Financial Performance - Net Revenues increased by 2.6% to $255 million, or 4.4% on a constant currency basis[39, 34] - Adjusted EBITDA increased by 8.8% to $122 million, or 11.2% on a constant currency basis[39, 34] - Adjusted EBITDA margin expanded by 276 basis points to 47.9%[34, 39] - Adjusted EPS increased by $0.01 to $0.14[34, 39] Segment Performance - Sterigenics revenue increased by 1.9% to $170 million, with a segment income increase of 2.5%[43] - Nordion revenue increased by 35.6% to $33 million, with a segment income increase of 61.5%[47] - Nelson Labs revenue decreased by 9.3% to $52 million, but segment income increased by 7.0%[51] Liquidity and Capital Deployment - Strong liquidity position of $715 million as of March 31, 2025, with no outstanding borrowings on the revolving line of credit[36, 55] - Net Leverage Ratio improved to 3.6x as of March 31, 2025[36, 57] - Completed $176 million upsize of the revolving line of credit and extended the facility to April 2030[36, 61] 2025 Outlook - The company expects Net Revenues to increase by 4.0% to 6.0%[64] - The company expects Adjusted EBITDA to increase by 4.5% to 6.5%[64]

[Financial & Operational Highlights](index=1&type=section&id=Sotera%20Health%20Reports%20First-Quarter%202025%20Results) [Q1 2025 Overall Performance](index=1&type=section&id=Q1%202025%20Overall%20Performance) Sotera Health reported Q1 2025 net revenues of $255M (+2.6%) and Adjusted EBITDA of $122M (+8.8%), despite a $13M net loss from a $31M litigation settlement | Financial Metric | Q1 2025 ($M) | Q1 2024 ($M) | Change | Constant Currency Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $255M | $248M | +2.6% | +4.4% | | Net (Loss) Income | ($13M) | $6M | - | - | | Diluted (Loss) EPS | ($0.05) | $0.02 | - | - | | Adjusted EBITDA | $122M | $112M (approx) | +8.8% | +11.2% | | Adjusted EPS | $0.14 | $0.13 | +$0.01 | - | - The **net loss of $13 million** was directly impacted by a pending and previously disclosed settlement of approximately **$31 million** related to ethylene oxide ("EO") claims against the Sterigenics segment[3](index=3&type=chunk) - The company's Chairman and CEO, Michael B. Petras, Jr., highlighted the solid start to the year, emphasizing **mid-single-digit revenue growth** and **strong double-digit Adjusted EBITDA growth** on a constant currency basis[4](index=4&type=chunk) [Business Segment Performance](index=1&type=section&id=First-Quarter%20Review%20by%20Business%20Segment) Q1 2025 segment performance was mixed, with Nordion revenue surging 35.6%, Sterigenics growing 1.9%, and Nelson Labs revenue declining 9.3% despite improved segment income | Segment | Q1 2025 Revenue ($M) | Q1 2024 Revenue ($M) | % Change | Q1 2025 Segment Income ($M) | Q1 2024 Segment Income ($M) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sterigenics | $170M | $166.5M | +1.9% | $88M | $85.8M | +2.5% | | Nordion | $33M | $24.0M | +35.6% | $17M | $10.8M | +61.5% | | Nelson Labs | $52M | $57.7M | -9.3% | $16M | $15.3M | +7.0% | [Sterigenics](index=1&type=section&id=Sterigenics) - Net revenues increased by **1.9% to $170 million** (**3.9%** on a constant currency basis), primarily driven by favorable pricing which was partially offset by unfavorable foreign currency exchange rates[5](index=5&type=chunk) - Segment income grew **2.5% to $88 million**, with favorable pricing being the main driver, though partially offset by inflation and currency impacts[5](index=5&type=chunk)[7](index=7&type=chunk) [Nordion](index=2&type=section&id=Nordion) - Net revenues surged by **35.6% to $33 million** (**40.6%** on a constant currency basis), mainly attributed to volume and mix, largely due to the timing of reactor harvest schedules[8](index=8&type=chunk) - Segment income increased significantly by **61.5% to $17 million**, driven by the higher volume and mix[8](index=8&type=chunk)[9](index=9&type=chunk) [Nelson Labs](index=2&type=section&id=Nelson%20Labs) - Net revenues decreased by **9.3% to $52 million** (**8.6%** on a constant currency basis), caused by lower expert advisory service revenue, which offset favorable pricing and improvements in core lab testing[10](index=10&type=chunk) - Despite the revenue drop, segment income rose by **7.0% to $16 million**, achieved through favorable pricing, improved volume and mix in core lab services, and lab optimization efforts[10](index=10&type=chunk)[11](index=11&type=chunk) [Financial Position and Outlook](index=2&type=section&id=Financial%20Position%20and%20Outlook) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of March 31, 2025, Sotera Health maintained $2.3 billion total debt, increased cash to $304 million, improved Net Leverage to 3.6x, and expanded its revolving credit facility to $600 million | Metric | As of Mar 31, 2025 ($) | As of Dec 31, 2024 ($) | | :--- | :--- | :--- | | Total Debt | $2.3 billion | $2.3 billion | | Cash and Cash Equivalents | $304 million | $277 million | | Net Leverage Ratio | 3.6x | 3.7x | - The company had **no balance outstanding** on its revolving credit facility as of March 31, 2025[12](index=12&type=chunk) - On April 30, 2025, the company increased its revolving credit facility by **$176 million to a total of $600 million** and extended its maturity to April 2030[12](index=12&type=chunk) [Full-Year 2025 