Sotera Health (SHC) Company Report

The sterilization market is approximately two-thirds outsourced, with SHC expecting to maintain 3%-4% annual price gains despite new capacity coming online.
New NSHAP regulations, extended beyond April 2026, are prompting some customers to outsource sterilization, including one significant customer transitioning volume to SHC from late 2026 into 2027/2028.
SHC projects CapEx to decrease after 2026, following investments in cobalt development and NSHAP compliance, with maintenance CapEx around $60 million +/- $10 million.
The company targets reducing net leverage from 3.3x to 2x-3x by the end of 2027, while aiming for 5%-7% top-line growth and $500-$600 million in free cash flow between 2025-2027.
SHC remains confident in its Nordion business, which boasts 60% margins, and believes it has de-risked EO litigation, citing favorable outcomes when science is presented in court.

2 days ago

Transcript

Sotera Health Discusses Strategic Priorities and Financial Outlook

SHC

Guidance Update

New Projects/Investments

Legal Proceedings

Sotera Health (SHC) anticipates 3%-4% price increases annually for the total company, with its Sterigenics segment at the higher end, noting that sterilization costs are typically less than 5% of customer product costs.
The company aims to reduce its net leverage from 3.3x to a target range of 2-3x by the end of 2027, projecting $500-$600 million in free cash flow generation between 2025 and 2027, alongside a goal of 5%-7% top-line growth.
CapEx is currently elevated due to cobalt development and $200 million in NSHAP compliance investments over multiple years, but is expected to decrease, with maintenance CapEx anticipated to be around $60 million ± $10 million.
SHC plans to bring one new facility online next year and another in late 2027/early 2028, typically aiming to secure 40% of capacity with customer commitments before commencing construction.
The company highlights its Nordion business as a strong asset with 60%+ margins, being the sole global Cobalt-60 player and fully integrated in the supply chain.

2 days ago

Transcript

Sotera Health Outlines Growth, Capital Allocation, and Regulatory Impact

SHC

Guidance Update

New Projects/Investments

Legal Proceedings

Sotera Health aims to achieve 2-3x net leverage by the end of 2027, targeting 5-7% top-line growth and $500-$600 million in free cash flow between 2025 and 2027.
The company plans to bring one new facility online next year and another in late 2027 (potentially 2028), typically securing 40% of capacity commitments before construction.
CapEx is currently elevated due to cobalt development and approximately $200 million for NSHAP compliance, but is projected to decline towards a maintenance level of around $60 million +/- $10 million.
New NSHAP regulations for ethylene oxide sterilizers, though extended beyond April 2026, are challenging, leading one significant customer to transition their in-house sterilization to Sotera Health starting in late 2026.
Sotera Health expects to maintain 3-4% annual price increases across the company, with Sterigenics at the higher end, given that sterilization represents less than 5% of customer product costs.

2 days ago

Transcript

Sotera Health Reports Strong Q3 Performance and Outlines 2025-2027 Growth Outlook

SHC

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Sotera Health reported Q3 2025 top line growth of 9% and adjusted EBITDA growth of 12.2%, with year-to-date top line growth of 6% and adjusted EBITDA growth of 10%.
The company projects organic top line growth of 5-7% and bottom line growth of 5-8% for 2025-2027, expecting $500 million-$600 million in free cash flow over this three-year period.
Sotera Health is focused on capital allocation for organic growth, including investments in new X-ray facilities and cobalt-60 development, while maintaining approximately $900 million in liquidity and working to reduce its 3.3 times net leverage.
The company's three core businesses, Sterigenics, Nordion, and Nelson Labs, have organic growth targets ranging from low single digits to high single digits, with Nelson Labs experiencing significant margin expansion.

Nov 19, 2025, 1:30 PM

Transcript

Sotera Health Provides Business Update and Outlook at Jefferies Conference

SHC

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Sotera Health reported strong recent financial performance, with Q3 top line growth of 9% and adjusted EBITDA growth of 12.2%, contributing to year-to-date top line growth of 6% and adjusted EBITDA growth of 10%.
The company provided a long-range outlook for 2025-2027, targeting 5-7% organic top line growth, 5-8% bottom line growth, and $500 million to $600 million in free cash flow over the three-year period.
Strategic capital allocation focuses on organic growth investments, including a new X-ray facility opening in early 2026, and debt reduction, having recently made a $75 million payment and lowered interest rates by 75 basis points.
Comprising Sterigenics, Nordion, and Nelson Labs, Sotera Health serves an $18 billion addressable market, with a history of consistent revenue growth every year since 2005.

