Dec 31, 2023

Sotera Health Q4 2023 Earnings Report

Sotera Health reported Q4 2023 results with revenue increase driven by strong performance in Nordion and Sterigenics, offset by a slight decrease in Nelson Labs. Net income saw significant growth compared to the previous year due to a large legal reserve in 2022.

Key Takeaways

Sotera Health's Q4 2023 net revenues increased by 23.3% to $310 million compared to the same period last year. Net income was $39 million, a significant improvement from the net loss of $320 million in Q4 2022. Adjusted EBITDA increased by 28.7% to $167 million, and Adjusted EPS was $0.26, up by $0.01 per diluted share.

Net revenues for Q4 2023 increased by 23.3% to $310 million.

Net income for Q4 2023 was $39 million, compared to a net loss of $320 million in Q4 2022.

Adjusted EBITDA for Q4 2023 increased by 28.7% to $167 million.

Adjusted EPS for Q4 2023 was $0.26, an increase of $0.01 per diluted share.

Total Revenue
$310M
Previous year: $252M
+23.3%
EPS
$0.26
Previous year: $0.25
+4.0%
Gross Profit
$164M
Previous year: $142M
+16.0%
Cash and Equivalents
$302M
Previous year: $396M
-23.9%
Free Cash Flow
$48.3M
Previous year: $30.2M
+60.0%
Total Assets
$3.13B
Previous year: $3.12B
+0.4%

Sotera Health

Sotera Health

Sotera Health Revenue by Segment

Forward Guidance

Sotera Health is providing its full-year 2024 outlook with net revenues and Adjusted EBITDA growth in the range of 4.0% to 6.0%.

Positive Outlook

  • Net revenues growth in the range of 4.0% to 6.0%.
  • Adjusted EBITDA growth in the range of 4.0% to 6.0%.
  • Tax rate applicable to Adjusted Net Income in the range of 31.5% to 34.5%.
  • Adjusted EPS in the range of $0.67 to $0.75.
  • Capital expenditures in the range of $205 million to $225 million.

Challenges Ahead

  • Interest Expense in the range of $170 million to $180 million.
  • Uncertainties caused by changes to the regulatory landscape.
  • Restructuring items.
  • Certain fair value measurements.
  • Impact of inflationary trends including their impact on energy prices and the supply of labor.

Revenue & Expenses

Visualization of income flow from segment revenue to net income