Jun 30, 2023

Sotera Health Q2 2023 Earnings Report

Sotera Health's financial performance was impacted by Nordion Cobalt-60 harvest schedule timing and volume softness at Sterigenics and Nelson Labs.

Key Takeaways

Sotera Health reported a decrease in second-quarter net revenues by 4% to $255 million, primarily due to Nordion Cobalt-60 harvest schedule timing. Net income decreased to $24 million, or $0.08 per diluted share. The company has adjusted its full-year 2023 net revenue outlook to $1.035 billion to $1.055 billion and Adjusted EBITDA to $520 million to $535 million due to continued volume softness.

Q2 2023 net revenues decreased 4% to $255 million, driven by Nordion Cobalt-60 harvest schedule timing.

Q2 2023 net income decreased to $24 million, or $0.08 per diluted share.

Adjusted EBITDA for Q2 2023 decreased 6% to $128 million, impacted by Nordion Cobalt-60 timing.

Full-year 2023 net revenue outlook adjusted to $1.035 billion to $1.055 billion and Adjusted EBITDA to $520 million to $535 million.

Total Revenue
$255M
Previous year: $267M
-4.3%
EPS
$0.21
Previous year: $0.27
-22.2%
Gross Profit
$140M
Previous year: $150M
-7.2%
Cash and Equivalents
$270M
Previous year: $141M
+91.8%
Free Cash Flow
-$390M
Previous year: $22.2M
-1856.0%
Total Assets
$3.07B
Previous year: $2.84B
+8.3%

Sotera Health

Sotera Health

Sotera Health Revenue by Segment

Forward Guidance

Sotera Health is updating its 2023 outlook. Net revenues are expected to be in the range of $1.035 to $1.055 billion, and Adjusted EBITDA in the range of $520 to $535 million.

Positive Outlook

  • Net revenues in the range of $1.035 to $1.055 billion, representing growth of approximately 3% to 5%, compared to the prior year
  • Adjusted EBITDA in the range of $520 to $535 million, representing growth of approximately 3% to 6%, compared to the prior year
  • Tax rate applicable to Adjusted Net Income in the range of 30% to 32%
  • Adjusted EPS remains in the range of $0.78 to $0.86
  • 2023 year-end Net Leverage Ratio expected to end the year at or below 4.0x

Revenue & Expenses

Visualization of income flow from segment revenue to net income