) line of the Consolidated Statements of Income. During fiscal 2026 and fiscal 2025, we recorded gains of $0.2 million and $0.9 million, respectively, related to these investments.

<sup>(3)</sup> We estimate the fair value of our debt using discounted cash flow analyses, based on our current incremental borrowing rates for similar types of borrowing arrangements.

<sup>(4)</sup> As of March 31, 2026 and 2025, we had contingent consideration obligations of $6.1 million and $3.2 million arising from business acquisitions, respectively. The fair values are based on discounted cash flow analyses reflecting the possible achievement of specified performance measures or events and captures the contractual nature of the contingencies, commercial risk, and the time value of money. Contingent consideration obligations are classified in the Consolidated Balance Sheets as Accrued expense (short-term) and Other liabilities (long-term), as appropriate based on the contractual payment dates.

As of March 31, 2026 and 2025, we also held $45.5 million and $14.3 million of other investments without readily determinable fair values measured at cost less impairment, if any, adjusted to fair value for any observable price changes in orderly transactions for identical or similar investments of the same issuer. These investments are included in the "Other assets" line of our Consolidated Balance Sheets.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**20. RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)**

Amounts in Accumulated Other Comprehensive Income (Loss) are presented net of the related tax. Foreign Currency Translation is not adjusted for income taxes. Accumulated other comprehensive income (loss) shown in our Consolidated Statements of Shareholders' Equity and changes in our balances, net of tax, for the years ended March 31, 2026, 2025 and 2024 were as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Defined Benefit** <br>**Plans** <sup>(1)</sup> | **Defined Benefit** <br>**Plans** <sup>(1)</sup> | **Defined Benefit** <br>**Plans** <sup>(1)</sup> | **Foreign Currency Translation** | **Foreign Currency Translation** | **Foreign Currency Translation** | **Total Accumulated Other Comprehensive Loss** | **Total Accumulated Other Comprehensive Loss** | **Total Accumulated Other Comprehensive Loss** |
| (in millions) | 2026 | 2025 | 2024 | 2026 | 2025 | 2024 | 2026 | 2025 | 2024 |
| **Beginning Balance** | $**(0.6)** | $(0.7) | $— | $**(291.8)** | $(327.9) | $(320.7) | $**(292.3)** | $(328.7) | $(320.7) |
| Other Comprehensive (Loss) Income before reclassifications | **(0.2)** | 0.4 | 0.6 | **181.8** | 9.2 | (7.2) | **181.6** | 9.6 | (6.6) |
| Amounts reclassified from Accumulated Other Comprehensive (Loss) Income | **(0.4)** | (0.3) | (1.4) | **(2.0)** | 27.0 |  | **(2.4)** | 26.7 | (1.4) |
| Net current-period Other Comprehensive (Loss) Income | **(0.6)** | 0.1 | (0.7) | **179.7** | 36.2 | (7.2) | **179.2** | 36.3 | (7.9) |
| **Ending Balance** | $**(1.1)** | $(0.6) | $(0.7) | $**(112.0)** | $(291.8) | $(327.9) | $**(113.1)** | $(292.3) | $(328.7) |

---

<sup>(1)</sup> The amortization (gain) of defined benefit plan costs is reported in the Interest and miscellaneous income line of our Consolidated Statements of Income.

------

**STERIS PLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(dollars in thousands, except per share amounts and as noted)**

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;(in millions) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Description | Balance at<br>Beginning<br>of Period | Charges<br>to Costs<br>and<br>Expenses |  | Charges<br>to Other<br>Accounts |  | Deductions |  | Balance at<br>End of<br>Period |
| **Year ended March 31, 2026** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deducted from asset accounts: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses <sup>(1)</sup> | $**24.4** | $**14.7** |  | $**1.2** | (3) | $**(13.0)** | (4) | $**27.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory valuation reserve | **49.8** | **(9.0)** | (2) | **(1.4)** | (3) | **—** |  | **39.4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset valuation allowance | **30.6** | **3.1** |  | **1.1** | (3) | **(5.8)** |  | **29.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Recorded within liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Casualty loss reserves | $**34.9** | $**8.4** |  | $**(1.0)** |  | $**(5.9)** |  | $**36.4** |
| **Year ended March 31, 2025** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deducted from asset accounts: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses <sup>(1)</sup> | $23.0 | $9.1 |  | $(0.1) | (3) | $(7.6) | (4) | $24.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory valuation reserve | 43.9 | 5.6 | (2) | 0.3 | (3) |  |  | 49.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset valuation allowance | 26.4 | 7.5 |  | (0.4) | (3) | (2.9) |  | 30.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recorded within liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Casualty loss reserves | $30.7 | $8.4 |  | $0.4 |  | $(4.6) |  | $34.9 |
| **Year ended March 31, 2024** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deducted from asset accounts: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for trade accounts receivable <sup>(1)</sup> | $19.3 | $11.2 |  | $(0.1) | (3) | $(7.4) | (4) | $23.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory valuation reserve | 35.6 | 8.2 | (2) | 0.1 | (3) |  |  | 43.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset valuation allowance | 20.3 | 6.8 |  | 0.1 | (3) | (0.8) |  | 26.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recorded within liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Casualty loss reserves | $30.4 | $7.9 |  | $(2.4) |  | $(5.2) |  | $30.7 |

---

<sup>(1)</sup> Net allowance for credit losses and allowance for sales and returns.

<sup>(2)</sup> Provision for excess and obsolete inventory, net of inventory written off.

<sup>(3)</sup> Change in foreign currency exchange rates and acquired reserves.

<sup>(4)</sup> Uncollectible accounts written off, net of recoveries.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

**EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES**

Our management, including the Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"), has evaluated the effectiveness of our disclosure controls and procedures, as defined in Exchange Act Rules 13a-15(e) and 15d-15(e), as of the end of the period covered by this Annual Report on Form 10-K. Based on this evaluation, the PEO and PFO have determined that, as of the end of the period covered by this Annual Report on Form 10-K, our disclosure controls and procedures were effective.

