Strong Q1 beat across revenue, adjusted EBITDA, and adjusted EPS with reaffirmed guidance supports the growth narrative. The planned CEO transition to an external hire with medical device experience is a positive signal for strategic continuity. Monitor the May 21 annual meeting for any shareholder activism updates given the recent proxy context.
Price Chart
Executive Summary
Sotera Health reported strong Q1 2026 results with revenue up 10.0% YoY to $280M and GAAP net income of $27M vs a net loss of $13M in Q1 2025, while reaffirming full-year 2026 guidance. The company also announced a planned CEO transition, with Alton Shader appointed as CEO effective May 26, 2026, and current CEO Michael Petras transitioning to Executive Chairman.
Key Financial Metrics
Key Facts
- Q1 2026 net revenues increased 10.0% to $280M, or 6.5% on a constant currency basis, vs Q1 2025
- Q1 2026 GAAP net income of $27M ($0.09/diluted share) vs net loss of $13M ($(0.05)/share) in Q1 2025
- Adjusted EPS of $0.18, up 29% YoY from $0.14 in Q1 2025
- Adjusted EBITDA increased 10.5% to $134.7M, with margin expanding to 48.1% from 47.9%
- Sterigenics segment revenue grew 9.7% to $186M; Nordion revenue surged 29.0% to $42M; Nelson Labs revenue declined 0.7% to $52M
- Full-year 2026 outlook reaffirmed: net revenue growth of 5.0%-6.5% and Adjusted EBITDA growth of 5.5%-7.0% on a constant currency basis
- CEO transition announced: Alton Shader appointed CEO effective May 26, 2026; Michael Petras becomes Executive Chairman
- Net leverage ratio stable at 3.2x; over $900M in available liquidity as of March 31, 2026
- Public float increased to approximately 90% of outstanding shares
Financial Impact
Q1 2026 revenue beat consensus by ~3.4% ($280M vs $270.8M); GAAP EPS of $0.09 vs consensus $0.17 (GAAP miss), but Adjusted EPS of $0.18 vs Street consensus of $0.15 (20% beat)
Risk Factors
- Ongoing ethylene oxide litigation exposure, $34M settlement paid in Q1 2026 and additional professional fees of $9.9M
- Nelson Labs segment revenue declined 0.7% (3.8% on constant currency), indicating potential softness in lab testing
- CEO transition creates near-term execution risk despite orderly succession plan
- High leverage at 3.2x net debt/EBITDA limits financial flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001822479-26-000028 |
| Document: shc-20260430.htm | 0001822479-26-000028 |
| Document: 0001822479-26-000028-index-headers.html | 0001822479-26-000028 |
| Document: 0001822479-26-000028-index.html | 0001822479-26-000028 |
| Document: 0001822479-26-000028.txt | 0001822479-26-000028 |
| 8-K Data (Synthetic) | 0001822479-26-000028 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | Institutional Cluster | $18.13 $18.10 | ▼ −0.17% | ▲ +0.36% | $18.49 (+1.99%) |
Oct 9, 2026 18d ago | SC 13G/A | $18.15 $18.21 | ▼ −0.33% | ▼ −0.34% | $18.49 (−1.87%) |
Aug 14, 2026 10w ago | 8-K | $18.89 $18.80 | ▼ −0.48% | ▼ −0.00% | $18.49 (−2.12%) |
Aug 9, 2026 11w ago | Institutional Cluster | $18.97 $19.11 | ▲ +0.74% | ▲ +1.06% | $18.49 (−2.53%) |
Aug 7, 2026 11w ago | 144 | $18.86 $18.97 | ▲ +0.58% | ▲ +0.61% | $18.49 (−1.96%) |
Aug 6, 2026 11w ago | 8-K | $18.91 $18.86 | ▼ −0.26% | ▼ −0.88% | $18.49 (−2.22%) |
May 27, 2026 21w ago | 3 | $15.75 $15.64 | ▼ −0.70% | ▼ −0.94% | $18.49 (+17.40%) |
May 20, 2026 22w ago | 8-K | $15.71 $15.66 | ▼ −0.32% | ▼ −0.76% | $18.49 (+17.70%) |
May 15, 2026 23w ago | Insider Cluster | $15.35 $15.23 | ▲ +0.78% | ▲ +0.13% | $18.49 (−20.46%) |
May 15, 2026 23w ago | Insider Cluster | $15.35 $15.23 | ▲ +0.78% | ▲ +0.13% | $18.49 (−20.46%) |
US Market Status
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