Sotera Health Delivers 20th Consecutive Year of Revenue Growth and Provides 2026 Outlook

Core Insights - Sotera Health Company reported strong financial results for the fourth quarter and full year of 2025, highlighting solid execution and increased demand for its services [4][7][8] Financial Performance - Fourth-quarter 2025 net revenues rose by 4.6% to $303 million, compared to $290 million in the fourth quarter of 2024, with a constant currency increase of 2.5% [2] - Full-year 2025 net revenues increased by 5.7% to $1.164 billion, up from $1.100 billion in 2024, with a constant currency growth of 5.2% [3][7] - Net income for the fourth quarter was $35 million, or $0.12 per diluted share, compared to $12 million, or $0.04 per diluted share in the same quarter of 2024 [2] - Full-year net income reached $78 million, or $0.27 per diluted share, compared to $44 million, or $0.16 per diluted share in 2024 [3] - Adjusted EBITDA for the fourth quarter increased by 2.7% to $157 million, with a constant currency growth of 0.5% [2] - Full-year adjusted EBITDA rose by 8.2% to $594 million, reflecting a constant currency growth of 7.8% [3] Business Segment Performance - Sterigenics segment reported fourth-quarter 2025 net revenues of $198 million, a 10.6% increase, with segment income of $110 million [6][8] - Nordion's fourth-quarter 2025 net revenues were $50 million, a decrease of 12.3%, attributed to cobalt-60 harvest schedule timing [9][10] - Nelson Labs experienced a 2.3% increase in fourth-quarter net revenues to $55 million, with segment income rising by 1.9% to $18 million [11][12] Management Transition - Effective April 1, 2026, Alex Dimitrief will transition to an advisory role, with Erika Ostrowski promoted to Senior Vice President and General Counsel [5][6] Balance Sheet and Liquidity - As of December 31, 2025, total debt was $2.2 billion, with cash and cash equivalents at $345 million, improving the net leverage ratio to 3.2x from 3.7x in 2024 [13][14] 2026 Outlook - The company anticipates net revenue growth of 5.0% to 6.5% and adjusted EBITDA growth of 5.5% to 7.0% for full-year 2026 [7][15]