Financial Performance - For the three months ended September 30, 2025, total net revenues increased by $25.8 million, or 9.1%, to $311.3 million compared to $285.5 million in the same period of 2024[170]. - Net income for the three months ended September 30, 2025 was $48.4 million, a significant increase of $31.4 million, or 184.7%, from $17.0 million in the same period of 2024[170]. - Adjusted Net Income for the three months ended September 30, 2025 was $75.3 million, up $26.3 million, or 53.8%, from $48.9 million in the same period of 2024[170]. - Adjusted EBITDA for the three months ended September 30, 2025 was $164.2 million, an increase of $17.8 million, or 12.2%, compared to $146.4 million in the same period of 2024[170]. - For the nine months ended September 30, 2025, total net revenues were $860.2 million, an increase of $49.9 million, or 6.2%, compared to $810.2 million in the same period of 2024[190]. - Adjusted EBITDA for the nine months ended September 30, 2025 was $436.8 million, an increase of $41.1 million, or 10.4%, from $395.6 million in the same period of 2024[190]. - Net income for the nine months ended September 30, 2025, was $43.1 million, compared to $32.1 million for the same period in 2024, while Adjusted Net Income rose to $170.4 million from $139.8 million[210]. Revenue Breakdown - Service revenues for the three months ended September 30, 2025 increased by $16.7 million, or 7.0%, to $255.5 million, driven by volume increases in the Sterigenics and Nordion segments[173]. - Product revenues for the three months ended September 30, 2025 rose by $9.1 million, or 19.5%, to $55.8 million, primarily due to higher revenues from Co-60 in the Nordion segment[174]. - Service revenues increased by $33.7 million, or 4.8%, to $736.7 million for the nine months ended September 30, 2025, compared to $703.0 million for the same period in 2024, driven by favorable pricing and volume/mix improvements[193]. - Product revenues rose by $16.3 million, or 15.2%, to $123.5 million for the nine months ended September 30, 2025, compared to $107.2 million in the prior year, primarily due to favorable volume/mix and pricing in the Nordion segment[194]. - Sterigenics segment net revenues increased by $17.3 million, or 9.8%, to $192.8 million for the three months ended September 30, 2025, driven by a 4.6% increase in volume and mix[218]. - Nordion segment net revenues increased by $11.5 million, or 22.4%, to $62.8 million for the three months ended September 30, 2025, primarily due to an 18.9% increase in volume and mix[219]. - Nelson Labs segment net revenues decreased by $2.9 million, or 5.0%, to $55.7 million for the three months ended September 30, 2025, impacted by a decline in expert advisory services revenue[220]. - Sterigenics net revenues increased by $38.9 million, or 7.5%, to $557.4 million for the nine months ended September 30, 2025, driven by favorable pricing and volume impacts[225]. - Nordion net revenues rose by $21.2 million, or 18.2%, to $137.8 million, primarily due to volume and mix changes of 16.7% and pricing of 3.1%[226]. - Nelson Labs net revenues decreased by $10.2 million, or 5.8%, to $165.0 million, impacted by a decline in expert advisory services revenue despite growth in core lab testing services[227]. Expenses and Costs - Total cost of revenues for the three months ended September 30, 2025 was $133.8 million, an increase of $6.3 million, or 4.9%, from $127.4 million in the same period of 2024[170]. - SG&A expenses increased by $1.3 million, or 2.1%, for the three months ended September 30, 2025, attributed to higher litigation and professional services expenses[180]. - Total cost of revenues increased by $8.3 million, or 2.2%, to $380.6 million for the nine months ended September 30, 2025, accounting for approximately 44.2% of consolidated net revenues[196]. - SG&A expenses increased by $14.5 million, or 8.0%, for the nine months ended September 30, 2025, mainly due to a $15.2 million increase in litigation and professional services expenses[199]. Cash Flow and Capital Expenditures - As of September 30, 2025, the company had $299.2 million of unrestricted cash, an increase of $22.0 million from December 31, 2024, due to $184.1 million in cash flows from operating activities[240]. - Capital expenditures for the nine months ended September 30, 2025, amounted to $87.3 million, down from $113.2 million in the same period of 2024[242]. - Net cash provided by operating activities was $184.1 million for the nine months ended September 30, 2025, compared to $168.4 million for the same period in 2024[243]. - Cash flows from operating activities increased by $15.6 million to $184.1 million for the nine months ended September 30, 2025, compared to $168.4 million for the same period in 2024[245]. - Cash used in investing activities decreased by $28.7 million to $84.4 million for the nine months ended September 30, 2025, compared to $113.1 million for the same period in 2024, primarily due to a $25.9 million decrease in capital expenditures[246]. - Cash used in financing activities increased by $48.3 million to $92.4 million for the nine months ended September 30, 2025, compared to $44.0 million for the same period in 2024, mainly due to an $81.3 million increase in principal repayments on Term Loans[247]. Debt and Financial Obligations - As of September 30, 2025, the company had debt obligations of $1,423.0 million under a term loan, a $600.0 million revolving credit facility, and $750.0 million of senior notes[248]. - Amendment No. 6 to the Credit Agreement reduced the interest rate margin by 0.50% and provided for refinancing lenders to offer term loans totaling $1,423.0 million[250]. - The company had $8.1 million of letters of credit issued against the Revolving Credit Facility, resulting in total availability of $591.9 million[255]. - The company utilizes interest rate derivatives to manage cash flow variability associated with variable rate debt[256]. Market and Accounting Policies - There have been no significant changes in critical accounting policies or management estimates since December 31, 2024[257]. - Market risks have not materially changed for the three and nine months ended September 30, 2025[259].

