Sotera Health Reports Strong Second-Quarter and First-Half 2025 Results
Sotera Health (NASDAQ:SHC) reported strong Q2 2025 results with net revenues increasing 6.4% to $294 million. The company posted net income of $8 million ($0.03 per diluted share) and Adjusted EBITDA grew 9.8% to $151 million.
Key segment performance includes Sterigenics' revenue growth of 10.5% to $195 million, Nordion's increase of 2.9% to $42 million, while Nelson Labs saw a decline of 3.3% to $57 million. The company raised its full-year 2025 outlook, now expecting net revenue growth of 4.5% - 6.0% and Adjusted EBITDA growth of 6.0% - 7.5% on a constant currency basis.
The company maintains a strong balance sheet with $2.3 billion in total debt and $332 million in unrestricted cash, with an improved Net Leverage Ratio of 3.5x.
[ "Q2 net revenues increased 6.4% to $294 million", "Adjusted EBITDA grew 9.8% to $151 million with 160 basis points margin expansion", "Sterigenics segment showed strong 10.5% revenue growth to $195 million", "Company raised full-year 2025 outlook for revenue and Adjusted EBITDA", "Net Leverage Ratio improved to 3.5x from 3.7x", "No balance outstanding on $600 million revolving credit facility" ]Sotera Health (NASDAQ:SHC) ha riportato risultati solidi nel secondo trimestre del 2025, con ricavi netti in aumento del 6,4% a 294 milioni di dollari. L'azienda ha registrato un utile netto di 8 milioni di dollari (0,03 dollari per azione diluita) e l'EBITDA rettificato è cresciuto del 9,8% a 151 milioni di dollari.
Le performance chiave per segmento includono una crescita dei ricavi di Sterigenics del 10,5% a 195 milioni di dollari, un aumento di Nordion del 2,9% a 42 milioni, mentre Nelson Labs ha registrato un calo del 3,3% a 57 milioni. La società ha rivisto al rialzo le previsioni per l'intero anno 2025, prevedendo ora una crescita dei ricavi netti tra il 4,5% e il 6,0% e una crescita dell'EBITDA rettificato tra il 6,0% e il 7,5% a tassi di cambio costanti.
L'azienda mantiene un bilancio solido con 2,3 miliardi di dollari di debito totale e 332 milioni di dollari in liquidità non vincolata, con un miglioramento del rapporto di leva finanziaria netta a 3,5x.
- I ricavi netti del secondo trimestre sono aumentati del 6,4% a 294 milioni di dollari
- L'EBITDA rettificato è cresciuto del 9,8% a 151 milioni di dollari con un'espansione del margine di 160 punti base
- Il segmento Sterigenics ha mostrato una forte crescita dei ricavi del 10,5% a 195 milioni di dollari
- La società ha aumentato le previsioni per il 2025 per ricavi ed EBITDA rettificato
- Il rapporto di leva finanziaria netta è migliorato a 3,5x da 3,7x
- Non ci sono saldi in sospeso sulla linea di credito revolving da 600 milioni di dollari
Sotera Health (NASDAQ:SHC) reportó sólidos resultados en el segundo trimestre de 2025, con ingresos netos que aumentaron un 6,4% hasta los 294 millones de dólares. La compañía registró un ingreso neto de 8 millones de dólares (0,03 dólares por acción diluida) y el EBITDA ajustado creció un 9,8% hasta los 151 millones de dólares.
El desempeño clave por segmento incluye un crecimiento de ingresos de Sterigenics del 10,5% hasta 195 millones de dólares, un aumento de Nordion del 2,9% hasta 42 millones, mientras que Nelson Labs experimentó una caída del 3,3% hasta 57 millones. La empresa elevó su perspectiva para todo el año 2025, ahora esperando un crecimiento de ingresos netos entre el 4,5% y el 6,0% y un crecimiento del EBITDA ajustado entre el 6,0% y el 7,5% en base a moneda constante.
La compañía mantiene un balance sólido con 2,3 mil millones de dólares en deuda total y 332 millones de dólares en efectivo no restringido, con una mejora en la ratio de apalancamiento neto a 3,5x.
- Los ingresos netos del segundo trimestre aumentaron un 6,4% a 294 millones de dólares
- El EBITDA ajustado creció un 9,8% a 151 millones de dólares con una expansión del margen de 160 puntos básicos
- El segmento Sterigenics mostró un fuerte crecimiento de ingresos del 10,5% a 195 millones de dólares
- La compañía elevó la perspectiva para todo el año 2025 para ingresos y EBITDA ajustado
- La ratio de apalancamiento neto mejoró a 3,5x desde 3,7x
- No hay saldo pendiente en la línea de crédito revolvente de 600 millones de dólares
Sotera Health (NASDAQ:SHC)는 2025년 2분기에 견고한 실적을 보고했으며, 순매출은 6.4% 증가한 2억 9400만 달러를 기록했습니다. 회사는 800만 달러(희석 주당 0.03달러)의 순이익을 기록했으며, 조정 EBITDA는 9.8% 증가한 1억 5100만 달러를 기록했습니다.
