Sotera Health beats Q3 estimates, raises FY profit guidance

Sotera Health

04/11/2025 12:14

Overview

Sotera Health Q3 revenue rose 9.1% to $311 mln, beating analyst expectations

Adjusted EPS for Q3 increased to $0.26, surpassing analyst estimates

Adjusted EBITDA for Q3 rose 12.2% to $164 mln, exceeding expectations

Outlook

Sotera Health raises 2025 Adjusted EBITDA growth range to 6.75%-7.75%

Company reaffirms 2025 net revenues growth range of 4.5%-6.0%

Adjusted EPS range for 2025 raised to $0.81-$0.86

Interest expense range improved to $154 mln-$158 mln for 2025

Capital expenditures for 2025 revised to $125 mln-$135 mln

Result Drivers

STERIGENICS PERFORMANCE - Sterigenics reported a 9.8% increase in Q3 revenue, driven by favorable volume and pricing, despite inflationary pressures

NORDION GROWTH - Nordion's Q3 revenue rose 22.4%, driven by volume and pricing, though foreign exchange rates were a partial offset

NELSON LABS MARGINS - Nelson Labs faced a 5.0% revenue decline but improved segment income through pricing and lab optimization

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$311.31 mln
$303.60 mln (6 Analysts)
Q3 Adjusted EPS
Beat
$0.26
$0.22 (7 Analysts)
Q3 Net Income
$48.40 mln
Q3 Adjusted EBITDA
Beat
$164 mln
$155.50 mln (6 Analysts)
Q3 Pretax Profit
Miss
$72.93 mln
$92 mln (5 Analysts)
Q3 Gross Profit
$177.56 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the healthcare facilities & services peer group is "buy"

Wall Street's median 12-month price target for Sotera Health Co is $16.85, about 1.4% above its November 3 closing price of $16.61

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX2JKzG9

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)