**CHANGES IN INTERNAL CONTROLS**

During the quarter ended March 31, 2026, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in the Exchange Act Rules 13a-15(f). Under the supervision and with the participation of management, including the PEO and PFO, we conducted an evaluation of the effectiveness of internal control over financial reporting as of March 31, 2026 based on the framework in 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation under this framework, management concluded that the internal control over financial reporting was effective as of March 31, 2026. Our evaluation of internal control over financial reporting did not include the internal controls of the businesses that were acquired during fiscal 2026. Total assets of the acquired businesses represented approximately 0.4% of our total assets as of March 31, 2026 and approximately 0.1% of our total revenues for the year ended March 31, 2026. Based on this evaluation under this framework, management concluded that the internal control over financial reporting was effective as of March 31, 2026.

The independent registered public accounting firm that audited the financial statements has issued an attestation report on internal control over financial reporting.

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Shareholders and the Board of Directors of STERIS plc

**Opinion on Internal Control Over Financial Reporting**

We have audited STERIS plc and subsidiaries' internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, STERIS plc and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of March 31, 2026, based on the COSO criteria.

As indicated in the accompanying Management's Report on Internal Control Over Financial Reporting, management's assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of the businesses that were acquired during the year ended March 31, 2026, which are included in the fiscal 2026 consolidated financial statements of the Company and constituted approximately 0.4% of total assets as of March 31, 2026 and approximately 0.1% of total revenues for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of the businesses that were acquired during the year ended March 31, 2026.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of March 31, 2026 and 2025, the related consolidated statements of income, comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended March 31, 2026, and the related notes and financial statement schedule listed in the Index at Item 15(a) and our report dated May 29, 2026 expressed an unqualified opinion thereon.

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**Basis for Opinion**

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control Over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Cleveland, Ohio

May 29, 2026

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ITEM 9B. OTHER INFORMATION

During the quarter ended March 31, 2026, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" as such terms are defined under Item 408 of Regulation S-K.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not Applicable.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

This Annual Report on Form 10-K incorporates by reference the information appearing under the caption "Nominees for Election as Directors," "Board Meetings and Committees," "Shareholder Nominations of Directors and Nominee Criteria", "Insider Trading Policy" and "Shareholder Proposals" of our definitive proxy statement to be filed with the SEC in connection with our 2026 Annual Meeting of Shareholders (the "Proxy Statement").

Our executive officers serve for a term of one year from the date of election to the next organizational meeting of the Board of Directors and until their respective successors are elected and qualified, except in the case of death, resignation, or removal. Information concerning our executive officers is contained in Item 1 of Part 1 of this Annual Report under the heading "Information about our Executive Officers", and is incorporated herein by reference. We have adopted a code of ethics, our Code of Business Conduct for Employees, that applies to our CEO and CFO and Principal Accounting Officer as well as all of our other employees. We have also adopted a code of ethics, our Director Code of Ethics, which applies to the members of the Company's Board of Directors, including our CEO. Our Code of Business Conduct for Employees and the Director Code of Ethics can be found on our Investor Relations website at www.steris-ir.com. Any amendments or waivers of either of these codes will be made available on this website.

ITEM 11. EXECUTIVE COMPENSATION

This Annual Report on Form 10-K incorporates by reference the information appearing beginning under the captions "Executive Compensation," "Non-Employee Director Compensation," "Pay Versus Performance," and "Miscellaneous Matters" of the Proxy Statement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

This Annual Report on Form 10-K incorporates by reference the information appearing under the captions "Ownership of Voting Securities" of the Proxy Statement.

The table below presents information concerning all equity compensation plans and individual equity compensation arrangements in effect as of our fiscal year ended March 31, 2026.

---

| | | | |
|:---|:---|:---|:---|
| Plan Category | Number of securities to<br>be issued upon exercise<br>of outstanding options,<br>warrants and rights | Weighted-average<br>exercise price of<br>outstanding options,<br>warrants and rights<br>($) | Number of securities<br>remaining available for<br>future issuance under<br>equity compensation plans<br>(excluding securities<br>reflected in column (a)) |
|  | (a) | (b) | (c) |
| Equity compensation plans approved by security holders | 1716867 | $204.51 | 1689465 |
| Equity compensation plans not approved by security holders |  |  |  |
| Total | 1716867 | $204.51 | 1689465 |

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

This Annual Report on Form 10-K incorporates by reference the information beginning under the captions "Governance Generally", "Board Meetings and Committees" and "Miscellaneous Matters" of the Proxy Statement.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

This Annual Report on Form 10-K incorporates by reference the information relating to principal accountant fees and services appearing under the caption "Independent Registered Public Accounting Firm" of the Proxy Statement.

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PART IV

ITEM 15. &nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS AND FINANCIAL STATEMENT SCHEDULE

LIST OF CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE

&nbsp;&nbsp;&nbsp;&nbsp;(a) (1) The following consolidated financial statements of STERIS plc and subsidiaries are included in Item 8:

Consolidated Balance Sheets – March 31, 2026 and 2025.

Consolidated Statements of Income – Years ended March 31, 2026, 2025, and 2024.

Consolidated Statements of Comprehensive Income – Years ended March 31, 2026, 2025, and 2024.

Consolidated Statements of Cash Flows – Years ended March 31, 2026, 2025, and 2024.

Consolidated Statements of Shareholders' Equity – Years ended March 31, 2026, 2025, and 2024.

Notes to Consolidated Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;(a) (2) The following consolidated financial statement schedule of STERIS plc and subsidiaries is included in Item 8:

Schedule II - Valuation and Qualifying Accounts

All other schedules for which provision is made in the applicable accounting regulation of the SEC are not required under the related instructions or are inapplicable and, therefore, have been omitted.

