Overview

• Sterilization solutions provider's Q4 revenue grew 4.6%, beating analyst expectations

• Adjusted EPS for Q4 increased by $0.05 from the previous year

• Company forecasts 2026 net revenue growth of 5.0% to 6.5%

Outlook

• Sotera Health projects 2026 net revenues between $1.233 bln and $1.251 bln

• Company expects 2026 adjusted EBITDA between $632 mln and $641 mln

• Sotera Health forecasts 2026 adjusted EPS in the range of $0.93 to $1.01

Result Drivers

• STERIGENICS PERFORMANCE - Sterigenics achieved strong Q4 revenue growth of 10.6%, driven by favorable pricing and volume/mix, partially offset by inflation

• NORDION CHALLENGES - Nordion's Q4 revenue decreased 12.3% due to timing of cobalt-60 harvest schedules, impacting volume/mix

• NELSON LABS GROWTH - Nelson Labs Q4 revenue increased 2.3%, driven by core lab testing services and favorable pricing

Company press release: ID:nGNX7q133T

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Sotera Health Co is $20.00, about 14.4% above its February 23 closing price of $17.49

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

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