SHC

Sotera Health Company trades at $19.02 per share and has stayed right on track with the overall market, gaining 11.3% over the last six months. At the same time, the S&P 500 has returned 13.1%. Is now the time to buy Sotera Health Company, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free. We’re sitting this one out for now. Here are three reasons why SHC doesn’t excite us, plus one stock we’d rather own. Investors interested in Research Tools & Consumables companies should track organic revenue in addition to reported revenue. This metric gives visibility into Sotera Health Company’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement. Over the last two years, Sotera Health Company’s organic revenue averaged 4.9% year-on-year growth. This performance slightly lagged the sector and suggests it may need to improve its products, pricing, or go-to-market strategy, which can add an extra layer of complexity to its operations. Larger companies benefit from economies of scale, where fixed costs like infrastructure, technology, and administration are spread over a higher volume of goods or services, reducing the cost per unit. Scale can also lead to bargaining power with suppliers, greater brand recognition, and more investment firepower. A virtuous cycle can ensue if a scaled company plays its cards right. With just $1.22 billion in revenue over the past 12 months, Sotera Health Company is a small company in an industry where scale matters. This makes it difficult to build trust with customers because healthcare is heavily regulated, complex, and resource-intensive. Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Sotera Health Company broke even from a free cash flow perspective over the last five years, giving the company limited opportunities to return capital to shareholders. The divergence from its good adjusted operating margin stems from its capital-intensive business model, which requires Sotera Health Company to make large cash investments in working capital and capital expenditures. Sotera Health Company isn’t a terrible business, but it isn’t one of our picks. That said, the stock currently trades at 18.4× forward P/E (or $19.02 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We’re fairly confident there are better stocks to buy right now. Let us point you toward one of Charlie Munger’s all-time favorite businesses. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Sotera Health’s second quarter was marked by broad-based growth across its business units, which drove a positive market reaction. Management credited robust demand in both core sterilization (Sterigenics) and isotope supply (Nordion), coupled with improved customer engagement at Nelson Labs, for the outperformance. CEO Alton Shader highlighted that "Sterigenics built on strong momentum from Q1, delivering 7% constant currency revenue growth," while Nordion benefited from favorable Cobalt-60 shipment timing. The company also benefited from higher pricing and operational efficiencies, with Shader emphasizing the importance of customer relationships and technical expertise in differentiating Sotera Health’s offerings. Is now the time to buy SHC? Find out in our full research report (it’s free). Revenue: $321.4 million vs analyst estimates of $309.6 million (9.2% year-on-year growth, 3.8% beat) Adjusted EPS: $0.26 vs analyst estimates of $0.24 (8.7% beat) Adjusted EBITDA: $165.7 million vs analyst estimates of $157.7 million (51.6% margin, 5.1% beat) The company slightly lifted its revenue guidance for the full year to $1.25 billion at the midpoint from $1.24 billion Management raised its full-year Adjusted EPS guidance to $0.98 at the midpoint, a 1% increase Operating Margin: 33.2%, up from 30% in the same quarter last year Organic Revenue rose 8% year on year (beat) Market Capitalization: $5.39 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Chris Charlton (BMO): asked about the drivers behind Nelson Labs’ strong quarter and visibility into the second half. CEO Alton Shader cited new customer wins and ongoing demand, expressing confidence in sustained performance. Elizabeth Koslosky (Goldman Sachs): inquired about Shader’s top priorities as new CEO and opportunities for business synergies. Shader emphasized talent assessment, customer partnership, and potential for greater cross-business collaboration. Luke Sergott (Barclays): questioned differentiation in Sterigenics’ growth and technology mix, including potential impacts from regulatory headwinds. Shader highlighted a higher U.S. and EO exposure, with no slowdown in demand or significant regulatory effect seen. Casey Woodring (JPMorgan): asked what gave management confidence to raise the high end of guidance. Shader pointed to visibility from new capacity, customer onboarding, and backlog analysis as key factors. Michael Polark (Wolfe Research): requested a litigation update and details on a large customer outsourcing sterilization. Executive Chairman Michael Petras explained legal milestones, and CFO Jonathan Lyons confirmed the customer is shifting capacity to Sotera Health, supporting second-half growth. Looking forward, the StockStory team will be closely monitoring (1) the ramp-up of new X-ray sterilization capacity and associated revenue contribution, (2) the onboarding progress of the large customer outsourcing sterilization services, and (3) continued execution on cross-segment commercial strategies, especially between Sterigenics and Nelson Labs. Developments in ongoing litigation and updates on capital deployment priorities will also be important to track. Sotera Health Company currently trades at $18.89, up from $17.98 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Vice President of Investor Relations - Jason Peterson Executive Chairman - Michael Petras Chief Executive Officer - Alton Shader Chief Financial Officer - Jonathan Lyons Operator: Good morning, and welcome to the Sotera Health Second Quarter 2026 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Vice President of Investor Relations, Jason Peterson. Jason, please go ahead. Jason Peterson: Good morning, and thank you. Welcome to Sotera Health's second quarter earnings call. Today's press release and earnings presentation are available on the Investors section of our website at soterahealth.com. This webcast is being recorded, and a replay will also be available on the Investors section of the Sotera Health website shortly after the call. Joining me today are Chief Executive Officer, Alton Shader; Chief Financial Officer, John Lyons; and Executive Chairman, Michael Petras. During today's call, some of our comments may be considered forward-looking statements. The matters addressed in these statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Please refer to Sotera Health's SEC filings and the forward-looking statement slide at the beginning of the earnings presentation for a description of these risks and uncertainties. The company assumes no obligation to update any such forward-looking statements. Please note that during the discussion today, the company will present both GAAP and non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, tax rate applicable to adjusted net income, adjusted net income, adjusted EPS, net debt and net leverage ratio as well as constant currency comparisons. A reconciliation of GAAP to non-GAAP measures for all relevant historical periods may be found in the schedules attached to the company's press release and in the supplemental slides to the earnings presentation. The operator will be assisting with the Q&A portion of the call today. Please limit yourself to one question and one follow-up. For further questions, feel free to reach out to the Investor Relations team. With that, I'll now turn the call over to Executive Chairman of the Board, Michael Petras. Michael Petras: Good morning, everyone, and thank you for joining our quarterly earnings call. As previously announced, Alton Shader assumed the role of Chief Executive Officer on May 26. While I continue to serve as Executive Chairman of the Board and remain actively engaged with the company, Alton is leading the company day-to-day. Today, we welcome Alton to his first Sotera Health earnings call. Having the privilege of working with Alton for the past 2 months plus, we are encouraged by the seamless transition. We have received positive responses from our team members, customers, investors and other stakeholders. We built a solid foundation and believe the future is very strong for this great company. Now I will turn the call over to Alton. Alton Shader: Thank you, Michael, and good morning, everyone. Thank you for joining us today. I first want to thank Michael for his strong leadership as Sotera Health's CEO for the last 10 years. He has built a great company, and I look forward to working with him as our Executive Chairman. In addition, I want to thank him for his partnership throughout this transition. I'm honored to serve as Sotera Health's CEO and appreciate the warm welcome I have received from our team members, customers, and shareholders. I've spent the last 25 years working in health care and have always been inspired by the positive impact that health care product and service companies have on the lives of people around the world. And one would be hard-pressed to identify a company that is more essential to the delivery of life-saving health care products than Sotera Health. This criticality to the delivery of health care, the complementary nature of our businesses, the growth opportunities we have and the company's financial strength are a few of the reasons I was drawn to Sotera Health. Since joining the company, I've been impressed by the dedication of our teams, the trust our customers place in us and the industry-leading expertise that differentiates our business, especially in the highly regulated health care markets in which we operate. I look forward to working with our teams to build on these strengths, and to become even more focused on exceeding our customers' expectations every day. These strengths position us well to deliver consistent and reliable growth, and this was evident in our second quarter results, as we delivered 8% constant currency revenue growth, 8.7% constant currency adjusted EBITDA growth and expanded our adjusted EBITDA margins compared to the second quarter of last year. Our strong performance was broad-based across the portfolio. Sterigenics built on its strong momentum from Q1, delivering 7% constant currency revenue growth and more than 50 basis points of margin expansion versus Q2 2025. Nordion continued to execute well with 16.7% constant currency revenue growth and more than 160 basis points of segment income margin expansion. Nelson