&nbsp;&nbsp;&nbsp;&nbsp;(a) (3) Exhibits

---

| | |
|:---|:---|
| Exhibit<br>Number | **Exhibit Description** |
| 2.1 | <u>[Equity Purchase Agreement by and between STERIS Corporation, HuFriedy Group Holding LLC, Hu-Friedy Mfg. Co. LLC and Crosstex International, Inc., dated as of April 10, 2024 (filed as Exhibit 2.1 to STERIS plc Form 10-Q for the fiscal quarter ended June 30, 2024 filed August 8, 2024 (Commission File No. 001-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000175789824000016/ex21dayton-equitypurchas.htm)</u> |
| 3.1 | <u>[STERIS plc Memorandum of Association (filed as Exhibit 3.1 to STERIS plc Form 10-K for the fiscal year ended March 31, 2019 (Commission File No. 001-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000175789819000005/ste03312019ex31.htm)</u> |
| 4.1 | <u>[Indenture, dated as of April 1, 2021, among STERIS Irish FinCo Unlimited Company, the guarantors party thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to STERIS plc Form 8-K filed April 1, 2021 (Commission File No. 001-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000119312521103389/d119220dex41.htm)</u> |
| 4.2 | <u>[First Supplemental Indenture, dated as of April 1, 2021, among STERIS Irish FinCo Unlimited Company, the guarantors party thereto and U.S. Bank National Association, as trustee (filed as Exhibit 4.2 to STERIS plc Form 8-K filed April 1, 2021 (Commission File No. 001-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000119312521103389/d119220dex42.htm)</u> |
| 4.3 | <u>[Form of 2.700% Notes due 2031 (filed as Exhibit 4.3 to STERIS plc Form 8-K filed April 1, 2021 (Commission File No. 001-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000119312521103389/d119220dex42.htm)</u> |
| 4.4 | <u>[Form of 3.750% Notes due 2051 (filed as Exhibit 4.4 to STERIS plc Form 8-K filed April 1, 2021 (Commission File No. 001-38848) and incorporated herein by reference)](https://www.sec.gov/Archives/edgar/data/1757898/000119312521103389/d119220dex42.htm)</u><u>.</u> |
| 4.5 | <u>[Description of Securities Registered Under Section 12 of the Securities Exchange Act of 1934 (filed as Exhibit 4.5 to STERIS plc Form 10-K for the fiscal year ended March 31, 2021 (Commission File No. 001-38848), and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000175789821000017/a03312021ex45.htm)</u> |
| 10.1 | <u>[STERIS plc 2006 Long-Term Equity Incentive Plan, as Assumed, Amended and Restated Effective March 28, 2019 (filed as Exhibit 10.1 to STERIS plc Form 8-K filed March 28, 2019 (Commission File No. 001-38848) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1757898/000119312519089164/d725181dex101.htm)</u> |
| 10.2 | <u>[Amendment No. 1 to STERIS plc 2006 Long-Term Equity Incentive Plan (as Assumed, Amended and Restated Effective March 28, 2019), effective July 27, 2021 (filed as Exhibit 10.2 to Form 10-Q for the fiscal quarter ended September 30, 2021 (Commission File No. 001-38848) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1757898/000175789821000034/ste09302021exhibit102.htm)</u> |
| 10.3 | <u>[STERIS Corporation Form of Career Restricted Stock Unit Agreement for Nonemployee Directors (filed as Exhibit 10.33 to Form 10-K for the fiscal year ended March 31, 2013 (Commission File No. 001-14643) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/815065/000081506513000006/ste03312013ex1033.htm)</u> |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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| | |
|:---|:---|
| 10.4 | <u>[Form of STERIS plc Nonqualified Stock Option Agreement for Employees (filed as Exhibit 10.2 to STERIS plc Form 10-Q for the fiscal quarter ended December 31, 2015 (Commission File No. 001-37614) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1624899/000162489916000004/ste12312015ex102.htm)</u> |
| 10.5 | <u>[STERIS plc Form of Nonqualified Stock Option Agreement for Nonemployee Directors (filed as Exhibit 10.20 to STERIS plc Form 10-K for the year ended March 31, 2016 (Commission File No. 001-37614) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1624899/000162489916000005/ste03312016ex1020.htm)</u> |
| 10.6 | <u>[Amendment to Nonqualified Stock Option Agreement (filed as Exhibit 10.4 to STERIS plc Form 10-Q for the fiscal quarter ended September 30, 2018 (Commission File No. 001-37614) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1624899/000162489918000009/ste093018ex104.htm)</u> |
| 10.7 | <u>[STERIS plc Form of Nonqualified Stock Option Agreement for Employees (filed as Exhibit 10.2 to STERIS plc Form 10-Q for the fiscal quarter ended September 30, 2018 (Commission File No. 001-37614) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1624899/000162489918000009/ste093018ex102.htm)</u> |
| 10.8 | <u>[Form of STERIS plc Nonqualified Stock Option Agreement for Employees (filed as Exhibit 10.3 to STERIS plc Form 10-Q for the fiscal quarter ended September 30, 2019 (Commission File No. 001-38848) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1757898/000175789819000018/ste09302019ex103.htm)</u> |
| 10.9 | <u>[Form of STERIS plc Career Restricted Stock Unit Agreement for Nonemployee Directors (filed as Exhibit 10.21 to STERIS plc Form 10-K for the year ended March 31, 2016 (Commission File No. 001-37614) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1624899/000162489916000005/ste03312016ex1021.htm)</u> |
| 10.10 | <u>[Form of STERIS plc Restricted Stock Agreement for Employees (filed as Exhibit 10.16 to STERIS plc Form 10-K for the fiscal year ended March 31, 2023 (Commission File No. 001-38848) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1757898/000175789823000005/ste03312023ex1016.htm)</u> |
| 10.11 | <u>[Form of STERIS plc Nonqualified Stock Option Agreement for Employees (filed as Exhibit 10.17 to STERIS plc Form 10-K for the fiscal year ended March 31, 2023 (Commission File No. 001-38848) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1757898/000175789823000005/ste03312023ex1017.htm)</u> |
| 10.12 | <u>[Description of STERIS plc Non-Employee Director Compensation Program (filed as Exhibit 10.1 to STERIS plc Form 10-Q for the fiscal quarter ended September 30, 2024 (Commission File No. 001-38848) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1757898/000175789824000018/ste9302024ex101.htm)</u> |
| 10.13 | <u>[STERIS Corporation Deferred Compensation Plan Document (As Amended and Restated Effective January 1, 2009) (filed as Exhibit 10.1 to Form 10-Q for the fiscal quarter ended December 31, 2008 (Commission File No. 001-14643) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/815065/000119312509021159/dex101.htm)</u> |
| 10.14 | <u>[Amended and Restated Adoption Agreement related to STERIS Corporation Deferred Compensation Plan, dated December 16, 2008 (filed as Exhibit 10.2 to Form 10-Q filed for the fiscal quarter ended December 31, 2008 (Commission File No. 001-14643) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/815065/000119312509021159/dex102.htm)</u> |
| 10.15 | <u>[Amendment No. 1 to STERIS Corporation Deferred Compensation Plan Document (As Amended and Restated Effective January 1, 2009), dated November 4, 2011 (filed as Exhibit 10.1 to Form 10-Q for the fiscal quarter ended December 31, 2011 (Commission File No. 001-14643), and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/815065/000081506512000004/ste12312011ex101.htm)</u> |
| 10.16 | <u>[STERIS plc Senior Executive Severance Plan, As Adopted Effective March 28, 2019 (filed as Exhibit 10.3 to STERIS plc 8-K filed March 28, 2019 (Commission File No. 001-38848) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1757898/000119312519089164/d725181dex103.htm)</u> |
| 10.17 | <u>[Form of Indemnification Agreement between STERIS Corporation and each of its directors and certain executive officers (filed as Exhibit 10.3 to Form 10-Q for the fiscal quarter ended June 30, 2022 (Commission File No. 001-14643) and incorporated herein by reference). \*](https://www.sec.gov/Archives/edgar/data/1757898/000175789822000019/ste06302022ex103.htm)</u> |
| 10.18 | <u>[Form of Deed of Indemnification for STERIS plc directors and executive officers (filed as Exhibit 10.1 to STERIS plc Form 10-Q for the fiscal quarter ended June 30, 2022 (Commission File No. 001-38848) and incorporated herein by reference). \*](https://www.sec.gov/Archives/edgar/data/1757898/000175789822000019/ste06302022ex101.htm)</u> |
| 10.19 | <u>[Form of Deed of Indemnification for STERIS plc directors and executive officers (filed as Exhibit 10.2 to STERIS plc Form 10-Q for the fiscal quarter ended June 30, 2022)(Commission File No. 001-38848) and incorporated herein by reference).\*](https://www.sec.gov/Archives/edgar/data/1757898/000175789822000019/ste06302022ex102.htm)</u> |
| 10.20 | <u>[First Amendment dated as of March 19, 2021 to Amended and Restated Note Purchase Agreement, dated as of March 5, 2019, among STERIS Corporation and each of the institutions signatory thereto (filed as Exhibit 10.4 to Form 8-K filed March 23, 2021 (Commission File No. 001-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000119312521090491/d164871dex104.htm)</u> |