Core Insights - Sotera Health Company (SHC) reported revenue of $311.31 million for the quarter ended September 2025, reflecting a year-over-year increase of 9.1% [1] - Earnings per share (EPS) for the quarter was $0.26, up from $0.17 in the same quarter last year, indicating a positive trend in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $305.33 million by 1.96%, while the EPS surpassed the consensus estimate of $0.22 by 18.18% [1] Financial Performance Metrics - Sotera Health's Sterigenics segment generated net revenues of $192.85 million, exceeding the average estimate of $190.27 million by two analysts, marking a year-over-year increase of 9.8% [4] - The Nelson Labs segment reported net revenues of $55.66 million, which fell short of the estimated $57.98 million, representing a decline of 5% compared to the previous year [4] - Nordion's net revenues reached $62.81 million, surpassing the average estimate of $57.08 million, with a significant year-over-year increase of 22.4% [4] Stock Performance - Shares of Sotera Health have returned +2.4% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Total company revenues increased by 9.1% to $311 million for Q3 2025, with an adjusted EBITDA growth of 12.2% to $164 million, resulting in adjusted EBITDA margins of 52.7%, an increase of 147 basis points year-over-year [5][9][10] - Net income for Q3 2025 was $48 million, or $0.17 per diluted share, compared to $17 million, or $0.06 per diluted share in Q3 2024 [9][10] - Adjusted EPS increased by $0.09 to $0.26 compared to Q3 2024, driven by adjusted EBITDA growth and a reduced tax rate [10][17] Business Line Data and Key Metrics Changes - Sterigenics achieved 9.8% revenue growth to $193 million, with segment income increasing by 11.6% to $107 million and margins improving to 55.6% [10][11] - Nordion's revenue grew by 22.4% to $63 million, with segment income rising by 19.9% to approximately $38 million, although segment income margin decreased to 60.6% due to product mix [11][12] - Nelson Labs reported a 5% decline in revenue to $56 million, but segment income rose by 1.9% to $19 million, with margins expanding to 34.1% [12][13] Market Data and Key Metrics Changes - The company reaffirmed its 2025 revenue outlook and raised its adjusted EBITDA outlook, expecting constant currency revenue growth of 4.5%-6% and adjusted EBITDA growth of 6.75%-7.75% [15][16] - Nordion secured a 25-year renewal of its Class 1B operating license, enhancing its position in the global supply of Cobalt-60 [8] Company Strategy and Development Direction - The company emphasized its vital role in global healthcare and its commitment to operational excellence and safety culture [8][18] - Strategic actions taken included paying down $75 million of debt and lowering interest expenses, which are expected to generate approximately $13 million in annual savings [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued recovery of volumes across Sterigenics and other business lines, with expectations for sustained growth [25][31] - The company noted minimal impact from the government shutdown on its operations, with some indirect effects on expert advisory services [33][34] Other Important Information - The company is on track to achieve its cumulative free cash flow commitment of $500 million-$600 million from 2025 through 2027 [17] - The litigation update highlighted favorable rulings in ongoing cases, reinforcing the company's position regarding ethylene oxide emissions [18][22] Q&A Session Summary Question: Volume recovery in specific areas - Management noted consistent performance across Sterigenics and various categories, including bioprocessing and med tech, with expectations for continued volume recovery [25] Question: Broader litigation update - Management provided updates on ongoing cases in Illinois and Georgia, indicating progress and favorable rulings [27][28] Question: Expectations of budget flush in Q4 - Management does not expect a budget flush from med tech customers and feels confident in their guidance for the remainder of the year [31][33] Question: Expert advisory services impact - Management acknowledged that expert advisory services are feeling headwinds from FDA activity, impacting top-line performance [37] Question: Core lab testing growth - Management indicated that core lab testing is performing well, with some growth expected despite challenges in expert advisory services [42] Question: Nordion revenue growth and margin pressure - Management explained that margin pressure in Nordion is due to a mix of lower-margin product sales, but overall margins remain strong [48] Question: Sustainability of Sterigenics growth - Management reiterated confidence in Sterigenics' long-term growth trajectory, expecting mid to high single-digit growth [50] Question: Pricing trends in Sterigenics - Management noted that pricing contributions are stabilizing, with expectations for gradual improvements as capital investments are realized [52][56]

