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Sotera Health Company (SHC) Presents at 2026 KeyBanc Capital Markets Healthcare Forum Transcript

On February 17, 2026, Sessa Capital disclosed a major buy of Sotera Health (SHC 0.55%), adding 10,630,381 shares in an estimated $175.80 million trade based on quarterly average pricing.

What happenedAccording to a filing with the Securities and Exchange Commission dated February 17, 2026, Sessa Capital purchased 10,630,381 additional shares of Sotera Health in the fourth quarter. The estimated transaction value is $175.80 million, calculated using the average closing price for the quarter. The fund’s quarter-end position value in Sotera Health rose by $206.47 million, a figure reflecting both trading activity and stock price movement.

What else to knowThe post-trade stake represents close to 7% of Sessa Capital’s 13F reportable assets under management.Top holdings after the filing:NASDAQ: WBD: $1.31 billion (26.1% of AUM)NYSE: HUM: $593.94 million (11.8% of AUM)NASDAQ: ILMN: $446.48 million (8.9% of AUM)NYSE:PCG: $394.97 million (7.9% of AUM)NYSE:COF: $377.65 millino (7.5% of AUM)As of Monday, SHC shares were priced at $13.99, up 18% over the past year and slightly outperforming the S&P 500’s roughly 15% gain in the same period as a result.Company overviewMetricValuePrice (as of Monday)$13.99Market capitalization$4.0 billionRevenue (TTM)$1.2 billionNet income (TTM)$77.9 millionCompany snapshotSotera Health offers sterilization services (gamma, electron beam, and EO processing), laboratory testing, and advisory solutions for medical device, pharmaceutical, and related industries.The firm serves medical device manufacturers, pharmaceutical companies, and food/agricultural product providers globally.It maintains a global footprint with a diversified revenue base and high customer retention.Sotera Health is a leading provider of sterilization and lab testing services, supporting critical supply chains in healthcare and life sciences. With specialized technology and regulatory expertise, it maintains recurring revenue streams and serves as a key partner to medical and pharmaceutical manufacturers worldwide.

What this transaction means for investorsSotera has built a strong track record in healthcare services, with revenue reaching about $1.16 billion and adjusted EBITDA close to $600 million last year, marking 20 years of steady growth. Typically, this kind of consistent performance commands a premium. However, the stock has dipped since the last quarter as investors focus on risks from litigation, high leverage, and regulatory concerns.

Additionally, the market has been flooded with supply. A recent secondary offering saw private equity backers dump 25 million shares, creating a technical overhang that doesn't reflect Sotera's underlying fundamentals.

In the broader portfolio, this mirrors a trend. Substantial positions in companies like Warner Bros. Discovery and Illumina indicate a willingness to embrace controversy while fundamentals remain strong, and Sotera is just outside the firm’s top five holdings by value.

For long-term investors, the crucial question is about durability. If Sotera can maintain mid-single-digit growth and effectively handle litigation risks, this recent gap between its actual performance and investor perception won't last forever.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Warner Bros. Discovery. The Motley Fool recommends Capital One Financial and Illumina. The Motley Fool has a disclosure policy.

Posted by Defense World Staff on Apr 3rd, 2026

Sotera Health Company (NASDAQ:SHC – Get Free Report) has been given a consensus rating of “Moderate Buy” by the eleven brokerages that are covering the stock, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The average 12 month target price among analysts that have covered the stock in the last year is $20.4286.

Several research analysts have weighed in on the company. Zacks Research lowered Sotera Health from a “strong-buy” rating to a “hold” rating in a report on Friday, January 30th. Piper Sandler raised Sotera Health from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $17.00 to $24.00 in a research report on Friday, January 9th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Sotera Health in a report on Monday, December 29th. William Blair initiated coverage on Sotera Health in a research report on Thursday, December 18th. They issued an “outperform” rating for the company. Finally, Wells Fargo & Company downgraded shares of Sotera Health to an “overweight” rating in a report on Thursday, January 8th.