주요 부문별 실적은 Sterigenics 매출이 10.5% 증가하여 1억 9500만 달러, Nordion은 2.9% 증가하여 4200만 달러, Nelson Labs는 3.3% 감소하여 5700만 달러를 기록했습니다. 회사는 2025년 전체 전망을 상향 조정하여, 순매출 성장률을 4.5%에서 6.0%, 조정 EBITDA 성장률을 6.0%에서 7.5%로 예상하고 있습니다(환율 고정 기준).
회사는 총 부채 23억 달러와 자유 현금 3억 3200만 달러를 보유하며, 순부채비율이 3.5배로 개선된 견고한 재무구조를 유지하고 있습니다.
- 2분기 순매출이 6.4% 증가하여 2억 9400만 달러 기록
- 조정 EBITDA가 9.8% 증가하여 1억 5100만 달러, 마진 160 베이시스 포인트 확대
- Sterigenics 부문이 10.5% 매출 성장으로 1억 9500만 달러 기록
- 회사가 2025년 전체 매출 및 조정 EBITDA 전망을 상향 조정
- 순부채비율이 3.7배에서 3.5배로 개선
- 6억 달러 회전 신용 한도에 미결제 잔액 없음
Sotera Health (NASDAQ:SHC) a annoncé de solides résultats pour le deuxième trimestre 2025, avec des revenus nets en hausse de 6,4% à 294 millions de dollars. La société a enregistré un bénéfice net de 8 millions de dollars (0,03 dollar par action diluée) et l'EBITDA ajusté a augmenté de 9,8% à 151 millions de dollars.
Les performances clés par segment incluent une croissance des revenus de Sterigenics de 10,5% à 195 millions de dollars, une augmentation de Nordion de 2,9% à 42 millions, tandis que Nelson Labs a connu une baisse de 3,3% à 57 millions. L'entreprise a relevé ses prévisions pour l'ensemble de l'année 2025, prévoyant désormais une croissance des revenus nets comprise entre 4,5% et 6,0% et une croissance de l'EBITDA ajusté entre 6,0% et 7,5% en monnaie constante.
La société maintient un bilan solide avec 2,3 milliards de dollars de dette totale et 332 millions de dollars de trésorerie non restreinte, avec un ratio d'endettement net amélioré à 3,5x.
- Les revenus nets du deuxième trimestre ont augmenté de 6,4% pour atteindre 294 millions de dollars
- L'EBITDA ajusté a progressé de 9,8% à 151 millions de dollars avec une expansion de marge de 160 points de base
- Le segment Sterigenics a affiché une forte croissance des revenus de 10,5% à 195 millions de dollars
- L'entreprise a relevé ses prévisions pour l'année complète 2025 concernant les revenus et l'EBITDA ajusté
- Le ratio d'endettement net s'est amélioré à 3,5x contre 3,7x
- Aucun solde impayé sur la facilité de crédit renouvelable de 600 millions de dollars
Sotera Health (NASDAQ:SHC) meldete starke Ergebnisse für das zweite Quartal 2025 mit einem Nettoumsatzanstieg von 6,4% auf 294 Millionen US-Dollar. Das Unternehmen erzielte einen Nettogewinn von 8 Millionen US-Dollar (0,03 US-Dollar je verwässerter Aktie) und das bereinigte EBITDA stieg um 9,8% auf 151 Millionen US-Dollar.
Die wichtigsten Segmentergebnisse umfassen ein Umsatzwachstum bei Sterigenics von 10,5% auf 195 Millionen US-Dollar, eine Steigerung bei Nordion um 2,9% auf 42 Millionen US-Dollar, während Nelson Labs einen Rückgang von 3,3% auf 57 Millionen US-Dollar verzeichnete. Das Unternehmen hat seine Prognose für das Gesamtjahr 2025 angehoben und erwartet nun ein Nettoumsatzwachstum von 4,5% bis 6,0% sowie ein Wachstum des bereinigten EBITDA von 6,0% bis 7,5% bei konstanten Wechselkursen.
Das Unternehmen verfügt über eine solide Bilanz mit 2,3 Milliarden US-Dollar Gesamtschulden und 332 Millionen US-Dollar ungebundenen Barmitteln, wobei sich das Nettoverschuldungsverhältnis auf 3,5x verbessert hat.
- Die Nettoumsätze im zweiten Quartal stiegen um 6,4% auf 294 Millionen US-Dollar
- Das bereinigte EBITDA wuchs um 9,8% auf 151 Millionen US-Dollar bei einer Margenausweitung um 160 Basispunkte
- Das Segment Sterigenics zeigte ein starkes Umsatzwachstum von 10,5% auf 195 Millionen US-Dollar
- Das Unternehmen hat die Prognose für das Gesamtjahr 2025 für Umsatz und bereinigtes EBITDA angehoben
- Das Nettoverschuldungsverhältnis verbesserte sich von 3,7x auf 3,5x
- Keine ausstehenden Salden auf der revolvierenden Kreditlinie in Höhe von 600 Millionen US-Dollar
- None.
