Dan Carestio
President & Chief Executive Officer at STERIS
Thanks, Mike, and good morning, everyone. Thank you for joining us to hear more about our second quarter performance and our outlook for the rest of the fiscal year. As you heard from Mike, we had another strong quarter.
Looking at our segments, healthcare constant currency organic revenue grew 7% in the quarter, led once again by strong recurring revenue streams. Our outperformance in consumables and services continues to be driven by procedure volumes in the U.S., as well as price and market share gains.
Healthcare capital equipment revenue declined 2% in the quarter due to the timing of shipments. Orders grew over 30% in the second quarter, which reflected in the $405 million healthcare backlog. We now anticipate that the healthcare capital equipment revenue will be flat to slightly down for fiscal 2025, mainly due to the timing of shipments during the fiscal year and the difficult fourth quarter comparisons. We remain confident in our expectations of a strong year for our healthcare segment and expect that the recurring revenue outperformance will more than make up for the lower capital equipment revenue. Margins have held up nicely in healthcare, with pricing, positive productivity, and lower material costs offsetting labor inflation.
Turning to AST, constant currency organic revenue grew 9%, with 6% growth in services and a significant quarter in the capital shipments. Supporting growth in services, global MedTech customers were stable, and we saw the first signs of increased bioprocessing demand.
We continue to anticipate bioprocessing revenue in the second half of our fiscal year will grow. EBIT margins in AST were impacted by labor and energy costs, which continue to increase for the segment. In addition, we recorded a longstanding loss on a capital equipment order in our Mevex business unit.
We would expect margins will improve from these levels in the second half of the year. Constant currency organic revenue growth for life sciences was 3% in the quarter, driven once again by strong growth in consumables. As expected, the divestiture of the CECS business on April 1st impacted our as-reported revenue. Margins benefited from favorable mix, pricing, and the divestiture.
Turning to our outlook for fiscal 2025, for the full year, we are reiterating our outlook from continuing operations, including 6% to 7% constant currency organic revenue growth and adjusted earnings per diluted share of $9.05 to $9.25. Our expectations for free cash flow are also unchanged at about $700 million, with about approximately $360 million in capital spending. For your modeling, we do have a few moving pieces we wanted to highlight.
From a segment perspective, life science revenue is now anticipated to be about flat for the year, with declines in capital equipment somewhat mitigated by the strength in consumables. Healthcare is now anticipated to grow mid-to-high single digits, with continued strength in recurring revenues. The outlook for AST continues to be high single-digit revenue growth for the year, but we know longer expect to exit the year at double-digit revenue growth.
All in, we expect constant currency organic revenue growth to be 6% to 7% for the full fiscal year. From a profit perspective, we now anticipate margins to be about flat for the year. All in, we are pleased with the first half of the fiscal year. The diversified nature of our segments continues to be a benefit to our total performance.
That concludes our prepared remarks for the call. Julie, would you please give the instructions so we can begin the Q&A?