Sotera Health Company (SHC) Barclays 28th Annual Global Healthcare Conference summary

Energy and supply chain management

• Utility and gas costs are largely fixed under long-term contracts, minimizing risk from energy price fluctuations.

• Ethylene oxide gas supply is secured with fixed contracts, especially in the U.S., reducing exposure to market volatility.

• No current supply chain constraints are reported.

Financial performance and outlook

• Achieved over 5% top-line and 8% bottom-line growth in 2025, with $200M+ in free cash flow and 118 basis points of margin expansion.

• Deleveraged and repriced debt, with private equity sponsors reducing their stake to about 12%.

• Projected 5%-6.5% revenue growth and 5.5%-7% EBITDA growth for 2026.

• 20 consecutive years of growth, maintaining 50%+ EBITDA margins.

Demand, seasonality, and customer dynamics

• First quarter is typically the softest due to customer and facility cycles, not due to pull-forward or inventory stuffing.

• Demand visibility is strong, with 40%-45% of annual business expected in the first half of the year.

• No material changes in customer order dynamics or inventory management; volumes remain stable.

• Healthcare utilization remains elevated, with several weeks to months of advance planning for orders.