What STERIS plc told the SEC could break it.

Tariffs and inflation pressured fiscal 2026 operating margins across STERIS segments; with manufacturing in Mexico (Guadalupe) and Canada (Quebec City), the July 2026 USMCA joint review could change preferential treatment and adversely affect operations and sourcing.

“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.”

STERIS depends on basic raw materials, sub-assemblies and components, some sourced from a limited number of suppliers or a single supplier (also used by competitors), creating cost and timely-availability risk for production.

“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.”

About 27% of revenue and 26% of cost of revenue are generated outside the U.S. across many currencies; exchange-rate fluctuations can significantly affect STERIS's results and competitive position (partly hedged via forwards).

“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.”