The beat-and-raise quarter with deleveraging to the 3.0x target and all three segments growing supports a re-rating. Monitor the Q3 earnings call for continued momentum in Nordion's cobalt-60 harvest cycle and any further EO litigation developments, but the fundamental trajectory is clearly positive.
Price Chart
Executive Summary
Sotera Health reported Q2 2026 results with net revenues of $321.4M (+9.2% YoY) and GAAP diluted EPS of $0.19, while Adjusted EPS (the Street convention) came in at $0.26, beating the $0.24 consensus by 8.7%. The company raised its full-year 2026 outlook for both net revenue growth (to 5.25%-6.75%) and Adjusted EBITDA growth (to 5.75%-7.25%) on a constant currency basis, and achieved its long-term net leverage target of 3.0x. This is a strong beat with raised guidance, signaling accelerating operational momentum across all three segments.
Key Financial Metrics
Key Facts
- Q2 2026 net revenues of $321.4M, up 9.2% YoY (8.0% constant currency), beating $309.6M consensus.
- GAAP diluted EPS of $0.19 vs $0.03 in Q2 2025; Adjusted EPS of $0.26, beating $0.24 consensus by 8.7% and up 30% YoY.
- Full-year 2026 net revenue guidance raised to $1.236B-$1.254B (5.25%-6.75% constant currency growth) from prior $1.233B-$1.251B.
- Full-year 2026 Adjusted EBITDA guidance raised to $634M-$643M (5.75%-7.25% constant currency growth) from prior $632M-$641M.
- Net leverage ratio improved to 3.0x, achieving the long-term target range of 2.0x-3.0x, with ~$950M available liquidity.
- All three segments grew: Sterigenics +7.0% constant currency, Nordion +16.7%, Nelson Labs +5.4%.
Financial Impact
Q2 revenue beat consensus by ~$11.8M (3.8%); Adjusted EPS beat by $0.02 (8.7%). Full-year revenue guidance raised by ~$3M at midpoint.
Risk Factors
- Ongoing ethylene oxide (EO) litigation and settlement costs remain a contingent liability overhang.
- Nordion's revenue growth is partly driven by timing of cobalt-60 harvests, which may not be linear quarter-to-quarter.
- Net leverage at 3.0x is at the top end of the target range, limiting near-term financial flexibility for M&A.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001822479-26-000044 |
| Document: shc-20260806.htm | 0001822479-26-000044 |
| Document: 0001822479-26-000044-index-headers.html | 0001822479-26-000044 |
| Document: 0001822479-26-000044-index.html | 0001822479-26-000044 |
| Document: 0001822479-26-000044.txt | 0001822479-26-000044 |
| 8-K Data (Synthetic) | 0001822479-26-000044 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | Institutional Cluster | $18.13 $18.10 | ▼ −0.17% | ▲ +0.36% | $18.50 (+2.01%) |
Oct 9, 2026 17d ago | SC 13G/A | $18.15 $18.21 | ▼ −0.33% | ▼ −0.34% | $18.50 (−1.90%) |
Aug 14, 2026 10w ago | 8-K | $18.89 $18.80 | ▼ −0.48% | ▼ −0.00% | $18.50 (−2.09%) |
Aug 9, 2026 11w ago | Institutional Cluster | $18.97 $19.11 | ▲ +0.74% | ▲ +1.06% | $18.50 (−2.50%) |
Aug 7, 2026 11w ago | 144 | $18.86 $18.97 | ▲ +0.58% | ▲ +0.61% | $18.50 (−1.94%) |
Aug 6, 2026 11w ago | 8-K | $18.91 $18.86 | ▼ −0.26% | ▼ −0.88% | $18.50 (−2.19%) |
May 27, 2026 21w ago | 3 | $15.75 $15.64 | ▼ −0.70% | ▼ −0.94% | $18.50 (+17.43%) |
May 20, 2026 22w ago | 8-K | $15.71 $15.66 | ▼ −0.32% | ▼ −0.76% | $18.50 (+17.73%) |
May 15, 2026 23w ago | Insider Cluster | $15.35 $15.23 | ▲ +0.78% | ▲ +0.13% | $18.50 (−20.49%) |
May 15, 2026 23w ago | Insider Cluster | $15.35 $15.23 | ▲ +0.78% | ▲ +0.13% | $18.50 (−20.49%) |
US Market Status
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