Labs exceeded expectations, delivering 5.4% constant currency revenue growth. One of the key ways Nelson Labs creates value for customers is by leveraging our technical expertise to solve complex problems. Customers regularly turn to Nelson Labs for support on time-sensitive and critical issues, and we saw that dynamic play out in the second quarter. Based on our strong first half performance, the resilience of our business model and our confidence in the remainder of the year, we are raising our full year 2026 outlook. We now expect constant currency revenue growth of 5.25% to 6.75%, and constant currency adjusted EBITDA growth of 5.75% to 7.25% compared to 2025. Before I turn the call over to Jon, I'd like to briefly highlight a few notable developments during the second quarter. In May, our former private equity sponsors completed their final secondary offering and as planned, no longer hold an ownership stake in Sotera Health. I would like to thank our former sponsors for their partnership and support over the years. They played an important role in helping to build the strong foundation we have today. I would also like to make you aware of a leadership transition at Nelson Labs. Joe Shrawder, President of Nelson Labs, recently retired after 6 years with the company. We are grateful to Joe for his many contributions to Nelson Labs and wish him the best in his retirement. We are pleased to have Riaz Bandali assume leadership of Nelson Labs following his successful tenure as President of Nordion. Riaz brings extensive experience leading laboratory services organizations, including oversight of global bioanalytical laboratory operations across North America and Europe. This makes him exceptionally well suited to lead Nelson Labs and execute on our growth priorities. And finally, we are progressing well in our search for Riaz's successor at Nordion. I'm proud of what our team has accomplished in the first half of the year and even more excited about the opportunities ahead as we continue to execute our strategy and serve as a trusted partner to our customers. With that, I'll turn the call over to Jon to review our second quarter financial results and updated full year outlook in greater detail. Jonathan Lyons: Thank you, Alton. Before I review the quarter, I'd like to say how excited I am to be working alongside Alton as our new CEO. Since joining the company, he has quickly immersed himself in our business, our culture, and our customers. And I look forward to partnering with him as we continue building on our momentum. Turning to the quarter. I'll review our consolidated financial performance, provide highlights from each of our business segments and then discuss capital allocation, liquidity, and leverage. I will finish with additional details on our updated 2026 outlook. For the second quarter, on a consolidated total company basis, revenues increased by 9.2% to $321 million or 8% on a constant currency basis compared to Q2 2025. Net income on a GAAP basis for the quarter was $54 million or $0.19 per diluted share. Adjusted EBITDA improved by 10% to $166 million or 8.7% growth on a constant currency basis, while adjusted EBITDA margins expanded 36 basis points to 51.6%. Interest expense was $34 million in the quarter, an improvement of over $6 million compared to the prior year period, primarily driven by the benefits of the term loan repricing and debt reduction actions completed during the third quarter of 2025, as well as lower interest rates. Including the repricing completed this past quarter, we have lowered the borrowing costs on our $1.4 billion term loan by 100 basis points in less than a year. Adjusted EPS increased to $0.26 per diluted share, an improvement of 30% versus the prior year. Now let's take a closer look at the segment details. Sterigenics delivered strong second quarter 2026 revenue growth of 8.6% to $212 million or 7% on a constant currency basis. Favorable pricing of 4.3%, improved volume and mix of 2.7%, and foreign currency benefit of approximately 160 basis points drove revenue growth for the quarter. Segment income grew 9.6% to $118 million or 7.9% on a constant currency basis, while segment income margins improved 53 basis points versus the prior year quarter. Segment income and margin growth were driven by the strong top line growth, partially offset by inflation. Nordion's Q2 2026 revenue was up 15.8% to $49 million or 16.7% on a constant currency basis versus last year, primarily driven by increased volume mix of 13.6% due to the timing of Cobalt-60 harvest schedules, along with pricing benefits of 3.1%. As discussed on our last earnings call, we expected Nordion's first half 2026 revenue to represent approximately 40% to 45% of Nordion's full year revenue. First half revenue finished above that range, driven by certain shipments anticipated in the second half that occurred in the second quarter. Nordion segment income increased 19.2% to $28 million or 20.6% on a constant currency basis for the quarter, with segment income margins expanding 160 basis points to 56.9%, driven by higher volume mix, favorable pricing and foreign currency benefits, partially offset by inflation. In Nelson Labs, revenue for the quarter improved 6.3% to $61 million or 5.4% on a constant currency basis. Revenue growth was driven by favorable pricing of 2.8%, volume and mix growth of 2.6%, including the benefits Alton referenced earlier, as well as favorable foreign currency impact. Segment income totaled $20 million in the quarter, an increase of 0.6% or down 0.6% on a constant currency basis, with segment income margin of 32.4%. Segment income margin improved 438 basis points sequentially and is within our long-term range of low to mid-30s. Segment income margin declined versus the prior year quarter, primarily reflecting higher costs. Turning to the balance sheet, cash generation, and capital deployment. In the second quarter, we delivered positive operating cash flow of approximately $88 million. Capital expenditures for the quarter totaled $46 million, supporting Sterigenics' capacity expansion projects for future growth, EO facility upgrades, Nordion's Cobalt-60 development initiatives, and the clean room expansion at Nelson Labs. Our balance sheet continues to be well positioned to support our capital allocation priorities. Our net leverage ratio further improved to 3x for the second quarter, marking an important milestone as we reached our long-term target leverage range of 2 to 3x, and our liquidity remains strong. As Alton noted, we are increasing our 2026 outlook for both revenue and adjusted EBITDA constant currency growth. We now expect total company revenue to grow to a range of $1.236 billion to $1.254 billion, representing 5.25% to 6.75% constant currency growth and an estimated 100 basis point foreign currency benefit. Based on recent exchange rates, we expect foreign currency to be a slight headwind in the third quarter. We expect adjusted EBITDA to grow to a range of $634 million to $643 million, representing 5.75% to 7.25% constant currency growth and an estimated 100 basis point foreign currency benefit. Our 2026 outlook assumes total company pricing to be within our long-term 3% to 4% range. For 2026, we continue to expect Sterigenics to deliver mid- to high single-digit constant currency revenue growth year-over-year. We expect Nordion to grow constant currency revenue in the low to mid-single digits in 2026, with second half revenue split approximately evenly between Q3 and Q4. For Nelson Labs, we continue to expect full year 2026 constant currency revenue growth to be in the low single digits. Consistent with what we have previously communicated, we expect segment income margin in the low to mid-30% range. Moving on to other outlook items. Based on the current forward rate curve and the interest savings we realized from our most recent term loan repricing, we are improving our 2026 interest expense outlook to a range of $135 million to $142 million from our prior range of $135 million to $145 million. We are also improving our effective tax rate applicable to adjusted net income to a range of 27% to 28%. We continue to expect depreciation to increase in 2026, consistent with the increase we experienced in 2025. On a weighted average basis, we expect a fully diluted share count in the range of 289 million to 291 million shares. Taking these factors into account, we are improving our adjusted EPS outlook range to $0.95 to $1.01 per diluted share from our previous range of $0.93 to $1.01. With several key projects progressing as planned and half of the year now behind us, we expect capital expenditures to be in the range of $200 million to $225 million. We expect continued net leverage ratio improvement compared to 2025. Finally, as usual, our outlook does not assume any M&A activity. I'll now turn the call back over to Alton. Alton Shader: Thank you, Jon. We delivered a strong quarter, highlighted by solid execution across our businesses and an increase to our full year outlook. These results reflect the essential role we play in supporting health care around the world, the strong partnerships we have built with our customers, the resilience of our business, and the commitment of our teams. I'm excited about the opportunities ahead and confident in our ability to execute on our priorities and to create long-term value for our stakeholders. I would also like to thank our associates, customers, and shareholders for their continued support, and I look forward to meeting with many of our investors in the months ahead. At this point, operator, let's open the call for questions. Operator: [Operator Instructions] The first question is from Sean Dodge with BMO. Christopher Charlton: This is Chris Charlton on for Sean. And welcome, Alton. Maybe just starting on Nelson Labs. It is a strong quarter here. Can you share some more detail on the drivers of the improvement in the quarter? Is this primarily just beginning to lap EAS headwinds? Or are there any other areas you're seeing strength? And then how much visibility do you have into this -- this continuing in the back half of the year? Alton Shader: Chris, Alton here. Thanks for the question. Yes, we're really pleased with the second quarter performance of Nelson Labs with the 5.4% constant currency growth. We got some good news from a few customers that were looking to work with Nelson, and that positively impacted our results here in Q2. And we continue to feel good about the underlying demand that we see in the marketplace and our role as a trusted partner with our customers. So overall, again, feel really good about the performance in Q2 and how the team really focused on serving their customers. And