- $34 million settlement related to ethylene oxide claims against Sterigenics
- Net loss of $5 million for first half of 2025
- Nelson Labs revenue decreased 3.3% to $57 million
- High total debt level of $2.3 billion
Insights
Sotera Health posted solid Q2 growth with 6.4% revenue increase, margin expansion, and raised 2025 guidance despite settlement costs.
Sotera Health delivered $294 million in Q2 revenue, growing
The results reveal divergent segment performance: Sterigenics (sterilization services) acted as the growth engine with
Despite strong operational results, reported net income remained essentially flat at
Management's decision to raise full-year guidance across key metrics (revenue growth to
The reduced capital expenditure forecast (
- Q2 2025 net revenues increased
6.4% to$294 million , or6.0% on a constant currency basis(1), compared to Q2 2024 - Q2 2025 net income of
$8 million or$0.03 per diluted share, compared to net income of$9 million or$0.03 per diluted share in Q2 2024 - Q2 2025 Adjusted EBITDA(1) increased
9.8% to$151 million , or9.5% on a constant currency basis, compared to Q2 2024 - Q2 2025 Adjusted EPS(1) of
$0.20 , an increase of$0.01 per diluted share, compared to Adjusted EPS of$0.19 in Q2 2024 - Raising both full-year 2025 net revenues outlook to
4.5% -6.0% and Adjusted EBITDA outlook to6.0% -7.5% , on a constant currency basis
CLEVELAND, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Sotera Health Company (“Sotera Health” or the “Company”) (Nasdaq: SHC), a leading global provider of mission-critical end-to-end sterilization solutions, lab testing and advisory services for the healthcare industry, today announced financial results for the three- and six- months ended June 30, 2025.
Second-quarter 2025 net revenues increased
For the first six months of 2025, net revenues increased
“We are pleased to announce that we delivered more than
Petras continued, “With improving momentum through the first half of the year, we are raising our full-year outlook for revenue, Adjusted EBITDA and Adjusted EPS, reflecting our confidence in continued execution and performance.”
________________________
(1) This is non-GAAP financial measure used throughout this press release; please refer to the section “Non-GAAP Financial Measures” for explanations of our non-GAAP financial measures and the schedules provided later in this release for reconciliations of reported GAAP to non-GAAP financial measures.
Second-Quarter and First-Half 2025 Review by Business Segment
Sterigenics
Sterigenics delivered strong results for the second-quarter 2025 with net revenues up
Revenue growth for the quarter was primarily driven by favorable volume and mix, pricing, and changes in foreign currency exchange rates. Segment income and segment income margin increased for the quarter due to favorable volume and mix, as well as pricing, partially offset by inflation.
Nordion
Nordion net revenues increased
Revenue growth for the quarter was driven by favorable pricing, as well as volume and mix, partially offset by unfavorable changes in foreign currency exchange rates. Segment income margin decreased primarily due to supplier mix.
Nelson Labs
Nelson Labs net revenues decreased
Change in revenues for the quarter were driven by improvement in core lab testing services, favorable pricing, and changes in foreign currency exchange rates, offset by a decline in expert advisory services revenues. Segment income and segment income margin increases were driven by volume and mix improvements, lab optimization, and favorable pricing.
Balance Sheet and Liquidity
As of June 30, 2025, Sotera Health had
2025 Outlook Update
Sotera Health is providing an update to its full-year 2025 outlook:
- Net revenues growth range raised to
4.5% -6.0% from4.0% -6.0% , on a constant currency basis, - Adjusted EBITDA growth range raised to
6.0% -7.5% from4.5% -6.5% , on a constant currency basis,- Foreign currency impact on full-year net revenues and Adjusted EBITDA expected to be neutral, based on average second-quarter 2025 exchange rates,
- Interest Expense in the range of
$155 million to$165 million , - Tax rate applicable to Adjusted Net Income(1) range improved to
31.5% -33.5% from33% -35% , - Adjusted EPS range raised to
$0.75 -$0.82 from$0.70 -$0.76 , - A weighted-average fully diluted share count in the range of 286 million to 287 million shares, and
- Capital expenditures are now expected to be in the range of
$170 million to$180 million , from previous outlook of$190 million to$210 million .
The Company does not provide a reconciliation for non-GAAP financial measures on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort. The Company cannot reconcile its expected Adjusted EBITDA, Tax Rate Applicable to Net Income, Adjusted Net Income and Adjusted EPS without unreasonable effort because certain items that impact net income, earnings per share and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time, including uncertainties caused by changes to the regulatory landscape, restructuring items and certain fair value measurements, all of which are potential adjustments for future earnings.
The outlook provided above contains a number of assumptions, including, among others, the Company’s current expectations regarding supply chain continuity, particularly for the supply of EO and Cobalt-60, the impact of inflationary trends, including the impact on energy prices and the supply of labor, and the expectation that average second-quarter 2025 exchange rates remain constant for the remainder of 2025. Our outlook is based on current plans and expectations and is subject to several known and unknown risks and uncertainties, including those set forth below under “Cautionary Note Regarding Forward-Looking Statements.”
