Sotera Health Company (SHC) RBC Capital Markets Global Healthcare Conference 2026 summary

Leadership transition and management outlook

• New CEO Alton, with deep med device experience, starts next week, following a decade-long tenure by the outgoing CEO who believed in limited terms for the role.

• The board conducted an exhaustive search, emphasizing a strong commercial and operational background.

• Leadership transition is viewed as a positive sign of company stability and readiness for future growth.

Demand trends and business performance

• Sterigenics, the largest segment, saw strong volume and revenue growth, with March being the best month in years and April continuing the trend.

• Q1 growth was 6.1% constant currency, with weather impacting early months; guidance for Q2 matches Q1, with easier comps and expected acceleration in the second half.

• New X-ray facility is coming online in the second half, expected to support growth.

• Customer shift from insourcing to outsourcing is expected to contribute meaningfully, though not requiring new facilities.

Pricing, margins, and segment updates

• Achieved 4.5% pricing growth in Q1, with consistent year-over-year improvement expected to continue.

• Nelson Labs lapped difficult comps after a record 2024, with margins recovering as volumes normalized in March.

• Margin improvement of over 300 basis points last year, with expectations for continued recovery as validation pipelines build.

• New cleanroom in Salt Lake City and regulatory-driven validation work are expected to drive growth in the second half.