---

------

<u>[**Table of Contents**](#i69eb2379839846d3ab4c1c1daf41db71_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 10.21 | <u>[First Amendment dated as of March 19, 2021 to Amended and Restated Note Purchase Agreement, dated as of March 5, 2019, among STERIS Corporation and each of the institutions signatory thereto (filed as Exhibit 10.5 to Form 8-K filed March 23, 2021 (Commission File No. 001-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000119312521090491/d164871dex105.htm)</u> |
| 10.22 | <u>[First Amendment dated as of March 19, 2021 to Amended and Restated Note Purchase Agreement, dated as of March 5, 2019, among STERIS Limited and each of the institutions signatory thereto (filed as Exhibit 10.6 to Form 8-K filed March 23, 2021 (Commission File No. 001-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000119312521090491/d164871dex106.htm)</u> |
| 10.23 | <u>[Credit Agreement, dated as of October 7, 2024, among STERIS plc, STERIS Limited, STERIS Corporation, STERIS Irish FinCo Unlimited Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. (filed as Exhibit 10.1 to Form 8-K filed October 7, 2024 (Commission File No. 001-38848) and incorporated here](https://www.sec.gov/Archives/edgar/data/1757898/000119312524233855/d833057dex101.htm)[in](https://www.sec.gov/Archives/edgar/data/1757898/000119312524233855/d833057dex101.htm)[by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000119312524233855/d833057dex101.htm)</u> |
| 10.24 | <u>[Transition Agreement effective August 18, 2025, by and among STERIS Corporation, STERIS plc and Michael J. Tokich (filed as Exhibit 10.1 to Form 10-Q filed November 6, 2025 (Commission File No. 000-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000162828025050160/ste9302025ex101.htm)</u> |
| 10.25 | <u>[Amendment to the Transition Agreement effective April 1, 2026, by and among STERIS Corporation, STERIS plc and Michael J. Tokich.\*](ste03312026ex1025.htm)</u> |
| 19.1 | <u>[STERIS plc Insider Trading Policy (filed as Exhibit 19.1 to STERIS plc Form 10-K for the year ended March 31, 2024 filed May 29, 2024 (Commission File No. 001-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000175789824000008/ste03312024ex191.htm)</u> |
| 21.1 | <u>[Subsidiaries of STERIS plc.](ste03312026ex211.htm)</u> |
| 22.1 | <u>[List of Guarantor Subsidiaries with respect to the 2.700% Notes due 2031 and 3.750% Notes due 2051 issued by STERIS Irish FinCo Unlimited Company (filed as Exhibit 22.1 to Form 10-K for the fiscal year ended March 31, 2021 (Commission File No. 001-38848), and incorporated by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000175789821000017/ste03312021ex221.htm)</u> |
| 23.1 | <u>[Consent of Independent Registered Public Accounting Firm.](ste03312026ex231.htm)</u> |
| 24.1 | <u>[Power of Attorney](ste03312026ex241.htm)</u> |
| 31.1 | <u>[Certification of the Principal Executive Officer Pursuant to Exchange Act Rule 13a-14(a)/15d-14(a).](ste03312026ex311.htm)</u> |
| 31.2 | <u>[Certification of the Principal Financial Officer Pursuant to Exchange Act Rule 13a-14(a)/15d-14(a).](ste03312026ex312.htm)</u> |
| 32.1 | <u>[Certification of the Principal Executive Officer and the Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ste03312026ex321.htm)</u> |
| 97.1 | <u>[STERIS plc Policy relating to recovery of erroneously awarded compensation. filed as Exhibit 97.1 to STERIS plc Form 10-K for the year ended March 31, 2024 filed May 29, 2024 (Commission File No. 001-38848) and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/1757898/000175789824000008/ste03312024ex971.htm)</u> |
| 101.SCH | Inline Schema Document. |
| 101.CAL | Inline Calculation Linkbase Document. |
| 101.DEF | Inline Definition Linkbase Document. |
| 101.LAB | Inline Labels Linkbase Document. |
| 101.PRE | Inline Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101). |
| \* | A management contract or compensatory plan or arrangement required to be filed as an exhibit hereto. |

