Sotera Health reported fourth‑quarter 2025 net revenues of $303.44 million, a 4.6% year‑over‑year increase and 2.5% growth on a constant‑currency basis. Net income rose to $35 million, or $0.12 per diluted share, compared with $12 million, or $0.04 per diluted share, in Q4 2024. Adjusted EBITDA climbed 2.7% to $157 million, with a 0.5% constant‑currency gain, and adjusted earnings per diluted share reached $0.26, up $0.05 from the prior year’s $0.21. The earnings beat—$0.26 versus the consensus estimate of $0.24—was driven by disciplined cost control, a favorable mix shift toward higher‑margin Sterigenics and Nordion services, and robust demand for mission‑critical sterilization and testing services.
Full‑year 2025 results showed net revenues of $1.164 billion, up 5.7% from $1.100 billion in 2024, and adjusted EBITDA of $594 million, a 7.8% increase. The growth was largely supported by high‑single‑digit revenue gains in Sterigenics and Nordion and by Nelson Labs’ expansion of core lab testing, which also improved its margins. However, operating margin contracted to 23.2% from 30% YoY, reflecting cost pressures and a shift in the mix toward lower‑margin segments.
Management reiterated its 2026 outlook, maintaining constant‑currency revenue growth guidance of 5.0%–6.5% and adjusting the adjusted EBITDA growth range to 5.5%–7.0% (down from the previously reported 6.75%–7.75%). The revised EBITDA guidance signals management’s recognition of ongoing margin compression while still expressing confidence in sustained demand for its services.
Investors reacted with a modest pre‑market decline of 0.63%, citing concerns about the company’s high valuation—its P/E ratio sits around 85x—and questions about the sustainability of margin expansion. Analysts noted that while revenue beat expectations, organic revenue growth fell short of consensus, tempering enthusiasm for the results.
"The Company delivered strong results in 2025, driven by solid execution, increased demand for our mission‑critical services, and disciplined financial management," said CEO Michael B. Petras, Jr. The statement underscores the company’s focus on operational excellence and capital discipline as it navigates a competitive landscape and regulatory scrutiny surrounding ethylene oxide matters.
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