Sotera Health Company Stock Earnings Reports

Sotera Health reported a strong start to 2026 with consolidated revenue of $280M (up 10% YoY; 6.5% constant currency) and adjusted EBITDA of $135M (up 10.5% YoY; 6.9% constant currency), driving modest margin expansion. Management reaffirmed full-year 2026 guidance: revenue of $1.233B–$1.251B (5%–6.5% constant currency growth) and adjusted EBITDA of $632M–$641M (5.5%–7% constant currency growth). Sterigenics grew (9.7% revenue growth; 6.1% constant currency) driven by pricing, FX tailwinds and modest volume/mix improvement despite weather-related headwinds; utilization targets remain ~80% with incremental capacity coming online (X‑ray facility later in 2026 and another in 2027/28). Nordion delivered outsized growth (29% revenue increase; 25.8% constant currency) due to timing of Cobalt-60 harvests and expanded margins >290 bps. Nelson Labs was roughly in line with expectations (slight revenue decline) with margins pressured by volume mix but expected to improve to low‑mid 30s by year end. Cash flow: Q1 operating cash flow $29M (includes $34M legal settlement payment); positive adjusted free cash flow and strong liquidity with >$900M available. Net leverage ended Q1 at ~3.2x, moving toward the long-term 2x–3x target. Management highlighted governance changes (new CEO Alton Shader effective May 2026; Michael Petras transitions to Executive Chair), continued focus on customer satisfaction and multi-year contracts, ongoing capital investment ($175M–$225M guidance for 2026 capex) to support growth and regulatory compliance, and favorable legal developments in Georgia where all eight bellwether EO cases were dismissed (subject to appeal). Foreign exchange is expected to provide an approximate 100-basis-point benefit to revenue and adjusted EBITDA for 2026, primarily realized in H1.