again, feel good about the environment going forward here in the second half of the year. Christopher Charlton: Okay. Great. And then on Sterigenics, can you share any more detail on how volumes have been trending across your categories, med tech, bioprocessing and commercial? I know you previously mentioned bioprocessing being a small but quickly growing component of and then commercial kind of being a more challenging backdrop. Is this still the case? Or have there been any changes to the dynamics across these categories? Alton Shader: Sure. So yes, so maybe a couple of comments on Sterigenics. So the 7% constant currency growth in the quarter, again, really pleased with that performance. Volume of 2.7%. Again, we feel really good about that. Just want to bring your attention and others' attention to the fact that we had a pretty tough comparable versus Q2 2025, where we grew 10% last year with a 6% volume, contribution there. So again, really, really strong performance from that team. Overall, we see a stable demand environment for our Sterigenics business. We obviously have a really broad spectrum of customers within that business, over 2,000 customers. Overall, we see strong growth across that full portfolio. Your point around bioprocessing, yes, a smaller part of our business, but we grew well in that business, and we continue to focus on that with our commercial teams. Operator: The next question is from Evie Koslosky with Goldman Sachs. Elizabeth Koslosky: And great work with you, Michael, over the last several years, and congrats, Alton, on the new role. I mean I think just to start, Alton, maybe walk us through some of your top priorities kind of within the first year as CEO. And then any thoughts on kind of driving additional synergies between the businesses or commercial strategy update? Alton Shader: Yes, absolutely. Hi, Evie, thanks for the question. Really priority 1 for me here in the short term is to ensure that I understand the business, get to know my team, understand our processes, and really determine our strengths and our areas of improvement. And key to the process of understanding the business is meeting and understanding and assessing our talent. So one of my most important jobs as the CEO is to ensure that we've got top talent in the organization, and this is an area that I've been working to understand. Next is really how we partner with our customers. So I need to understand how we partner with them, how they perceive us, and how we work across Sotera Health to really develop differentiated solutions. And I'll hit a bit here on that cross-business unit or One Sotera offering here in a second. Last thing I'll say before I get into that is I want to build on the customer-focused culture that we have here today. Real compliments to Michael, Jon, Jason, the rest of our leadership team on building a customer-first culture here. It's a real pleasure to be able to join the company like that, and I'm fortunate to be a part of this. But I want to ensure that every associate at Sotera Health understands how important their role is, and that they operate with a high level of urgency to deliver our solutions and delight our customers every single day. So that is one of my big focuses here is just customer focus, again, understanding we are a service business and we've got to delight our customers every single day. I think a real opportunity that we have is around our One Sotera offering or our cross business unit work. There's been a lot of really good work done over time here, but I think there's more opportunity. And the more I get into seeing the differentiated solutions we have, we're at our best when we're working together. Elizabeth Koslosky: Great. That's super helpful. And then on Sterigenics volumes, I know you touched on it a bit, but that came in above our expectations. I guess what are you guys seeing from a competitive standpoint in that market? And then versus kind of broader end market trends? And maybe talk through some of the competitive wins with new customers and how those are trending? Alton Shader: Sure. So it's a competitive market. We haven't seen any significant difference in competition here in the last quarter, I think in the first half of the year overall. So that's the first point. Second, we spent a lot of time with our team as we put our guide together for the second half of the year, and that really informed the confidence that we have in our guide. So we do not see a slowdown in demand in Sterigenics. We recognize there have been some mixed data points out there with some of the providers. But we think in general, the indicators are pretty constructive. And we've seen a lot of med techs out there with really strong numbers here in Q2 and guides as well. So overall, competition, pretty similar. We continue to like our position in the market, and we're confident in our guide based on where we see the business heading. Operator: The next question is from Luke Sergott with Barclays. Luke Sergott: I just want to follow up on that. And you guys outperformed your other large peer. And digging a little bit on what differentiates you guys from a mix perspective, is it more weighted towards EO where you're catching -- that's a faster part of the market or more demand coming from those volumes that are going to EO sterilization technologies versus your gamma and X-ray? Just trying to understand there the puts and takes and like if you're not seeing -- like you said, like the volumes are okay, but we hear plenty of noise on the EPA headwinds potentially hitting the space and coming through. So is that one of the reasons why you feel like you'd be insulated because it's a more strategic part or like more necessary aspect of what you guys provide? Alton Shader: Yes. Thanks for the question. I will start with -- I'm only a couple of months in here, so I may not be able to hit on every single one of those points that you brought up, but I'll give you my perspective. One, I can't really comment on competition and what's going on with their business. But I will say, I know that we are higher indexed into the U.S. versus outside the U.S. compared to our primary competitor. That's one. But I think high level, again, when we get really deep with our teams, we're just not seeing that slowdown in demand. I think on the technology side, I've been doing everything I can to get out to as many facilities as possible, and I've been really impressed with what our teams do. And again, we've been making real progress on this cross-business unit work or bringing the full force of Sotera Health into developing solutions for our customers. I'd like to think that we're making a difference there and our customers are noticing. But give me a little bit more time as I get deeper into the role and longer in the seat, and I may have a more fulsome answer for you. Luke Sergott: All right. Great. And then I guess from a margin perspective, particularly around Nelson, you guys talked about the higher cost step-up here in the quarter. Can you dig in there what drove those elevated costs? And then as you're bringing on the clean room expansions and doing that, how do we think about that through the second half or even into '27 as the capacity and utilization picks up in the new facilities or the new rooms? Alton Shader: Sure. Yes. Thanks for the question. So the first thing I'll mention is that we're really happy with the sequential margin increase of 438 basis points from Q1 to Q2 for Nelson Labs. So the team did a really nice job there executing in Q2. I'll also highlight the fact that we are still guiding our full year margin to low to the mid-30s range for Nelson. So we expect to stay within that range. The team is doing, again, a nice job of responding to customer requests. And as has been noted, we performed better than we expected here in Q2. Some of that growth was due to additional business that was earned in Q2, and our team really did their best to deliver on that in the quarter, and we benefited from that financially. As we go forward, again for the full year again, we continue to guide to that low to mid-30% range for margins. Operator: The next question is from Ryan Halsted with RBC. Ryan Halsted: My first question is on Nelson Labs. Just was interested in any update on the validation testing pipeline and how you see that progressing in the back half of the year, and how we should think about kind of the cadence of that impacting versus the guide. Alton Shader: Yes. Thanks for the question, Ryan. So we feel good about the pipeline. We've got a number of opportunities that we're hopeful will contribute to additional growth to the business. That said, what we know and all the data that we are analyzing for Nelson Labs is informing our guide for the balance of the year. Ryan Halsted: Okay. And then you mentioned inflation as a headwind on margins. It would be helpful to hear what are the cost inflation that you're facing? Is it transitory? Are these related to some of the geopolitical events? Just any more color on that would be helpful. Jonathan Lyons: Ryan, it's Jon. Thanks for the question on that. We're not seeing anything extraordinary in inflation. It's standard inflation coming through in labor cost increases, and in standard things on materials, nothing extraordinary. We really don't have any meaningful exposure from a knock-on effect of the Middle East, some very minor costs in Europe for utilities, things like that, but nothing that I would -- nothing significant there. Operator: The next question is from Casey Woodring with JPMorgan. Casey Woodring: Congrats on the new role, Alton. Looking forward to working with you. Maybe just a high-level one here. Looking at the guide, you raised the high end after the beat here. I think last year, around this time, after you beat, you only raised the low end. So I maybe just talk a little bit about the seemingly improved visibility you have here, then, moving forward, what's giving you enough confidence to raise at the high end there? Alton Shader: Yes, Casey, thanks for the question here. Maybe just a quick thought or 2 on just my philosophy around guidance. The first point I'll make is I'm very aligned with how Michael, John, Jason, have handled guidance in the past. And I think you'll expect a similar approach here. Our goal is to provide realistic guidance and to be able to provide information to our investors so they understand how we're thinking about the business and what's going on with the company. So that's the first piece. Second piece, obviously, we're really pleased with the performance of the company in Q2 and the first half of the year. And when we raised our guidance, there were a lot of factors we had to take into