Get Our Latest Stock Report on Sotera Health

Insider Buying and Selling at Sotera Health In other news, Director Gtcr Investment Xi Llc sold 10,000,000 shares of the stock in a transaction on Friday, March 6th. The shares were sold at an average price of $15.27, for a total transaction of $152,700,000.00. Following the completion of the sale, the director owned 12,735,301 shares of the company’s stock, valued at $194,468,046.27. This represents a 43.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 47.55% of the stock is owned by company insiders.

Hedge Funds Weigh In On Sotera Health Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Arizona State Retirement System lifted its holdings in shares of Sotera Health by 1.4% in the third quarter. Arizona State Retirement System now owns 46,183 shares of the company’s stock valued at $726,000 after purchasing an additional 621 shares in the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of Sotera Health by 10.8% during the fourth quarter. PNC Financial Services Group Inc. now owns 7,204 shares of the company’s stock worth $127,000 after buying an additional 705 shares in the last quarter. Strs Ohio raised its position in Sotera Health by 17.4% in the 4th quarter. Strs Ohio now owns 4,895 shares of the company’s stock valued at $86,000 after buying an additional 727 shares during the last quarter. Federated Hermes Inc. lifted its stake in Sotera Health by 6.0% in the 4th quarter. Federated Hermes Inc. now owns 16,676 shares of the company’s stock valued at $294,000 after acquiring an additional 944 shares in the last quarter. Finally, First Citizens Bank & Trust Co. lifted its stake in Sotera Health by 1.5% in the 4th quarter. First Citizens Bank & Trust Co. now owns 66,266 shares of the company’s stock valued at $1,169,000 after acquiring an additional 970 shares in the last quarter. 91.03% of the stock is owned by institutional investors and hedge funds.

Sotera Health Stock Up 0.6% Shares of NASDAQ SHC opened at $14.96 on Friday. Sotera Health has a 52-week low of $9.53 and a 52-week high of $19.85. The company has a debt-to-equity ratio of 3.66, a quick ratio of 2.24 and a current ratio of 2.46. The stock has a market cap of $4.25 billion, a P/E ratio of 55.41 and a beta of 1.88. The firm has a 50 day moving average price of $15.92 and a 200 day moving average price of $16.53.

Sotera Health (NASDAQ:SHC – Get Free Report) last posted its earnings results on Tuesday, February 24th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.02. Sotera Health had a net margin of 6.70% and a return on equity of 42.38%. The company had revenue of $303.44 million for the quarter, compared to analyst estimates of $300.68 million. During the same period last year, the business posted $0.21 earnings per share. The business’s revenue for the quarter was up 4.6% compared to the same quarter last year. Sotera Health has set its FY 2026 guidance at 0.930-1.01 EPS. Analysts expect that Sotera Health will post 0.61 EPS for the current year.

About Sotera Health (Get Free Report)

Sotera Health Inc (NASDAQ: SHC) is a global provider of sterilization and laboratory testing services that support the medical device, pharmaceutical, life sciences and consumer product industries. Headquartered in Jacksonville, Florida, the company offers a suite of services designed to ensure products meet rigorous safety and regulatory requirements before reaching market.

Sotera Health operates through three primary service platforms. Its Sterigenics division delivers contract sterilization solutions, including ethylene oxide (EtO), gamma irradiation, electron beam and X-ray technologies.

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Sotera Health Company (SHC - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

Therefore, the Zacks rating upgrade for Sotera Health basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Sotera Health imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Sotera HealthThis company is expected to earn $0.96 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Sotera Health. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.4%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Sotera Health to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Posted by Defense World Staff on Apr 27th, 2026

