SHC · Sotera Health Company

Sotera Health delivered a materially improved Q1 2026 performance, turning a $13 million net loss into $27 million of net income — its first profitable year-over-year quarterly comparison disclosed in recent filings. Revenue grew 10.0% overall (6.5% constant currency), driven by strong contributions from Sterigenics (+6.1% constant currency) and Nordion (+25.8% constant currency), while Nelson Labs declined modestly (-3.8% constant currency). Adjusted EBITDA rose 10.5% (6.9% constant currency), and Adjusted EPS increased 29% to $0.18, reflecting margin expansion across all three segments — notably Nordion’s segment income margin improvement of over 290 bps. Management attributed growth to disciplined execution, favorable pricing, volume/mix improvements, and foreign currency tailwinds, partially offset by inflationary cost pressures. Critically, the Company reaffirmed its full-year 2026 guidance — 5.0–6.5% constant currency revenue growth and 5.5–7.0% Adjusted EBITDA growth — signaling confidence despite acknowledged risks around ethylene oxide and cobalt-60 supply chains, geopolitical instability, and regulatory uncertainty. Concurrently, the leadership transition represents a strategic inflection: Alton Shader brings deep global medical device leadership experience from Viant, Hill-Rom, and Baxter, and his compensation package — including a $6.0 million sign-on equity award — underscores both the importance of continuity and the Company’s commitment to retaining top-tier operational talent. Michael Petras’ shift to Executive Chairman preserves institutional knowledge while enabling focused strategic oversight, reinforcing governance stability during execution of the multi-year growth plan.