Sotera Health Company (SHC) investor relations material

Executive summary

• Q1 2026 net revenues rose 10% year-over-year (6.5% constant currency) to $280M, with net income of $26.6M–$27M, reversing a prior-year loss.

• Adjusted EBITDA increased 10.5% (6.9% constant currency) to $134.7M, with margin expansion to 48.1%.

• Growth was driven by favorable pricing, increased volumes in key segments, and positive FX impacts.

• CEO transition announced, with Alton Shader to become CEO and Michael Petras moving to Executive Chair; two new independent directors added.

• Public float increased to ~90% of outstanding shares.

Financial highlights

• Adjusted EPS grew 29% to $0.18 per diluted share; basic and diluted EPS were $0.09.

• Interest expense improved by $6M to $34.7M–$35M, aided by term loan repricing, debt paydown, and lower rates.

• Net cash from operating activities was $29M–$29.4M, including a $34M legal settlement payment.

• Ended Q1 with over $900M in liquidity and a net leverage ratio of 3.2x.

• Gross margin was 47.5% in Q1 2026, slightly down from 53.2% in Q1 2025.

Outlook and guidance

• 2026 revenue guidance: $1.233B–$1.251B (5%–6.5% constant currency growth, 100 bps FX benefit).

• Adjusted EBITDA guidance: $632M–$641M (5.5%–7% constant currency growth, 100 bps FX benefit).

• Adjusted EPS expected at $0.93–$1.01; effective tax rate 27%–29%; interest expense $135M–$145M.

• CapEx for 2026 projected at $175M–$225M; net leverage ratio expected to improve; no M&A activity assumed.

• Management expects sufficient liquidity to meet all obligations for at least the next twelve months.