consideration. And a few of those are that we see a meaningful uptick in growth in Sterigenics in the second half of the year compared to the first half. So that's contemplated in our guidance. The other thing that's contemplated is, Jon mentioned in his opening remarks, the Nordion business, we guided 40% to 45% of full year revenue to hit in the first half. We actually achieved above the top end of our range. So some of the revenues we're expecting in the second half shifted into the second quarter based on customer requests. So we had to take that into consideration as well. So you pull that together, we look at what we see in our markets. We're, again, close to our customers, looking at our backlogs, et cetera. That's what informed our 25 basis point increase to both revenue and EBITDA guide here. Casey Woodring: Got it. That's helpful. And maybe just if, Alton, you could spend a minute walking us through just the broader decision to build out the X-ray capacity that you've got coming online over the next couple of years. You've talked about it previously, or at least, you guys as a company have. Is that something customers are asking more of these days? Or are you kind of building out that new capacity, anticipating the market might move more towards X-ray? Just any thoughts around that? And then what would the margin implications be once you guys open these new facilities and more volume goes towards X-ray? Alton Shader: I'll start -- thanks for the question. I'll start, and then I'll hand it off to Jon on some of those, because, obviously, those decisions were made before I joined the organization. But a couple of things on our new X-ray facility. The good news is things are progressing very well. So we're on track. We've got a number of customers in validation, but we also have revenue starting to flow through that facility here starting in Q3. And that's one of the factors why we're comfortable with the uptick in growth from Sterigenics in the second half of the year compared to the first half. So overall, things are going very well in X-ray. I do -- I will say that, as a leading sterilization provider, we want to have all modalities, and we want to be able to offer that to our customers. But let me hand it off to Jon to get into some more specifics here. Jonathan Lyons: Yes. Historically, the big thing around this was, if you look back a few years, our biggest competitor is also putting in a number of X-rays. As Alton said, we were looking at the opportunity and making sure we had a complete offering for our customers. And if you go back in time, we even contemplated doing more than that. So we thought it was at least important to put one in. It was a strategic decision by the Board. And it was one where, we normally, as you've heard from us before, we target 40% commitments from our customers, and that was one we made a little bit more of a bet on. And I'm happy to report, as Alton mentioned, the pipeline is filling. It's giving us optimism in the back half as we grow here. But again, it's one that we thought was a strategic decision and marker for us to put down to have that complete offering. That said, we are a world leader in Cobalt-60. We believe strongly in gamma sterilization, and that continues to be a critical part of our portfolio going forward, and X-ray is more of a complement as we look at it. On your margin question, the great thing about these facilities, you don't have a lot of incremental fixed cost coming in when you bring in, outside the depreciation, bring in these facilities. It's not hugely people intensive or material intensive. The big thing is electricity, so you can turn them on and off. So there is no notable margin impact. We've actually absorbed some costs already over the last 12 months that you wouldn't even see in the financials, really. Operator: The next question is from Brendan Diggan with Citi. Brendan Diggan: Congrats on the quarter. I wanted to spend a little bit of time on the increased EBITDA guide. I understand that the Nelson Labs guide was kind of maintained in the low to mid-30% range. But I was wondering if you could touch on the Sterigenics and Nordion outlook, just given some of the shifts that kind of went on in Nordion and the increased outlook in Sterigenics. Alton Shader: Yes, sure. I'll start with Sterigenics. So again, were -- we put up a 7% constant currency growth in Q2, after 6.1% in Q1. In the second half of the year, we are expecting an uptick in growth compared to what we saw in the first half. And we've got pretty good confidence around that for a few reasons. One, I talked about overall demand seeming stable in the marketplace, but also more importantly, when we talk to our customers, look at our backlog pipeline, et cetera, it gives us confidence in the guide that we provided. In addition, there are a few tailwinds that we're expecting in the second half of '26 compared to the second half of '25. The first is we've got -- for our facility shutdown schedules, that is favorable in the back half of the year here in '26, again versus '25. Also, we've mentioned before a large customer who previously in-sourced their sterilization, they're now outsourcing to us. We will see that impact in the second half. And then also X-ray with our new facility with the additional revenues coming on there. All of those contribute to the guide that we have. And again, why we've got confidence in this pretty meaningful uptick in growth in Sterigenics in the second half. For Nordion, we are expecting again to -- as we guided previously, low to mid-single digits growth for the full year. And we expect Q3 and Q4 to have similar revenues. So you put that all together, and that is what informed us to create and provide the guide for the full year that we did. Brendan Diggan: Great. And then I was wondering if you could touch on the increased CapEx budget for this year. Just kind of what's behind the increase? And does this change at all the outlook for 2027 in terms of stepping down? Alton Shader: Yes. No, I can kick that off, and then we can hand it off to Jon if we want to get into a little bit more details there. But no, we do see a meaningful step-up in CapEx here in 2026. We've got a number of growth investments that are driving that. But as well, we've got the facility enhancements on the EO side that are driving that. We are going to be substantially complete with those facility enhancements by the end of 2026. There's going to be a little bit of work in '27, and a little bit of capital that will bleed into '27. But overall, those are the key drivers for '26. Jonathan Lyons: Yes. And for '27, Brendan, we continue to expect a meaningful step down from '26 to '27 in CapEx spending. And overall, just as we think about our 3-year commitment that we had back at Investor Day, we're very much on track to deliver the free cash flow commitment that we had of $500 million to $600 million. Operator: The next question is from Dave Windley with Jefferies. David Windley: I had a few -- some clarification, if I could. So you've called out kind of emphasized the positive impact in Nelson in 2Q and hammering home on the low 30s% margin. Should I interpret that these projects that you're referring to or clients that came in, in 2Q that those were, I'll call it, more transient projects in the quarter? Or were these clients that you're onboarding for more ongoing work? And was that activity in 2Q part of the enhancement of margin sequentially? Alton Shader: David, thanks for the question. I appreciate that. So the short answer is it's both for Nelson. So when you look at Q2, we did -- and you're aware, we outperformed our guide there, and that was because we did earn business within that quarter. Some of that business is going to be completed in that quarter, but some of that business is also going to continue throughout the year. Part of this -- part of how our business works is if we get a project, we have an opportunity to win more business in the future as well. So that's a key part of the Nelson story. And historically, they've done a nice job of that. So that -- I think that addresses the Nelson component there. Jonathan Lyons: Yes. The big -- the only thing I would add is just on your sequential margin question. The step-up in revenue, of which that was a contributor really drove that. We've gotten great contribution margins that come with the business. So the step-up in revenue is really what helped drive the margin improvement sequentially, David. David Windley: Got it. Great. So I was just refreshing my memory. The other topic I had here is around pricing, and I'm thinking about this more broadly. I think longer-term history, you had talked about 3.5% to 5%. I think maybe towards the end of last year, you had revised that to 3% to 4%. You're still in that 3% to 4% range. I think one of the efforts or opportunities that you thought you had was pricing, I'll call it, pricing to value on the enhancements to EO and getting appropriately paid for that higher level of quality. Where does that stand? And is that -- I presume it's baked into the 3% to 4%, but how should I think about your progress against that? Alton Shader: Yes. Thanks for the question there. So obviously, we saw some strong pricing from Sterigenics in the quarter and previous quarters as well. And I view that as customers recognizing the value that we provide, but it's also a nice job by our commercial team securing those price increases. We expect similar type of pricing from Sterigenics here within the year. And we do expect the total company improvement of pricing to be consistent with the guide that we provided of 3% to 4%. We are making progress on getting the pricing that is tied to some of the investments that we're making for those EO enhancements, and that's on track. David Windley: Okay. And the last one quickly on the CapEx. I believe there were 2 greenfields historically discussed. One is this X-ray facility that comes online in the third quarter. And maybe I'm stale on this, but I thought the second one you had kind of put on the shelf pending discussions with clients and commitments around that. And I wondered -- I needed a reminder on the status on that second one. Alton Shader: Yes, definitely, David. Your recollection is correct as usual. We had put that on a brief pause. I'd call it a brief pause, and that was some of the reason why our CapEx last year stepped down so meaningfully from our initial guide. And also part of the reason why our CapEx came back this year is because we're full go on that project, making really good progress with the team there and expect that to be finished up towards the end of next year, early '28. Operator: The next question is from Brett Fishbin