olivLaw · US equity research
Sotera Health Company SHC
Services-Misc Health & Allied Services, NEC · SIC 8090 · Vertical: Services-Misc Health & Allied Services, NEC (SIC 8090)
Sotera Health is a global provider of end-to-end sterilization, lab testing and advisory services for the healthcare industry, with an integrated position in Co-60 supply. The company reported net revenues of 1163.6 million USD for fiscal 2025 and raised its full-year 2026 outlook in its second-quarter 2026 release, pointing to continued growth in demand from medical customers.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, Sotera Health Company (SHC) stock was 15.87 USD (−3.17% on the day), with market capitalisation 4.5 bn USD, P/E 26.4 on diluted EPS of 0.60 USD over the last 12 months, beta 1.13, 52-week range 13.13–19.57 USD. Latest reported quarter (Q3 2026): revenue of 324.9 m USD (+4.4% YoY), net income of 58.4 m USD (+20.6% YoY), diluted EPS 0.20 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 29.1
- oversold (≤ 30)
- Bollinger (20, 2)
- 16.25 – 19.35
- below the lower band · %B -0.12 · band width 17.4%
- SMA 50 / 200
- 18.29 / 16.95
- mixed trend
- MACD (12, 26, 9)
- -0.43 / -0.20
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −13.0% | −1.1% | −11.9 pp | — |
| 3 months | −16.1% | −0.5% | −15.6 pp | — |
| 6 months | +1.3% | +4.4% | −3.1 pp | — |
| Year to date | −10.0% | +12.3% | −22.4 pp | — |
| 1 year | +0.4% | +13.5% | −13.2 pp | +30.3% |
| 3 years | +18.5% | +76.4% | −57.9 pp | −7.5% |
| 5 years | −41.1% | +63.7% | −104.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 290.2 m | 254.5 m | 294.3 m | 311.3 m | 303.4 m | 280.0 m | 321.4 m | 324.9 m |
| Cost of revenue | 125.8 m | 119.1 m | 127.7 m | 133.8 m | 137.5 m | 133.0 m | 143.4 m | 144.1 m |
| Gross profit | 164.4 m | 135.4 m | 166.6 m | 177.6 m | 165.9 m | 147.1 m | 178.0 m | 180.8 m |
| SG&A | 61.8 m | 63.1 m | 68.9 m | 63.3 m | 57.5 m | 68.2 m | 68.2 m | 64.1 m |
| Operating income | 87.1 m | — | — | — | — | — | — | — |
| Pre-tax income | 45.0 m | -14.8 m | 18.9 m | 72.9 m | 70.5 m | 42.6 m | 78.1 m | 83.7 m |
| Income tax | 32.6 m | -1.6 m | 10.9 m | 24.5 m | 35.7 m | 16.0 m | 24.4 m | 25.3 m |
| Net income | 12.3 m | -13.3 m | 8.0 m | 48.4 m | 34.8 m | 26.6 m | 53.6 m | 58.4 m |
| Diluted EPS | 0.04 ≈ | -0.05 | 0.03 | 0.17 | 0.12 ≈ | 0.09 | 0.19 | 0.20 |
| Operating cash flow | 55.7 m | 55.5 m | 57.4 m ≈ | 71.2 m ≈ | 103.1 m | 29.4 m | 88.5 m ≈ | 110.5 m ≈ |
| Capex | 65.9 m | 19.9 m | 31.2 m ≈ | 36.2 m ≈ | 50.7 m | 46.2 m | 46.4 m ≈ | 52.8 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 6 percentile of its own 18-quarter history (min 15.5, median 66.4, max 1,371.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Revenue | 778.3 m | 818.2 m | 931.5 m | 1.0 bn | 1.0 bn | 1.1 bn | 1.2 bn |
| Revenue YoY | unavailable | +5.1% | +13.9% | +7.8% | +4.5% | +4.9% | +5.7% |
| Net income | -20.9 m | -38.6 m | 116.9 m | -233.6 m | 51.4 m | 44.4 m | 77.9 m |
| Net income YoY | unavailable | unavailable | unavailable | −299.8% | unavailable | −13.6% | +75.6% |
| Diluted EPS | -0.09 | -0.16 | 0.41 | -0.83 | 0.18 | 0.16 | 0.27 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | −302.4% | unavailable | −11.1% | +68.8% |
| net % | -2.7% | -4.7% | 12.5% | -23.3% | 4.9% | 4.0% | 6.7% |
| Free cash flow | 91.8 m | 67.1 m | 179.4 m | 95.6 m | -362.7 m | 45.1 m | 149.2 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 344.6 m USD
- Financial debt
- 2.1 bn USD
- Net debt
- 1.8 bn USD
- Equity
- 606.0 m USD
- Total assets
- 3.3 bn USD
- Debt / equity
- 3.53x