Outlook](index=2&type=section&id=Reaffirming%202025%20Outlook) The company reaffirmed its full-year 2025 guidance, projecting 4.0-6.0% net revenue growth and 4.5-6.5% Adjusted EBITDA growth (constant currency), with Adjusted EPS maintained at $0.70-$0.76 | 2025 Outlook Metric | Range/Value | | :--- | :--- | | Net Revenues Growth (Constant Currency) | 4.0% to 6.0% | | Adjusted EBITDA Growth (Constant Currency) | 4.5% to 6.5% | | Adjusted EPS | $0.70 to $0.76 | | Interest Expense | $155M to $165M | | Tax Rate (Adjusted) | 33.0% to 35.0% | | Capital Expenditures | $190M to $210M | - The company updated its foreign currency headwind assumptions for 2025, reducing the expected negative impact on net revenues to approx. **1.25%** (from 2.25%) and on Adjusted EBITDA to approx. **1.50%** (from 2.50%)[14](index=14&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 total net revenues reached $254.5 million, but a $30.9 million EO litigation settlement led to a net loss of $13.3 million, or ($0.05) per diluted share | (in thousands $) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total net revenues | $254,523 | $248,176 | | Gross profit | $135,432 | $127,115 | | Illinois EO litigation settlement | $30,943 | $0 | | (Loss) income before income taxes | ($14,823) | $11,014 | | Net (loss) income | ($13,260) | $6,323 | | Diluted (Loss) Earnings per share | ($0.05) | $0.02 | [Segment Data](index=8&type=section&id=Segment%20Data) Total segment income for Q1 2025 increased to $121.8 million, with Sterigenics contributing $88.0 million, Nordion $17.4 million, and Nelson Labs $16.4 million, reflecting a $30.9 million litigation settlement adjustment | Segment Income (in thousands $) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sterigenics | $88,004 | $85,818 | | Nordion | $17,422 | $10,785 | | Nelson Labs | $16,413 | $15,341 | | **Total segment income** | **$121,839** | **$111,944** | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $3.10 billion, total liabilities $2.68 billion, with cash increasing to $306.1 million and long-term debt remaining stable | (in thousands $) | As of Mar 31, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $306,081 | $278,865 | | Total current assets | $554,990 | $526,037 | | Total assets | $3,097,528 | $3,071,648 | | Total current liabilities | $225,991 | $191,002 | | Long-term debt, less current portion | $2,205,355 | $2,208,100 | | Total liabilities | $2,683,437 | $2,666,737 | | Total equity | $414,091 | $404,911 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 net cash from operating activities significantly increased to $55.5 million, while net cash used in investing activities decreased to $19.9 million due to lower capital expenditures | (in thousands $) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $55,521 | $9,699 | | Net cash used in investing activities | ($19,881) | ($34,853) | | Net cash used in financing activities | ($8,087) | ($11,941) | | Net increase (decrease) in cash | $27,216 | ($38,834) | [Non-GAAP Financial Measures Reconciliation](index=11&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Net Income to Adjusted EBITDA and Adjusted EPS](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%20and%20Adjusted%20EPS) Q1 2025 GAAP net loss of $13.3 million reconciled to Adjusted Net Income of $39.0 million and Adjusted EBITDA of $121.8 million, resulting in an Adjusted EPS of $0.14 | Reconciliation to Adjusted EBITDA (Q1 2025, in thousands $) | Amount | | :--- | :--- | | Net (loss) income | ($13,260) | | Add: Amortization of intangible assets | $18,674 | | Add: Illinois EO litigation settlement | $30,943 | | Add: Professional services relating to EO facilities | $12,328 | | Add: Interest expense, net | $40,876 | | Add: Depreciation | $22,060 | | Add: Income tax provision applicable to Adjusted Net Income | $19,859 | | Other Adjustments | $2,201 | | **Adjusted EBITDA** | **$121,839** | - Adjusted Net Income for Q1 2025 was **$39.0 million**, leading to an Adjusted Diluted EPS of **$0.14**, compared to **$35.6 million** and **$0.13**, respectively, in Q1 2024[39](index=39&type=chunk) [Net Debt and Net Leverage Ratio Calculation](index=12&type=section&id=Net%20Debt%20and%20Net%20Leverage%20Ratio%20Calculation) As of March 31, 2025, total debt was $2.32 billion, resulting in Net Debt of $2.01 billion after cash, and an improved Net Leverage Ratio of 3.6x | (in thousands $, except Net Leverage) | As of Mar 31, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | Total Debt | $2,317,421 | $2,321,112 | | Less: cash and cash equivalents | ($304,390) | ($277,242) | | **Net Debt** | **$2,013,031** | **$2,043,870** | | LTM Adjusted EBITDA | $558,469 | $548,574 | | **Net Leverage** | **3.6x** | **3.7x** | [LTM Adjusted EBITDA Reconciliation](index=13&type=section&id=LTM%20Adjusted%20EBITDA%20Reconciliation) For the twelve months ended March 31, 2025, net income of $24.8 million reconciled to an Adjusted EBITDA of $558.5 million, resulting in an LTM Adjusted EBITDA Margin of 50.5% | (in thousands $) | Twelve months ended Mar 31, 2025 | | :--- | :--- | | Net income | $24,815 | | Adjusted Net Income | $201,914 | | Interest expense, net | $163,796 | | Depreciation | $84,174 | | Income tax provision applicable to Adjusted Net Income | $108,585 | | **Adjusted EBITDA** | **$558,469** |