with KeyBanc. William Korner: This is Will on for Brett. I just want to circle back on the XBU activities. I think you commented on it a little bit earlier, but could you just directionally quantify how meaningful those opportunities and efforts are becoming? And where do you see the greatest opportunity for additional penetration among those customers? Alton Shader: Yes. So thanks for that. So I do believe it is a meaningful opportunity. We obviously add a lot of value with our Sterigenics business unit, but also a lot of value with Nelson Labs, and the 2 are absolutely complementary. So at high level, that's one point. We have had an effort to ensure that our teams are working well together and that we are providing solutions to our customers that are differentiated just based on the high level of expertise that we have within each of those businesses. We do look at this as a meaningful opportunity for growth as we get into the planning period here. And also, it does absolutely impact our customer satisfaction. So when our customers are working seamlessly between Sotera Health business units, they're happier. And that's one of our key goals as a service provider to delight our customers every single day. William Korner: I appreciate the color on that. And then just one more. How is utilization as it stands today? Are there any particular geographies or modalities where you're seeing capacity becoming more constrained? Alton Shader: Yes. No, we're in a good position to support our customers right now with capacity available in most places. There are -- as we've talked before, EO in the U.S. continues to be a place, particularly in large chambers, where there's a little tighter capacity in places where it's more difficult. As you know, this is a geographic business and modality-based business. And so having the right modality in the right location is critical for the customer. And so those are things we work through, but that's the only thing that I'd really call out. Operator: The next question is from Joseph Downing with Piper Sandler. Joseph Downing: Congrats on the quarter. Just wanted to follow up quick on Sterigenics pricing. So as you head into the '27 contract conversations, is there anything that changes the ceiling on price here, whether that's customers potentially pushing back harder? It doesn't sound like that's an issue, but just wanted to confirm. And then are you -- anything with competitors getting more aggressive with -- to win volume or inflation boiling to the point where the pass-through argument might get a little tougher to make? Alton Shader: Yes. Thank you for the question. I appreciate that. So again, I don't see today and/or our team is not seeing today a material difference in competition. Again, the competition is always fierce in our market, and that's just something that we work through and we deal with every day. For pricing, we take an approach that we price for the value that we provide to our customers. And again, our commercial team has done a very nice job with that historically, and we expect them to continue to deliver on that in the future. Joseph Downing: Great. I appreciate that. And then just one on capital deployment here. So you're now inside your leverage target, about $950 million of liquidity, nothing drawn on the revolver. Just curious kind of what's the priority stack from here? Is it building more cushion? Is it M&A in a specific area? Or does the buyback maybe into the conversation here at these levels? Alton Shader: Yes. No, thank you. I really appreciate that question. We haven't had a chance to talk about that yet. So this is obviously a really important time when it comes to capital allocation for our business. We are going to generate a significant amount of free cash flow over the course of the next few years. And as I look at our long-term growth and our long-term strategies, my primary goal is to be able to accelerate growth within this business. We got to become more essential to our customers. We've got to become easier to work with. We got to have best-in-class operations. And importantly, we've got to be able to effectively allocate our capital to maximize that growth. So we are heavily involved in that process right now. We're also kicking off our strategic planning process and working through some of our key strategic priorities and strategic initiatives. So I'm looking forward to sharing our priorities on capital allocation as we go forward. I'll note that where we are today with a focus on internal investment and M&A, particularly focused around on the sterilization side in Nelson Labs, I'm aligned with that. But we are getting deep into that right now, and I look forward to sharing more with you all once we have that more nailed down. Operator: The next question is from Michael Polark with Wolfe Research. Michael Polark: Jumping around calls. So if you commented already on litigation, I apologize for this question. But could we get a brief litigation update? I see New Mexico, which was always one of the smaller items on EO, settled in early July. So I'm interested in just your comment on that. It seems like a small win. And then the next steps in Georgia, and California, what is on the calendar for later this year and what's still circled for '27? Michael Petras: Mike, it's Michael. So I'll take the questions on the litigation side. So as far as Georgia, we're going through the appellate process right now. Obviously, our view is the court's rejection of the plaintiff's general causation, there is a critical issue. common to all the cases, and we believe this underscores the lack of reliable scientific support. So I would say that is an overarching statement. We'd expect to hear something in spring/summer on the appellate process. We've got a team fully engaged, and we feel very good about where we sit relative to those rulings that have come out today, the case. And you mentioned New Mexico that was settled in July. That amount was not material to the company. And the settlement is fully and finally resolved all the claims asserted or that could have been asserted in the lawsuit. So we're happy to have that behind you. We felt all along that, that was not a legitimate claim, and we've been very consistent in that, and we're happy to be able to resolve that for an immaterial impact to the company. And then lastly, on the California litigation, we'll continue to work through the court hearings and procedures and processes and in different motions and rulings and everything else that comes along with this process at this point in time. We expect the trial to be in January or April 2027 at this point in time. That always could change based on how things play out. I don't think it will be any earlier than that. It could get pushed out slightly, but ultimately, that will be determined by the judge in this process. Michael Polark: For the follow-up, I want to fish on the large customer that's coming on in the second half in Sterigenics. Is this across your global network? Is it specific to a modality or geography? What you just -- and the mention of this customer used to in-source and now is outsourcing, are they shutting down internal capacity or they just had growth needs and for those growth needs, they're coming to you, but they're still keeping some level of service in-house. I'd welcome any color on this large customer. Jonathan Lyons: Mike, thanks for the question. Yes, this is the one, the customer that we've been talking about is you can surmise this was an in-source/outsource shift related to EO in North America. When you think about what we've talked about historically, a meaningful customer that they're shutting down capacity and moving the business to us. So we're happy to support them and move this forward, but it's nothing new. This is the one we've been talking about for a while. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Alton for closing remarks. Alton Shader: Thanks, operator, and thank you all for joining us today. I continue to be really excited about Sotera's opportunities. And we, as a team, look forward to executing on the back half of the year, and I look forward to engaging with you all as we further develop our strategic priorities. So thanks again for joining. Hope you all have a good week. Take care. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Sotera Health, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sotera Health wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Sotera Health (SHC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

US-based investment company McIntyre Partnerships delivered flat performance in H1 2026, returning 0% gross and -1% net compared to the Russell 2000 Value Index’s 23% return. A copy of the letter can be downloaded here. The second quarter results were a complete reversal of Q1 results, with the portfolio appreciating 23.0% (gross) and 23.3% (net), outperforming the index's 17.3%. The overall market surge contributed to this performance, alongside several positive developments related to the firm’s holdings. Since inception, the fund has returned ~16% gross and ~12% net per annum, surpassing the benchmark’s return of ~9% per annum.  The portfolio is highly concentrated, with QDEL as the largest holding, creating volatility. Despite mixed results, the firm remains confident in the portfolio, particularly with QDEL viewed as a key investment opportunity. Potential for further growth is expected from several large investments with promising catalysts. In addition, you can check the Strategy’s top 5 holdings to determine its best picks for 2026. In its Q2 2026 investor letter, McIntyre Partnerships highlighted Sotera Health Company (NASDAQ:SHC). Sotera Health Company (NASDAQ:SHC) is a US-based company that provides sterilization solutions, lab testing, and advisory services for the healthcare industry. On August 7, 2026, Sotera Health Company (NASDAQ:SHC) closed at $18.86 per share, reflecting a market capitalization of $5.38 billion. Sotera Health Company (NASDAQ:SHC) posted a one-month return of 5.04%, while its shares gained 25.61% over the past 52 weeks. McIntyre Partnerships stated the following regarding Sotera Health Company (NASDAQ:SHC) in its Q2 2026 investor letter: Sotera Health Company (NASDAQ:SHC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 42 hedge fund portfolios held Sotera Health Company (NASDAQ:SHC) at the end of the first quarter, up from 41 in the previous quarter. While we acknowledge the potential of Sotera Health Company (NASDAQ:SHC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Sotera Health Company (NASDAQ:SHC) and shared O’Keeffe Stevens Advisory’s insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.

