Sotera Health Company (SHC) Jefferies Global Healthcare Conference 2026 summary

Leadership transition and strategic outlook

• CEO transition to Alton Shader, who brings over 20 years of healthcare medtech experience, is part of a planned succession to bring fresh perspective while maintaining continuity, with the outgoing CEO moving to Executive Chairman.

• No major changes expected in strategic direction; annual strategic planning continues, with opportunities for enhancement and acceleration under new leadership.

• The company has experienced 20 consecutive years of growth and expects this trend to continue.

Business performance and segment updates

• Recent performance in Sterigenics and Nelson saw a slow start in early months due to weather, but momentum and recovery are expected through the year, with guidance reaffirmed.

• Sterigenics is expected to see consistent growth, with second-half performance supported by new outsourcing contracts, X-ray facility contributions, and reduced maintenance downtime.

• Nelson Labs anticipates low single-digit growth, driven by routine sterilization, regulatory changes, and problem-solving for FDA-related issues.

• Cross-selling between Nelson and Sterigenics is a focus, with about 40% of Nelson’s business tied to sterility assurance and 20% embedded within Sterigenics facilities.

Supply chain, investments, and modality trends

• Demand for cobalt now exceeds supply, but supply chain planning and diversification efforts, including new reactor partnerships like Westinghouse, are in place to secure long-term supply.

• Westinghouse reactors offer a significant future opportunity for cobalt production, with a long development cycle and regulatory hurdles.

• Modality mix in sterilization is expected to shift gradually, with ongoing investments in new technologies and R&D to meet evolving customer needs.