Sotera Health Reports Fourth-Quarter and Full-Year 2024 Results; Provides 2025 Outlook

Core Viewpoint - Sotera Health Company reported a decline in net revenues for the fourth quarter of 2024, while achieving overall revenue growth for the full year, marking the 19th consecutive year of annual revenue growth [4][8]. Financial Performance - Fourth-quarter 2024 net revenues decreased by 6.5% to $290 million compared to $310 million in the same period of 2023, with a constant currency decrease of 5.2% [2]. - Full-year 2024 net revenues increased by 4.9% to $1.10 billion, up from $1.05 billion in 2023, with a constant currency increase of 5.4% [3][8]. - Fourth-quarter net income was $12 million, or $0.04 per diluted share, down from $39 million, or $0.14 per diluted share in the fourth quarter of 2023 [2]. - Full-year net income was $44 million, or $0.16 per diluted share, compared to $51 million, or $0.18 per diluted share in 2023 [3][8]. - Adjusted EBITDA for the fourth quarter decreased by 8.3% to $153 million, while for the full year, it increased by 3.9% to $549 million [2][3]. Business Segment Performance - Sterigenics segment revenues for the fourth quarter were $179 million, an increase of 4.2% year-over-year, with segment income rising by 5.1% to $100 million [5][6]. - Nordion segment revenues for the fourth quarter decreased by 28.9% to $57 million, primarily due to cobalt harvest schedule timing, with segment income down 33.8% to $35 million [9][11]. - Nelson Labs segment revenues for the fourth quarter were $54 million, a decrease of 7.3%, with segment income decreasing by 3.3% to $18 million [12][14]. Balance Sheet and Liquidity - As of December 31, 2024, Sotera Health had total debt of $2.3 billion and cash and cash equivalents of $277 million, compared to $2.3 billion in debt and $296 million in cash at the end of 2023 [15]. - The company's Net Leverage Ratio as of December 31, 2024, was 3.7x, down from 3.8x at the end of 2023 [15][46]. 2025 Outlook - The company anticipates net revenue growth of 4.0% to 6.0% and Adjusted EBITDA growth of 4.5% to 6.5% for the full year 2025, both on a constant currency basis [8][17].