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Sotera Health Company (SHC) investor relations material
Sotera Health Company Piper Sandler 37th Annual Healthcare Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Market trends and volume dynamics
Consistent volume expansion observed across med tech categories, with no material impact from tariffs or transient factors affecting recent growth.
Supply chain movements remain stable, with only minor early-year adjustments and no significant geographic shifts.
Outsourcing and regulatory environment
Outsourced sterilization comprises about two-thirds of the market, trending toward 70%, with only gradual shifts over multiple years.
New NSHAP regulations for ethylene oxide sterilizers, now delayed to 2026, have lessened immediate compliance concerns but may challenge smaller players when implemented.
Some insourcing customers are transitioning to outsourcing, with at least one major transition expected to occur over 2026–2028.
Capacity planning and capital investment
Capacity is tight and expensive, requiring careful multi-year planning; new facilities are coming online in 2025 and 2027/2028, with about 40% of capacity typically pre-committed.
Current plans cover needs through 2028, with a three-year strategic plan guiding decisions; CapEx is expected to trend down after major projects and regulatory investments.
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