Mike Matson

Dan called the Nubis AI collaboration early-stage but promising, seeing potential to automate tasks in the labor-challenged sterile processing department, while declining to size the revenue opportunity yet.

Dan explained AST capital is electron beam accelerators sold to med tech customers, a lumpy $18 million to $30 million-a-year business driven by shipment timing that is too small to focus on.

Karen stated no USMCA assumptions are embedded in guidance, expecting status quo with July 1 joint review deadline but no real movement yet.

Dan noted minimal financial impact since STERIS is already nearly fully invested in EO facility upgrades, with only potential timing relief on compliance deadlines.

Dan said STERIS has been active on smaller bolt-on and channel acquisitions but has a disciplined approach on larger transformative M&A. Leverage at 1.2x provides capacity but financial criteria and customer value-add requirements are strict.

Karen confirmed that at current tariff rates, FY27 incremental impact would be roughly one additional quarter of exposure as FY26 already absorbed four quarters. Acknowledged some rate fluctuation during H1 FY26.

Dan noted 2-3 year lead time for new AST plants. Multiple expansions completed, in-process, and planned. Currently well-positioned across all geographies after 8 years of steady capacity additions.

Dan said growth is broad-based globally with U.S. particularly strong. No specific geography, customer type, or product line stood out as a weakness.

Mike confirmed the $50M FCF guidance increase is from working capital improvements in both inventory and receivables, carrying through Q1 outperformance.

Dan noted vaccine decline is already in the base, while growth in biologics and cell/gene therapy continues to drive demand regardless of macro pharma shifts.

Mike identified $40M ETO legal settlement payment and lower inventory reduction expectations as key drivers of lower FY26 FCF guidance.

Dan confirmed the migration to ASCs is a continuing trend with a dedicated portfolio and channel in place to capitalize on it.

Dan noted no impact from policy uncertainty, emphasizing STERIS products are procedural utilities, not reimbursed items. Healthcare orders up 14% YoY.

Mike confirmed labor inflation is lagging and should anniversary during the fiscal year; energy costs are out of their control with a pass-through timing lag.

Dan sized bioprocessing at 6-8% of AST revenue after reduction, projected to grow nicely from the reset base.

Kevin confirmed AVS will leverage the existing peripheral vascular sales force given the same call point, with potential for additional reps and future specialization as indications expand.

Preston Wells confirmed $200M is already net of mitigation efforts. Kevin Lobo emphasized they're still driving meaningful margin expansion despite $400M total tariff impact, something he couldn't have said seven or eight years ago.

Kevin Lobo declined to share Mako 4 pricing for competitive reasons but confirmed every new application (shoulder, spine) requires a one-time software license fee, consistent with their longstanding approach.

Kevin Lobo said Artix is performing as good or better than expected. Jason Beach noted PEERLESS II trial results expected sometime next year.

Kevin Lobo pushed back on reading this as a wound care strategy play. Compared to Zipline, it's a call-point tuck-in for existing reps, not a new business expansion.

Kevin described proprietary manufacturing method with improved trackability, 0.084 lumen size. Approved and launching in U.S. Cleared for aspiration use.

Kevin acknowledged slight ASC pricing pressure but offset by volume gains. Unique products (pyrocarbon, Shoulder iD, Blueprint) differentiate. Mako Shoulder full launch next year.

Preston declined to disclose sale price. Proceeds will be split over milestones and used for debt reduction or future M&A.

Preston clarified organic growth is constant currency; FX impact is on total reported revenue and EPS only.

Kevin explained the existing capital/implant split already existed. VB Spine replaces Stryker Spine reps. Exclusive partnership initially, open system possible later.

Glenn noted one plant out of 40 in Mexico, assembly only. Medical devices may be excluded from tariffs. Monitoring developments.

Essex acknowledged market-wide decline in endometrial ablation due to IUD alternatives. Hologic maintaining share but expects continued slow U.S. decline offset by international growth.

Essex clarified Gynesonics targets different fibroid types (mid-range) than MyoSure (small polyps/type 2) or Accesa (large fibroids), filling a portfolio gap.

Mick confirmed ResMed is growing several hundred basis points above mid-single-digit market rate through demand gen, rePAP, and ReSupply. Default market growth is mid-single-digit devices, high-single-digit masks.

Mick confirmed fabric technology is extensible to other masks. Pricing will be slightly higher due to higher manufacturing costs but expects better fit rates, lower returns, and higher adherence.

Ivan confirmed Japan launch of iodine hip in late 2025 with a U.S. pathway being developed. Declined to speculate on U.S. timeline. Also investing in faster surgery technology and external infection-prevention companies.