Sotera Health Co. (NASDAQ:SHC) reported second-quarter results that outperformed analyst expectations, driven by strong gains in its sterilization segment, pushing shares up 2.7% after the announcement.
The company, a global leader in sterilization solutions and laboratory testing services, posted adjusted earnings per share of $0.20, beating the forecasted $0.17. Revenue reached $294.3 million, well above the consensus estimate of $275.9 million, marking a 6.4% year-over-year increase. On a constant currency basis, revenue growth was 6.0% compared to the prior year period.
Sotera also raised its full-year 2025 guidance, now anticipating adjusted EPS in the range of $0.75 to $0.82, up from the prior outlook of $0.70 to $0.76. The midpoint of this new forecast exceeds the analyst consensus of $0.75.
“We are pleased to announce that we delivered more than 6% top-line growth for the quarter, supported by strong volume performance at Sterigenics,” said Chairman and CEO Michael B. Petras, Jr. “Adjusted EBITDA grew nearly 10% in the quarter with approximately 160 basis points of margin expansion, driven by over 500 basis points of improvement at Nelson Labs.”
The Sterigenics division stood out with revenues rising 10.5% to $195 million compared to Q2 2024. Nordion revenues increased 2.9% to $42 million, while Nelson Labs experienced a 3.3% decline to $57 million.
Adjusted EBITDA climbed 9.8% to $151 million versus the same period last year, or 9.5% on a constant currency basis.
The company improved its net leverage ratio to 3.5x at quarter-end, down from 3.7x at the close of 2024, and held $332 million in unrestricted cash and equivalents.
“With improving momentum through the first half of the year, we are raising our full-year outlook for revenue, Adjusted EBITDA and Adjusted EPS, reflecting our confidence in continued execution and performance,” Petras added.
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