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Jun 30, 2025
Sotera Health Q2 2025 Earnings Report
Delivered 6.4% revenue growth with double-digit Sterigenics performance and nearly 10% Adjusted EBITDA growth.
Key Takeaways
Sotera Health reported Q2 2025 revenue of $294.3 million, up 6.4% year-over-year, with net income of $8.0 million and Adjusted EBITDA rising 9.8% to $150.7 million. The quarter saw strong Sterigenics growth, improved margins, and increased cash holdings.
Revenue grew 6.4% year-over-year to $294.3 million, with 6.0% constant currency growth.
Net income of $8.0 million, or $0.03 per diluted share.
Adjusted EBITDA increased 9.8% to $150.7 million, with margin expanding to 51.2%.
Sterigenics led growth with a 10.5% revenue increase to $194.8 million.
Revenue by Segment
Forward Guidance
Raised full-year 2025 guidance for net revenues, Adjusted EBITDA, and Adjusted EPS, with improved tax rate expectations and lower capital expenditure plans.
Positive Outlook
- Raised net revenue growth outlook to 4.5%–6.0% from 4.0%–6.0%.
- Raised Adjusted EBITDA growth outlook to 6.0%–7.5% from 4.5%–6.5%.
- Raised Adjusted EPS guidance to $0.75–$0.82 from $0.70–$0.76.
- Improved tax rate guidance to 31.5%–33.5%.
- Lowered capital expenditure outlook to $170–$180 million from $190–$210 million.
Challenges Ahead
- Full-year guidance assumes stable EO and Cobalt-60 supply with no major disruptions.
- Inflationary trends, particularly in energy and labor costs, remain a risk.
- Foreign currency impacts could shift if exchange rates change from Q2 averages.
- Legal and regulatory uncertainties around EO sterilization facilities persist.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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