Sotera Health Reports Strong Q1 2026 Performance, Reaffirms Full-Year Outlook
Sotera Health Company a global provider of sterilization solutions, lab testing, and advisory services, announced solid financial results for the first quarter ended March 31, 2026, highlighting steady growth across key metrics and reaffirming its full-year guidance.
The company reported net revenues growth of 10.0% year-over-year, or 6.5% on a constant currency basis. Net income reached $27 million, or $0.09 per diluted share, compared to a net loss of $13 million, or $0.05 per diluted share, in the same period last year. Adjusted EBITDA rose 10.5% (6.9% constant currency), while adjusted earnings per share increased 29% to $0.18.
Chairman and CEO Michael B. Petras Jr. noted a strong start to the year, driven by disciplined execution across its core businesses. He highlighted growth at Sterigenics and Nordion, with Nelson Labs performing in line with expectations. Based on this momentum, the company reaffirmed its 2026 outlook, projecting 5.0%–6.5% revenue growth and 5.5%–7.0% Adjusted EBITDA growth on a constant currency basis.
Segment Performance
- Sterigenics delivered revenue of $186 million, up 9.7% (6.1% constant currency), with segment income rising 9.6% to $96 million, supported by pricing improvements and favorable volume mix.
- Nordion posted strong results, with revenue increasing 29.0% to $42 million (25.8% constant currency). Segment income grew 36.1% to $24 million, driven by favorable cobalt-60 harvest timing, pricing, and foreign exchange benefits.
- Nelson Labs reported revenue of $52 million, down 0.7% (3.8% decline constant currency), with segment income falling 11.5% to $15 million due to unfavorable volume mix, partially offset by pricing and currency gains.
Financial Position and Operations
Sotera Health generated $29 million in operating cash flow during the quarter, including the impact of a previously disclosed $34 million legal settlement. As of March 31, 2026, the company maintained a net leverage ratio of 3.2x and more than $900 million in available liquidity.
The company also strengthened its governance structure by adding two independent directors, including Rich Kyle and Ken Krause, bringing additional expertise in finance, strategy, and governance.
2026 Outlook
Sotera Health reaffirmed its full-year 2026 guidance, including:
- Revenue between $1.233 billion and $1.251 billion
- Adjusted EBITDA between $632 million and $641 million
- Adjusted EPS of $0.93 to $1.01
- Capital expenditures of $175 million to $225 million
The outlook assumes stable supply chain conditions, particularly for ethylene oxide and cobalt-60, along with manageable inflationary pressures.
Sotera Health will participate in several upcoming investor conferences, including the RBC Capital Markets Global Healthcare Conference (May 19), its Annual Meeting of Stockholders (May 21), the Jefferies Global Healthcare Conference (June 3), and the Goldman Sachs Global Healthcare Conference (June 8).
A live webcast of the company’s earnings call is available via its investor relations website, with a replay accessible afterward.
Overall, Sotera Health’s first-quarter performance underscores its continued growth trajectory and operational resilience heading into the remainder of 2026.
Sotera Health’s Sterigenics segment delivered strong results, with net revenues increasing 9.7% to $186 million, or 6.1% on a constant currency basis. Segment income rose 9.6% to $96 million, supported by favorable pricing, improved volume mix, and foreign currency benefits, partially offset by higher operating costs.
The Nordion segment recorded exceptional growth, with net revenues rising 29.0% to $42 million, or 25.8% on a constant currency basis. Segment income climbed 36.1% to $24 million. This performance was driven by volume and mix benefits associated with the timing of cobalt-60 harvest schedules, along with favorable pricing and foreign exchange tailwinds, though partially impacted by inflationary pressures.
Meanwhile, Nelson Labs reported net revenues of $52 million, representing a slight decline of 0.7%, or 3.8% on a constant currency basis. Segment income decreased 11.5% to $15 million, primarily due to unfavorable volume mix. However, these declines were partially offset by favorable pricing and foreign currency benefits.
During the quarter, Sotera Health generated $29 million in net cash from operating activities, which included the impact of a previously disclosed $34 million legal settlement. The company maintained a solid financial position, ending the quarter with a net leverage ratio of 3.2x and over $900 million in available liquidity. Additionally, the company’s public float increased to approximately 90% of outstanding shares, enhancing trading liquidity and investor access.
2026 Outlook
Sotera Health reaffirmed its full-year 2026 guidance, originally issued in February. The company expects:
- Net revenues between $1.233 billion and $1.251 billion, representing constant currency growth of 5.0% to 6.5%
- Adjusted EBITDA in the range of $632 million to $641 million, reflecting 5.5% to 7.0% growth on a constant currency basis
- Adjusted EPS between $0.93 and $1.01
- Capital expenditures ranging from $175 million to $225 million
The outlook assumes stable supply chain conditions, particularly for key inputs such as ethylene oxide and cobalt-60, as well as manageable inflationary pressures affecting energy and labor costs.
Additional Developments and Events
The company also announced a planned CEO transition in a separate release, signaling a future leadership change while maintaining continuity in its strategic direction.
Sotera Health will host a conference call and webcast to discuss its quarterly results, with a replay available through its investor relations website. Additionally, the company is scheduled to participate in several upcoming investor events, including the RBC Capital Markets Global Healthcare Conference, its Annual Meeting of Stockholders, the Jefferies Global Healthcare Conference, and the Goldman Sachs Global Healthcare Conference.
Overall, Sotera Health’s first-quarter 2026 performance reflects strong execution, improving profitability, and a solid foundation for continued growth, reinforcing confidence in its full-year outlook and long-term strategic trajectory.
About Sotera Health
Sotera Health Company is a leading global provider of mission-critical end-to-end sterilization solutions, lab testing and advisory services for the healthcare industry. Sotera Health goes to market through three businesses – Sterigenics®, Nordion® and Nelson Labs®. Sotera Health is committed to its mission, Safeguarding Global Health®.
