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]