Sotera Health Company’s Q2 2026 results, released on August 6, showed revenue rising to US$321.38 million and net income to US$53.64 million, with earnings per share from continuing operations increasing to US$0.19 from US$0.03 a year earlier. Management’s decision to raise full-year guidance after broad-based growth across Sterigenics, Nordion and Nelson Labs highlights improving profitability supported by pricing, volume mix and operational execution. We’ll now examine how Sotera Health’s earnings beat and upgraded full-year guidance affect its existing investment narrative and risk-return profile. AI is about to change healthcare. These 42 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Sotera Health, you need to believe its sterilization and lab testing franchise can keep converting steady demand into higher earnings while managing legal, regulatory and capital intensity pressures. The Q2 beat and guidance raise support the near term catalyst of margin improvement across Sterigenics, Nordion and Nelson Labs, but they do not remove the key risk around ethylene oxide regulations and litigation, which still has the potential to affect costs and operational flexibility. The most relevant recent announcement is management’s decision on August 6 to lift full year 2026 revenue and Adjusted EPS guidance after broad based growth across all three segments. This upgraded outlook ties directly to the catalyst of operating leverage from higher volumes and pricing, while also interacting with the risk that elevated compliance and CapEx needs could still weigh on free cash flow and delay progress toward lower leverage. Yet behind the improved guidance, investors should still be aware of how ethylene oxide related litigation and regulation could... Read the full narrative on Sotera Health (it's free!) Sotera Health's narrative projects $1.4 billion revenue and $330.4 million earnings by 2029. Uncover how Sotera Health's forecasts yield a $20.22 fair value, a 7% upside to its current price. Before this Q2 beat, the most optimistic analysts were assuming revenue would reach about US$1.4 billion and earnings around US$257.6 million by 2029, which is a far more upbeat view than the baseline story and leans heavily on steady Cobalt 60 supply and Nordion’s long term license. You should treat today’s stronger results as just one data point that might shift both the consensus and these bullish expectations, rather than assuming any narrative is fixed. Explore 2 other fair value estimates on Sotera Health - why the stock might be worth as much as 42% more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Sotera Health research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free Sotera Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sotera Health's overall financial health at a glance. These stocks are moving-our analysis flagged them today. Act fast before the price catches up: We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SHC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Sotera Health Company? Here are five stocks we like better. Strong second-quarter performance: Sotera Health reported 9.2% revenue growth to $321 million, 10% adjusted EBITDA growth to $166 million and a 36-basis-point margin expansion. Adjusted EPS rose 30% to $0.26, supported partly by lower interest expense. 2026 outlook raised: The company increased its revenue forecast to $1.236 billion-$1.254 billion, adjusted EBITDA guidance to $634 million-$643 million and adjusted EPS guidance to $0.95-$1.01 after strong first-half results. Investment and strategic updates: Capital expenditures are expected to reach $200 million-$225 million in 2026 as Sotera expands capacity and upgrades facilities, while net leverage declined to three times. The company is also reviewing potential M&A opportunities and navigating leadership changes and ongoing litigation. 2 Sizzling Mid-Caps That Could Stay Hot This Summer Sotera Health (NASDAQ:SHC) reported second-quarter 2026 results that included 8% constant-currency revenue growth, higher adjusted EBITDA margins and an increase to its full-year revenue and adjusted EBITDA outlook. The company also marked a leadership transition during the quarter. Alton Shader became chief executive officer on May 26, succeeding Michael Petras, who remains executive chairman. Petras said the company had experienced a “seamless transition,” while Shader said his initial priorities include understanding the business, assessing talent, strengthening customer partnerships and building on the company’s customer-focused culture. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Here’s Why Sotera Health Company Stock Just Doubled in a Day Revenue rose 9.2% from the prior-year period to $321 million, or 8% on a constant-currency basis. GAAP net income was $54 million, or $0.19 per diluted share. Adjusted EBITDA increased 10% to $166 million, representing 8.7% constant-currency growth, while adjusted EBITDA margin expanded 36 basis points to 51.6%. Adjusted earnings per share increased 30% year over year to $0.26. Interest expense totaled $34 million, down more than $6 million from the prior-year quarter. Chief Financial Officer Jon Lyons attributed the decline primarily to term-loan repricing and debt-reduction actions completed in 2025, along with lower interest rates. Including its most recent repricing, the company said it has reduced the borrowing cost on its $1.4 billion term loan by 100 basis points in less than a year. Sterigenics: Revenue increased 8.6% to $212 million, or 7% on a constant-currency basis. Growth reflected 4.3% favorable pricing, 2.7% improvement in volume and mix, and foreign-currency benefits. Segment income rose 9.6% to $118 million, while margin improved 53 basis points. Nordion: Revenue increased 15.8% to $49 million, or 16.7% on a constant-currency basis. Higher volume and mix, tied to the timing of Cobalt-60 harvest schedules, contributed 13.6% to growth, while pricing added 3.1%. Segment income rose 19.2% to $28 million and margin expanded 160 basis points to 56.9%. Nelson Labs: Revenue rose 6.3% to $61 million, or 5.4% on a constant-currency basis, supported by pricing and volume and mix. Segment income was $20 million, up 0.6% as reported but down 0.6% on a constant-currency basis. Segment margin improved 438 basis points sequentially but declined from the prior-year quarter because of higher costs. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Shader said Nelson Labs benefited from customer work that exceeded expectations during the quarter, including time-sensitive and critical projects. He said some of the additional business was completed in the quarter, while other customer work is expected to continue through the year. Based on its first-half results and expectations for the remainder of the year, Sotera Health raised its 2026 outlook. The company now expects revenue of $1.236 billion to $1.254 billion, representing constant-currency growth of 5.25% to 6.75%. It forecasts adjusted EBITDA of $634 million to $643 million, representing constant-currency growth of 5.75% to 7.25%. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The forecast assumes total-company pricing within the company’s long-term 3% to 4% range. Sotera Health expects Sterigenics to post mid- to high-single-digit constant-currency revenue growth for the year, Nordion to grow in the low- to mid-single digits, and Nelson Labs to deliver low-single-digit growth. Nelson Labs’ segment income margin is expected to remain in the low- to mid-30% range. Lyons said Nordion’s first-half revenue came in above the company’s earlier expectation that the period would account for roughly 40% to 45% of full-year segment revenue. Certain shipments originally anticipated for the second half occurred in the second quarter at customer request. The company expects Nordion’s second-half revenue to be approximately evenly split between the third and fourth quarters. Management also increased its adjusted EPS outlook to $0.95 to $1.01 from a prior range of $0.93 to $1.01. It reduced its interest-expense outlook to $135 million to $142 million and improved its effective tax-rate outlook on adjusted net income to 27% to 28%. Operating cash flow was approximately $88 million during the quarter. Capital expenditures totaled $46 million, including investments in Sterigenics capacity expansion, ethylene oxide facility upgrades, Nordion Cobalt-60 development initiatives and a Nelson Labs clean-room expansion. The company now expects 2026 capital expenditures of $200 million to $225 million. Management said spending is being driven by growth projects and facility enhancements, with the EO-related enhancements expected to be substantially complete by the end of 2026, though some work and spending will extend into 2027. Lyons said the company still expects a meaningful decline in capital expenditures in 2027 and remains on track with its previously stated three-year free-cash-flow commitment of $500 million to $600 million. Sotera Health’s net leverage ratio declined to three times during the second quarter, reaching its long-term target range of two to three times. Shader said management is reviewing capital-allocation priorities as part of its strategic planning process, while noting continued focus on internal investments and potential M&A opportunities in sterilization and Nelson Labs. Nelson Labs President Joe Shrawder retired after six years with the company. Riaz Bandali, formerly president of Nordion, has assumed leadership of Nelson Labs. Sotera Health said it is progressing in its search for Bandali’s successor at Nordion. On litigation, Petras said a New Mexico matter was settled in July for an amount that was not material to the company and that the settlement fully resolved the claims in that lawsuit. In Georgia, the company is proceeding through the appellate process and expects an update in the spring or summer. Petras said California trials are currently expected in January or April 2027, though timing could change based on court proceedings. Sotera Health Inc (NASDAQ: SHC) is a global provider of sterilization and laboratory testing services that support the medical device, pharmaceutical, life sciences and consumer product industries. Headquartered in Jacksonville, Florida, the company offers a suite of services designed to ensure products meet rigorous safety and regulatory requirements before reaching market. Sotera Health operates through three primary service platforms. Its Sterigenics division delivers contract sterilization solutions, including ethylene oxide (EtO), gamma irradiation, electron beam and X-ray technologies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sotera Health Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Q2 2026 net revenues increased 9.2% or 8.0% on a constant currency basis(1) compared to Q2 2025 Q2 2026 net income of $54 million or $0.19 per diluted share, compared to net income of $8 million or $0.03 per diluted share in Q2 2025 Q2 2026 Adjusted EBITDA(1) increased 10.0%, or 8.7% on a constant currency basis Q2 2026 Adjusted EPS(1) of $0.26, an increase of 30% per diluted share Company raises both full-year 2026 net revenues growth outlook to 5.25% - 6.75% and Adjusted EBITDA growth outlook to 5.75% - 7.25%, on a constant currency basis CLEVELAND, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Sotera Health Company (“Sotera Health” or the “Company”) (Nasdaq: SHC), a leading global provider of mission-critical end-to-end sterilization solutions, lab testing and advisory services for the healthcare industry, today announced financial results for the three- and six- months ended June 30, 