Sotera Health (NASDAQ:SHC – Get Free Report) issued its earnings results on Tuesday. The company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.27 by $0.02, FiscalAI reports. The company had revenue of $324.89 million during the quarter, compared to analysts’ expectations of $319.86 million. Sotera Health had a net margin of 13.44% and a return on equity of 40.12%. The business’s revenue for the quarter was up 4.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.26 EPS.
Here are the key takeaways from Sotera Health’s conference call:
- Third-quarter results were solid, with revenue up 4.4% year over year to $325 million, adjusted EBITDA up 4% in constant currency, adjusted EBITDA margin improving nearly 100 basis points sequentially to 52.5%, and adjusted EPS rising 12% to $0.29.
- Management reaffirmed its 2026 outlook, including 5.25%–6.75% constant-currency revenue growth, 5.75%–7.25% adjusted EBITDA growth, and adjusted EPS of $0.95–$1.01. Sterigenics and Nelson Labs posted strong third-quarter constant-currency revenue growth of 8.2% and 9.2%, respectively.
- Sotera reported softness in the medical-device market, primarily among European customers, beginning in mid-to-late Q3 and continuing into Q4. Sterigenics revenue is expected to be roughly flat sequentially in Q4, although management characterized demand as currently stable and reaffirmed its full-year segment outlook.
- The company continued to strengthen its balance sheet, generating $228 million of year-to-date operating cash flow and reducing net leverage to 2.9x, within its 2x–3x target range. Management also expects a meaningful reduction in capital expenditures in 2027 as major facility investments wind down.
- Litigation remains an ongoing risk, with a Georgia appellate decision expected in spring 2027 and initial California trials scheduled for January and April 2027; Illinois cases remain in pretrial proceedings.
Sotera Health Stock Performance
Shares of Sotera Health stock opened at $16.03 on Wednesday. The company has a market capitalization of $4.57 billion, a PE ratio of 20.87 and a beta of 1.94. Sotera Health has a 12 month low of $13.09 and a 12 month high of $19.85. The company has a current ratio of 2.80, a quick ratio of 2.55 and a debt-to-equity ratio of 3.33. The stock’s fifty day simple moving average is $18.42 and its 200 day simple moving average is $17.02.
Insider Activity
In other Sotera Health news, insider Michael P. Rutz sold 150,000 shares of the business’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $18.84, for a total value of $2,826,000.00. Following the completion of the transaction, the insider directly owned 334,279 shares of the company’s stock, valued at approximately $6,297,816.36. The trade was a 30.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman Michael B. Jr. Petras sold 850,000 shares of the business’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $18.50, for a total value of $15,725,000.00. Following the completion of the transaction, the chairman directly owned 3,969,393 shares of the company’s stock, valued at approximately $73,433,770.50. The trade was a 17.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 1,294,515 shares of company stock worth $23,999,528. Corporate insiders own 15.36% of the company’s stock.
Wall Street Analyst Weigh In
A number of equities research analysts recently commented on SHC shares. Citigroup lifted their price objective on Sotera Health from $23.00 to $25.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Wall Street Zen raised Sotera Health from a “buy” rating to a “strong-buy” rating in a research note on Sunday, October 25th. Piper Sandler reissued an “overweight” rating and issued a $25.00 target price on shares of Sotera Health in a research note on Tuesday, September 8th. Weiss Ratings cut Sotera Health from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, October 23rd. Finally, JPMorgan Chase & Co. lowered Sotera Health from a “neutral” rating to an “underweight” rating and set a $17.00 target price for the company. in a research report on Wednesday, October 14th. Eight investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $21.38.
Check Out Our Latest Report on SHC
Trending Headlines about Sotera Health
Here are the key news stories impacting Sotera Health this week:
- Positive Sentiment: Q3 revenue rose 4.4% year over year to $324.9 million, topping the $319.9 million consensus estimate. Adjusted EPS was $0.29 versus expectations of $0.27 and $0.26 a year earlier; adjusted EBITDA increased 3.9%, with sequential adjusted EBITDA margin expanding by nearly one percentage point. The results drew a positive share-price response. Sotera Health Q3 results
- Positive Sentiment: Management reaffirmed 2026 guidance, projecting constant-currency revenue growth of 5.25%–6.75% and adjusted EBITDA growth of 5.75%–7.25%. It also maintained an adjusted EPS target of $0.95–$1.01. Outlook and European market update
- Negative Sentiment: European medical-device market softness is a headwind cited alongside the outlook. However, Sotera’s decision to reaffirm its targets suggests the company does not currently expect that pressure to derail its annual plans. Outlook and European market update
Sotera Health Company Profile
Sotera Health Company (NASDAQ: SHC) is a healthcare services company focused on sterilization, laboratory testing and infection prevention. Its services support manufacturers and providers across the medical device, pharmaceutical, tissue, food safety and other healthcare-related industries.
The company operates through three primary businesses. Sterigenics provides outsourced sterilization services, including ethylene oxide, gamma irradiation and electron-beam processing. Nelson Labs offers laboratory testing, analytical services and consulting for medical devices, pharmaceuticals and other healthcare products.
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