Key Highlights

  • Adjusted EPS of USD 0.29 beat the consensus estimate of USD 0.27, while GAAP diluted EPS was USD 0.20.
  • Net revenues of USD 324.9 million rose 4.4% and topped the consensus estimate of USD 319.86 million.
  • Sterigenics grew constant currency Revenue 8.2% and Nelson Labs grew 9.2%, while Nordion fell 11.5% on Cobalt-60 harvest timing.
  • Net Leverage fell to 2.9x from 3.2x at year end, and full year net revenue guidance was reaffirmed.

Sotera Health Company (NASDAQ:SHC) reported third quarter 2026 net revenues of USD 324.9 million, up 4.4% from USD 311.3 million a year earlier and above the consensus estimate of USD 319.86 million. Adjusted EPS of USD 0.29 rose 12% from USD 0.26 and compared with a consensus estimate of USD 0.27. GAAP diluted EPS was USD 0.20 versus USD 0.17, with Net Income of USD 58.4 million against USD 48.4 million.

Chief Executive Officer Alton Shader pointed to solid constant currency growth at the top and bottom lines and to nearly 100 basis points of sequential adjusted EBITDA Margin expansion. He also highlighted constant currency revenue growth of 8.2% at Sterigenics and 9.2% at Nelson Labs.

Sterigenics and Nelson Labs Grow While Nordion Dips

Sterigenics net revenues rose 8.5% to USD 209.3 million, driven by pricing, improved Volume and mix, and a currency benefit, and segment income climbed 9.6% to USD 117.5 million. Nelson Labs revenues rose 8.8% to USD 60.6 million and segment income edged up 2.5% to USD 19.5 million, with margin affected primarily by Business mix. The company completed a new Annex 1 compliant cleanroom at Nelson Labs during the quarter.

Nordion net revenues fell 12.4% to USD 55.0 million, or 11.5% in constant currency, because of Cobalt-60 harvest schedules, and segment income declined 11.4% to USD 33.7 million, though its segment margin improved 71 basis points on productivity and pricing. Consolidated adjusted EBITDA rose 3.9% to USD 170.7 million, while the adjusted EBITDA margin was 52.5% against 52.7% a year earlier. Gross Profit was USD 180.8 million against USD 177.6 million.

Full Year 2026 Outlook Reaffirmed

The company reaffirmed net revenues of USD 1.233 billion to USD 1.250 billion, representing constant currency growth of 5.25% to 6.75%, and adjusted EBITDA of USD 632 million to USD 641 million, representing constant currency growth of 5.75% to 7.25%. It projects full year adjusted EBITDA margins roughly flat against 2025. The currency benefit to revenues and adjusted EBITDA was revised to 70 basis points from 100 basis points, and the interest expense range narrowed to USD 137 million to USD 140 million.

Adjusted EPS guidance remains USD 0.95 to USD 1.01, built on a weighted average diluted share count of 289 million to 291 million, a tax rate of 27.0% to 28.0% on adjusted net income and capital expenditures of USD 200 million to USD 225 million. Management said the outlook rests on assumptions about Supply continuity for ethylene oxide and Cobalt-60 and on inflation, including energy prices and labor.

Guidance and Balance Sheet Against Nine Month Actuals

Nine month adjusted EPS of USD 0.72 sits against full year guidance of USD 0.95 to USD 1.01, and nine month adjusted EBITDA of USD 471.1 million against USD 632 million to USD 641 million. Nine month net revenues were USD 926.3 million against USD 860.2 million a year earlier. Capital expenditures through nine months were USD 145.5 million against USD 87.3 million, compared with full year guidance of USD 200 million to USD 225 million. Operating Cash Flow was USD 228.5 million against USD 184.1 million. Cash was USD 412.4 million against USD 346.5 million at year end 2025, and net leverage of 2.9x compares with a long term goal of 2.0x to 3.0x. A major rating agency upgraded the company in early October.