Earnings Webcast
Sotera Health management will host a conference call and live webcast to discuss the Company’s financial results and operating highlights at 9:00 a.m. Eastern Daylight Time today. To participate in the live call, please dial 1-844-481-2916 (toll-free in the United States), or 1-412-317-0709 if dialing-in from other locations. A live webcast of the conference call will be accessible at this link or via the Investor Relations section of the Company’s website at Presentation & Events | Sotera Health, along with accompanying materials. A replay of the webcast will be available on the Company’s website.
Updates on recent developments in matters relevant to investors can be found on the Investor Relations section of the Sotera Health website at Investor Relations | Sotera Health. For developments related to EO, updates can be found at Ethylene Oxide | Sotera Health.
Cautionary Note Regarding Forward-Looking Statements
Unless expressly indicated or the context requires otherwise, the terms “Sotera Health,” “Company,” “we,” “us,” and “our” in this document refer to Sotera Health Company, a Delaware corporation, and, where appropriate, its subsidiaries on a consolidated basis. This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and reflects management’s expectations about future events and the Company’s operating plans and performance and speak only as of the date hereof. Forward-looking statements present our current forecasts and estimates of future events. These statements do not strictly relate to historical or current results and can be identified by words such as “anticipate,” “appear,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “seek,” “should,” “strategy,” “will” and other terms of similar meaning or import in connection with any discussion of future operating, financial or other performance. These forward-looking statements are subject to risks, uncertainties and other factors and actual results may differ materially from those results projected in the statements. These forward-looking statements are subject to various risks, uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. These risks and uncertainties include, but are not limited to, a disruption in the availability or supply of, or increases in the price of, EO, Co-60 or our other direct materials, services and supplies, including as a result of geopolitical instability and/or sanctions against Russia by the United States, Canada, United Kingdom and/or the European Union; fluctuations in foreign currency exchange rates; evolving changes in environmental, health and safety regulations or preferences, and general economic, social and business conditions; health and safety risks associated with the use, storage, transportation and disposal of potentially hazardous materials such as EO and Co-60; the impact and outcome of current and future legal proceedings and liability claims, including litigation related to the use, emissions and releases of EO from our facilities in California, Georgia, Illinois and New Mexico and the possibility that additional claims will be made in the future relating to these or other facilities; our ability to satisfy the conditions for settlement of the EO claims related to our former facility in Willowbrook, Illinois; allegations of our failure to properly perform services and potential product liability claims, recalls, penalties and reputational harm; compliance with the extensive regulatory requirements to which we are subject, the related costs, and any failures to receive or maintain, or delays in receiving, required clearances or approvals; adverse changes in industry trends; competition we face; market conditions and changes, including inflationary trends and the impact of tariffs, that impact our long-term supply contracts with variable price clauses and increase our cost of revenues; business continuity hazards, including supply chain disruptions and other risks associated with our operations; the risks of doing business internationally, including global and regional economic and political instability and compliance with various applicable laws and potentially inconsistent laws and regulations in multiple jurisdictions; our ability to increase capacity at existing facilities, build new facilities in a timely and cost-effective manner and renew leases for our leased facilities; our ability to attract and retain qualified employees; severe health events or environmental events; cybersecurity incidents, unauthorized data disclosures, and our dependence on information technology systems; an inability to pursue strategic transactions, find suitable acquisition targets, or integrate strategic acquisitions into our business successfully; our ability to maintain effective internal control over financial reporting; our reliance on intellectual property to maintain our competitive position and the risk of claims from third parties that we have infringed or misappropriated, or are infringing or misappropriating, their intellectual property rights; our ability to comply with rapidly evolving data privacy and security laws and regulations in various jurisdictions and any ineffective compliance efforts with such laws and regulations; our ability to generate profitability in future periods; impairment charges on our goodwill and other intangible assets with indefinite lives, as well as other long-lived assets and intangible assets with definite lives; the effects of unionization efforts and labor regulations in countries in which we operate; adverse changes to our tax positions in U.S. or non-U.S. jurisdictions or the interpretation and application of U.S. tax legislation or other changes in U.S. or non-U.S. taxation of our operations; and our significant leverage and how this significant leverage could adversely affect our ability to raise additional capital, limit our ability to react to challenges confronting our Company or broader changes in our industry or the economy, limit our flexibility in operating our business through restrictions contained in our debt agreements and/or prevent us from meeting our obligations under our existing and future agreements governing our indebtedness. For additional discussion of these risks and uncertainties, please refer to the Company’s filings with the Securities and Exchange Commission, such as its Annual Report on Form 10-K and quarterly reports. We do not undertake any obligation to publicly update or revise these forward-looking statements, except as otherwise required by law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements presented in accordance with GAAP, we consider Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted EPS, Net Debt and Net Leverage Ratio and constant currency, financial measures that are not based on any standardized methodology prescribed by GAAP.
We define Adjusted Net Income as net income (loss) before amortization and certain other adjustments that we do not consider in our evaluation of our ongoing operating performance from period to period.
We define Adjusted EBITDA as Adjusted Net Income before interest expense, depreciation (including depreciation of Co-60 used in our operations) and income tax provision applicable to Adjusted Net Income.
Adjusted EBITDA margin is equal to Adjusted EBITDA divided by net revenues.
Segment income margin is equal to segment income divided by net segment revenues.