Core Insights - Sotera Health Company reported a 2.6% increase in net revenues for Q1 2025, reaching $255 million compared to $248 million in Q1 2024, with a 4.4% increase on a constant currency basis [2][9] - The company experienced a net loss of $13 million, or $0.05 per diluted share, due to a pending settlement of approximately $31 million related to ethylene oxide claims, contrasting with a net income of $6 million, or $0.02 per diluted share, in Q1 2024 [2][9] - Adjusted EBITDA for Q1 2025 rose by 8.8% to $122 million, or 11.2% on a constant currency basis, with an Adjusted EPS of $0.14, an increase of $0.01 from Q1 2024 [2][9] Financial Performance - The Sterigenics segment reported net revenues of $170 million, a 1.9% increase compared to Q1 2024, with segment income rising by 2.5% to $88 million [4][5] - Nordion segment revenues surged by 35.6% to $33 million, with segment income increasing by 61.5% to $17 million, driven by volume and mix changes [6][7] - Nelson Labs saw a decrease in net revenues to $52 million, down 9.3% from Q1 2024, although segment income increased by 7.0% to $16 million due to favorable pricing in core lab testing services [10][11] Balance Sheet and Liquidity - As of March 31, 2025, Sotera Health had total debt of $2.3 billion and cash and cash equivalents of $304 million, compared to $2.3 billion in debt and $277 million in cash at the end of 2024 [12] - The company's Net Leverage Ratio improved to 3.6x from 3.7x as of December 31, 2024, indicating better financial health [12][44] - An amendment to the revolving credit facility increased its size by $176 million to a total of $600 million, extending the maturity date to April 2030 [13] 2025 Outlook - The company reaffirmed its 2025 outlook, projecting net revenue growth of 4.0% to 6.0% and Adjusted EBITDA growth of 4.5% to 6.5%, both on a constant currency basis [9][16] - Foreign currency headwinds are expected to impact net revenues and Adjusted EBITDA by approximately 1.25% and 1.50%, respectively, based on average March 2025 exchange rates [16] - The anticipated Adjusted EPS for 2025 is projected to be in the range of $0.70 to $0.76, with capital expenditures estimated between $190 million and $210 million [16]

CLEVELAND, April 17, 2025 (GLOBE NEWSWIRE) -- Sotera Health Company (Nasdaq: SHC), a leading global provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the healthcare industry, today announced it will release its financial results for the first-quarter ended March 31, 2025 before the market opens on Thursday, May 1, 2025. Following the release, management will host a conference call at 9:00 a.m. Eastern Daylight Time to discuss the Company’s financial re ...

