Q2 2026 Sotera Health Co Earnings Call Transcript

Aug 6, 2026 / 01:00 PM GMT

Release Date Price: $18.91 (+5.17%)

Transcript 10-Q8-K

Key Points

Positve

Sotera Health Co (SHC) delivered strong Q2 2026 results with 8% constant currency revenue growth and 8.7% constant currency adjusted EBITDA growth, leading to a raised full-year 2026 outlook.
The Sterogenics segment showed robust performance with 7% constant currency revenue growth and over 50 basis points of margin expansion, driven by favorable pricing and volume/mix.
Nordion exceeded expectations with 16.7% constant currency revenue growth and over 160 basis points of segment income margin expansion, benefiting from strong volume/mix and pricing.
The company achieved a key milestone by reaching its long-term net leverage target range of 2-3 times, improving to 3 times, while maintaining strong liquidity.
Sotera Health Co (SHC) successfully reduced borrowing costs on its $1.4 billion term loan by 100 basis points in less than a year, contributing to a 30% increase in adjusted EPS.
The new X-ray facility is progressing well, with revenue starting to flow in Q3 and a strong pipeline of customers in validation, supporting confidence in second-half growth.

Negative

Nelson Labs' segment income margin declined year-over-year, primarily due to higher costs, despite revenue growth of 5.4% on a constant currency basis.
The company faces ongoing litigation risks, including the Georgia appellate process and California trials expected in January and April 2027, which could create uncertainty.
Sotera Health Co (SHC) noted that some Nordion revenues expected in the second half shifted into Q2, creating a potential timing headwind for H2 growth comparisons.
Inflation remains a headwind, particularly in labor and materials, which partially offset margin gains across segments, though management described it as standard.
The company expects a meaningful step-up in capital expenditures in 2026, which could pressure near-term free cash flow despite a projected step-down in 2027.
Nelson Labs' full-year margin guidance remains in the low-to-mid 30% range, indicating limited near-term margin expansion potential despite sequential improvement.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SHC.OQ - Sotera Health Company
Q2 2026 Sotera Health Co Earnings Call
Aug 06, 2026 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and welcome to the Soterra Health second quarter 2026 earnings call.

All participants will be in listen-only mode.

Should you need assistance, please signal a conference specialist by pressing the star key followed by 0.

After today's presentation, there will be an opportunity to ask questions.

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To withdraw your question, please press star then 2.

Please note this event is being recorded.

I would now like to turn the conference over to Vice President of Investor Relations, Jason Peterson.

Jason, please go ahead.

Good morning and thank you.

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