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%, with strong survey results and continued progress on facility enhancements and new X-ray facility construction set to open in 2026.

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

• Management transition announced: Erika Ostrowski to become SVP and General Counsel effective April 1, 2026.

Financial highlights

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

• Q4 2025 revenue grew 4.6% to $303 million; adjusted EBITDA rose 2.7% to $157 million, with a 51.8% margin.

• Adjusted EPS for 2025 was $0.86, up $0.16 year-over-year.

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

• Net leverage improved to 3.2x from 3.7x in 2024; available liquidity at year-end was $940 million, including $345 million cash and $600 million revolver capacity.

Outlook and guidance

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

• Adjusted EPS projected at $0.93–$1.01; interest expense expected at $135–$145 million; effective tax rate 27–29%.

• CapEx guidance for 2026 is $175–$225 million; net leverage targeted to improve further.

• Assumptions include stable supply chain for EO and Cobalt-60, and manageable inflationary trends.

• Pricing expected at midpoint of 3–4% long-term range for 2026; FX benefit weighted toward 1H 2026.