We define Adjusted EPS as Adjusted Net Income divided by the weighted average number of diluted shares outstanding.
Our Net Debt is equal to our total debt net of unamortized debt issuance costs and debt discounts, less cash and cash equivalents.
Our Net Leverage Ratio is equal to Net Debt divided by Adjusted EBITDA.
Constant currency is a non-GAAP financial measure we use to assess performance excluding the impact of foreign currency exchange rate changes. We calculate constant currency net revenues by translating prior year net revenues in local currency at the average exchange rates applicable for the current period. The translated results are then used to determine year-over-year percentage increases or decreases. We generally refer to such amounts calculated on a constant currency basis as excluding the impact of foreign currency exchange rates. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.
We use these non-GAAP financial measures as the principal measures of our operating performance. Management believes these measures allow management to more effectively evaluate our operating performance and compare the results of our operations from period to period without the impact of certain non-cash items and non-routine items that we do not expect to continue at the same level in the future and other items that are not core to our operations. We believe that these measures are useful to our investors because they provide a more complete understanding of the factors and trends affecting our business than could be obtained without these measures and their disclosure. In addition, we believe these measures will assist investors in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented. Our management also uses these measurements in their financial analysis and operational decision-making and Adjusted EBITDA serves as the key metric for the attainment of our primary annual incentive program. These measures may be calculated differently from, and therefore may not be comparable to, a similarly titled measure used by other companies.
About Sotera Health
Sotera Health Company is a leading global provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the healthcare industry. Sotera Health goes to market through three businesses – Sterigenics®, Nordion® and Nelson Labs®. Sotera Health is committed to its mission, Safeguarding Global Health®.
INVESTOR RELATIONS
Jason Peterson
Vice President Investor Relations & Treasurer, Sotera Health
IR@soterahealth.com
MEDIA
Kristin Gibbs
Chief Marketing Officer, Sotera Health
kgibbs@soterahealth.com
Source: Sotera Health Company
| Sotera Health Company Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenues: | |||||||||||||||
| Service | $ | 257,244 | $ | 237,756 | $ | 481,184 | $ | 464,237 | |||||||
| Product | 37,097 | 38,838 | 67,680 | 60,533 | |||||||||||
| Total net revenues | 294,341 | 276,594 | 548,864 | 524,770 | |||||||||||
| Cost of revenues: | |||||||||||||||
| Service | 113,293 | 109,136 | 220,922 | 219,988 | |||||||||||
| Product | 14,427 | 14,667 | 25,889 | 24,876 | |||||||||||
| Total cost of revenues | 127,720 | 123,803 | 246,811 | 244,864 | |||||||||||
| Gross profit | 166,621 | 152,791 | 302,053 | 279,906 | |||||||||||
| Selling, general and administrative expenses | 68,893 | 60,575 | 131,954 | 118,784 | |||||||||||
| Amortization of intangible assets | 9,298 | 15,417 | 24,625 | 31,149 | |||||||||||
| Illinois EO litigation settlements | 34,000 | — | 64,943 | — | |||||||||||
| Interest expense, net | 40,651 | 40,388 | 81,527 | 82,159 | |||||||||||
| Loss on refinancing of debt | 80 | 23,400 | 80 | 24,090 | |||||||||||
| Foreign exchange loss (gain) | 627 | (611 | ) | 916 | (1,183 | ) | |||||||||
| Other income, net | (5,825 | ) | (1,520 | ) | (6,066 | ) | (1,249 | ) | |||||||
| Income before income taxes | 18,897 | 15,142 | 4,074 | 26,156 | |||||||||||
| Provision for income taxes | 10,935 | 6,388 | 9,372 | 11,079 | |||||||||||
| Net income (loss) | $ | 7,962 | $ | 8,754 | $ | (5,298 | ) | $ | 15,077 | ||||||
| Earnings (Loss) per share: | |||||||||||||||
| Basic | $ | 0.03 | $ | 0.03 | $ | (0.02 | ) | $ | 0.05 | ||||||
| Diluted | 0.03 | 0.03 | (0.02 | ) | 0.05 | ||||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||
| Basic | 283,933 | 282,894 | 283,747 | 282,403 | |||||||||||
| Diluted | 285,756 | 284,541 | 283,747 | 284,264 | |||||||||||
| Sotera Health Company Segment Data (in thousands) (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Segment revenues: | |||||||||||||||
| Sterigenics | $ | 194,839 | $ | 176,354 | $ | 364,523 | $ | 342,851 | |||||||
| Nordion | 42,431 | 41,244 | 74,988 | 65,251 | |||||||||||
| Nelson Labs | 57,071 | 58,996 | 109,353 | 116,668 | |||||||||||
| Total net revenues | $ | 294,341 | $ | 276,594 | $ | 548,864 | $ | 524,770 | |||||||
| Segment income: | |||||||||||||||
| Sterigenics | $ | 107,745 | $ | 96,778 | $ | 195,749 | $ | 182,596 | |||||||
| Nordion | 23,477 | 23,420 | 40,899 | 34,205 | |||||||||||
