Sotera Health beats, ups outlook

 

Sotera Health beats Q2 2026 EPS and revenue estimates with non-GAAP EPS $0.26, revenue $321.4M, raises 2026 revenue, EBITDA and EPS outlook

• Q2 exceeded internal expectations with 8% constant-currency revenue and margin expansion companywide.
• Sterigenics and Nordion delivered high-single to mid-teens growth, offsetting Nelson Labs cost pressure.
• Management raised 2026 revenue, EBITDA and EPS guidance slightly, citing stronger Sterigenics second-half outlook.
• Sterigenics volume growth, new X-ray facility ramp, and large EO outsourcing contract underpin confidence.
• Capex increased to $200–$225 million for growth and EO upgrades, and 2027 step-down was reaffirmed.
• Balance sheet reached 3x net leverage target, interest expense outlook and tax rate both improved.
• EO litigation and regulatory backdrop remain main overhang, with immaterial New Mexico settlement, progressing Georgia appeal, limited near-term financial impact.
• New CEO prioritizing customer focus, cross-business 'One Sotera' offerings, and disciplined capital deployment.
• Strong quarter, driven by Sterigenics and Nordion outperformance plus higher 2026 guidance and margins.

https://finviz.com/stock?t=SHC&p=d