Dec 31, 2024

Sotera Health Q4 2024 Earnings Report

Sotera Health's Q4 2024 results were announced, with a decrease in net revenues and net income compared to the same period last year, alongside a decline in adjusted EBITDA and adjusted EPS.

Key Takeaways

Sotera Health reported a decrease in net revenues for the fourth quarter of 2024, falling by 6.5% to $290 million. Net income also decreased to $12 million, or $0.04 per diluted share, compared to $39 million, or $0.14 per diluted share, in the same quarter of the previous year. Adjusted EBITDA saw a decrease of 8.3% to $153 million, and Adjusted EPS was $0.21, a decrease of $0.02 per diluted share.

Net revenues decreased by 6.5% to $290 million compared to Q4 2023.

Net income was $12 million, or $0.04 per diluted share, down from $39 million, or $0.14 per diluted share, in Q4 2023.

Adjusted EBITDA decreased by 8.3% to $153 million compared to the prior-year quarter.

Adjusted EPS was $0.21, a decrease of $0.02 per diluted share compared to Q4 2023.

Total Revenue
$290M
Previous year: $310M
-6.5%
EPS
$0.21
Previous year: $0.26
-19.2%
Cash and Equivalents
$277M
Previous year: $302M
-8.2%

Sotera Health

Sotera Health

Sotera Health Revenue by Segment

Forward Guidance

Sotera Health provided its full-year 2025 outlook, including net revenues growth in the range of 4.0% to 6.0% on a constant currency basis and Adjusted EPS in the range of $0.70 to $0.76.

Positive Outlook

  • Net revenues growth in the range of 4.0% to 6.0%, on a constant currency basis.
  • Adjusted EBITDA growth in the range of 4.5% to 6.5%, on a constant currency basis.
  • Adjusted EPS in the range of $0.70 to $0.76.
  • A weighted-average fully diluted share count in the range of 286 million to 287 million shares.
  • Capital expenditures in the range of $190 million to $210 million.

Challenges Ahead

  • Foreign currency headwind to net revenues of approximately 2.25%.
  • Foreign currency headwind to Adjusted EBITDA of approximately 2.50%.
  • Interest expense in the range of $155 million to $165 million.
  • Tax rate applicable to Adjusted Net Income in the range of 33.0% to 35.0%.
  • The Company does not provide a reconciliation for non-GAAP financial measures on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort.