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

Sotera Health (NASDAQ:SHC) released its quarterly earnings data on Tuesday. The company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.27 by $0.02, FiscalAI reports. Sotera Health had a net margin of 14.11% and a return on equity of 38.46%. The business had revenue of $324.89 million during the quarter, compared to analyst estimates of $319.86 million. During the same quarter last year, the business earned $0.26 earnings per share. Sotera Health’s quarterly revenue was up 4.4% compared to the same quarter last year.

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 Trading Down 0.9%

Shares of SHC traded down $0.14 during trading hours on Thursday, reaching $16.25. 277,469 shares of the company traded hands, compared to its average volume of 2,701,355. The firm has a market cap of $4.64 billion, a price-to-earnings ratio of 27.01 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 3.13, a quick ratio of 2.55 and a debt-to-equity ratio of 2.90. The stock’s fifty day moving average price is $18.36 and its 200 day moving average price is $17.00.

Wall Street Analysts Forecast Growth

SHC has been the subject of a number of analyst reports. Piper Sandler reaffirmed an “overweight” rating and issued a $25.00 price target on shares of Sotera Health in a report on Tuesday, September 8th. JPMorgan Chase & Co. reduced their price objective on Sotera Health from $17.00 to $15.00 and set an “underweight” rating on the stock in a research note on Wednesday. Weiss Ratings downgraded Sotera Health from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 23rd. Barclays lowered their price objective on Sotera Health from $22.00 to $20.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, Wall Street Zen upgraded Sotera Health from a “buy” rating to a “strong-buy” rating in a report on Sunday, October 25th. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $20.88.

Insider Activity

In related news, Chairman Michael B. Jr. Petras sold 850,000 shares of the firm’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 transaction, the chairman owned 3,969,393 shares of the company’s stock, valued at $73,433,770.50. This trade represents a 17.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Michael P. Rutz sold 150,000 shares of Sotera Health stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $18.84, for a total transaction of $2,826,000.00. Following the sale, the insider owned 334,279 shares of the company’s stock, valued at $6,297,816.36. The trade was a 30.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,294,515 shares of company stock worth $23,999,528 in the last ninety days. 15.36% of the stock is currently owned by insiders.

About Sotera Health

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.