Nov 19, 2025, 1:30 PM

Transcript

Sotera Health Reports Strong Q3 Performance and Outlines 2025-2027 Growth Outlook

SHC

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Sotera Health reported strong financial results for the third quarter, with 9% top-line growth, 12.2% adjusted EBITDA growth, and $0.09 adjusted EPS. Year-to-date, top-line grew 6%, adjusted EBITDA 10%, and adjusted EPS was $0.11.
The company projects a long-range organic top-line growth of 5-7% and bottom-line growth of 5-8% for 2025 to 2027, with anticipated free cash flow of $500 million to $600 million over this three-year period.
Sotera Health maintains approximately $900 million in liquidity and is actively reducing its net leverage, currently at approximately 3.3 times, towards a target of 2 to 3 times. Recent actions include a $75 million debt payment and a 75 basis point reduction in interest rates.
Strategic priorities include investing in organic growth, with significant CapEx allocated to new facilities (e.g., an X-ray facility opening in early 2026) and cobalt-60 development to ensure long-term supply. The company also seeks opportunistic, strategic M&A, particularly for geographic expansion in Sterigenics and pharma capabilities in Nelson Labs.

Nov 19, 2025, 1:30 PM

Transcript

Sotera Health Discusses Business Performance, Strategic Investments, and Litigation Updates

SHC

Revenue Acceleration/Inflection

New Projects/Investments

Legal Proceedings

Sotera Health's largest business is experiencing volume acceleration, with Q2 2024 volumes up 6% and Q3 2024 up 5%, and aims for mid to high single-digit growth long-term.
The company is completing a $200 million ethylene oxide (EO) plant modernization program by the end of 2026 and expects to recover costs through incremental pricing, adding to its 3-4% overall pricing objective.
Sotera Health has strengthened its balance sheet, achieving very low three net debt to EBITDA and $900 million of liquidity, and plans to pursue disciplined tuck-in acquisitions across its segments.
The company has seen positive developments in its litigation, including wins on specific causation in Georgia, which it believes positions it well to manage the remaining risk.

Nov 17, 2025, 6:20 PM

Transcript

Sotera Health Company Selling Stockholders Complete Secondary Offering

SHC

On November 6, 2025, Sotera Health Company, certain stockholders (Selling Stockholders), and Goldman Sachs & Co. LLC entered into an underwriting agreement for the sale of 30,000,000 shares of the Company's common stock.
The Selling Stockholders sold the shares to the Underwriter on November 10, 2025, at a price of $15.651 per share, with a public offering price of $15.70 per share.
The Company did not issue or sell any shares of common stock in this transaction and will not receive any proceeds from the sale by the Selling Stockholders.
The Selling Stockholders included Bull Holdco, L.P., Bull Co-Invest L.P., GTCR Fund XI/A LP, GTCR Fund XI/C LP, and GTCR Co-Invest XI LP, among others, collectively selling 30,000,000 shares.

Nov 10, 2025, 9:06 PM

8-K

Sotera Health Reports Strong Q3 2025 Results and Raises Full-Year Adjusted EBITDA and EPS Outlook

SHC

Earnings

Guidance Update

Legal Proceedings

Sotera Health reported strong Q3 2025 financial results, with total revenues increasing 9.1% to $311 million and Adjusted EBITDA growing 12.2% to $164 million, leading to an Adjusted EPS of $0.26.
The company strengthened its balance sheet by paying down $75 million of debt, which is expected to generate approximately $13 million in annual interest savings, and improved its net leverage ratio to 3.3x at quarter-end.
Full-year 2025 guidance was updated, with the Adjusted EBITDA outlook raised to 6.75%-7.75% constant currency growth and Adjusted EPS increased to a range of $0.81-$0.86. Capital expenditures guidance was lowered to $125 million-$135 million.
Nordion secured a 25-year renewal of its Class 1B operating license, and its full-year 2025 constant currency revenue growth outlook was raised to mid to high single digits.
In legal proceedings, the Georgia Court of Appeals rejected the trial court's "new standard" for ethylene oxide claims, and the trial court dismissed three bellwether cases due to plaintiffs' failure to present reliable evidence of specific causation.

Nov 4, 2025, 2:00 PM

Transcript

Sotera Health Reports Strong Q3 2025 Results, Raises Full-Year EBITDA and EPS Outlook

SHC

Earnings

Guidance Update

Legal Proceedings

Sotera Health reported strong Q3 2025 financial results, with total company revenues increasing 9.1% to $311 million and Adjusted EBITDA growing 12.2% to $164 million. Adjusted EPS rose by $0.09 to $0.26 compared to Q3 2024.
The company reaffirmed its 2025 revenue outlook and raised its Adjusted EBITDA outlook to 6.75%-7.75% constant currency growth. The Adjusted EPS outlook was also raised to $0.81-$0.86.
Sotera Health strengthened its balance sheet by paying down $75 million of debt, improving its net leverage ratio to 3.3 times at quarter-end.
Nordion secured a 25-year renewal of its Class 1B operating license, the longest Class 1B license ever granted by the Canadian Nuclear Safety Commission.
In litigation news, the Georgia Court of Appeals rejected the trial court's "new standard" for ethylene oxide (EO) causation, and the trial court dismissed three bellwether cases in Cobb County for failure to present reliable specific causation evidence.

Nov 4, 2025, 2:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Sotera Health.

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