Investors in Sotera Health Company (SHC) need to pay close attention to the stock based on moves in the options market lately. That is because the May 16, 2025 $10.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could ...

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Rapid Sterility Testing yields product sterility test results in as little as 6 days and can be used for broadscale medical device and pharmaceutical product applicationSALT LAKE CITY, March 04, 2025 (GLOBE NEWSWIRE) -- Nelson Labs, a Sotera Health company and a global leader in microbiological and analytical chemistry testing and advisory services for the medical device and pharmaceutical industries, now performs product-sterility testing through rapid microbiological methods (RMMs) at three laboratory sit ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-39729 SOTERA HEALTH COMPANY (Exact name of registrant as specified in its charter) Delaware 47-3531161 (State or other jurisdiction of incorporation ...

Safeguarding Global Health® Fourth-Quarter & Full-Year 2024 Earnings Results February 27, 2025 © 2025 Sotera Health Company | All Rights Reserved. Cautionary Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures Unless expressly indicated or the context requires otherwise, the terms "Sotera Health," "Company," "we," "us," and "our" in this document refer to Sotera Health Company, a Delaware corporation, and, where appropriate, its subsidiaries on a consolidated basis. This release contai ...

Financial Data and Key Metrics Changes - For the full year 2024, the company reported total revenue of $1.1 billion, marking a 4.9% increase compared to 2023, or 5.4% on a constant currency basis [7][27] - Adjusted EBITDA for 2024 grew by 3.9% to $548.6 million, resulting in an adjusted EBITDA margin of approximately 50% [27][28] - In Q4 2024, total revenue declined by 6.5% to $290 million, with adjusted EBITDA declining by 8.3% to $153 million [13][20] Business Line Data and Key Metrics Changes - Sterigenics reported a revenue growth of 4.2% to $179 million in Q4 2024, driven by favorable pricing and volume mix [22] - Nordion's revenue decreased by 29% to $57 million in Q4 2024, primarily due to unfavorable volume mix [24] - Nelson Labs experienced a revenue decline of 7.3% to $54 million in Q4 2024, attributed to unfavorable volume mix and higher employee compensation costs [25] Market Data and Key Metrics Changes - The company expects total revenue growth for 2025 to be in the range of 4% to 6% on a constant currency basis, with adjusted EBITDA growth projected at 4.5% to 6.5% [18][31] - The first quarter of 2025 is anticipated to be the lightest quarter, with gradual improvement expected throughout the year [32] Company Strategy and Development Direction - The company aims to focus on customer satisfaction, operational excellence, and disciplined capital deployment [9][38] - Strategic priorities include serving customers with end-to-end solutions and winning in growth markets [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in gradual volume recovery in 2025, despite some challenges in the first quarter [42] - The company is monitoring potential tariff impacts but has not incorporated them into guidance yet [31][76] Other Important Information - The company completed a capacity expansion in its Sterigenics business and made significant progress on EO facility enhancements [10][30] - The net leverage ratio improved slightly, finishing the year at 3.7 times [30] Q&A Session Summary Question: Overall volume backdrop and guidance for the year - Management indicated that 2024 played out as expected with gradual improvement, and they anticipate continued volume improvement in 2025 [42] Question: Margins and pricing assumptions - Management expects solid margin improvement throughout 2025, with Q1 typically being the lowest quarter [45] Question: Nelson Labs margin improvement - Management highlighted improvements in labor productivity and consolidation of a lab as key factors for margin enhancement in Nelson Labs [51][63] Question: Capacity concerns in Nelson Labs - Management confirmed that they are in a good position regarding capacity and have consolidated a lab to improve operating leverage [63] Question: Cross-selling initiatives between Sterigenics and Nelson Labs - Management reported positive progress in cross-selling initiatives, which are included in the 2025 guidance [72] Question: Tariff risks and cobalt supply - Management noted that cobalt has historically been exempt from tariffs and expressed confidence in managing potential impacts [110] Question: Disconnect in growth compared to competitors - Management acknowledged that while there may be quarterly discrepancies, they feel confident about their competitive position and execution [115]