- Current ratio
- 2.46x
- ROE
- 15.4%
- ROA
- 2.5%
- FCF margin
- 12.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 818.2 m | 931.5 m | 1.0 bn | 1.0 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 24 Feb 2026verified |
| Cost of revenue | 374.6 m | 412.8 m | 446.7 m | 472.1 m | 498.1 m | 518.1 m | SEC (XBRL)· 24 Feb 2026verified |
| Gross profit | 443.6 m | 518.7 m | 557.0 m | 577.2 m | 602.3 m | 645.5 m | SEC (XBRL)· 24 Feb 2026verified |
| SG&A | 178.5 m | 198.2 m | 245.7 m | 236.7 m | 242.6 m | 252.8 m | SEC (XBRL)· 24 Feb 2026verified |
| Operating income | 206.0 m | 256.7 m | 248.4 m | 276.7 m | 297.6 m | — | SEC (XBRL)· 27 Feb 2025verified |
| Depreciation & amortisation | 63.3 m | 64.2 m | 64.3 m | 76.6 m | 84.3 m | 94.9 m | SEC (XBRL)· 24 Feb 2026verified |
| EBITDA | 269.3 m ≈ | 320.9 m ≈ | 312.7 m ≈ | 353.3 m ≈ | 381.9 m ≈ | — | SEC (XBRL)· 27 Feb 2025derived |
| Pre-tax income | -38.9 m | 175.7 m | -243.1 m | 106.0 m | 113.9 m | 147.5 m | SEC (XBRL)· 24 Feb 2026verified |
| Income tax | -1.4 m | 58.6 m | -9.5 m | 54.7 m | 69.5 m | 69.6 m | SEC (XBRL)· 24 Feb 2026verified |
| Net income | -38.6 m | 116.9 m | -233.6 m | 51.4 m | 44.4 m | 77.9 m | SEC (XBRL)· 24 Feb 2026verified |
| Diluted EPS | -0.16 | 0.41 | -0.83 | 0.18 | 0.16 | 0.27 | SEC (XBRL)· 24 Feb 2026verified |
| Weighted average diluted shares | 237.7 m | 279.4 m | 280.1 m | 283.2 m | 284.9 m | 286.4 m | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 102.4 m | 106.9 m | 395.2 m | 296.4 m | 277.2 m | 344.6 m | SEC (XBRL)· 24 Feb 2026verified |
| Receivables | 91.7 m | 108.2 m | 118.5 m | 147.7 m | 140.3 m | 139.3 m | SEC (XBRL)· 24 Feb 2026verified |
| Inventories | 34.1 m | 54.3 m | 37.1 m | 48.3 m | 49.2 m | 54.4 m | SEC (XBRL)· 24 Feb 2026verified |
| Current assets | 315.0 m | 346.0 m | 645.0 m | 557.2 m | 526.0 m | 613.4 m | SEC (XBRL)· 24 Feb 2026verified |
| Property, plant & equipment, net | 609.8 m | 650.8 m | 774.5 m | — | — | — | SEC (XBRL)· 01 Nov 2023verified |
| Goodwill | 1.1 bn | 1.1 bn | 1.1 bn | 1.1 bn | 1.1 bn | 1.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Intangibles (excl. goodwill) | 643.4 m | 598.8 m | 491.3 m | 416.3 m | 317.7 m | 288.2 m | SEC (XBRL)· 24 Feb 2026verified |
| Total assets | 2.8 bn | 2.8 bn | 3.1 bn | 3.1 bn | 3.1 bn | 3.3 bn | SEC (XBRL)· 24 Feb 2026verified |
| Accounts payable | 52.4 m | 72.9 m | 74.1 m | 71.0 m | 55.1 m | 78.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Short-term debt | 0 | 0 | 197.1 m | 4.8 m | 14.8 m | 14.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Long-term debt | 1.8 bn | 1.7 bn | 1.7 bn | 2.2 bn | 2.2 bn | 2.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Current liabilities | 140.6 m | 161.2 m | 791.6 m | 230.7 m | 191.0 m | 249.6 m | SEC (XBRL)· 24 Feb 2026verified |
| Total liabilities | 2.3 bn | 2.2 bn | 2.8 bn | 2.7 bn | 2.7 bn | 2.7 bn | SEC (XBRL)· 24 Feb 2026verified |
| Equity | 454.6 m | 586.1 m | 350.2 m | 443.7 m | 404.9 m † | 606.0 m † | SEC (XBRL)· 24 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 120.6 m | 281.5 m | 278.0 m | -147.7 m | 224.2 m | 287.2 m | SEC (XBRL)· 24 Feb 2026verified |
| Capex | 53.5 m | 102.2 m | 182.4 m | 215.0 m | 179.1 m | 138.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Free cash flow | 67.1 m ≈ | 179.4 m ≈ | 95.6 m ≈ | -362.7 m ≈ | 45.1 m ≈ | 149.2 m ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Investing cash flow | -158.7 m | -159.8 m | -181.9 m | -214.9 m | -179.0 m | -135.1 m | SEC (XBRL)· 24 Feb 2026verified |
| Financing cash flow | 73.4 m | -117.3 m | 197.8 m | 266.0 m | -50.6 m | -100.5 m | SEC (XBRL)· 24 Feb 2026verified |