Financial Data and Key Metrics Changes - Total company revenues increased by 9.1% to $311 million for Q3 2025 compared to Q3 2024, with adjusted EBITDA rising by 12.2% to $164 million [5][9] - Adjusted EBITDA margins reached 52.7%, an increase of 147 basis points year-over-year [9] - Net income for Q3 2025 was $48 million, or $0.17 per diluted share, compared to $17 million, or $0.06 per diluted share in Q3 2024 [9][10] - Adjusted EPS increased by $0.09 to $0.26 compared to Q3 2024 [10] Business Line Data and Key Metrics Changes - **Sterigenics**: Revenue grew by 9.8% to $193 million, with segment income increasing by 11.6% to $107 million and margins improving to 55.6% [5][10] - **Nordion**: Revenue increased by 22.4% to $63 million, with segment income rising by 19.9% to approximately $38 million, although segment income margin decreased to 60.6% [11] - **Nelson Labs**: Revenue declined by 5% to $56 million, but segment income rose by 1.9% to $19 million, with margins expanding to 34.1% [12] Market Data and Key Metrics Changes - The company reported strong performance across core medical device customers, with Nordion's revenue growth driven by reactor harvest schedules [5][6] - Nelson Labs experienced a modest revenue decline, but core lab testing growth and operational improvements led to segment income growth [7] Company Strategy and Development Direction - The company reaffirmed its 2025 revenue outlook and raised its adjusted EBITDA outlook, indicating confidence in its operational execution and market position [7][15] - Nordion secured a 25-year renewal of its Class 1B operating license, enhancing its ability to supply Cobalt-60 for critical healthcare processes [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's guidance and outlook for the remainder of the year, despite some challenges in the expert advisory services due to government funding issues [33][37] - The company expects continued growth in core lab testing and operational improvements, with a focus on maintaining stable margins [42][43] Other Important Information - The company has generated $184 million in positive operating cash flow year-to-date and has over $890 million in available liquidity [13][14] - The net leverage ratio improved to 3.3x, down from 3.7x at the end of 2024 [14] Q&A Session Summary Question: Volume recovery in specific areas - Management noted consistent performance across Sterigenics and various categories, including bioprocessing and med tech, with expectations for continued volume recovery [24][25] Question: Update on broader litigation - Management provided updates on ongoing litigation, indicating progress in Illinois and Georgia, with no current personal injury claims in New Mexico [26][27] Question: Expectations of budget flush in Q4 - Management does not expect a budget flush from med-tech customers and feels confident in their guidance for the remainder of the year [31][33] Question: Impact of FDA funding on expert advisory services - Management acknowledged that the expert advisory services are feeling some impact from the lack of FDA activity, which has affected top-line performance [36][37] Question: Core lab testing growth outlook - Management indicated that core lab testing is performing well, with expectations for continued growth despite challenges in expert advisory services [42] Question: Nordion's revenue growth and margin pressure - Management explained that margin pressure in Nordion is due to a mix of lower-margin product sales, but overall margins remain strong [48] Question: Pricing trends in Sterigenics - Management confirmed that pricing in Sterigenics is stabilizing around the 3%-4% range, with potential for incremental improvements over time [52][53] Question: Number of personal injury claims in California - Management reported that there are currently 83 personal injury claims in California [57]

