Financial Data and Key Metrics Changes - Total company revenues increased by 2.6% to $255 million, or 4.4% on a constant currency basis compared to Q1 2024 [5][13] - Adjusted EBITDA increased by 8.8% to $122 million, equating to an 11.2% growth rate on a constant currency basis [5][15] - Adjusted EPS improved to $0.14 per share, a $0.01 increase versus Q1 2024 [5][16] - Net loss on a GAAP basis was $13 million, or $0.05 per diluted share, compared to a net income of $6 million, or $0.02 per diluted share in Q1 2024 [15][16] Business Line Data and Key Metrics Changes - **Sterigenics**: Revenue grew by 1.9% to $170 million, or 3.9% on a constant currency basis, with segment income increasing by 2.5% to $88 million [17][18] - **Nordion**: Revenue surged by 36% to $33 million, or 40.6% on a constant currency basis, with segment income increasing approximately 62% to $17.4 million [18][19] - **Nelson Labs**: Revenue declined by 9.3% to $52 million, but segment income increased by 7% to $60 million, driven by favorable volume and mix from improved core lab testing [20][21] Market Data and Key Metrics Changes - The company operates in a $4.5 billion sterilization service addressable market, with positive trends driven by an aging population, healthcare spending, product innovation, and stringent regulatory requirements [6] - The foreign currency presented a headwind of 180 basis points for the quarter, most pronounced in the Canadian-based Nordion business [13] Company Strategy and Development Direction - The company aims for revenue growth in the range of 4% to 6% and adjusted EBITDA growth of 4.5% to 6.5% on a constant currency basis for 2025 [9][22] - The strategic focus includes excellence in customer service, winning in growth markets, driving operational excellence, and disciplined capital deployment [28] - The company plans to prioritize organic growth and deleveraging, along with opportunistic M&A [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the recovery of Sterigenics and noted that volumes are expected to improve throughout the year [34][46] - The company does not anticipate current tariff policies to have a material impact on its business, with 85% of total revenue being service revenue [9][23] - Management reaffirmed the outlook for 2025, indicating that the foreign exchange headwind has improved compared to previous estimates [22] Other Important Information - The company has $715 million of available liquidity, including over $300 million of unrestricted cash [21] - Capital expenditures for Q1 2025 totaled $20 million, with expectations for full-year capital expenditures in the range of $190 million to $210 million [21][26] Q&A Session Summary Question: Impact of tariffs on the business - Management expressed confidence that current regulations will not have a material impact on the company, particularly regarding cobalt shipments from Canada to the U.S. [31][32] Question: Volume recovery in Sterigenics and Nelson - Management noted optimism regarding volume improvements in both Sterigenics and Nelson Labs, supported by strong customer survey results [34][35] Question: Nelson Labs margin trends - Management highlighted that new regulations and product spend are driving improvements in margins, with expectations for continued growth throughout the year [40][41] Question: Legal strategy and ongoing cases - Management stated confidence in their legal strategy and ability to defend against claims, emphasizing the importance of scientific evidence [50][52] Question: Cross-selling initiatives between Nelson and Sterigenics - Management confirmed ongoing incentives for cross-selling and noted positive customer responses to integrated services [53][55] Question: Pricing levels and customer pushback - Management indicated that pricing for Sterigenics remains consistent with long-term targets, with ongoing discussions with customers about value delivery [75][78]

Financial Data and Key Metrics Changes - Total company revenues increased by 2.6% to $255 million, or 4.4% on a constant currency basis compared to Q1 2024 [6][13] - Adjusted EBITDA increased by 8.8% to $122 million, equating to an 11.2% growth rate on a constant currency basis [6][14] - Adjusted EPS improved to $0.14, a $0.01 increase versus the same period last year [6][15] - Net loss on a GAAP basis was $13 million, or $0.05 per diluted share, compared to a net income of $6 million, or $0.02 per diluted share in Q1 2024 [15] Business Line Data and Key Metrics Changes - **Sterigenics**: Revenue grew by 1.9% to $170 million, or 3.9% on a constant currency basis, with a segment income increase of 2.5% to $88 million [16] - **Nordion**: Revenue surged by 36% to $33 million, or 40.6% on a constant currency basis, with segment income increasing approximately 62% to $17.4 million [16][17] - **Nelson Labs**: Revenue declined by 9.3% to $52 million, but segment income increased by 7% to $60 million, driven by favorable volume and mix from improved core lab testing [18] Market Data and Key Metrics Changes - The Sterigenics segment operates in a $4.5 billion sterilization service addressable market, benefiting from trends such as an aging population and increased healthcare spending [7] - Nordion's revenue was positively impacted by the shift of Cobalt 60 shipments from Q2 to Q1, affecting second quarter revenues but leaving the full year outlook unchanged [7] Company Strategy and Development Direction - The company aims for revenue growth in the range of 4% to 6% and adjusted EBITDA growth of 4.5% to 6.5% on a constant currency basis for 2025 [9][20] - Focus areas include excellence in customer service, growth in key markets, operational excellence to enhance free cash flow, and disciplined capital deployment [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding volume improvements in Sterigenics and Nelson Labs, with strong customer survey results indicating positive trends [34][45] - The company does not expect current tariff policies to materially impact its business, with 85% of total revenue being service-based [9][21] Other Important Information - The company has $715 million in available liquidity, including over $300 million in unrestricted cash [19] - Capital expenditures for 2025 are projected to be between $190 million and $210 million, with a goal of generating $500 million to $600 million in free cash flow over the next three years [24][25] Q&A Session Summary Question: Impact of tariffs on the business - Management is confident that current regulations will not have a material impact, particularly regarding cobalt shipments from Canada [30] Question: Volume recovery in Sterigenics and Nelson Labs - Management is optimistic about continued volume improvements, supported by strong customer relationships and survey results [34][45] Question: Nelson Labs margin trends - Management highlighted that new regulations and increased sterilization volumes are driving margin improvements [39] Question: Legal strategy and ongoing cases - Management is confident in their defense strategy and believes they can prove their compliance and safety in court [48][50] Question: Cross-selling initiatives between Nelson and Sterigenics - Management noted ongoing incentives for cross-selling and positive customer responses to integrated services [51][54] Question: Pricing dynamics in Sterigenics - Management indicated that pricing remains stable, with ongoing discussions with customers about value and pricing adjustments [76][78]