Sotera Health (NASDAQ:SHC) Posts Earnings Results, Beats Expectations By $0.02 EPS

Sotera Health (NASDAQ:SHC) announced its quarterly earnings data on Thursday. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.02, FiscalAI reports. Sotera Health had a return on equity of 40.12% and a net margin of 13.44%.The firm had revenue of $321.38 million for the quarter, compared to analysts’ expectations of $309.70 million. During the same period last year, the firm earned $0.20 earnings per share. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year. Sotera Health updated its FY 2026 guidance to 0.950-1.010 EPS.

Here are the key takeaways from Sotera Health’s conference call:

• Strong second-quarter performance: Revenue rose 8% on a constant-currency basis, adjusted EBITDA increased 8.7%, margins expanded 36 basis points, and adjusted EPS grew 30% to $0.26.
• Sotera Health raised its 2026 outlook, now expecting constant-currency revenue growth of 5.25%-6.75%, adjusted EBITDA growth of 5.75%-7.25%, and adjusted EPS of $0.95-$1.01.
• Sterigenics delivered 7% constant-currency revenue growth, supported by pricing, volume and mix, while Nordion grew 16.7%; Sterigenics also expects second-half growth from favorable shutdown timing, a large customer outsourcing EO sterilization, and the new X-ray facility.
• Net leverage improved to 3.0 times, reaching the company’s long-term target range, while 2026 capital expenditures are expected at $200 million-$225 million for capacity expansions and facility upgrades; management expects a meaningful CapEx reduction in 2027.
• Nelson Labs’ revenue grew 5.4% in constant currency, but segment income margin declined year over year because of higher costs; management continues to forecast a full-year margin in the low-to-mid 30% range.

Sotera Health Stock Down 0.3%

SHC stock traded down $0.05 during midday trading on Friday, hitting $18.86. The company’s stock had a trading volume of 3,375,782 shares, compared to its average volume of 3,027,352. The firm’s 50-day moving average is $17.13 and its 200-day moving average is $16.33. The company has a current ratio of 2.80, a quick ratio of 2.54 and a debt-to-equity ratio of 3.19. Sotera Health has a 12 month low of $12.94 and a 12 month high of $19.85. The company has a market cap of $5.38 billion, a PE ratio of 33.09 and a beta of 1.77.

Key Sotera Health News

Here are the key news stories impacting Sotera Health this week:

• Positive Sentiment: Strong Q2 results and raised outlook: Sotera Health reported adjusted EPS of $0.26, above the $0.24 consensus, while revenue increased 9.2% year over year to $321.4 million, exceeding estimates of $309.7 million. Adjusted EBITDA rose 10%, and net income increased to $53.6 million from $8.0 million a year earlier. Sotera Health Delivers Strong Second-Quarter and First-Half 2026 Results and Raises FY 2026 Outlook
• Positive Sentiment: Management raised full-year 2026 guidance: The company increased its constant-currency revenue growth outlook to 5.25%-6.75%, adjusted EBITDA growth outlook to 5.75%-7.25%, and adjusted EPS guidance to $0.95-$1.01. It also expects lower interest expense following a term-loan repricing that should save approximately $3.5 million annually. Sotera Health Company Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Piper Sandler became more bullish: The firm reaffirmed its “overweight” rating and raised its price target from $22 to $25, implying substantial upside from the recent trading level. Benzinga analyst update
• Neutral Sentiment: JPMorgan’s target increase was less constructive: JPMorgan lifted its target from $16 to $18 but maintained a “neutral” rating, leaving its target below the current share price. This may be limiting enthusiasm following the earnings-driven rally. Benzinga analyst update
• Negative Sentiment: Leverage and ongoing risks remain: SHC still carries approximately $2.2 billion of debt, while litigation related to ethylene oxide facilities, inflationary costs and regulatory risks remain potential overhangs. The stock’s valuation also appears demanding relative to JPMorgan’s neutral view.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Citigroup raised their target price on shares of Sotera Health from $23.00 to $25.00 and gave the stock a “buy” rating in a report on Friday. JPMorgan Chase & Co. upped their price target on Sotera Health from $16.00 to $18.00 and gave the company a “neutral” rating in a research report on Friday. Piper Sandler reiterated an “overweight” rating and issued a $25.00 price objective (up from $22.00) on shares of Sotera Health in a report on Friday. Wall Street Zen lowered Sotera Health from a “strong-buy” rating to a “buy” rating in a research report on Saturday, April 11th. Finally, The Goldman Sachs Group started coverage on Sotera Health in a research note on Friday, June 5th. They set a “buy” rating and a $20.00 target price on the stock. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, Sotera Health presently has an average rating of “Moderate Buy” and an average target price of $21.50.

Insider Transactions at Sotera Health

In other Sotera Health news, Director Gtcr Investment Xi Llc sold 12,735,301 shares of the business’s stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $15.17, for a total transaction of $193,194,516.17. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 15.36% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Empowered Funds LLC lifted its holdings in Sotera Health by 11.1% in the 1st quarter. Empowered Funds LLC now owns 28,512 shares of the company’s stock worth $332,000 after purchasing an additional 2,845 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Sotera Health by 14.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 342,934 shares of the company’s stock worth $3,999,000 after buying an additional 43,471 shares in the last quarter. Acadian Asset Management LLC boosted its position in shares of Sotera Health by 125.5% during the first quarter. Acadian Asset Management LLC now owns 25,192 shares of the company’s stock worth $293,000 after acquiring an additional 14,018 shares during the last quarter. Creative Planning increased its holdings in Sotera Health by 15.3% in the 2nd quarter. Creative Planning now owns 20,186 shares of the company’s stock valued at $224,000 after acquiring an additional 2,673 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in Sotera Health by 4.2% during the second quarter. Invesco Ltd. now owns 319,156 shares of the company’s stock valued at $3,549,000 after buying an additional 12,758 shares during the last quarter. Institutional investors own 91.03% of the company’s stock.

About Sotera Health

Sotera Health Inc (NASDAQ: SHC) is a global provider of sterilization and laboratory testing services that support the medical device, pharmaceutical, life sciences and consumer product industries. Headquartered in Jacksonville, Florida, the company offers a suite of services designed to ensure products meet rigorous safety and regulatory requirements before reaching market.

Sotera Health operates through three primary service platforms. Its Sterigenics division delivers contract sterilization solutions, including ethylene oxide (EtO), gamma irradiation, electron beam and X-ray technologies.