Cwm LLC grew its position in shares of Sotera Health Company (NASDAQ:SHC – Free Report) by 1,235.6% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 69,330 shares of the company’s stock after purchasing an additional 64,139 shares during the quarter. Cwm LLC’s holdings in Sotera Health were worth $1,223,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Empowered Funds LLC grew its position in Sotera Health by 11.1% during the first quarter. Empowered Funds LLC now owns 28,512 shares of the company’s stock valued at $332,000 after buying an additional 2,845 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Sotera Health by 14.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 342,934 shares of the company’s stock worth $3,999,000 after acquiring an additional 43,471 shares during the period. Acadian Asset Management LLC boosted its stake in shares of Sotera Health by 125.5% during the 1st quarter. Acadian Asset Management LLC now owns 25,192 shares of the company’s stock worth $293,000 after acquiring an additional 14,018 shares in the last quarter. Creative Planning boosted its stake in shares of Sotera Health by 15.3% during the 2nd quarter. Creative Planning now owns 20,186 shares of the company’s stock worth $224,000 after acquiring an additional 2,673 shares in the last quarter. Finally, Invesco Ltd. grew its position in shares of Sotera Health by 4.2% during the 2nd quarter. Invesco Ltd. now owns 319,156 shares of the company’s stock valued at $3,549,000 after acquiring an additional 12,758 shares during the period. 91.03% of the stock is currently owned by institutional investors and hedge funds.

Sotera Health Price Performance Shares of SHC opened at $15.58 on Monday. The stock has a 50 day moving average price of $15.17 and a 200 day moving average price of $16.50. Sotera Health Company has a one year low of $10.68 and a one year high of $19.85. The company has a debt-to-equity ratio of 3.66, a quick ratio of 2.24 and a current ratio of 2.46. The stock has a market capitalization of $4.44 billion, a price-to-earnings ratio of 57.71 and a beta of 1.88.

Sotera Health (NASDAQ:SHC – Get Free Report) last announced its quarterly earnings data on Tuesday, February 24th. The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.02. Sotera Health had a return on equity of 42.38% and a net margin of 6.70%.The company had revenue of $303.44 million for the quarter, compared to analyst estimates of $300.68 million. During the same quarter last year, the firm posted $0.21 EPS. The firm’s revenue for the quarter was up 4.6% on a year-over-year basis. Sotera Health has set its FY 2026 guidance at 0.930-1.01 EPS. Equities research analysts forecast that Sotera Health Company will post 0.88 earnings per share for the current fiscal year.

Insiders Place Their Bets In related news, Director Gtcr Investment Xi Llc sold 10,000,000 shares of the business’s stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $15.27, for a total transaction of $152,700,000.00. Following the transaction, the director directly owned 12,735,301 shares in the company, valued at approximately $194,468,046.27. The trade was a 43.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders own 15.36% of the company’s stock.

Analysts Set New Price Targets Several equities analysts recently weighed in on SHC shares. Citigroup lifted their price target on Sotera Health from $21.00 to $23.00 and gave the company a “buy” rating in a research note on Tuesday, February 24th. Barclays lowered their price target on Sotera Health from $20.00 to $18.00 and set an “overweight” rating on the stock in a research report on Tuesday, April 14th. Piper Sandler upgraded Sotera Health from a “neutral” rating to an “overweight” rating and boosted their price objective for the company from $17.00 to $24.00 in a research report on Friday, January 9th. Wells Fargo & Company downgraded Sotera Health to an “overweight” rating in a research note on Thursday, January 8th. Finally, Wall Street Zen lowered Sotera Health from a “strong-buy” rating to a “buy” rating in a research report on Saturday, April 11th. Eight equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Sotera Health has a consensus rating of “Moderate Buy” and an average price target of $20.14.

Read Our Latest Analysis on SHC

About Sotera Health (Free Report)

Sotera Health Inc (NASDAQ: SHC) is a global provider of sterilization and laboratory testing services that support the medical device, pharmaceutical, life sciences and consumer product industries. Headquartered in Jacksonville, Florida, the company offers a suite of services designed to ensure products meet rigorous safety and regulatory requirements before reaching market.

Sotera Health operates through three primary service platforms. Its Sterigenics division delivers contract sterilization solutions, including ethylene oxide (EtO), gamma irradiation, electron beam and X-ray technologies.