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------

<u>[**Table of Contents**](#i69eb2379839846d3ab4c1c1daf41db71_7)</u>

ITEM 16. &nbsp;&nbsp;&nbsp;&nbsp;FORM 10-K SUMMARY

Not Applicable.

------

<u>[**Table of Contents**](#i69eb2379839846d3ab4c1c1daf41db71_7)</u>

SIGNATURES

Pursuant to the requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the date indicated.

---

| | | | |
|:---|:---|:---|:---|
| | | STERIS plc<br>(Registrant) | STERIS plc<br>(Registrant) |
| Date: | May 29, 2026 | By: | /S/&nbsp;&nbsp;&nbsp;&nbsp;KAREN L. BURTON  |
|  |  | Karen L. Burton | Karen L. Burton |
|  |  | Senior Vice President and Chief Financial Officer | Senior Vice President and Chief Financial Officer |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.

---

| | | |
|:---|:---|:---|
| <u>SIGNATURE</u> | <u>TITLE</u> | <u>DATE</u> |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;DANIEL A. CARESTIO | President, Chief Executive Officer and Director (Principal Executive Officer) | May 29, 2026 |
| Daniel A. Carestio |  |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;KAREN L. BURTON&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | Senior Vice President and Chief Financial Officer (Principal Financial Officer & Principal Accounting Officer) | May 29, 2026 |
| Karen L. Burton |  |  |
| \* | Chairman and Director | May 29, 2026 |
| Mohsen M. Sohi |  |  |
| \* | Director | May 29, 2026 |
| Esther M. Alegria |  |  |
| \* | Director | May 29, 2026 |
| Pierre Boulud |  |  |
| \* | Director | May 29, 2026 |
| Richard C. Breeden |  |  |
| \* | Director | May 29, 2026 |
| Daniel A. Carestio |  |  |
| \* | Director | May 29, 2026 |
| Cynthia L. Feldmann |  |  |
| \* | Director | May 29, 2026 |
| Christopher S. Holland |  |  |
| \* | Director | May 29, 2026 |
| Paul E. Martin |  |  |
| \* | Director | May 29, 2026 |
| Nirav R. Shah |  |  |
| \* | Director | May 29, 2026 |
| Louis A. Shapiro |  |  |

---

\* The undersigned, by signing his name hereto, does sign and execute this Annual Report on Form 10-K pursuant to the Powers of Attorney executed by the above-named directors of the Registrant and filed with the Securities and Exchange Commission on behalf of such directors.

---

| | | | |
|:---|:---|:---|:---|
| Date: | May 29, 2026 | By: | /S/&nbsp;&nbsp;&nbsp;&nbsp;J. ADAM ZANGERLE&nbsp;&nbsp;&nbsp;&nbsp;  |
|  |  | J. Adam Zangerle,<br>Attorney-in-Fact for Directors | J. Adam Zangerle,<br>Attorney-in-Fact for Directors |

---

## Exhibit 10.25

AMENDMENT NO. 1 TO TRANSITION AGREEMENT

THIS AMENDMENT NO. 1 TO TRANSITION AGREEMENT (this "<u>Amendment</u>") is entered into as of March 31, 2026, and will take effect immediately on April 1, 2026 (the "<u>Amendment Effective Date</u>"), among STERIS Corporation ("<u>Employer</u>"), STERIS plc ("<u>Parent</u>", and together with the Employer, the "<u>Company</u>"), and Michael J. Tokich ("<u>Executive</u>"). Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Agreement.

WHEREAS, the parties to this Amendment executed a Transition Agreement as of August 5, 2025, effective August 18, 2025 (the "<u>Agreement</u>"); and

WHEREAS, the parties hereto desire to amend the Agreement.