2026. “We delivered another strong quarter, with high-single-digit growth, reflecting focused execution across all three of our business units,” said Chief Executive Officer Alton Shader. “These results further underscore the essential nature of Sotera Health’s offerings to healthcare. Since joining the Company, I have been impressed by the dedication of our teams, the trust our customers place in us and the industry-leading expertise that differentiates our business in highly regulated healthcare markets. Together, these strengths position us well to deliver consistent and reliable growth.” Shader continued, “Based on our strong first-half performance and confidence in the remainder of the year, we are raising our full-year 2026 outlook. I am excited about the numerous opportunities we have for growth as we continue to deepen our customer relationships, invest in our people, facilities and capabilities, and execute on our long-term strategy.” Second-Quarter 2026 Highlights(All comparisons are against second quarter of 2025, unless otherwise noted) Delivered strong, high-single-digit top- and bottom-line constant currency growth Expanded Adjusted EBITDA margin(1) to 51.6% Sterigenics: 7.0% constant currency revenue growth; segment income margin improvement of 53 basis points Nordion: 16.7% constant currency revenue growth; segment income margin improvement of 160 basis points Nelson Labs: 5.4% constant currency revenue growth; sequential segment income margin improvement of 438 basis points Net cash provided by operating activities of $88 million June 30, 2026, Net Leverage Ratio(1) of 3.0x; achieved long-term target range of 2.0x to 3.0x; available liquidity of approximately $950 million Repriced term loan, saving approximately $3.5 million of annual interest expense Completed final private equity sponsor secondary offering, with no remaining sponsor ownership (1) This is a non-GAAP financial measure used throughout this press release; please refer to the section “Non-GAAP Financial Measures” for explanations of our non-GAAP financial measures and the schedules provided later in this release for reconciliations of reported GAAP to non-GAAP financial measures. Second-Quarter and First-Half 2026 Review by Business Segment(All comparisons are against second quarter of 2025, unless otherwise noted) Sterigenics Sterigenics delivered strong second-quarter 2026 results, with net revenues up 8.6% to $212 million, or 7.0% on a constant currency basis. Segment income improved to $118 million, an increase of 9.6%. For the first six months of 2026, Sterigenics net revenues increased 9.1% to $398 million, or 6.6% on a constant currency basis. Segment income increased 9.6% to $215 million. Second-quarter net revenues growth was driven by favorable pricing, improved volume/mix and a foreign currency benefit. Segment income and segment income margin also benefited from these factors, partially offset by inflation. Nordion Nordion net revenues were up 15.8% to $49 million, or 16.7% on a constant currency basis while segment income increased 19.2% to $28 million. For the first six months of 2026, Nordion net revenues increased 21.6% to $91 million, or 20.8% on a constant currency basis. Segment income increased 26.4% to $52 million. Second-quarter net revenues growth was driven by improved volume/mix, primarily due to the timing of Cobalt-60 harvests and favorable pricing, partially offset by foreign currency. Segment income and segment income margin also benefited from these factors, partially offset by inflation. Nelson Labs Nelson Labs delivered strong second-quarter net revenues growth of 6.3% to $61 million, or 5.4% on a constant currency basis. Segment income improved to $20 million, an increase of 0.6%. For the first six months of 2026, Nelson Labs net revenues improved 2.9% to $113 million, or 0.9% on a constant currency basis, while segment income decreased 4.9% to $34 million. Second-quarter net revenues and segment income growth were driven by favorable pricing, improved volume/mix and a foreign currency benefit. Segment income margin was impacted by higher costs. Balance Sheet and Liquidity As of June 30, 2026, Sotera Health had $2.2 billion of total debt, and $357 million in unrestricted cash and cash equivalents, compared to $2.2 billion in total debt and $345 million in unrestricted cash and cash equivalents as of December 31, 2025. Sotera Health’s Net Leverage Ratio as of June 30, 2026 improved to 3.0x, achieving the Company’s long-term net leverage ratio target range of 2.0x to 3.0x. As of June 30, 2026, available liquidity increased to approximately $950 million, and the Company had no outstanding borrowings under its $600 million revolving credit facility. Full-Year 2026 Outlook Today, Sotera Health is raising its 2026 outlook: Net revenues range raised to $1.236 billion to $1.254 billion, representing constant currency growth of 5.25% to 6.75% and an estimated 100 basis points of foreign currency benefit Adjusted EBITDA range raised to $634 million to $643 million, representing constant currency growth of 5.75% to 7.25% and an estimated 100 basis points of foreign currency benefit Interest expense improved to a range of $135 million to $142 million Tax rate applicable to Adjusted Net Income(2) improved to a range of 27.0% to 28.0% Adjusted EPS improved to a range of $0.95 to $1.01 A weighted-average fully diluted share count in the range of 289 million to 291 million shares Capital expenditures in the range of $200 million to $225 million 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. The Company cannot reconcile its expected Adjusted EBITDA, Tax Rate Applicable to Adjusted Net Income, Adjusted Net Income and Adjusted EPS without unreasonable effort because certain items that impact net income, earnings per share and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time, including uncertainties caused by changes to the regulatory landscape, restructuring items and certain fair value measurements, all of which are potential adjustments for future earnings. The outlook provided above contains a number of assumptions, including, among others, the Company’s current expectations regarding supply chain continuity, particularly for the supply of ethylene oxide (“EO”) and Cobalt-60, and the impact of inflationary trends, including their impact on energy prices and the supply of labor. Our outlook is based on current plans and expectations and is subject to several known and unknown risks and uncertainties, including those set forth below under “Cautionary Note Regarding Forward-Looking Statements.” Earnings Webcast Sotera Health management will host a conference call and live webcast to discuss the Company’s operating highlights and financial results at 9:00 a.m. Eastern Daylight Time today. A live webcast of the conference call will be accessible at this link or via the Investor Relations section of the Company’s website at Presentation & Events | Sotera Health, along with accompanying materials. A replay of the webcast will be archived on the Company’s website. Upcoming Investor Events Wells Fargo 21st Annual Healthcare Conference at 1:30 p.m. Eastern Daylight Time, September 9, 2026 (2) This is a non-GAAP financial measure used throughout this press release; please refer to the section “Non-GAAP Financial Measures” for explanations of our non-GAAP financial measures. Cautionary Note Regarding Forward-Looking StatementsUnless expressly indicated or the context requires otherwise, the terms “Sotera Health,” “Company,” “we,” “us,” and “our” in this release refer to Sotera Health Company, a Delaware corporation, and, where appropriate, its subsidiaries on a consolidated basis. This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and reflects management’s expectations about future events and the Company’s operating plans and performance and speak only as of the date hereof. Forward-looking statements present our current forecasts and estimates of future events. These statements do not strictly relate to historical or current results and can be identified by words such as “anticipate,” “appear,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “seek,” “should,” “strategy,” “will” and other terms of similar meaning or import in connection with any discussion of future operating, financial or other performance. These forward-looking statements are subject to risks, uncertainties and other factors and actual results may differ materially from those results projected in the statements. These forward-looking statements are subject to various risks, uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. These risks and uncertainties include, but are not limited to, a disruption in the availability or supply of, or increases in the price of, EO, Co-60 or our other direct materials, services and supplies, including as a result of geopolitical instability and/or sanctions against Russia by the United States, Canada, the United Kingdom and/or the European Union, or sanctions by Russia against those countries; fluctuations in foreign currency exchange rates; evolving changes in environmental, health and safety regulations; health and safety risks associated with the use, storage, transportation and disposal of potentially hazardous materials such as EO and Co-60; the impact and outcome of current and future legal proceedings and liability claims, including litigation related to the use, emissions and releases of EO from our current and former EO sterilization facilities, and the possibility that additional claims will be made in the future; allegations of our failure to properly perform services and potential product liability claims, recalls, penalties and reputational harm; compliance with the extensive regulatory requirements to which we are subject, the related costs, and any failures to receive or maintain, or delays in receiving, required clearances or approvals; adverse changes in industry trends; competition we face; market conditions and changes, including inflationary trends and the impact of tariffs, that impact our long-term supply contracts with variable price clauses and increase our cost of revenues; business continuity hazards, including supply chain disruptions, federal government shutdowns, and other risks associated with our operations; the risks of doing business internationally, including global and regional economic and political instability and compliance with various applicable laws and potentially inconsistent laws and regulations in multiple jurisdictions; our ability to increase capacity at existing facilities, build new facilities in a timely and cost-effective manner and renew leases for our leased facilities; our ability to attract and retain qualified employees; severe health events or environmental events; cybersecurity incidents, unauthorized data disclosures, and our dependence on information technology systems; the risks associated with the introduction of artificial intelligence technology; an inability to pursue strategic transactions, find suitable acquisition targets, or integrate strategic acquisitions into our business successfully; our ability to maintain effective internal control over financial reporting; our reliance on intellectual property rights to maintain our competitive position and the risk of claims from third parties that we have infringed or misappropriated, or are infringing or misappropriating, their intellectual property rights; our ability to comply with rapidly evolving data privacy and security laws and regulations in various jurisdictions and any ineffective compliance efforts with such laws and regulations; our ability to generate profitability in future