Further Reading Five stocks we like better than Sotera Health

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Q1 2026 net revenues increased 10.0%, or 6.5% on a constant currency basis, compared to Q1 2025Q1 2026 net income of $27 million or $0.09 per diluted share, compared to a net loss of $13 million or $0.05 per diluted share in Q1 2025Q1 2026 Adjusted EBITDA(1) increased 10.5%, or 6.9% on a constant currency basisQ1 2026 Adjusted EPS(1) of $0.18, an increase of 29% per diluted shareCompany reaffirms full-year 2026 outlook of 5.0% - 6.5% net revenues growth and 5.5% - 7.0% Adjusted EBITDA growth, both on a constant currency basisCompany announced planned CEO transition in a separate release today CLEVELAND, May 05, 2026 (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 months ended March 31, 2026.

“We delivered a strong start to the year, with solid revenue and Adjusted EBITDA growth while driving margin expansion,” said Chairman and Chief Executive Officer, Michael B. Petras, Jr. “Growth was driven by disciplined execution at Sterigenics and Nordion, and Nelson Labs came in as we outlined on our fourth-quarter 2025 earnings call. Based on our first-quarter performance, we are reaffirming our 2026 outlook and remain confident in our trajectory for the remainder of the year.”

Petras continued, “In addition to adding Rich Kyle to our Board of Directors in February, we are also excited to welcome Ken Krause, who joined our Board in March. Ken’s leadership and proven track record of creating shareholder value as a public company chief financial officer for over 10 years, and his extensive experience in strategy, finance and governance will be tremendous assets as we continue to grow.”

First-Quarter 2026 Highlights
(All comparisons are against first quarter of 2025, unless otherwise noted)

Delivered solid top- and bottom-line constant currency revenue growthExpanded Adjusted EBITDA marginsSterigenics: 6.1% constant currency revenue growth, driven by price and volume/mixNordion: 25.8% constant currency revenue growth; margin improvement of over 290 basis pointsNelson Labs: constant currency revenue and segment income margins as expectedNet cash provided by operating activities of $29 million, inclusive of a previously disclosed $34 million legal settlementAs of March 31, 2026, Net Leverage Ratio(1) of 3.2x and over $900 million in available liquidityAdded two independent directors to the Board of Directors, further strengthening Board skill setPublic float increased to approximately 90% of outstanding shares
_____________________________
(1) This is a 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.

First-Quarter Review by Business Segment
(All comparisons are against first quarter of 2025, unless otherwise noted)

Sterigenics

Sterigenics delivered solid first-quarter 2026 results, with net revenues up 9.7% to $186 million, or 6.1% on a constant currency basis. Segment income was $96 million, an increase of 9.6%.

Net revenues growth was driven by favorable pricing, foreign currency benefits and improved volume/mix. Segment income was also driven by these factors, partially offset by higher costs.

Nordion

Nordion first quarter net revenues were up 29.0% to $42 million, or 25.8% on a constant currency basis while segment income increased 36.1% to $24 million.

Net revenues growth was driven by volume/mix benefits due to timing of cobalt-60 harvest schedules, as well as foreign currency tailwinds and favorable pricing. Segment income and segment income margin growth were also driven by these factors, partially offset by inflation.

Nelson Labs

Nelson Labs first quarter net revenues were $52 million, a decrease of 0.7%, or 3.8% on a constant currency basis while segment income decreased 11.5% to $15 million.

Net revenues, segment income and segment income margin differences were driven by unfavorable volume/mix, partially offset by foreign currency benefits and favorable pricing.

Reaffirming 2026 Outlook

The 2026 outlook below, first provided on February 24, 2026, remains unchanged:

Net revenues in the range of $1.233 billion to $1.251 billion, representing constant currency growth of 5.0% to 6.5% and an estimated 100bps foreign currency benefitAdjusted EBITDA in the range of $632 million to $641 million, representing constant currency growth of 5.5% to 7.0% and an estimated 100bps foreign currency benefitInterest expense in the range of $135 million to $145 millionTax rate applicable to Adjusted Net Income(1) in the range of 27.0% to 29.0%Adjusted EPS in the range of $0.93 to $1.01A weighted-average fully diluted share count in the range of 289 million to 291 million sharesCapital expenditures in the range of $175 million to $225 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, Adjusted Net Income Tax Rate, 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 ethylene oxide (“EO”) and Cobalt-60, and the impact of inflationary trends including their impact on energy prices and the supply of labor. 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 operating highlights and financial results at 9:00 a.m. Eastern Daylight Time today. 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 archived on the Company’s website.

