Sotera Health Co Reports Strong Financial Results

By Bobby Samwell • Tuesday, November 04 10:31 • Permanent Link

Sotera Health Company, a leading global provider of sterilization solutions, lab testing, and advisory services for the healthcare industry, has reported strong financial results for the third quarter and year-to-date 2025.

In the third quarter of 2025, Sotera Health's net revenues increased by 9.1% to $311 million compared to the same period in 2024. Net income for the third quarter of 2025 was $48 million, a significant improvement from $17 million in the third quarter of 2024. The adjusted EBITDA for the third quarter of 2025 increased by 12.2% to $164 million. Additionally, the adjusted earnings per diluted share (adjusted EPS) for the third quarter of 2025 increased by $0.09 to $0.26 compared to the third quarter of 2024.

For the first nine months of 2025, Sotera Health's net revenues increased by 6.2% to $860 million compared to the same period in 2024. Net income for the first nine months of 2025 was $43 million, compared to $32 million for the same period in 2024. The adjusted EBITDA for the first nine months of 2025 increased by 10.4% to $437 million, and the adjusted EPS increased by $0.11 to $0.60 compared to the first nine months of 2024.

Sotera Health's Chairman and CEO, Michael B. Petras, Jr., noted that the company achieved strong top-line revenue growth and double-digit adjusted EBITDA growth, with approximately 150 basis points of margin expansion. The company also provided an outlook for the full year 2025, raising its adjusted EBITDA growth range to 6.75% * 7.75% and reaffirming its net revenues outlook range of 4.5% * 6.0% on a constant currency basis.

The company's business segments also showed positive performance. Sterigenics, Nordion, and Nelson Labs all demonstrated growth in net revenues and segment income, with favorable volume and mix, pricing, and changes in foreign currency exchange rates driving revenue growth.

Sotera Health's balance sheet and liquidity position also improved, with the company's net leverage ratio as of the third quarter of 2025 improving to 3.3x, closer to the company’s long-term stated goal of 2.0x to 3.0x, as compared to 3.7x as of December 31, 2024.

Finally, the company updated its full-year 2025 outlook, with improvements in net revenues growth, adjusted EBITDA growth, interest expense, tax rate, adjusted EPS, and capital expenditures.

Today the company's shares have moved 0.06% to a price of $16.61. For the full picture, make sure to review Sotera Health Co's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.