periods; impairment charges on our goodwill and other intangible assets with indefinite lives, as well as other long-lived assets and intangible assets with definite lives; the effects of unionization efforts and labor regulations in countries in which we operate; adverse changes to our tax positions in U.S. or non-U.S. jurisdictions or the interpretation and application of U.S. tax legislation or other changes in U.S. or non-U.S. taxation of our operations; and our significant degree of leverage and how this leverage could adversely affect our ability to raise additional capital, limit our ability to react to challenges facing our Company or broader changes in our industry or the economy, limit our flexibility in operating our business through restrictions contained in our debt agreements and/or prevent us from meeting our obligations under our existing and future agreements governing our indebtedness. For additional discussion of these risks and uncertainties, please refer to the Company’s filings with the Securities and Exchange Commission, such as its Annual Report on Form 10-K and quarterly reports. We do not undertake any obligation to publicly update or revise these forward-looking statements, except as otherwise required by law. Non-GAAP Financial Measures To supplement our consolidated financial statements presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), we consider Adjusted EBITDA, Adjusted EBITDA margin, Tax Rate Applicable to Adjusted Net Income, Adjusted Net Income, Adjusted EPS, Net Debt, Net Leverage Ratio and constant currency, each of which is a financial measure not based on any standardized methodology prescribed by GAAP. We define Adjusted Net Income as net income (loss) before amortization and certain other adjustments that we do not consider in our evaluation of our ongoing operating performance from period to period. We define Adjusted EBITDA as Adjusted Net Income before interest expense, depreciation (including depreciation of Cobalt-60 used in our operations) and income tax provision applicable to Adjusted Net Income. Adjusted EBITDA margin is equal to Adjusted EBITDA divided by net revenues. We define Adjusted EPS as Adjusted Net Income divided by the weighted average number of diluted shares outstanding. Our Net Debt is equal to our total debt, net of unamortized debt issuance costs and debt discounts, less cash and cash equivalents. Our Net Leverage Ratio is equal to Net Debt divided by Adjusted EBITDA. Tax Rate Applicable to Adjusted Net Income represents the difference between the income tax provision as determined under U.S. GAAP and the income tax benefit/provision associated with pre-tax adjustments used to calculate Adjusted Net Income. Constant currency is a non-GAAP financial measure we use to assess performance excluding the impact of foreign currency exchange rate changes. We calculate constant currency net revenues by translating prior year net revenues in local currency at the average exchange rates applicable for the current period. The translated results are then used to determine year-over-year percentage increases or decreases. We generally refer to such amounts calculated on a constant currency basis as excluding the impact of foreign currency exchange rates. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP. We use these non-GAAP financial measures as the principal measures of our operating performance. Management believes these measures allow management to more effectively evaluate our operating performance and compare the results of our operations from period to period without the impact of certain non-cash items and non-routine items that we do not expect to continue at the same level in the future and other items that are not core to our operations. We believe that these measures are useful to our investors because they provide a more complete understanding of the factors and trends affecting our business than could be obtained without these measures and their disclosure. In addition, we believe these measures will assist investors in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented. Our management also uses these measurements in their financial analysis and operational decision-making and Adjusted EBITDA serves as the key metric for the attainment of our primary annual incentive program. These measures may be calculated differently from, and therefore may not be comparable to, a similarly titled measure used by other companies. About Sotera Health Sotera Health Company is a leading global provider of mission-critical end-to-end sterilization solutions, lab testing and advisory services for the healthcare industry. Sotera Health goes to market through three businesses – Sterigenics®, Nordion® and Nelson Labs®. Sotera Health is committed to its mission, Safeguarding Global Health®. Updates on recent developments in matters relevant to investors can be found on the Investor Relations section of the Sotera Health website at Investor Relations | Sotera Health. For developments related to EO, updates can be found at Ethylene Oxide | Sotera Health. INVESTOR RELATIONS Jason PetersonVice President Investor Relations, Sotera [email protected] MEDIA Kristin GibbsChief Marketing Officer, Sotera [email protected] Source: Sotera Health Company

Sotera Health Company (SHC) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.33%. A quarter ago, it was expected that this company would post earnings of $0.17 per share when it actually produced earnings of $0.18, delivering a surprise of +5.88%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Sotera Health, which belongs to the Zacks Medical Services industry, posted revenues of $321.38 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.29%. This compares to year-ago revenues of $294.34 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sotera Health shares have added about 1.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While Sotera Health has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sotera Health was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.27 on $318.9 million in revenues for the coming quarter and $0.97 on $1.24 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Aclarion, Inc. (ACON), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $1.05 per share in its upcoming report, which represents a year-over-year change of +61.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Aclarion, Inc.'s revenues are expected to be $0.03 million, up 50% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sotera Health Company (SHC) : Free Stock Analysis Report Aclarion, Inc. (ACON) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Sotera Health Company (SHC) reported revenue of $321.38 million, up 9.2% over the same period last year. EPS came in at $0.26, compared to $0.20 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $311.13 million, representing a surprise of +3.29%. The company delivered an EPS surprise of +8.33%, with the consensus EPS estimate being $0.24. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Sotera Health performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Revenues- Sterigenics: $211.57 million compared to the $208.83 million average estimate based on three analysts. The reported number represents a change of +8.6% year over year. Net Revenues- Nelson Labs: $60.66 million compared to the $58.14 million average estimate based on three analysts. The reported number represents a change of +6.3% year over year. Net Revenues- Nordion: $49.15 million versus the three-analyst average estimate of $43.92 million. The reported number represents a year-over-year change of +15.8%. Segment Income- Sterigenics: $118.13 million versus the three-analyst average estimate of $113.88 million. Segment Income- Nelson Labs: $19.63 million versus $18.56 million estimated by three analysts on average. Segment Income- Nordion: $27.98 million versus $24.09 million estimated by three analysts on average. View all Key Company Metrics for Sotera Health here>>> Shares of Sotera Health have returned +2.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sotera Health Company (SHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 8% constant currency revenue growth driven by broad-based performance across all three segments, particularly Sterigenics and Nordion. Sterigenics momentum was sustained by a stable demand environment and 4.3% favorable pricing, despite facing a difficult prior-year volume comparison. Nelson Labs exceeded internal expectations with 5.4% constant currency growth, benefiting from time-sensitive customer projects and technical problem-solving expertise. Nordion's outperformance was primarily timing-related, as certain Cobalt-60 shipments originally anticipated for the second half of the year occurred in Q2. Management attributes margin expansion to strong top-line growth and effective pricing strategies, which more than offset inflationary pressures in labor and materials. The 'One Sotera' strategic initiative is being prioritized to drive cross-business unit synergies and provide differentiated, integrated solutions to global healthcare customers. Raised full-year 2026 constant currency revenue growth guidance to 5.25%–6.75% and adjusted EBITDA growth to 5.75%–7.25% based on first-half strength. Sterigenics is expected to see a meaningful growth uptick in the second half of 2026, supported by favorable facility shutdown schedules and a new large-scale outsourcing contract. Guidance assumes total company pricing remains within the long-term range of 3% to 4%, reflecting value-based pricing for EO facility enhancements. Capital expenditures are projected at $200 million to $225 million for 2026, with a significant step-down expected in 2027 as EO facility upgrades reach substantial completion. Nordion's second-half revenue is expected to be split approximately evenly between Q3 and Q4, following the pull-forward of shipments into the second quarter. Completed a leadership transition at Nelson Labs with Riaz Bandali assuming the Presidency following the retirement of Joe Shrawder. Former private equity sponsors completed their final secondary offering in May and no longer hold an ownership stake in the company. Settled EO-related litigation in New Mexico for an immaterial amount, while the California trial is currently scheduled for early 2027. Reached the long-term target leverage range of 2x to 3x, providing increased flexibility for future capital allocation and potential M&A. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Sequential margin improvement of 438 basis points was driven by high contribution margins on incremental revenue from new customer projects. Management maintained the full-year margin guidance in the low-to-mid 30% range, suggesting Q2's specific project mix may not fully repeat at the same intensity. Management reported no significant change in the competitive landscape and dismissed concerns of a demand slowdown, citing constructive indicators from med-tech customers. The company's higher index toward the U.S. market was noted as a potential differentiator compared to primary competitors. The new X-ray facility is intended to provide a complete modality offering, with revenue expected to begin flowing in Q3 2026. While X-ray serves as a strategic complement, management reaffirmed that Cobalt-60 (Gamma) remains a critical, core part of the global portfolio. With leverage now at 3x, the primary focus is on internal investments and M&A, particularly within the sterilization and lab services segments. CEO Alton Shader indicated that a more formal capital allocation framework will be shared following the upcoming strategic planning process.