NOW, THEREFORE, in consideration of the terms and conditions and mutual promises set forth or described in this Amendment, plus other good and valuable consideration, the receipt by the parties to this Amendment and the sufficiency and adequacy of which are hereby acknowledged by the parties, the parties agree to amend the Agreement as follows, effective as of the Amendment Effective Date, provided that Executive remains in the employ of the Company as of such date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.For purposes of the Agreement, the "Employment Period" is modified to end on March 31, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Section 1 of the Agreement is amended and restated in its entirety to provide as follows:

"1. TERM OF AGREEMENT. Except as provided below, and subject to the survival provisions of Section 16 hereof, the term of this Agreement (the "Term") will continue in effect from the Effective Date until the earlier to occur of: (a) the last day of the Employment Period; or (b) the termination of Executive's employment with the Company. Notwithstanding anything in this Agreement to the contrary and subject to the terms of Sections 4 and 16 hereof, Executive may terminate this Agreement and Executive's employment with the Company at any time and for any reason; the Company may terminate this Agreement and Executive's employment with the Company at any time for Cause or because of Executive's death or Disability."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Section 2(a) of the Agreement is amended and restated in its entirety to provide as follows:

"(a) <u>Employment Period</u>. From the Effective Date until December 31, 2025, Executive will continue his employment with the Company on a full-time basis and from January 1, 2026 through March 31, 2026, Executive will serve on an as needed basis (as determined by the Chief Executive Officer) to provide consulting and advisory services and, in each case, Executive will perform such duties as are reasonably assigned to him by the President and Chief Executive Officer and the Chief Financial Officer of the Company. On and after the Amendment Effective Date, the Employment Period is extended until March 31, 2027, and Executive will serve on a part-time basis (expected to be approximately eight hours per week on average) to provide consulting and advisory services and, in each case, Executive will perform such duties as are

------

reasonably assigned to him by the President and Chief Executive Officer and the Chief Financial Officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Sections 3(a) and 3(b) of the Agreement are amended and restated in their entirety to provide as follows:

"(a) <u>Base Compensation</u>. Effective as of the Amendment Effective Date, and during the remainder of the Employment Period, Executive shall be paid base compensation (salary) at an annual rate equal to $60,000 per year, payable in accordance with the Company's normal payroll schedule."

"(b) <u>Bonus</u>. Effective as of the Amendment Effective Date, and during the remainder of the Employment Period, Executive shall receive a cash bonus in such amount, if any, as may be determined by the CEO in his discretion, subject to the approval of the Compensation and Organization Development Committee of the Board of Directors of the Parent."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Section 3(d)(iii) of the Agreement is deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Except to the extent amended hereby, the Agreement shall remain unmodified and in full force and effect.

(*Signature Page Follows*)

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 to Transition Agreement as of the day and year first above written.

STERIS plc EXECUTIVE

By: <u>/s/ J. Adam Zangerle</u> <u>/s/ Michael J. Tokich</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Adam Zangerle Michael J. Tokich

Senior Vice President, General Counsel and Company Secretary

STERIS Corporation

By: <u>/s/ J. Adam Zangerle</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Adam Zangerle

Senior Vice President, General Counsel and Company Secretary

## Exhibit 21.1

**Exhibit 21.1**

SUBSIDIARIES OF STERIS PLC

The list below includes all subsidiaries of STERIS plc, excluding entities not controlled<sup>1</sup> by STERIS plc or its subsidiaries and branch entities. Unless otherwise noted, all entities are direct or indirect wholly-owned subsidiaries of STERIS plc.

---

| | |
|:---|:---|
| Name | Jurisdiction of Incorporation |
| Albert Browne Limited | England and Wales |
| American Sterilizer Company | Pennsylvania, USA |
| Bioster-Mottahedoon Egypt SAE\* | Egypt |
| Birkova Products, LLC | Indiana, USA |
| Bizworth Gammarad Sdn Bhd | Malaysia |
| Black Diamond Video, Inc. | California, USA |
| Cantel (Belgium) BV | Belgium |
| Cantel (UK) Limited | England and Wales |
| Cantel Medical (UK) Limited | England and Wales |
| Cantel Medical Asia/Pacific Pte. Ltd. | Singapore |
| Cantel Medical Devices (China) Co., Ltd. | China |
| Cantel Medical International B.V. | Netherlands |
| Cantel Medical LLC | Delaware, USA |
| CLBV Limited | England and Wales |
| Diagmed Healthcare Limited | England and Wales |
| Electron Beam Sdn. Bhd. | Malaysia |
| Eschmann Holdings Limited | England and Wales |
| Genii, Inc. | Minnesota, USA |
| GEST PROHS, LDA | Portugal |
| Harwell Dosimeters Limited | England and Wales |
| Herotron E-Beam Service GmbH | Germany |
| HMM HoldCo Limited | England and Wales |
| Hungaroptics KFT | Hungary |
| IK Medical Solutions GmbH | Germany |
| Isomedix Inc. | Delaware, USA |
| Isomedix Operations Inc. | Delaware, USA |
| Jet Prep Ltd. | Israel |
| José Dos Santos Monteiro Lda. | Portugal |
| Key Surgical Europe S.à r.l. | Switzerland |
| Key Surgical Limited | England and Wales |
| Key Surgical LLC | Delaware, USA |
| Konnexis Inc. | Canada |
| KVI LLC | Delaware, USA |
| KWI Planung GmbH | Germany |

---

------

**Exhibit 21.1**

---

| | |
|:---|:---|
| Name | Jurisdiction of Incorporation |
| Mar Cor Purification, Inc. | Pennsylvania, USA |
| Massaro Limited Partnership (Victory Road)\* | Pennsylvania, USA |
| Medical Innovations Group Holdings Limited | England and Wales |
| Medical Innovations Group Ltd | England and Wales |
| Medi-Cart International Limited | England and Wales |
| MEDIK Hospital Design GmbH | Germany |
| MEDIK Hospital Design Memmingen GmbH | Germany |
| MEDIK Hospital Design SWISS AG | Switzerland |
| Medisafe America, L.L.C. | Florida, USA |
| Medisafe Holdings Ltd | England and Wales |
| Medisafe UK Limited | England and Wales |
| Medivators Inc. | Minnesota, USA |
| Mevex Corporation | Canada |
| PROHS – Equipamento Hospitalar e Serviços Associados, S.A. | Portugal |
| Shamrock Innovations Limited | Ireland |
| Shiloh Limited | England and Wales |
| Solar New US Holding Corporation | Delaware, USA |
| Solar New US Parent Co, LLC | Delaware, USA |
| Solar US Acquisition Co, LLC | Delaware, USA |
| STE UK HoldCo Limited | England and Wales |
| STE UK Sub HoldCo Limited | England and Wales |
| Sterile Supplies Limited\* | England and Wales |
| STERILMED France | France |
| STERIS (BVI) I Limited | British Virgin Islands |
| STERIS (India) Private Limited | India |
| STERIS (Shanghai) Trading Co., Ltd. | China |
| STERIS AB | Sweden |
| STERIS Applied Sterilization Technologies ULC | Canada |
| STERIS Asia Pacific, Inc. | Delaware, USA |
| STERIS AST CZ s.r.o. | Czech Republic |
| STERIS AST, storitve v zdravstvu, d.o.o | Slovenia |
| STERIS Australia PTY LTD | Australia |
| STERIS Barrier Products Solutions, Inc. | Pennsylvania, USA |
| STERIS Bethpage Processing, LLC\* | New York |
| STERIS Brazil Holdings, LLC | Delaware, USA |
| STERIS Canada ULC | Canada |
| STERIS Canada Sales ULC | Canada |
| STERIS CH Limited | England and Wales |
| STERIS China Holdings Limited | Hong Kong |
| STERIS Colombia S.A.S | Colombia |
| STERIS Corporation | Ohio, USA |