| Nelson Labs | 19,513 | 17,137 | 35,926 | 32,478 | |||||||||||
| Total segment income | 150,735 | 137,335 | 272,574 | 249,279 | |||||||||||
| Less adjustments: | |||||||||||||||
| Interest expense, net | $ | 40,651 | $ | 40,388 | $ | 81,527 | $ | 82,159 | |||||||
| Depreciation and amortization(a) | 34,948 | 39,830 | 75,682 | 80,260 | |||||||||||
| Share-based compensation(b) | 8,149 | 10,206 | 15,418 | 18,863 | |||||||||||
| Loss on refinancing of debt(c) | 80 | 23,400 | 80 | 24,090 | |||||||||||
| (Gain) Loss on foreign currency and derivatives not designated as hedging instruments, net(d) | (3,018 | ) | (698 | ) | (1,127 | ) | 532 | ||||||||
| Business optimization expenses(e) | 2,430 | 613 | 4,477 | 1,784 | |||||||||||
| Professional services relating to EO sterilization facilities(f) | 14,035 | 7,818 | 26,363 | 14,157 | |||||||||||
| Illinois EO litigation settlements(g) | 34,000 | — | 64,943 | — | |||||||||||
| Accretion of asset retirement obligation(h) | 563 | 636 | 1,137 | 1,278 | |||||||||||
| Consolidated income before income taxes | $ | 18,897 | $ | 15,142 | $ | 4,074 | $ | 26,156 | |||||||
| (a) | Includes depreciation of Co-60 held at gamma irradiation sites. The three and six months ended June 30, 2025 exclude accelerated depreciation associated with business optimization activities. |
| (b) | Represents share-based compensation expense related to employees and Non-Employee Directors. |
| (c) | Represents the write-off of unamortized debt issuance costs and discounts, as well as certain other costs incurred related to the Refinancing Term Loans, the Secured Notes and the Revolving Credit Facility. |
| (d) | Represents the effects of (i) fluctuations in foreign currency exchange rates and (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at Nordion. |
| (e) | Represents (i) certain costs related to divestitures, acquisitions and the integration of acquisitions, (ii) professional fees and other costs associated with business optimization, cost saving and other process enhancement projects, and (iii) legal, consulting and other fees associated with the secondary offerings and shareholder engagement. |
| (f) | Represents litigation and other professional fees associated with our EO sterilization facilities. |
| (g) | Represents (i) the cost to settle 97 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on April 3, 2025 and (ii) the cost to settle 129 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on July 23, 2025. |
| (h) | Represents non-cash accretion of ARO related to Co-60 gamma and EO sterilization facilities, which are based on estimated site remediation costs for any future decommissioning of these facilities and are accreted over the life of the asset. |
| Sotera Health Company Condensed Consolidated Balance Sheets (in thousands) (unaudited) | |||||||
| As of June 30, | As of December 31, | ||||||
| 2025 | 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 334,272 | $ | 278,865 | |||
| Accounts receivable, net | 136,557 | 140,327 | |||||
| Inventories, net | 59,949 | 49,158 | |||||
| Other current assets | 77,397 | 57,687 | |||||
| Total current assets | 608,175 | 526,037 | |||||
| Property, plant, and equipment, net | 1,080,399 | 1,036,892 | |||||
| Operating lease assets | 31,524 | 27,551 | |||||
| Other intangible assets, net | 300,109 | 317,653 | |||||
| Goodwill | 1,104,502 | 1,081,073 | |||||
| Other assets | 92,020 | 82,442 | |||||
| Total assets | $ | 3,216,729 | $ | 3,071,648 | |||
| Liabilities and equity | |||||||
| Total current liabilities | $ | 246,320 | $ | 191,002 | |||
| Long-term debt, less current portion | 2,202,651 | 2,208,100 | |||||
| Other noncurrent liabilities | 208,407 | 198,135 | |||||
| Deferred income taxes | 48,068 | 69,500 | |||||
| Total liabilities | 2,705,446 | 2,666,737 | |||||
| Total equity | 511,283 | 404,911 | |||||
| Total liabilities and equity | $ | 3,216,729 | $ | 3,071,648 | |||
| Sotera Health Company Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2025 | 2024 | ||||||
| Operating activities: | |||||||
| Net (loss) income | $ | (5,298 | ) | $ | 15,077 | ||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Non-cash items | 84,361 | 112,589 | |||||
| Changes in operating assets and liabilities | 33,874 | (56,672 | ) | ||||
| Net cash provided by operating activities | 112,937 | 70,994 | |||||
| Investing activities: | |||||||
| Purchases of property, plant and equipment | (51,147 | ) | (76,811 | ) | |||
| Other investing activities | 37 | 37 | |||||
| Net cash used in investing activities | (51,110 | ) | (76,774 | ) | |||
| Financing activities: | |||||||
| Proceeds from long-term borrowings | — | 2,259,350 | |||||
| Payments on long-term borrowings | (7,547 | ) | (2,260,600 | ) | |||
| Payments of debt issuance costs and debt discount | (2,326 | ) | (30,204 | ) | |||
| Buyout of leased facilities | — | (6,736 | ) | ||||
| Shares withheld for employee taxes on equity awards | (3,654 | ) | (2,176 | ) | |||
