Brett Fishbin: All right. Great. And then just one other follow-up, a little bit of a longer-term question around AST. Just wondering if you could provide a bit of an update around your progress in adding more X-ray sterilization capacity as an alternative modality across your network. If I’m not mistaken, you have a couple of locations already up and running. And I think there are some additional ones that might come online in the next few years. So just any additional details would be great.
Dan Carestio: Yes, sure. This is Dan. The two of the U.S. sites will come online this calendar year. That’s in Chicago, Libertyville, Illinois area that is in testing phase now and should be running product in the next few months. And then the second one that will come online will be California, Ontario, California and that will be in the fall.
Julie Winter: And then outside of the U.S., we have several projects underway.
Dan Carestio: We do. Yes. I mean we have the Asian site coming online as well now. And then I don’t — I can’t remember off the top of my head the pacing of a couple of the European sites but there’s a few of those that will come online in the next 18 months as well.
Operator: Our next question comes from Jacob Johnson from Stephens.
Jacob Johnson: Maybe just one on margins to start. Just on AST margins, I think they declined sequentially on a similar revenue base. What was that mix? Was that incentive comp? Just anything you’d call out there? And any thoughts on how we should think about that into the fourth quarter?
Dan Carestio: A general comment, Mike, I’ll let you add to it. We typically see some decline in Q3 and that’s because of the holidays, right? So we’re not — there’s not as many days of billing that goes on because customers have shutdowns often over the Thanksgiving week and over the Christmas holiday week between Christmas and New Year. So unless we’re sitting on backlog in the factories, we tend to lose some time there. So as a result, it has an impact on margin. But that’s a normal sequential trend that we see from Q2 to Q3. Unless there has been a few times in history where that has not — we bucked that trend because bioprocessing volumes was through the roof or something. We had to run a burn-off backlog. But generally speaking, that’s a normal thing you would expect. It’s probably a bit exaggerated by the fact that we saw a much lower volume than anticipated in the European plants.
Mike Tokich: And we did have some cobalt loadings where we actually took our plants off of line for the quarter. I think we had six or eight cobalt loading. So that also hurt from a productivity standpoint which negatively impacted margins, yes.
Jacob Johnson: Got it. And then just maybe as a follow-up on the Life Sciences segment, obviously, strong performance. Dan, it seems like from your comments, some of that was just easy comps but you also kind of struck some maybe positive tone around the longer-term outlook there. I’m just curious kind of what you’re seeing in terms of demand there as it relates to aseptic manufacturing clients because that’s been in focus somewhat this week?
Dan Carestio: Yes. It’s funny. In the Life Science business, when we ship in revenue product, that’s really the anxious history for us because oftentimes, those are orders booked a year in advance. And we — as you indicated, we had really fairly easy comparisons to our Q3 last year in terms of shipments. And then if you recall, we had a really nice Q4. So I think it’s those two things. We’re not ready to raise the flag yet in terms of a long-term view of what’s going on in aseptic manufacturing demand. We know that the long term is a great outlook. But short term, there’s still some destocking that’s going on and there’s still some pressure on big pharma right now. But in generally, long term, clearly aseptic drugs, injectable drugs, biologics, cell and gene therapy, all those type of things, all those markets we serve with sterilization type products and services are going to be in high demand.
Operator: Our next question comes from Michael Polark from Wolfe Research.
Michael Polark: Might be too early but I’d be curious for puts and takes as we move into fiscal ’25. Penciling out the model here last night, see a path to 6% organic revenue growth, maybe a touch better pending AST and the historical STERIS posture on EBIT margin, 30, 50 bps of expansion and that feels fair for now. I just — as you get ready to plan for next year, do you feel like the environment allows for — I mean, at — knowing there’s portfolio puts and takes but at an overall STERIS level, do you feel like it sets you out to shoot for that normal STERIS algorithm? Or do you see it differently at this early stage?
Mike Tokich: Mike, your opening comment it’s a bit too early for us to comment at this point in time. You answered your own question there a little bit. Obviously, we’re in the middle of our planning process. We will, as we typically do, provide FY ’25 guidance in May on our full year fourth quarter call. So that’s where we stand right now.
Michael Polark: Had to try. AST — I guess the AST question is two-part. Obviously, we see procedures are back. I mean medtech probably behaving well. You’re saying the U.S. is good. OUS, still a little iffy. OUS, is there any kind of COVID product category that’s still contributing to this? I’m thinking of PPE? Or is it just the European kind of procedure recovery is more sober and that’s it?