Upcoming Investor Events

RBC Capital Markets Global Healthcare Conference at 3:05 p.m. Eastern Daylight Time, May 19, 2026Sotera Health 2026 Annual Meeting of Stockholders at 9:00 a.m. Eastern Daylight Time, May 21, 20262026 Jefferies Global Healthcare Conference at 2:35 p.m. Eastern Daylight Time, June 3, 2026Goldman Sachs 47th Annual Global Healthcare Conference at 11:20 a.m. Eastern Daylight Time, June 8, 2026 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 release 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, the United Kingdom and/or the European Union, or sanctions by Russia against those countries; fluctuations in foreign currency exchange rates; evolving changes in environmental, health and safety regulations; 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 current and former EO sterilization facilities and the possibility that additional claims will be made in the future; 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, federal government shutdowns, 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; the risks associated with the introduction of artificial intelligence technology; 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 rights 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; our significant degree of leverage and how this leverage could adversely affect our ability to raise additional capital, limit our ability to react to challenges facing 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; and the influence that certain investment funds and entities affiliated with Warburg Pincus and GTCR continue to have over us. 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 Tax Rate, Adjusted Net Income, Adjusted EPS, Segment income margin, 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 Cobalt-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, plus 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, 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®.

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.

INVESTOR RELATIONS CONTACT
Jason Peterson
Vice President Investor Relations
[email protected]

MEDIA CONTACT
Kristin Gibbs
Chief Marketing Officer
[email protected]

Source: Sotera Health Company

Sotera Health Company
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)  Three Months Ended March 31,   2026   2025 Revenues:    Service $241,608  $223,940 Product  38,437   30,583 Total net revenues  280,045   254,523 Cost of revenues:    Service  118,828   107,629 Product  14,148   11,462 Total cost of revenues  132,976   119,091 Gross profit  147,069   135,432 Selling, general and administrative expenses  68,211   63,061 Amortization of intangible assets  3,031   15,327 Illinois EO litigation settlement  —   30,943 Interest expense, net  34,745   40,876 Foreign exchange (gain) loss  (571)  289 Other income, net  (960)  (241)Income (Loss) before income taxes  42,613   (14,823)Provision (Benefit) for income taxes  16,024   (1,563)Net income (loss) $26,589  $(13,260)     Earnings (Loss) per share:    Basic $0.09  $(0.05)Diluted  0.09   (0.05)Weighted average number of shares outstanding:    Basic  284,887   283,558 Diluted  287,622   283,558  Sotera Health Company
Segment Data
(in thousands)
(unaudited)  Three Months Ended March 31,   2026   2025 Segment revenues:     Sterigenics $186,135  $169,684 Nordion  42,009   32,557 Nelson Labs  51,901   52,282 Total net revenues $280,045  $254,523 Segment income:     Sterigenics $96,414  $88,004 Nordion  23,711   17,422 Nelson Labs  14,528   16,413 Total segment income  134,653   121,839 Less adjustments:     Interest expense, net  34,745   40,876 Depreciation and amortization(a)  30,744   40,734 Share-based compensation(b)  14,442   7,269 Loss on foreign currency and derivatives not designated as hedging instruments, net(c)  624   1,891 Business optimization expenses(d)  957   2,047 Professional services relating to EO sterilization facilities(e)  9,855   12,328 Illinois EO litigation settlement(f)  —   30,943 Accretion of asset retirement obligations(g)  673   574 Consolidated income (loss) before income taxes $42,613  $(14,823)
(a) Includes depreciation of Co-60 held at gamma irradiation sites and excludes accelerated depreciation associated with business optimization activities.
(b) Represents share-based compensation expense to employees and Non-Employee Directors.
(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 secondary offerings and shareholder engagement.
(e) Represents litigation and other professional fees associated with our EO sterilization facilities.
(f) Represents 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.
(g) Represents non-cash accretion of asset retirement obligations (“ARO”) related to Co-60 gamma and EO processing 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 March 31,
 As of December 31,
   2026   2025 Assets      Current assets:      Cash and cash equivalents $315,945  $346,456 Accounts receivable, net  137,256   139,329 Inventories, net  57,494   54,375 Other current assets  75,276   73,250 Total current assets  585,971   613,410 Property, plant, and equipment, net  1,143,452   1,130,564 Operating lease assets  32,896   33,393 Other intangible assets, net  279,357   288,227 Goodwill  1,097,634   1,103,232 Other assets  96,588   94,364 Total assets $3,235,898  $3,263,190 Liabilities and equity      Total current liabilities $207,804  $249,584 Long-term debt, less current portion  2,124,327   2,126,724 Other noncurrent liabilities  206,220   209,772 Deferred income taxes  75,042   71,075 Total liabilities  2,613,393   2,657,155 Total equity  622,505   606,035 Total liabilities and equity $3,235,898  $3,263,190  Sotera Health Company
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