Financial Data and Key Metrics Changes - Total company revenues increased by 9.1% to $311 million for Q3 2025, with an adjusted EBITDA increase of 12.2% to $164 million, resulting in adjusted EBITDA margins of 52.7%, up 147 basis points year-over-year [4][8] - Net income for Q3 2025 was $48 million, or $0.17 per diluted share, compared to $17 million, or $0.06 per diluted share in Q3 2024 [8][9] - Adjusted EPS increased by $0.09 to $0.26 compared to Q3 2024, driven by adjusted EBITDA growth and a reduced tax rate [4][9] Business Line Data and Key Metrics Changes - **Sterigenics**: Revenue grew by 9.8% to $193 million, with segment income increasing by 11.6% to $107 million and margins improving to 55.6% [9][10] - **Nordion**: Revenue increased by 22.4% to $63 million, with segment income rising by 19.9% to approximately $38 million, although segment income margin decreased to 60.6% due to product mix [10] - **Nelson Labs**: Revenue declined by 5% to $56 million, but segment income rose by 1.9% to $19 million, with margins expanding to 34.1% [11] Market Data and Key Metrics Changes - The company reported strong performance across core medical device customers, with consistent volume recovery in Sterigenics and Nordion [4][24] - Nordion secured a 25-year renewal of its Class 1B operating license, enhancing its operational stability and supply of Cobalt-60 [6] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, having paid down $75 million of debt and lowered interest expenses by approximately $13 million annually [5][12] - The outlook for 2025 includes maintaining revenue growth expectations of 4.5%-6% and raising adjusted EBITDA growth outlook to 6.75%-7.75% [13][14] - The company aims to achieve a net leverage ratio target of two to three times, with improvements noted in the current ratio [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's guidance and outlook for the remainder of the year, despite some challenges in expert advisory services due to government funding issues [34][40] - The company anticipates continued growth in core lab testing and operational improvements, with expectations for Nelson Labs to return to growth in 2026 [62] Other Important Information - The company is actively managing litigation related to ethylene oxide emissions, with recent court rulings aligning with its defense strategy [17][18] - There are currently 83 personal injury claims in California, with trials expected to begin in January and April of 2027 [58] Q&A Session Summary Question: Volume recovery areas - Management noted consistent performance across Sterigenics and various categories, including bioprocessing and med tech, with expectations for continued volume recovery [24] Question: Litigation update - Management provided updates on ongoing cases in Illinois and Georgia, indicating progress and minimal personal injury claims in New Mexico [26] Question: Budget flush expectations - Management does not expect a budget flush from medtech customers and feels confident in their guidance for the remainder of the year [34] Question: Expert advisory services impact - Management acknowledged that expert advisory services are feeling headwinds from FDA funding issues, impacting the top line by about 10 points [39] Question: Nordion margin pressure - Management explained that margin pressure in Nordion is due to lower-margin product sales, but overall margins remain strong [50] Question: Sterigenics pricing trends - Management indicated that pricing for Sterigenics is stabilizing around 3.8%-4%, with potential for gradual improvement as capital investments are realized [55]

Financial Data and Key Metrics Changes - Total company revenues increased by 9.1% to $311 million for Q3 2025, with adjusted EBITDA rising by 12.2% to $164 million, resulting in adjusted EBITDA margins of 52.7%, an increase of 147 basis points year over year [10][11] - Net income for Q3 2025 was $48 million, or $0.17 per diluted share, compared to $17 million, or $0.06 per diluted share in Q3 2024, with adjusted EPS increasing by $0.09 to $0.26 [11][12] Business Line Data and Key Metrics Changes - Sterigenics achieved 9.8% revenue growth to $193 million, driven by a favorable volume mix and increased pricing [12] - Nordion reported a revenue increase of 22.4% to $63 million, primarily due to volume and mix benefits [13] - Nelson Labs experienced a revenue decline of 5% to $56 million, impacted by a decrease in Expert Advisory Services, although segment income rose by 1.9% to $19 million [14] Market Data and Key Metrics Changes - The company reaffirmed its 2025 revenue outlook and raised its adjusted EBITDA outlook, expecting constant currency revenue growth of 4.5% to 6% and adjusted EBITDA growth of 6.75% to 7.75% [16][17] - Foreign currency is expected to contribute approximately 25 basis points to revenue and adjusted EBITDA growth [18] Company Strategy and Development Direction - The company emphasized its vital role in global healthcare, particularly with Nordion securing a 25-year renewal of its Class 1B operating license, ensuring a reliable supply of Cobalt-60 for critical sterilization processes [8][9] - The company is focused on maintaining a strong balance sheet, having paid down $75 