---

------

**Exhibit 21.1**

---

| | |
|:---|:---|
| Name | Jurisdiction of Incorporation |
| STERIS Corporation de Costa Rica, S.A. | Costa Rica |
| STERIS Corporation de Republica Dominicana, S.R.L. | Dominican Republic |
| STERIS Deutschland GmbH | Germany |
| STERIS Dover AST Holdings Limited | England and Wales |
| STERIS Dover Canada Holdings Limited | England and Wales |
| STERIS Dover Limited | England and Wales |
| STERIS Emerald IE Limited | Ireland |
| STERIS Europe, Inc. | Delaware, USA |
| STERIS FinCo S.à r.l. | Luxembourg |
| STERIS FinCo II S.à r.l. | Luxembourg |
| STERIS GmbH | Switzerland |
| STERIS Holdings B.V. | Netherlands |
| STERIS Hong Kong Limited | Hong Kong |
| STERIS Iberia,S.A. | Spain |
| STERIS IMS Canada Inc. | Canada |
| STERIS IMS Limited | England and Wales |
| STERIS Inc. | Delaware, USA |
| STERIS Instrument Management Services, Inc. | Delaware, USA |
| STERIS Ireland Limited | Ireland |
| STERIS Irish FinCo Unlimited Company | Ireland |
| STERIS Irish FinCo II Unlimited Company | Ireland |
| STERIS Isomedix Puerto Rico LLC | Puerto Rico |
| STERIS Israel Solutions Ltd | Israel |
| STERIS Italy S.r.l. | Italy |
| STERIS Japan Inc. | Japan |
| STERIS Laboratories, Inc. | Minnesota, USA |
| STERIS Latin America, Inc. | Delaware, USA |
| STERIS Limited | England and Wales |
| STERIS Luxembourg Finance S.à r.l. | Luxembourg |
| STERIS Luxembourg Holding S.à r.l. | Luxembourg |
| STERIS Malaysia SDN. BHD. | Malaysia |
| STERIS Mauritius Limited | Republic of Mauritius |
| STERIS Mexico, S. de R.L. de C.V. | Mexico |
| STERIS Netherlands B.V. | Netherlands |
| STERIS New Zealand Limited | New Zealand |
| STERIS Personnel Services, Inc. | Delaware, USA |
| STERIS Portugal, Unipessoal, Lda. | Portugal |
| STERIS S.p.A. | Italy |
| STERIS S.r.l. | Italy |
| STERIS SA | Belgium |
| STERIS SAS | France |

---

------

**Exhibit 21.1**

---

| | |
|:---|:---|
| Name | Jurisdiction of Incorporation |
| STERIS Schweiz AG | Switzerland |
| STERIS Solutions do Brasil Importacao e Comercializacao de Produtos da Saude Ltda. | Brazil |
| STERIS Solutions Korea Limited | South Korea |
| STERIS Solutions Limited | England and Wales |
| STERIS Solutions Pte. Limited | Singapore |
| STERIS Solutions, S. de R.L. de C.V. | Mexico |
| STERIS Sterilization Technologies (Suzhou) Ltd. | China |
| STERIS Taiwan Co., Ltd. | Taiwan |
| STERIS TOMOE (Thailand) Ltd.\* | Thailand |
| STERIS Tomoe Singapore Pte. Ltd\* | Singapore |
| STERIS UK Holding Limited | England and Wales |
| STERIS US Holdings Corp. | Delaware, USA |
| STERIS-SHINVA Healthcare Systems Co., Ltd.\* | China |
| Synergy Health (Thailand) Limited | Thailand |
| Synergy Health (UK) Limited | England and Wales |
| Synergy Health Allershausen GmbH | Germany |
| Synergy Health Amsterdam B.V. | Netherlands |
| Synergy Health AST S.r.l. | Costa Rica |
| Synergy Health AST, LLC | Delaware, USA |
| Synergy Health Ede B.V. | Netherlands |
| Synergy Health Holding B.V. | Netherlands |
| Synergy Health Holdings Limited | England and Wales |
| Synergy Health Investments Limited | England and Wales |
| Synergy Health Ireland Limited | Ireland |
| Synergy Health Limited | England and Wales |
| Synergy Health Logistics B.V. | Netherlands |
| Synergy Health Marseille SAS | France |
| Synergy Health Nederland B.V. | Netherlands |
| Synergy Health Radeberg GmbH | Germany |
| Synergy Health Sterilisation UK Limited | England and Wales |
| Synergy Health Systems Limited | England and Wales |
| Synergy Health US Holdings, Inc. | Delaware, USA |
| Synergy Health Westport Limited | Ireland |
| Synergy Sterilisation KL (M) Sdn Bhd | Malaysia |
| Synergy Sterilisation Kulim (M) Sdn Bhd | Malaysia |
| Synergy Sterilisation (M) Sdn Bhd | Malaysia |
| Synergy Sterilisation Rawang (M) Sdn Bhd | Malaysia |
| Synergy Sterilisation South Africa (Propietary) Limited | South Africa |
| TECNOPROS – Comércio e Assistência Técnica, Lda | Portugal |
| TekGo, Inc. | Delaware, USA |

---

------

**Exhibit 21.1**

---

| | |
|:---|:---|
| Name | Jurisdiction of Incorporation |
| The STERIS Foundation | Ohio, USA |
| United States Endoscopy Group, Inc. | Ohio, USA |
| Vernon and Co. Limited | England and Wales |
| Vernon-Carus Limited | England and Wales |

---

__________________________

<sup>1</sup> Includes entities in which STERIS plc holds a direct or indirect 50% or greater ownership interest.