  Three Months Ended March 31,   2026   2025 Operating activities:    Net income (loss) $26,589  $(13,260)Adjustments to reconcile net income (loss) to net cash provided by operating activities:    Non-cash items  48,950   39,310 Changes in operating assets and liabilities  (46,104)  29,471 Net cash provided by operating activities  29,435   55,521 Investing activities:    Purchases of property, plant and equipment  (46,166)  (19,918)Other investing activities  1,038   37 Net cash used in investing activities  (45,128)  (19,881)Financing activities:    Payment on long-term borrowings  (3,558)  (3,773)Payments of debt issuance costs  —   (10)Shares withheld for employee taxes on equity awards  (8,802)  (3,600)Other financing activities  (419)  (704)Net cash used in financing activities  (12,779)  (8,087)Effect of exchange rate changes on cash and cash equivalents  (2,039)  (337)Net (decrease) increase in cash and cash equivalents, including restricted cash  (30,511)  27,216 Cash and cash equivalents, including restricted cash, at beginning of period  346,456   278,865 Cash and cash equivalents, including restricted cash, at end of period $315,945  $306,081      Supplemental disclosures of cash flow information:    Cash paid during the period for interest $36,546  $47,416 Cash paid during the period for income taxes, net of tax refunds received  9,200   12,215 Purchases of property, plant and equipment included in accounts payable  20,689   13,042  Sotera Health Company
Non-GAAP Financial Measures
(in thousands, except per share amounts)
(unaudited)

