Sotera Health (NASDAQ:SHC) Issues Earnings Results

Sotera Health (NASDAQ:SHC) issued its quarterly earnings results on Tuesday. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.27 by $0.02, FiscalAI reports. The firm had revenue of $324.89 million during the quarter, compared to analyst estimates of $319.86 million. Sotera Health had a net margin of 13.44% and a return on equity of 40.12%. Sotera Health’s revenue for the quarter was up 4.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.26 earnings per share.

Here are the key takeaways from Sotera Health’s conference call:

• Third-quarter results were solid, with revenue up 4.4% year over year to $325 million, adjusted EBITDA up 4% in constant currency, adjusted EBITDA margin improving nearly 100 basis points sequentially to 52.5%, and adjusted EPS rising 12% to $0.29.
• Management reaffirmed its 2026 outlook, including 5.25%–6.75% constant-currency revenue growth, 5.75%–7.25% adjusted EBITDA growth, and adjusted EPS of $0.95–$1.01. Sterigenics and Nelson Labs posted strong third-quarter constant-currency revenue growth of 8.2% and 9.2%, respectively.
• Sotera reported softness in the medical-device market, primarily among European customers, beginning in mid-to-late Q3 and continuing into Q4. Sterigenics revenue is expected to be roughly flat sequentially in Q4, although management characterized demand as currently stable and reaffirmed its full-year segment outlook.
• The company continued to strengthen its balance sheet, generating $228 million of year-to-date operating cash flow and reducing net leverage to 2.9x, within its 2x–3x target range. Management also expects a meaningful reduction in capital expenditures in 2027 as major facility investments wind down.
• Litigation remains an ongoing risk, with a Georgia appellate decision expected in spring 2027 and initial California trials scheduled for January and April 2027; Illinois cases remain in pretrial proceedings.

Sotera Health Stock Down 5.9%

Shares of SHC stock traded down $1.04 during mid-day trading on Tuesday, reaching $16.70. 387,499 shares of the company were exchanged, compared to its average volume of 2,679,050. Sotera Health has a fifty-two week low of $13.09 and a fifty-two week high of $19.85. The company has a debt-to-equity ratio of 3.33, a quick ratio of 2.55 and a current ratio of 2.80. The company has a market capitalization of $4.77 billion, a P/E ratio of 29.03 and a beta of 1.85. The business’s 50 day simple moving average is $18.48 and its 200 day simple moving average is $17.03.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Wall Street Zen raised shares of Sotera Health from a “buy” rating to a “strong-buy” rating in a research report on Sunday, October 25th. Weiss Ratings cut shares of Sotera Health from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 23rd. Piper Sandler reiterated an “overweight” rating and issued a $25.00 price target on shares of Sotera Health in a report on Tuesday, September 8th. Barclays increased their price target on Sotera Health from $19.00 to $22.00 and gave the company an “overweight” rating in a report on Friday, August 7th. Finally, Citigroup raised their price objective on Sotera Health from $23.00 to $25.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Eight research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $21.38.

Insiders Place Their Bets

In other Sotera Health news, Chairman Michael Petras, Jr. sold 850,000 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $18.50, for a total transaction of $15,725,000.00. Following the transaction, the chairman directly owned 3,969,393 shares in the company, valued at $73,433,770.50. This represents a 17.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Michael Rutz sold 150,000 shares of the company’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $18.84, for a total transaction of $2,826,000.00. Following the completion of the sale, the insider owned 334,279 shares in the company, valued at approximately $6,297,816.36. This trade represents a 30.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 1,294,515 shares of company stock valued at $23,999,528. Insiders own 15.36% of the company’s stock.

Sotera Health Company Profile

Sotera Health Company (NASDAQ: SHC) is a healthcare services company focused on sterilization, laboratory testing and infection prevention. Its services support manufacturers and providers across the medical device, pharmaceutical, tissue, food safety and other healthcare-related industries.

The company operates through three primary businesses. Sterigenics provides outsourced sterilization services, including ethylene oxide, gamma irradiation and electron-beam processing. Nelson Labs offers laboratory testing, analytical services and consulting for medical devices, pharmaceuticals and other healthcare products.