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

Sotera Health (NASDAQ:SHC) released its earnings results on Thursday. The company reported $0.26 earnings per share for the quarter, beating the consensus estimate 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 analyst estimates of $309.70 million. During the same quarter in the prior year, the firm posted $0.20 earnings per share. The company’s quarterly revenue was up 9.2% on a year-over-year basis. 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%

NASDAQ:SHC traded down $0.05 on Friday, hitting $18.86. 3,375,782 shares of the company’s stock were exchanged, compared to its average volume of 3,027,352. The firm has a 50-day moving average price of $17.13 and a 200-day moving average price of $16.33. Sotera Health has a 52 week low of $12.94 and a 52 week high of $19.85. The company has a debt-to-equity ratio of 3.19, a current ratio of 2.80 and a quick ratio of 2.54. The company has a market cap of $5.38 billion, a P/E ratio of 33.09 and a beta of 1.77.

Sotera Health News Roundup

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.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. The Goldman Sachs Group started coverage on shares of Sotera Health in a research note on Friday, June 5th. They set a “buy” rating and a $20.00 price objective on the stock. JPMorgan Chase & Co. upped their price objective on shares of Sotera Health from $16.00 to $18.00 and gave the company a “neutral” rating in a research report on Friday. Barclays boosted their target price on Sotera Health from $19.00 to $22.00 and gave the company an “overweight” rating in a research note on Friday. Wall Street Zen cut Sotera Health from a “strong-buy” rating to a “buy” rating in a report on Saturday, April 11th. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $25.00 price target (up from $22.00) on shares of Sotera Health in a research note on Friday. Eight research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $21.50.

Insider Activity

In related news, Director Gtcr Investment Xi Llc sold 12,735,301 shares of the company’s stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $15.17, for a total transaction of $193,194,516.17. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 15.36% of the company’s stock.

Hedge Funds Weigh In On Sotera Health

Several hedge funds and other institutional investors have recently made changes to their positions in SHC. EverSource Wealth Advisors LLC grew its position in shares of Sotera Health by 831.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,288 shares of the company’s stock valued at $37,000 after acquiring an additional 2,935 shares during the period. Wells Fargo & Company MN increased its position in Sotera Health by 736.5% during the fourth quarter. Wells Fargo & Company MN now owns 4,283 shares of the company’s stock worth $76,000 after buying an additional 3,771 shares during the last quarter. Quadrant Capital Group LLC acquired a new position in Sotera Health during the third quarter worth approximately $86,000. Los Angeles Capital Management LLC bought a new stake in Sotera Health in the fourth quarter valued at approximately $90,000. Finally, PNC Financial Services Group Inc. lifted its position in shares of Sotera Health by 10.8% in the fourth quarter. PNC Financial Services Group Inc. now owns 7,204 shares of the company’s stock valued at $127,000 after buying an additional 705 shares during the last quarter. 91.03% of the stock is owned by institutional investors.

Sotera Health Company Profile

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.