  Three Months Ended March 31,   2026   2025 Net income (loss) $26,589  $(13,260)Amortization of intangible assets  5,602   18,674 Share-based compensation(a)  14,442   7,269 Loss on foreign currency and derivatives not designated as hedging instruments, net(b)  624   1,891 Business optimization expenses(c)  957   2,047 Professional services relating to EO sterilization facilities(d)  9,855   12,328 Illinois EO litigation settlement(e)  —   30,943 Accretion of asset retirement obligations(f)  673   574 Income tax benefit associated with pre-tax adjustments(g)  (6,376)  (21,422)Adjusted Net Income  52,366   39,044 Interest expense, net  34,745   40,876 Depreciation(h)  25,142   22,060 Income tax provision applicable to Adjusted Net Income(i)  22,400   19,859 Adjusted EBITDA(j) $134,653  $121,839      Net Revenues $280,045  $254,523 Adjusted EBITDA Margin  48.1%  47.9%Weighted average number of shares outstanding    Basic  284,887   283,558 Diluted(k)  287,622   285,714 Earnings (Loss) per share    Basic $0.09  $(0.05)Diluted  0.09   (0.05)Adjusted earnings per share    Basic $0.18  $0.14 Diluted  0.18   0.14 
(a) Represents share-based compensation expense to employees and Non-Employee Directors.
(b) 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.
(c) 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 secondary offerings and shareholder engagement.
(d) Represents litigation and other professional fees associated with our EO sterilization facilities.
(e) Represents 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.
(f) Represents non-cash accretion of ARO related to Co-60 gamma and EO processing 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.
(g) 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.
(h) Includes depreciation of Co-60 held at gamma irradiation sites and excludes accelerated depreciation associated with business optimization activities.
(i) Represents the difference between the income tax provision as determined under U.S. GAAP and the income tax benefit associated with pre-tax adjustments described in footnote (g).
(j) $26.3 million and $24.2 million of the adjustments for the three months ended March 31, 2026 and 2025, respectively, are included in cost of revenues, primarily consisting of amortization of intangible assets, depreciation, and accretion of asset retirement obligations.
(k) For the three months ended March 31, 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 three months ended March 31, 2025. Sotera Health Company
Non-GAAP Financial Measures
(in thousands, except Net Leverage)
(unaudited)  As of March 31, As of December 31,   2026   2025 Current portion of long-term debt $13,983  $13,973 Long-term debt  2,124,327   2,126,724 Current portion of finance leases  3,577   3,465 Finance leases less current portion  93,201   93,835 Total Debt $2,235,088  $2,237,997      Less: cash and cash equivalents  (314,147)  (344,621)Net Debt $1,920,941  $1,893,376      Adjusted EBITDA(a) $606,615  $593,801 Net Leverage  3.2
x
  3.2
x

(a) Represents adjusted EBITDA for the twelve months ended March 31, 2026 and December 31, 2025, 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  March 31, 2026 December 31, 2025Net income $117,798  $77,949 Amortization of intangible assets  28,726   41,798 Share-based compensation(a)  38,241   31,068 Loss on refinancing of debt(b)  1,462   1,462 (Gain) Loss on foreign currency and derivatives not designated as hedging instruments, net(c)  (1,209)  58 Business optimization expenses(d)  6,978   8,068 Professional services relating to EO sterilization facilities(e)  43,752   46,225 Illinois EO litigation settlements(f)  34,000   64,943 Accretion of asset retirement obligations(g)  2,420   2,321 Income tax benefit associated with pre-tax adjustments(h)  (13,432)  (28,478)Adjusted Net Income  258,736   245,414 Interest expense, net  149,591   155,722 Depreciation(i)  97,712   94,630 Income tax provision applicable to Adjusted Net Income(j)  100,576   98,035 Adjusted EBITDA(k) $606,615  $593,801      Net Revenues $1,189,139  $1,163,617 Adjusted EBITDA Margin  51.0%  51.0%
(a) Represents share-based compensation expense 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 activity for the 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 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 processing 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 income tax provision or benefit as determined under U.S. GAAP and the income tax benefit associated with pre-tax adjustments described in footnote (h).
(k) $102.0 million and $99.9 million of the adjustments for the twelve months ended March 31, 2026 and December 31, 2025, respectively, are included in cost of revenues, primarily consisting of amortization of intangible assets, depreciation, and accretion of asset retirement obligations.

Sotera Health Company (SHC - Free Report) reported $280.05 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 10%. EPS of $0.18 for the same period compares to $0.14 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $271.98 million, representing a surprise of +2.97%. The company delivered an EPS surprise of +3.87%, with the consensus EPS estimate being $0.17.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Sotera Health performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Revenues- Sterigenics: $186.14 million compared to the $183.41 million average estimate based on two analysts. The reported number represents a change of +9.7% year over year.Net Revenues- Nelson Labs: $51.9 million compared to the $51.84 million average estimate based on two analysts. The reported number represents a change of -0.7% year over year.Net Revenues- Nordion: $42.01 million versus the two-analyst average estimate of $38.17 million. The reported number represents a year-over-year change of +29%.View all Key Company Metrics for Sotera Health here>>>

Shares of Sotera Health have returned +3.5% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Sotera Health (SHC 0.55%) offers sterilization and lab testing for healthcare and life sciences clients, supporting global regulatory compliance.