| Dividends paid | 0 | 0 | — | — | — | — | SEC (XBRL)· 01 Mar 2022verified |
| Share repurchases | 34.0 m | 0 | 0 | — | — | — | SEC (XBRL)· 28 Feb 2023verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 43.8% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 4.5 bn USD
Key indicators
Coverage and freshness
Score by group
44% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.33 – 13.60 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E5.33 – 13.60 (Mid 10.18)6 companies used · median multiple 16.9x · quartiles 8.9x – 22.6xAGL, DVA, FMS, NIVF, PGNY, VMD
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 43.8% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 14.1% | 90 (vs peers) | 14% |
| FCF conversion · Quality | 78.1% | 69 (on a fixed band) | 14% |
| Revenue CAGR 3Y · Growth | 5.1% | 42 (on a fixed band) | 19% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 3.1x | 100 (on a fixed band) | 10% |
| P/E (TTM) · Valuation | 26.4x | 17 (vs peers) | 24% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 3.0% | 37 (on a fixed band) | 19% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth· partial42/100 · 1/2 factors with a value
- Quality79/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation26/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
SOTERA HEALTH COMPANY (SHC). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.2 bn USD in 2025; YoY growth 5.7%; net margin 14.1%; ROE 27.0%.
The estimated value range is 5.33–13.60 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 10.18 USD, the price of 15.87 USD leaves a potential of -35.9% (value / price − 1) and a margin of safety of -55.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 14.1%
- Current ratio: 3.1x
What contradicts it
- P/E (TTM): 26.4x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Services-Misc Health & Allied Services, NEC (SIC 8090) · same industry (4-digit SIC) · compared with 10 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| DVADavita Inc. | 12.3 bn | 14.3 | — | 6.5% | +6.5% | +63% / +92% |
| FMSFresenius Medical Care AG | 6.6 bn | 7.0 | 7.0% | 5.0% | +1.5% | −1% / +15% |
| SHCSotera Health Company | 4.5 bn | 26.4 | 27.0% | 14.1% | +5.7% | +0% / +19% |
| PGNYProgyny, Inc. | 2.6 bn | 37.4 | 16.2% | 6.0% | +10.4% | +30% / +0% |
| AGLagilon health, inc. | 1.9 bn | 19.5 | -29.7% | -1.5% | −2.1% | +599% / −57% |
| VMDViemed Healthcare, Inc. | 341.4 m | 23.7 | 11.0% | 5.0% | +20.5% | +30% / +16% |
| CCELCryo-Cell International, Inc. | 39.9 m | — | — | -6.2% | −1.3% | +15% / −7% |
| BRTXBiorestorative Therapies, Inc. | 38.5 m | — | -241.1% | -3,089.6% | −10.3% | +40% / −21% |
| MGRXMangoceuticals, Inc. | 4.1 m | — | -95.1% | -4,791.3% | −26.0% | −83% / −98% |
| NIVFNewgenivf Group Limited | 117.2 k | 0.2 | 77.2% | 209.0% | −13.0% | −100% / −100% |
| MCTACharming Medical Limited | — | — | -0.9% | -0.5% | −22.7% | unavailable / unavailable |
1- and 3-year price returns: for SHC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 9.53 Total return -40% · Per year -40% | 16.84 Total return 6% · Per year 6% | 25.36 Total return 60% · Per year 60% |
| 3 years | 9.35 Total return -41% · Per year -16% | 18.59 Total return 17% · Per year 5% | 30.72 Total return 94% · Per year 25% |
| 5 years | 9.18 Total return -42% · Per year -10% | 20.51 Total return 29% · Per year 5% | 37.21 Total return 134% · Per year 19% |
- Exit P/E± 4.65
- Net margin± 3.25
- Annual revenue growth± 2.66
- Annual dilution± 0.27
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).
