Sotera Health Q2 revenue rises 6.4%, beats estimates on favorable pricing

Overview

• Sotera Health Q2 2025 net revenues up 6.4% to $294 mln, beating estimates

• Adjusted EPS rises to $0.20, exceeding analyst expectations, per LSEG data

• Adjusted EBITDA grows 9.8% to $151 mln, surpassing estimates, per LSEG data

Outlook

• Sotera Health raises full-year 2025 net revenue growth to 4.5%-6.0%

• Company expects full-year Adjusted EBITDA growth of 6.0%-7.5%

• Sotera Health sees Adjusted EPS range at $0.75-$0.82

• Capital expenditures forecast lowered to $170 mln-$180 mln

Result Drivers

• STERIGENICS VOLUME - Strong volume performance at Sterigenics contributed to revenue growth

• NELSON LABS MARGIN - Margin expansion driven by improvements at Nelson Labs

• FAVORABLE PRICING - Revenue growth supported by favorable pricing across segments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Sotera Health Co is $15.50, about 27.6% above its August 7 closing price of $11.22

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX2pZ1HW