Sotera Health Company (SHC) Investor Day 2024 summary

Strategic priorities and market positioning

• Focus on four key priorities: customer excellence, targeting high-growth markets, operational excellence, and disciplined capital allocation.

• Emphasis on large, regulated markets with high barriers to entry and sticky customer relationships.

• Segmentation strategy targets higher-growth, higher-profitability segments such as diabetes, bioprocessing, and wearables.

• Expansion in Europe and increased pharmaceutical presence are key growth drivers.

• Cross-business unit synergies and integrated service offerings are expected to drive incremental revenue.

Business unit overviews and growth initiatives

• Nelson Labs is expanding pharma testing, investing in rapid testing, and leveraging cross-business synergies for growth.

• Sterigenics is investing in regulatory compliance, operational excellence, and targeting attractive segments like bioprocessing.

• Nordion maintains global leadership in Cobalt-60 supply, investing in new production technologies and exploring radiopharma opportunities.

• All units benefit from long-term contracts, high customer retention, and integrated solutions.

Financial guidance and capital allocation

• Targeting 5%-7% annual revenue growth and 5%-8% Adjusted EBITDA growth from 2025-2027.

• Cumulative free cash flow of at least $500 million expected over 2025-2027, with 35% free cash flow conversion by 2027.

• CapEx to peak in 2025, then decline as major projects complete; focus remains on high-return investments.

• Leverage ratio targeted to move from 3.6x to 2x-3x by 2027.

• M&A is not included in forecasts but remains a strategic priority for both core and adjacent markets.