In brief
Sotera Health is a global provider of end-to-end sterilization, lab testing and advisory services for the healthcare industry, with an integrated position in Co-60 supply. The company reported net revenues of 1163.6 million USD for fiscal 2025 and raised its full-year 2026 outlook in its second-quarter 2026 release, pointing to continued growth in demand from medical customers.
SWOT
Strengths
- The company holds a vertically integrated position in gamma sterilization and an extensive network of facilities close to customers, an advantage that is hard to replicate.
- Most revenues come from multi-year contracts and relationships with large customers are stable, which makes revenues more predictable.
- The company has reached its target leverage range and reduced interest costs after refinancing.
Weaknesses
- Co-60 supply depends on a limited number of reactors and on contracts with operators in Canada and Russia, which can create vulnerabilities.
- Nordion revenues fluctuate from quarter to quarter because of harvest timing, which makes quarterly results harder to anticipate.
- The company paid significant costs for EO-related litigation in recent years, showing its exposure to legal risk.
Opportunities
- Growing demand for medical devices and pharmaceuticals could support higher volumes across all three segments.
- Capacity expansion and Co-60 production projects at reactors in the United States and Canada could strengthen the long-term position.
- If newer technologies such as X-ray irradiation and NO2 sterilization prove effective, the company could widen its service offering.
Threats
- Sanctions against Russia could disrupt Co-60 supply and transport logistics, especially if licences are not renewed.
- Stricter environmental rules for EO could raise costs or limit the use of this method.
- Competition from manufacturers with in-house sterilization and from alternative technologies could reduce the company's market share.
Risks
- Reliance on Russian Co-60high
A significant part of Co-60 supply comes from Russian reactors, and sanctions or countermeasures could interrupt deliveries and make renewal of transport licences harder.
- EO-related litigationhigh
The company settled several claims linked to former EO facilities, and further lawsuits could generate new costs and affect its reputation.
- Environmental and health regulationmedium
Changes in EO and Co-60 rules could increase required investment or force temporary shutdowns at certain facilities.
- Single EO supplier in the United Statesmedium
The United States has a single EO supplier for the sterilization industry, which could expose the company to supply interruptions or price increases.
- Leverage and sponsor controllow
A high debt level could limit financial flexibility, and former sponsors that controlled the company could influence strategic decisions.
Investment thesis
What would need to be true (bull case)
- Revenue and adjusted EBITDA growth in fiscal 2025 and the first half of 2026, together with a raised outlook, could indicate that the business is keeping its pace.
- The integrated position in gamma sterilization and multi-year contracts could support predictable revenues and stable demand from medical customers.
- Lower debt and interest costs could leave more room for capacity investment and acquisitions.
What would break the thesis
- Dependence on nuclear reactors and on suppliers in sanctioned countries could produce unexpected interruptions and extra costs.
- EO litigation costs remained high in recent years, and legal expenses could continue to weigh on margins.
- The share of Nordion in results varies widely from quarter to quarter, which could make quarterly profitability hard to anticipate.
