Sotera Health Company (SHC) Q4 2025 earnings summary

Executive summary

• Achieved 20th consecutive year of revenue growth, with 2025 net revenues up 5.7% to $1.164 billion and adjusted EBITDA up 8.2% to $594 million, with margin expansion to 51%.

• Net income for 2025 rose to $78 million ($0.27 per diluted share), up from $44 million ($0.16 per share) in 2024.

• Customer satisfaction exceeded 80%, and survey results remained strong.

• Strengthened corporate governance with new board appointments and increased public float to 80%.

• Continued progress on facility enhancements, new X-ray facility construction, portfolio advancement, and corporate responsibility initiatives.

Financial highlights

• Full-year 2025 net revenues grew 5.7% to $1.164 billion; adjusted EBITDA increased 8.2% to $594 million with a 51% margin.

• Q4 2025 revenue grew 4.6% to $303 million; adjusted EBITDA rose 2.7% to $157 million.

• Full-year net income was $78 million ($0.27 per diluted share); adjusted EPS was $0.86, up $0.16 year-over-year.

• Adjusted free cash flow reached $210 million; capital expenditures totaled $138 million.

• Interest expense improved by $9 million to $156 million due to lower rates and debt paydown; annual interest savings of $13 million from $86 million in term loan paydowns.

Outlook and guidance

• 2026 net revenues expected at $1.233–$1.251 billion (5–6.5% constant currency growth); adjusted EBITDA projected at $632–$641 million (5.5–7% growth).

• Adjusted EPS guidance for 2026 is $0.93–$1.01; capital expenditures expected at $175–$225 million.

• Net leverage targeted to improve further from 3.2x, with no M&A assumed in guidance.

• Assumptions include stable supply chain for EO and Cobalt-60, manageable inflation, and FX benefit weighted toward 1H 2026.