Overview

• Sterilization solutions provider's Q1 revenue rose 10% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 increased 29%, beating analyst expectations

• Company reaffirmed full-year 2026 outlook and announced planned CEO transition

Outlook

• Sotera Health reaffirms 2026 net revenues guidance of $1.233 bln to $1.251 bln

• Company sees 2026 Adjusted EBITDA of $632 mln to $641 mln

• Sotera Health expects 2026 Adjusted EPS between $0.93 and $1.01

Result Drivers

• STERIGENICS GROWTH - Revenue growth driven by favorable pricing, improved volume/mix, and foreign currency benefits at Sterigenics

• NORDION VOLUME AND PRICING - Nordion revenue and margin growth driven by timing of cobalt-60 harvest schedules, volume/mix benefits, favorable pricing, and currency tailwinds

• NELSON LABS WEAKNESS - Revenue and segment income at Nelson Labs declined due to unfavorable volume/mix, partially offset by pricing and currency benefits

Company press release: ID:nGNX3yC4LL

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$280.05 mln	$270.77 mln (9 Analysts)
Q1 Adjusted EPS	Beat	$0.18	$0.17 (10 Analysts)
Q1 Net Income		$26.59 mln
Q1 Pretax Profit	Miss	$42.61 mln	$71.47 mln (8 Analysts)
Q1 Gross Profit		$147.07 mln

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 30% above its May 4 closing price of $15.39

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

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