What to watch
- Delivery against the raised 2026 revenue and adjusted EBITDA outlookQ3 2026
- Co-60 supply trends and renewal of transport licences2026
- Status of EO-related litigation and legal expensesnext 10-K
- Progress of capacity projects at Sterigenics and Co-60 development at Nordion2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).
The business
Sotera Health offers terminal sterilization, irradiation services and microbiological and analytical testing for medical devices, pharmaceuticals and food, with customers in more than 50 countries. The business is organized into three reportable segments: Sterigenics, Nordion and Nelson Labs, and the company presents itself as the only vertically integrated global gamma sterilization provider, combining services with Co-60 production. Many services are required by government regulations, which supports recurring customer demand.
Segments
Sterigenics
Sterigenics is the largest outsourced sterilization segment, using gamma, EO and E-beam irradiation across 48 facilities in 13 countries. According to the August 2026 release, segment revenues rose 8.6% in the second quarter to 212 million USD, and more than 90% of fiscal 2025 revenues came from multi-year contracts.
Nelson Labs
Nelson Labs provides microbiological and analytical testing for medical device and pharmaceutical customers, with more than 900 tests and advisory services. Revenues rose 6.3% in the second quarter of 2026, while segment margin was affected by higher costs.
Market context
Demand for sterilization and testing is linked to the volume of medical devices and pharmaceuticals that must meet regulatory requirements. The company estimates that gamma sterilization accounts for a significant share of single-use device sterilization worldwide, and the market is concentrated around a few large providers and smaller regional operators.
The market depends on the availability of Co-60 and EO, on environmental and health regulation, and on the ability to build new facilities that cost more than 50 million USD each. These barriers limit the entry of new competitors and support existing providers.
Trends
- Pricing and volume growthtailwind
The company reported that pricing and volume/mix supported revenue growth in fiscal 2025 and in the first half of 2026, which could continue if demand from medical customers stays stable.
- EO regulationheadwind
Regulators encourage alternatives to EO, and new rules may require investment in emissions control, which could raise costs or require costly facility reconfiguration.
- Reliance on Russian Co-60headwind
Part of the Co-60 supply comes from Russian reactors, and sanctions can complicate shipping and payments. The company estimated that the share of these reactors could rise in some years, creating a supply risk.
- Refinancing and interest costsmixed
A lower margin on the term loan and a principal paydown reduced interest expense in the second quarter of 2026, and leverage reached the target range, which offers more financial flexibility.
- Capacity investmentmixed
The company cites active capacity expansion at Sterigenics, Co-60 development at Nordion and lab expansion at Nelson Labs, which could support future growth if projects are completed on schedule.
Competitive position
In outsourced sterilization, Sterigenics competes with Applied Sterilization Technologies, part of STERIS plc, and with several smaller or regional providers. Some manufacturers also invest in in-house sterilization, and alternative technologies such as X-ray irradiation are an indirect competitor.
In Co-60, Nordion faces producers in Argentina, India, Russia, China and Sweden, and the Russian competitor has faced export difficulties due to the geopolitical situation. Competitors could raise capacity over time, but not without significant capital investment.
- STERIS plc (Applied Sterilization Technologies)
Direct competitor in outsourced sterilization through its Applied Sterilization Technologies segment, named in the annual report.
- Regional outsourced sterilization providers
Smaller or regional operators that the company names as part of global sterilization competition.
- Co-60 producers in Russia and Argentina
Domestic reactor-based Co-60 suppliers that compete with Nordion in their home markets and for export.
- Co-60 producers in China, Sweden and North America
Medical Co-60 suppliers that compete with Nordion in the HSA Co-60 segment.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Here’s Why Sotera Health Company (SHC) Surges 25% in Q2Yahoo Finance — News · 15 Sept 2026 · EN
The latest news item in our archive is from 15 Sept 2026; the newest SEC filing is from 03 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report03 Nov 2026
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Current report14 Aug 2026Departure or appointment of officers
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report22 May 2026Shareholder vote
- Current report20 May 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report13 May 2026Termination of a material agreement · Other events · Financial statements and exhibits
- Quarterly report05 May 2026
- Current report05 May 2026Results of operations · Departure or appointment of officers · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Sotera Health Company · 24 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Sotera Health Company · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Sotera Health Company · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.