| Other financing activities | (1,493 | ) | (996 | ) | |||
| Net cash used in financing activities | (15,020 | ) | (41,362 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | 8,600 | (6,754 | ) | ||||
| Net increase (decrease) in cash and cash equivalents, including restricted cash | 55,407 | (53,896 | ) | ||||
| Cash and cash equivalents, including restricted cash, at beginning of period | 278,865 | 301,654 | |||||
| Cash and cash equivalents, including restricted cash, at end of period | $ | 334,272 | $ | 247,758 | |||
| Supplemental disclosures of cash flow information: | |||||||
| Cash paid during the period for interest | $ | 102,716 | $ | 111,169 | |||
| Cash paid during the period for income taxes, net of tax refunds received | 32,207 | 27,714 | |||||
| Purchases of property, plant and equipment included in accounts payable | 10,307 | 13,538 | |||||
| Sotera Health Company Non-GAAP Financial Measures (in thousands, except per share amounts) (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income (loss) | $ | 7,962 | $ | 8,754 | $ | (5,298 | ) | $ | 15,077 | ||||||
| Amortization of intangible assets | 11,924 | 19,755 | 30,598 | 39,879 | |||||||||||
| Share-based compensation(a) | 8,149 | 10,206 | 15,418 | 18,863 | |||||||||||
| Loss on refinancing of debt(b) | 80 | 23,400 | 80 | 24,090 | |||||||||||
| (Gain) Loss on foreign currency and derivatives not designated as hedging instruments, net(c) | (3,018 | ) | (698 | ) | (1,127 | ) | 532 | ||||||||
| Business optimization expenses(d) | 2,430 | 613 | 4,477 | 1,784 | |||||||||||
| Professional services relating to EO sterilization facilities(e) | 14,035 | 7,818 | 26,363 | 14,157 | |||||||||||
| Illinois EO litigation settlements(f) | 34,000 | — | 64,943 | — | |||||||||||
| Accretion of asset retirement obligation(g) | 563 | 636 | 1,137 | 1,278 | |||||||||||
| Income tax benefit associated with pre-tax adjustments(h) | (20,063 | ) | (15,297 | ) | (41,485 | ) | (24,844 | ) | |||||||
| Adjusted Net Income | 56,062 | 55,187 | 95,106 | 90,816 | |||||||||||
| Interest expense, net | 40,651 | 40,388 | 81,527 | 82,159 | |||||||||||
| Depreciation(i) | 23,024 | 20,075 | 45,084 | 40,381 | |||||||||||
| Income tax provision applicable to Adjusted Net Income(j) | 30,998 | 21,685 | 50,857 | 35,923 | |||||||||||
| Adjusted EBITDA(k) | $ | 150,735 | $ | 137,335 | $ | 272,574 | $ | 249,279 | |||||||
| Net Revenues | $ | 294,341 | $ | 276,594 | $ | 548,864 | $ | 524,770 | |||||||
| Adjusted EBITDA Margin | 51.2 | % | 49.7 | % | 49.7 | % | 47.5 | % | |||||||
| Weighted average number of shares outstanding | |||||||||||||||
| Basic | 283,933 | 282,894 | 283,747 | 282,403 | |||||||||||
| Diluted(l) | 285,756 | 284,541 | 285,684 | 284,264 | |||||||||||
| Earnings (Loss) per share | |||||||||||||||
| Basic | $ | 0.03 | $ | 0.03 | $ | (0.02 | ) | $ | 0.05 | ||||||
| Diluted | 0.03 | 0.03 | (0.02 | ) | 0.05 | ||||||||||
| Adjusted earnings per share | |||||||||||||||
| Basic | $ | 0.20 | $ | 0.20 | $ | 0.34 | $ | 0.32 | |||||||
| Diluted | 0.20 | 0.19 | 0.33 | 0.32 | |||||||||||
| (a) | Represents share-based compensation expense related to employees and Non-Employee Directors. |
| (b) | Represents the write-off of unamortized debt issuance costs and discounts, as well as certain other costs incurred related to the Refinancing Term Loans, the Secured Notes and the Revolving Credit Facility. |
| (c) | Represents the effects of (i) fluctuations in foreign currency exchange rates and (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at Nordion. |
| (d) | Represents (i) certain costs related to divestitures, acquisitions and the integration of acquisitions, (ii) professional fees and other costs associated with business optimization, cost saving and other process enhancement projects, and (iii) legal, consulting and other fees associated with the secondary offerings and shareholder engagement. |
| (e) | Represents litigation and other professional fees associated with our EO sterilization facilities. |
| (f) | Represents (i) the cost to settle 97 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on April 3, 2025 and (ii) the cost to settle 129 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on July 23, 2025. |
| (g) | Represents non-cash accretion of ARO related to Co-60 gamma and EO sterilization facilities, which are based on estimated site remediation costs for any future decommissioning of these facilities and are accreted over the life of the asset. |
| (h) | Represents the income tax impact of adjustments calculated based on the tax rate applicable to each item. We eliminate the effect of tax rate changes as applied to tax assets and liabilities and unusual items from our presentation of adjusted net income. |
| (i) | Includes depreciation of Co-60 held at gamma irradiation sites. The three and six months ended June 30, 2025 excludes accelerated depreciation associated with business optimization activities. |