\*This entity is not a direct or indirect wholly-owned subsidiary of STERIS plc.

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the following Registration Statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement (Form S-8, No. 333-230557) of STERIS plc pertaining to the STERIS Corporation 401(k) Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement (Form S-8, No. 333-230558) of STERIS plc pertaining to the STERIS plc 2006 Long-Term Equity Incentive Plan (As Assumed, Amended and Restated Effective March 28, 2019),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement (Form S-8, No. 333-256700) of STERIS plc pertaining to the registration of ordinary shares potentially deliverable pursuant to outstanding awards under both the Cantel Medical Corp. 2020 Equity Incentive Plan (as assumed and amended effective June 2, 2021) and the Cantel Medical Corp. 2016 Equity Incentive Plan (as assumed and amended effective June 2, 2021).

of our reports dated May 29, 2026, with respect to the consolidated financial statements and the effectiveness of internal control over financial reporting of STERIS plc and subsidiaries included in this Annual Report (Form 10-K) for the year ended March 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;

/s/ Ernst & Young LLP

Cleveland, Ohio

May 29, 2026

## Exhibit 24.1

**Exhibit 24.1** 

STERIS PLC

POWER OF ATTORNEY

FORM 10-K

Each of the undersigned hereby makes, constitutes, and appoints Daniel A. Carestio, Karen L. Burton, and J. Adam Zangerle, and each of them, his or her true and lawful attorney, with full power of substitution, for and in his or her name, place, and stead, to affix, as attorney-in-fact, his or her signature in any and all capacities, to the Annual Report on Form 10-K of STERIS plc for its fiscal year ended March 31, 2026, and any and all amendments thereto to be filed with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, with power to file said Form 10-K and such amendments, and any and all other documents that may be required in connection therewith, with the Securities and Exchange Commission, hereby granting unto said attorneys-in-fact, and each of them, full power and authority to do and perform any and all acts and things requisite or appropriate in connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned have executed this Power of Attorney as of the 6<sup>th</sup> day of May 2026.

---

| | |
|:---|:---|
| /s/&nbsp;&nbsp;&nbsp;&nbsp;ESTHER M. ALEGRIA | /s/&nbsp;&nbsp;&nbsp;&nbsp;PIERRE BOULUD |
| Esther M. Alegria, Director | Pierre Boulud, Director |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;RICHARD C. BREEDEN | /s/&nbsp;&nbsp;&nbsp;&nbsp;CYNTHIA L. FELDMANN |
| Richard C. Breeden, Director | Cynthia L. Feldmann, Director |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;CHRISTOPHER S. HOLLAND | /s/ PAUL E. MARTIN |
| Christopher S. Holland, Director | Paul E. Martin, Director |
| /s/ NIRAV R. SHAH | /s/ LOUIS A. SHAPIRO |
| Nirav R. Shah, Director | Louis A. Shapiro, Director |
| /s/ MOHSEN M. SOHI | /s/ DANIEL A. CARESTIO |
| Mohsen M. Sohi, Chairman of the Board | Daniel A. Carestio |
| | President, Chief Executive Officer and Director |
| | (Principal Executive Officer) |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;KAREN L. BURTON | |
| Karen L. Burton | |
| Senior Vice President and Chief Financial Officer | |
| (Principal Financial Officer & | |
| Principal Accounting Officer) | |

---

## Exhibit 31.1

**Exhibit 31.1** 

**CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER** 

I, Daniel A. Carestio, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 10-K of STERIS plc;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | May 29, 2026 |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;DANIEL A. CARESTIO | /S/&nbsp;&nbsp;&nbsp;&nbsp;DANIEL A. CARESTIO |
| **Daniel A. Carestio<br>President and Chief Executive Officer** | **Daniel A. Carestio<br>President and Chief Executive Officer** |

---

## Exhibit 31.2

**Exhibit 31.2** 

**CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER** 

I, Karen L. Burton, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 10-K of STERIS plc;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | May 29, 2026 |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;KAREN L. BURTON | /S/&nbsp;&nbsp;&nbsp;&nbsp;KAREN L. BURTON |
| **Karen L. Burton<br>Senior Vice President and Chief Financial Officer** | **Karen L. Burton<br>Senior Vice President and Chief Financial Officer** |

---

## Exhibit 32.1

**Exhibit 32.1** 

**Certification Pursuant to § 906 of the Sarbanes-Oxley Act of 2002** 

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, in connection with the filing of the Form 10-K of STERIS plc (the "Company") for the fiscal year ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned officers of the Company certifies, that, to such officer's knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

---

| | |
|:---|:---|
| | /S/&nbsp;&nbsp;&nbsp;&nbsp;DANIEL A. CARESTIO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
| **Name:** | **Daniel A. Carestio** |
| **Title:** | **President and Chief Executive Officer** |
| | /S/&nbsp;&nbsp;&nbsp;&nbsp;KAREN L. BURTON&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
| **Name:** | **Karen L. Burton** |
| **Title:** | **Senior Vice President and Chief Financial Officer** |

---

Dated: May 29, 2026

<br>