Q1 2025 Sotera Health Co Earnings Call Transcript
Key Points
- Sotera Health Co (SHC) reported mid-single-digit top line growth and double-digit bottom line growth on a constant currency basis compared to Q1 2024.
- Sterigenics, the largest segment, achieved revenue growth of 1.9% and a margin expansion of approximately 30 basis points.
- Nordion's revenue increased by 36% due to early Cobalt-60 shipments, with a segment income margin expansion of nearly 860 basis points.
- Nelson Labs showed margin expansion for the third consecutive quarter, with a 479 basis point increase compared to Q1 2024.
- The company reaffirmed its 2025 outlook, expecting revenue growth of 4% to 6% and adjusted EBITDA growth of 4.5% to 6.5% on a constant currency basis.
- Foreign currency fluctuations presented a headwind of 180 basis points, particularly affecting the Canadian-based Nordion business.
- Net loss on a GAAP basis for Q1 2025 was $13 million, impacted by a $31 million settlement of EO claims in Illinois.
- Nelson Labs experienced a 9.3% revenue decline due to a decrease in expert advisory services revenue.
- The shift in Cobalt-60 shipments from Q2 to Q1 will impact Nordion's second-quarter revenues.
- Interest expense remains high, with a projection of $155 million to $165 million for the full year 2025.
Good morning, and welcome to the Sotera Health first-quarter of 2025 earnings call. (Operator Instructions)
Please also note that this event is being recorded. I would now like to turn the conference over to Vice President of Investor Relations and Treasurer, Jason Peterson. Jason, I turn the call over to you.
Good morning, and thank you. Welcome to Sotera Health's first-quarter 2025 earnings call. You can find today's press release and accompanying supplemental slides on the investor section of our website at soterahealth.com. This webcast is being recorded, and the replay will be available in the investor section of the Sotera Health website.
On the call with me today are Chairman and Chief Executive Officer Michael Petras; and Chief Financial Officer, Jon Lyons. During the call, some of our comments may be considered forward-looking statements. The matters addressed in these statements are subject to risks and uncertainties that could cause actual results
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