| (j) | Represents the difference between the income tax provision or benefit as determined under U.S. GAAP and the income tax provision or benefit associated with pre-tax adjustments described in footnote (h). |
| (k) | |
| (l) | For the six months ended June 30, 2025, the diluted weighted average shares outstanding presented in this table reflects the amount that would be reported under U.S. GAAP if the Company were to have net income in the six months ended June 30, 2025. |
| Sotera Health Company Non-GAAP Financial Measures ($’s in thousands except Net Leverage) (unaudited) | |||||||
| As of June 30, | As of December 31, | ||||||
| 2025 | 2024 | ||||||
| Current portion of long-term debt | $ | 14,820 | $ | 14,803 | |||
| Long-term debt | 2,202,651 | 2,208,100 | |||||
| Current portion of finance leases | 3,237 | 2,923 | |||||
| Finance leases less current portion | 95,420 | 95,286 | |||||
| Total Debt | 2,316,128 | 2,321,112 | |||||
| Less: cash and cash equivalents | (332,437 | ) | (277,242 | ) | |||
| Net Debt | $ | 1,983,691 | $ | 2,043,870 | |||
| Adjusted EBITDA(a) | $ | 571,869 | $ | 548,574 | |||
| Net Leverage | 3.5x | 3.7x | |||||
| (a) | Represents Adjusted EBITDA for the twelve months ended June 30, 2025 and December 31, 2024, respectively. Refer to the reconciliation of net income (the most comparable GAAP measure) to Adjusted EBITDA on the following page. |
| Sotera Health Company Non-GAAP Financial Measures (in thousands) (unaudited) | |||||||
| Twelve Months Ended June 30, | Twelve Months Ended December 31, | ||||||
| 2025 | 2024 | ||||||
| Net income | $ | 24,023 | $ | 44,398 | |||
| Amortization of intangible assets | 70,096 | 79,377 | |||||
| Share-based compensation(a) | 33,451 | 36,896 | |||||
| Loss on refinancing of debt(b) | 158 | 24,168 | |||||
| Loss on foreign currency and derivatives not designated as hedging instruments, net(c) | 789 | 2,448 | |||||
| Business optimization expenses(d) | 12,061 | 9,368 | |||||
| Professional services relating to EO sterilization facilities(e) | 44,900 | 32,694 | |||||
| Illinois EO litigation settlement(f) | 64,943 | — | |||||
| Accretion of asset retirement obligation(g) | 2,497 | 2,638 | |||||
| Income tax benefit associated with pre-tax adjustments(h) | (50,128 | ) | (33,487 | ) | |||
| Adjusted Net Income | 202,790 | 198,500 | |||||
| Interest expense, net | 164,059 | 164,691 | |||||
| Depreciation(i) | 87,123 | 82,420 | |||||
| Income tax provision applicable to Adjusted Net Income(j) | 117,897 | 102,963 | |||||
| Adjusted EBITDA(k) | $ | 571,869 | $ | 548,574 | |||
| Net Revenues | $ | 1,124,535 | $ | 1,100,441 | |||
| Adjusted EBITDA Margin | 50.9 | % | 49.9 | % | |||
| (a) | Represents share-based compensation expense related to employees and Non-Employee Directors. |
| (b) | Represents the write-off of unamortized debt issuance costs and discounts, as well as certain other costs incurred related to the Refinancing Term Loans, the Secured Notes and the Revolving Credit Facility. |
| (c) | Represents the effects of (i) fluctuations in foreign currency exchange rates and (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at Nordion. |
| (d) | Represents (i) certain costs related to divestitures, acquisitions and the integration of acquisitions, (ii) professional fees and other costs associated with business optimization, cost saving and other process enhancement projects, and (iii) legal, consulting and other fees associated with the secondary offerings and shareholder engagement. |
| (e) | Represents litigation and other professional fees associated with our EO sterilization facilities. |
| (f) | Represents (i) the cost to settle 97 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on April 3, 2025 and (ii) the cost to settle 129 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on July 23, 2025. |
| (g) | Represents non-cash accretion of ARO related to Co-60 gamma and EO sterilization facilities, which are based on estimated site remediation costs for any future decommissioning of these facilities and are accreted over the life of the asset. |
| (h) | Represents the income tax impact of adjustments calculated based on the tax rate applicable to each item. We eliminate the effect of tax rate changes as applied to tax assets and liabilities and unusual items from our presentation of adjusted net income. |
| (i) | Includes depreciation of Co-60 held at gamma irradiation sites and excludes accelerated depreciation associated with business optimization activities. |
| (j) | Represents the difference between the income tax provision or benefit as determined under U.S. GAAP and the income tax provision or benefit associated with pre-tax adjustments described in footnote (h). |
| (k) |
FAQ
What were Sotera Health's (SHC) Q2 2025 earnings results?
How did Sotera Health's (SHC) different segments perform in Q2 2025?
What is Sotera Health's (SHC) updated guidance for 2025?
What is Sotera Health's (SHC) current debt position?
How much is Sotera Health's (SHC) ethylene oxide settlement?
