Sotera Health reported first‑quarter 2026 revenue of $280.05 million, a 10% year‑over‑year increase driven by robust demand in its Sterigenics and Nordion segments, while Nelson Labs saw a modest 0.7% decline on a constant‑currency basis.
Net income swung to $26.59 million from a $13.26 million loss in the same quarter a year earlier, reflecting stronger pricing and disciplined cost control. GAAP earnings per share rose to $0.09, and adjusted EPS reached $0.18, beating the consensus estimate of $0.17 by $0.01.
Adjusted EBITDA margin expanded to 48.1%, up 21 basis points from 47.9% in the prior year, underscoring the company’s ability to maintain profitability amid pricing power and efficient operations.
Sotera reaffirmed its 2026 guidance, keeping revenue expectations at $1.233 billion to $1.251 billion and adjusted EBITDA guidance at $632 million to $641 million, signaling confidence in sustained demand.
Segment analysis shows Sterigenics and Nordion as growth engines: Nordion posted 25.8% constant‑currency revenue growth and more than 290 basis‑point margin expansion, while Nelson Labs experienced a 3.8% constant‑currency revenue decline and a 15% drop in segment income.
A significant legal development occurred when Georgia courts dismissed all eight bellwether ethylene‑oxide personal‑injury cases, potentially reducing litigation exposure for the company.
Investors remained cautious, weighing the earnings beat against lingering concerns over ethylene‑oxide litigation and the mixed performance across segments.
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