million of debt and lowered interest expenses by approximately $13 million annually [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued recovery of volumes across Sterigenics and bioprocessing, with expectations for sustained growth [29] - The company noted that while Expert Advisory Services faced headwinds due to FDA funding issues, core lab testing is improving [48][49] Other Important Information - The company is on track to achieve its cumulative free cash flow commitment of $500 million to $600 million from 2025 through 2027 [20] - The effective tax rate on adjusted net income is expected to improve to 29% to 31% due to recent accounting guidance changes [19] Q&A Session Summary Question: Volume recovery in specific areas - Management noted consistent performance across Sterigenics and bioprocessing, with expectations for continued volume recovery [29] Question: Update on litigation - Management provided updates on various litigation cases, indicating progress in Illinois and Georgia, with no current personal injury claims in New Mexico [30][31] Question: Impact of government shutdown - Management stated minimal impact from the government shutdown, with some indirect effects on Expert Advisory Services [39] Question: Expert Advisory Services headwinds - Management confirmed that the lack of FDA activity is impacting Expert Advisory Services, contributing to a significant top-line impact [44] Question: Nordion revenue and margin outlook - Management explained that Nordion's revenue growth was accompanied by some margin pressure due to a shift in product mix, but overall margins remain strong [58] Question: Future pricing strategies - Management indicated that pricing contributions for Sterigenics are expected to stabilize around 3% to 4%, with potential for incremental pricing improvements over time [66][70] Question: Nelson Labs growth expectations - Management suggested that with the headwinds from Expert Advisory Services now in the past, Nelson Labs could reasonably expect to return to growth in 2026 [75]

Core Insights - Sotera Health Company (SHC) reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and showing an increase from $0.17 per share a year ago, resulting in an earnings surprise of +18.18% [1] - The company achieved revenues of $311.31 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.96% and increasing from $285.47 million year-over-year [2] - Sotera Health shares have appreciated approximately 21.4% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $306.13 million, and for the current fiscal year, it is $0.79 on revenues of $1.16 billion [7] - The estimate revisions trend for Sotera Health was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical Services industry, to which Sotera Health belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting that the industry outlook may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance Highlights - Net revenues increased by 9.1% (8.0% on a constant currency basis) to $311312000 in Q3 2025 compared to $285468000 in Q3 2024[31] - Adjusted EBITDA increased by 12.2% (11.2% on a constant currency basis) to $164000000 in Q3 2025 compared to $146000000 in Q3 2024[31] - Adjusted EBITDA margin increased by 147 basis points to 52.7% in Q3 2025[25, 31] - Adjusted EPS increased by $0.09 to $0.26 in Q3 2025[25, 31] - Net Leverage Ratio improved to 3.3x as of September 30, 2025, compared to 3.7x as of December 31, 2024[29, 44] Segment Performance - Sterigenics' revenue increased by 9.8% (8.4% on a constant currency basis) in Q3 2025[33] - Nordion's revenue increased by 22.4% (23.6% on a constant currency basis) in Q3 2025[36] - Nelson Labs' revenue decreased by 5.0% (-6.4% on a constant currency basis) in Q3 2025[39] Liquidity and Capital Deployment - Strong liquidity position of $891000000 as of September 30, 2025, with no outstanding borrowings on the revolving line of credit[29, 43] - Executed $75000000 Term Loan repayment in Q3 2025[29] 2025 Outlook - Full-year 2025 net revenue growth is expected to be between 4.5% and 6.0%[52] - Full-year 2025 Adjusted EBITDA growth is expected to be between 6.75% and 7.75%[52]

