Sotera Health Company (SHC) 43rd Annual J.P. Morgan Healthcare Conference 2025 summary

Strategic Overview and Business Model

• Serves approximately 5,000 customers in over 50 countries, with 3,000+ employees and 62 facilities in 13 countries.

• Focuses on safeguarding global health through end-to-end solutions across three business units: Sterigenics, Nordion, and Nelson Labs.

• Maintains deep, long-term relationships with blue-chip customers, with over 70% of revenue from multi-year contracts.

• Integrated in the healthcare supply chain from R&D to distribution, supporting highly regulated markets.

• Serviceable addressable market estimated at $18 billion and growing.

Financial Performance and Outlook

• Achieved 8% CAGR in revenue and adjusted EBITDA since 2020, with 10% free cash flow CAGR.

• Targets 5%-7% annual organic revenue growth and $500-$600 million cumulative free cash flow from 2025-2027.

• Expects 3%-4% annual pricing benefit and 50-150 basis points margin expansion through 2027.

• Capital expenditures peaked at ~$200 million annually, expected to normalize to $100-$110 million by 2027.

• Uses Adjusted EBITDA and Free Cash Flow as principal performance metrics, excluding EO litigation settlements and related defense costs.

Operational Priorities and Growth Drivers

• Four key priorities: customer service excellence, targeting high-growth markets, operational excellence, and disciplined capital allocation.

• Ongoing investments in U.S. EO facility enhancements, Sterigenics greenfield sites (2025-2027), and cobalt development projects.

• Pursues both organic growth (leveraging market trends and cross-business opportunities) and inorganic growth (acquisitions and collaborations).

• Sterigenics, Nelson Labs, and Nordion each contribute to growth, with Sterigenics as the largest revenue share.

• Organic growth opportunities in an $18 billion market, with cross-business unit collaboration driving higher customer satisfaction.