Sotera Health (NASDAQ:SHC) Issues Earnings Results

Sotera Health (NASDAQ:SHC) released its quarterly earnings data on Tuesday. The company reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.02, FiscalAI reports. The company had revenue of $303.44 million for the quarter, compared to analyst estimates of $300.68 million. Sotera Health had a return on equity of 43.69% and a net margin of 4.82%.The company’s revenue was up 4.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.21 EPS. Sotera Health updated its FY 2026 guidance to 0.930-1.01 EPS.

Here are the key takeaways from Sotera Health’s conference call:

• Sotera reported full‑year 2025 revenue of $1.164 billion (+5.7%) and adjusted EBITDA of $593.8 million with margins expanding to 51%, and issued 2026 guidance calling for ~5%–6.5% revenue growth and ~5.5%–7% adjusted EBITDA growth.
• The company generated adjusted free cash flow of over $200 million in 2025, reduced borrowing costs by 75 bps, paid down $86 million of debt (saving ~$13 million of annual interest), upsized the revolver by $175 million, and improved net leverage to 3.2x.
• Sterigenics showed strong momentum (Q4 revenue +10.6%, ~8% constant currency) and management expects mid‑to‑high single‑digit constant‑currency growth in 2026, while cross‑business (XBU) customer revenue grew ~9% in 2025.
• Nordion revenue fell 12.3% in Q4 and segment income declined due to timing variability in Cobalt‑60 harvest schedules, highlighting meaningful short‑term supply/timing risk that can depress near‑term results.
• Management plans higher 2026 capital spending ($175M–$225M) and will open a new X‑ray facility in H2‑2026 that should ramp over 2027–2028; the build is strategic but may dilute Sterigenics margin contribution while utilization ramps.

Sotera Health Trading Down 4.4%

Shares of NASDAQ SHC opened at $16.72 on Wednesday. Sotera Health has a 1-year low of $9.53 and a 1-year high of $19.85. The company has a 50-day moving average of $17.99 and a two-hundred day moving average of $16.83. The company has a market cap of $4.75 billion, a PE ratio of 88.00 and a beta of 1.82. The company has a current ratio of 2.38, a quick ratio of 2.18 and a debt-to-equity ratio of 4.04.

More Sotera Health News

Here are the key news stories impacting Sotera Health this week:

• Positive Sentiment: Q4 results beat Street estimates: revenue $303.4M vs. ~$300.7M expected and EPS $0.26 vs. $0.24 consensus, showing year‑over‑year improvement. Sotera Health Company (SHC) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management set 2026 outlook: net revenue growth of 5.0–6.5%, Adjusted EBITDA growth of 5.5–7.0%, and EPS guidance of $0.93–$1.01 — generally inline to slightly above consensus, supporting modest forward growth visibility. Sotera Health outlines 2026 revenue growth target of up to 6.5% while advancing X-ray facility and margin expansion
• Positive Sentiment: Company is advancing operational initiatives (including an X‑ray facility and margin expansion programs) that management says should drive medium‑term margin improvement. Sotera Health outlines 2026 revenue growth target…
• Neutral Sentiment: Company posted its 20th consecutive year of revenue growth: 2025 net revenues $1.164B, net income $78M, and adjusted EBITDA +8.2% — solid operating scale but some improvements already expected by the market. Sotera Health Delivers 20th Consecutive Year of Revenue Growth and Provides 2026 Outlook
• Neutral Sentiment: Full earnings call transcript and slide deck are available for detail on drivers and assumptions (useful for investors parsing one‑time items and capex/timing for the X‑ray build). Sotera Health Company (SHC) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Leverage and valuation concerns: the company carries high reported leverage (debt/equity ~4.0) and trades at a rich multiple (P/E ~88), which can amplify negative stock moves if growth or margin improvement disappoints. Sotera Health Trading and Company Profile
• Negative Sentiment: Beat was modest and guidance range is fairly conservative — investors may have wanted sharper margin beats or a narrower, more bullish guide; near‑term investment (X‑ray build) could pressure margins before benefits materialize. Sotera Health (SHC) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Wells Fargo & Company cut Sotera Health to an “overweight” rating in a report on Thursday, January 8th. JPMorgan Chase & Co. lifted their price target on shares of Sotera Health from $14.00 to $16.00 and gave the company a “neutral” rating in a report on Wednesday, November 5th. Weiss Ratings restated a “hold (c-)” rating on shares of Sotera Health in a research report on Monday, December 29th. Royal Bank Of Canada began coverage on shares of Sotera Health in a report on Thursday, January 8th. They set an “outperform” rating and a $24.00 price objective for the company. Finally, Zacks Research cut shares of Sotera Health from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 30th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $20.43.

Insider Activity

In related news, CEO Michael B. Jr. Petras sold 434,104 shares of the business’s stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $16.45, for a total value of $7,141,010.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Gtcr Investment Xi Llc sold 6,480,000 shares of the stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $16.33, for a total value of $105,818,400.00. Following the completion of the transaction, the director owned 22,735,301 shares in the company, valued at $371,267,465.33. The trade was a 22.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 17,384,104 shares of company stock valued at $284,024,511 over the last three months. 55.12% of the stock is owned by insiders.

Institutional Trading of Sotera Health

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SHC. EverSource Wealth Advisors LLC raised its holdings in Sotera Health by 831.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,288 shares of the company’s stock worth $37,000 after purchasing an additional 2,935 shares during the last quarter. Wells Fargo & Company MN grew its position in shares of Sotera Health by 736.5% during the 4th quarter. Wells Fargo & Company MN now owns 4,283 shares of the company’s stock worth $76,000 after buying an additional 3,771 shares during the period. Quadrant Capital Group LLC bought a new stake in shares of Sotera Health during the third quarter worth approximately $86,000. Los Angeles Capital Management LLC acquired a new position in Sotera Health in the fourth quarter valued at approximately $90,000. Finally, PNC Financial Services Group Inc. lifted its holdings in Sotera Health by 10.8% in the fourth quarter. PNC Financial Services Group Inc. now owns 7,204 shares of the company’s stock valued at $127,000 after buying an additional 705 shares during the period. 91.03% of the stock is currently owned by institutional investors and hedge funds.

About Sotera Health

Sotera Health Inc (NASDAQ: SHC) is a global provider of sterilization and laboratory testing services that support the medical device, pharmaceutical, life sciences and consumer product industries. Headquartered in Jacksonville, Florida, the company offers a suite of services designed to ensure products meet rigorous safety and regulatory requirements before reaching market.

Sotera Health operates through three primary service platforms. Its Sterigenics division delivers contract sterilization solutions, including ethylene oxide (EtO), gamma irradiation, electron beam and X-ray technologies.