Sotera Health(SHC) - 2025 Q3 - Quarterly Results

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]