Broyhill Asset Management, LLC disclosed a buy of Sotera Health, adding 252,588 shares in the first quarter. The estimated transaction value, based on average quarterly pricing, was $4.19 million, according to the firm’s SEC filing dated May 06, 2026.

What happenedAccording to an SEC filing dated May 06, 2026, Broyhill Asset Management, LLC bought 252,588 additional shares of Sotera Health (SHC 0.55%) in the first quarter of 2026. The estimated value of this transaction was $4.19 million, calculated using the mean unadjusted close for the quarter. The quarter-end value of the SHC position rose by $3.53 million, reflecting both the share increase and underlying stock price appreciation.

What else to knowThis was a buy transaction, bringing the SHC position to 3.73% of Broyhill’s 13F reportable assets under management as of March 31, 2026.Top holdings after the filing:NASDAQ: SHY: $6.75 million (6.23% of AUM)NYSE: IQV: $5.58 million (5.58% of AUM)NYSE: VVV: $5.18 million (4.79% of AUM)NYSE: RTO: $4.34 million (4.01% of AUM)NYSEMKT: LQD: $4.09 million (3.78% of AUM)As of May 5, 2026, Sotera Health shares were priced at $15.33, up 18.7% over the prior year, but underperformed the S&P 500 by 9.82 percentage points.The company’s trailing-12-month revenue was $1.19 billion, with net income of $117.80 million and a five-year revenue CAGR of 7.3%.Sotera Health’s forward P/E is 15.17 and EV/EBITDA stands at 14.12 as of March 31, 2026. The stock was 20.1% below its 52-week high as of May 6, 2026.Company OverviewMetricValueRevenue (TTM)$1.19 billionNet Income (TTM)$117.80 millionPrice (as of market close 2026-05-05)$15.33One-Year Price Change18.65%Company SnapshotOffers sterilization services (gamma, electron beam, EO processing), microbiological and analytical chemistry testing, and advisory solutions for regulatory and quality needs.Generates revenue primarily through service contracts with medical device, pharmaceutical, food, and industrial clients, leveraging specialized facilities and scientific expertise.Main customers include medical device manufacturers, pharmaceutical companies, and organizations in the food and agricultural sectors seeking compliance and safety assurance.Sotera Health is a leading provider of mission-critical sterilization and lab testing services, supporting the safety and regulatory compliance of healthcare and life sciences industries. The company operates a global platform with advanced technologies and a diversified client base, enabling consistent revenue generation and resilience. Its integrated service offerings and regulatory expertise position it as a trusted partner for organizations requiring high standards of product safety and quality.

What this transaction means for investorsBroyhill’s recent purchase of Sotera Health’s shares may indicate this institution is taking a chance on a company it perceives as being temporarily undervalued. Broyhill had a small stake in the company before the transaction, so it was already on their radar.

Sotera has faced recent regulatory and legal challenges, making it somewhat of a contrarian investment. The market may be overly pessimistic about the company, though, given what it has going for it. It provides an essential service for healthcare providers and labs, which has steady demand and high barriers to entry. So it’s reasonable to believe it may get past its current concerns and thrive.

It’s important to note, however, that an institution like Broyhill has a large, balanced portfolio and can afford to take chances like this. Its top five holdings reflect a conservative approach, with exposure to low-risk investments. Investors with a well-balanced, diversified portfolio and a contrarian streak might consider Sotera or other similar companies within the sector.

Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Iqvia Holdings. The Motley Fool recommends Rentokil Initial Plc. The Motley Fool has a disclosure policy.

Sotera Health Company (SHC) Presents at RBC Capital Markets Global Healthcare Conference 2026 Transcript

Sotera Health Company (SHC) Presents at Goldman Sachs 47th Annual Global Healthcare Conference 2026 Transcript