Financial Performance - Q3 2025 net revenues increased 9.1% to $311 million, compared to $285 million in Q3 2024[3] - Q3 2025 net income was $48 million, or $0.17 per diluted share, up from $17 million, or $0.06 per diluted share in Q3 2024[3] - Adjusted EBITDA for Q3 2025 increased 12.2% to $164 million, with Adjusted EPS rising by $0.09 to $0.26 compared to Q3 2024[3][6] - For the first nine months of 2025, net revenues increased 6.2% to $860 million, with net income of $43 million, or $0.15 per diluted share[4] - Total net revenues for Q3 2025 reached $311.3 million, a 9.1% increase from $285.5 million in Q3 2024[32] - Net income for Q3 2025 was $48.4 million, significantly up from $17.0 million in Q3 2024, representing a 184.5% increase[32] - Adjusted EBITDA for the nine months ended September 30, 2025, was $436.8 million, compared to $395.6 million for the same period in 2024, reflecting a 10.4% increase[34] - Net income for the nine months ended September 30, 2025, increased to $43,102,000 from $32,075,000 in 2024, representing a growth of 34.7%[43] - Adjusted net income for the nine months ended September 30, 2025, was $170,376,000, up from $139,759,000 in 2024, a rise of 21.9%[45] - Adjusted EBITDA for the twelve months ended September 30, 2025, was $589,698,000, compared to $548,574,000 for the same period in 2024, indicating an increase of 7.5%[51] Segment Performance - Sterigenics segment net revenues grew 9.8% to $193 million in Q3 2025, with segment income increasing 11.6% to $107 million[7] - Nordion net revenues surged 22.4% to $63 million in Q3 2025, with segment income rising 19.9% to $38 million[9] - Nelson Labs net revenues decreased 5.0% to $56 million in Q3 2025, while segment income increased 1.9% to $19 million[11] - The Sterigenics segment generated revenues of $192.8 million in Q3 2025, up from $175.6 million in Q3 2024, marking a 9.0% increase[34] Financial Outlook - The company raised its 2025 Adjusted EBITDA growth outlook to 6.75% - 7.75% and reaffirmed net revenues growth outlook of 4.5% - 6.0%[6][19] - Full-year 2025 Adjusted EPS outlook raised to $0.81 to $0.86, from a previous range of $0.75 to $0.82[19] Debt and Cash Management - As of September 30, 2025, total debt was $2.2 billion, with a Net Leverage Ratio improved to 3.3x[13] - Total debt as of September 30, 2025, was $2,240,813,000, down from $2,321,112,000 at the end of 2024, a decrease of 3.5%[51] - Net leverage ratio improved to 3.3x as of September 30, 2025, compared to 3.7x at the end of 2024[51] - Cash and cash equivalents as of September 30, 2025, totaled $301.0 million, an increase from $278.9 million at the end of 2024[41] - Cash and cash equivalents at the end of the period were $301,026,000, slightly down from $308,482,000 in 2024[43] - Cash paid for interest during the period was $129,600,000, compared to $142,779,000 in the previous year, a decrease of 9.2%[43] Company Strategy - The company is focused on safeguarding global health through its end-to-end sterilization solutions and lab testing services[29]

Core Insights - Sotera Health Company reported strong financial results for the third quarter and first nine months of 2025, with significant revenue and income growth compared to the previous year [2][3][4]. Financial Performance - Third-quarter 2025 net revenues increased by 9.1% to $311 million, up from $285 million in the third quarter of 2024. On a constant currency basis, the increase was 8.0% [2][8]. - Net income for the third quarter of 2025 was $48 million, or $0.17 per diluted share, compared to $17 million, or $0.06 per diluted share in the same quarter of 2024 [2][8]. - Adjusted EBITDA for the third quarter of 2025 rose by 12.2% to $164 million, with an 11.2% increase on a constant currency basis [2][8]. - For the first nine months of 2025, net revenues grew by 6.2% to $860 million, with net income of $43 million, or $0.15 per diluted share, compared to $32 million, or $0.11 per diluted share in the same period of 2024 [3][8]. Business Segment Performance - Sterigenics segment reported net revenues of $193 million for the third quarter of 2025, a 9.8% increase, with segment income rising by 11.6% to $107 million [5][6]. - Nordion's net revenues increased by 22.4% to $63 million in the third quarter of 2025, with segment income up by 19.9% to $38 million [9][10]. - Nelson Labs experienced a decrease in net revenues by 5.0% to $56 million in the third quarter of 2025, but segment income increased by 1.9% to $19 million [11][12]. Outlook and Guidance - The company reaffirmed its 2025 revenue outlook, projecting growth in the range of 4.5% to 6.0% on a constant currency basis, and raised its Adjusted EBITDA growth outlook to 6.75% to 7.75% [4][16]. - The interest expense range was improved to $154 million to $158 million, and the tax rate applicable to Adjusted Net Income was adjusted to 29.00% to 31.00% [16][17]. Balance Sheet and Liquidity - As of September 30, 2025, Sotera Health had total debt of $2.2 billion and unrestricted cash of $299 million, with a Net Leverage Ratio improved to 3.3x [13][14]. - The company achieved a contractual net leverage target, resulting in a 25 basis point reduction in the interest rate on its First Lien Term Loan facility [14].