Core Insights - The company achieved 5.2% organic revenue growth in 2025, within its guidance range of 4% to 6%, despite weaker performance in the expert advisory business at Nelson Labs, which was offset by stronger volumes at Sterigenics [1][6] - The company has maintained financial consistency, marking its 20th consecutive year of revenue growth and sustaining EBITDA margins above 50% [2][4] - The company operates in a global market with an estimated serviceable addressable market of $18 billion and a footprint of 62 facilities worldwide, offering end-to-end solutions in sterilization and lab services [3][21] Financial Performance - The company generated over $200 million in free cash flow in 2025 and targets $500 million to $600 million over the next three years, with a significant drop in CapEx expected in 2027 [5][16][18] - The company reported improved interest expense of $9 million year-over-year and a lower tax rate, contributing to a $0.16 increase in adjusted earnings per share in 2025 [8] - The company achieved a 118-basis-point improvement in EBITDA margins in 2025, with a long-term target of 50 to 150 basis points of margin improvement from 2025 to 2027 [14][19] Segment Performance - Sterigenics experienced nearly 8% revenue growth and nearly 9% growth in EBITDA, driven by strong demand in medical devices and pharmaceuticals [10] - Nordion reported upper-single-digit revenue and EBITDA growth, with expectations of low- to mid-single-digit growth for the full year [11][10] - Nelson Labs is expected to see low-single-digit growth, with core sterilization-related routine testing anticipated to continue growing [12] 2026 Outlook - The company reiterated its constant-currency organic growth guidance of 5% to 6.5% for 2026, with Sterigenics expected to deliver mid- to high-single-digit growth [7][9] - Pricing is expected to be near the midpoint of the long-term guide of 3% to 4%, while volumes remain a significant factor influencing overall performance [12] Capital Allocation and Strategy - The company is focused on disciplined capital allocation, with improved net leverage approaching the target range of 2x to 3x, allowing for flexibility in debt paydown, M&A, or share repurchases [5][19] - Management is prioritizing organic growth while remaining opportunistic regarding capital allocation strategies [19]

Core Insights - Sotera Health reported a total revenue increase of 5.7% in 2025 to $1.164 billion, with a 5.2% increase on a constant-currency basis [5] - The company expects continued revenue and EBITDA growth in 2026, projecting total revenue between $1.233 billion and $1.251 billion, representing 5% to 6.5% constant-currency growth [15] Financial Performance - Nelson Labs' Q4 revenue increased by 2.3% to $55 million, with segment income rising 1.9% to $18 million [1] - Nordion's Q4 revenue declined by 12.3% to $50 million, with segment income falling 18.9% to $29 million [1] - Sterigenics experienced a Q4 revenue growth of 10.6% to $198 million, with segment income rising 10.4% to $110 million [2] - Sotera Health's Q4 revenue was $303 million, up 4.6% year over year, with adjusted EBITDA increasing 2.7% to $157 million [4] Operational Highlights - Customer satisfaction exceeded 80%, and cross-business-unit customer revenue growth was 9% year over year [7] - Sterigenics delivered approximately 8% constant-currency revenue growth for 2025, while Nordion achieved about 9% constant-currency revenue growth [7] Strategic Initiatives - The company is investing in an X-ray facility project as part of a long-term strategy to enhance sterilization services [8] - Management noted that the Sterigenics commercial segment has been "choppy" since 2020-2021, indicating challenges in that area [9] Balance Sheet and Governance - The company reduced borrowing costs by 75 basis points on its $1.4 billion term loan and paid down $86 million of debt, resulting in $13 million of annual interest savings [12] - Liquidity at year-end included about $345 million of unrestricted cash and nearly $600 million of revolver capacity, totaling approximately $940 million [13] - Governance changes included the appointment of a lead independent director and a legal leadership transition [14] 2026 Guidance - Interest expense is expected to be between $135 million and $145 million, with adjusted EPS projected at $0.93 to $1.01 [17] - Capital expenditures are anticipated to be between $175 million and $225 million, with no M&A assumed in the guidance [17]