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Sotera Health reported second-quarter 2026 results showing 8% constant-currency revenue growth and improved margins. Revenue rose 9.2% year-over-year to $321 million, whilst adjusted EBITDA increased 10% to $166 million, with margins expanding to 51.6%. The company announced a leadership transition, with Alton Shader becoming chief executive officer on 26 May, succeeding Michael Petras, who remains executive chairman. Sterigenics revenue increased 8.6% to $212 million, driven by favourable pricing and volume improvements. Nordion saw 15.8% revenue growth to $49 million, primarily from Cobalt-60 harvest timing. Nelson Labs revenue rose 6.3% to $61 million. Interest expense declined by over $6 million to $34 million, attributed to term-loan repricing and debt reduction completed in 2025. Sotera Health raised its full-year revenue and adjusted EBITDA outlook.

Sotera Health Q2 earnings call highlights. August 7, 2026 Key points. * 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. * Five stocks to consider instead of Sotera Health. 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. Second-Quarter results. 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. 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. Outlook raised after first-half performance. 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%. Discover more MarketBeat All Access EV Market Report 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%. Capacity investments, cash flow and capital allocation. 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. Leadership and litigation updates. 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. About Sotera Health (NASDAQ:SHC). 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]. Continue following MarketBeat Before you consider Sotera Health, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. 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Sotera Health reported 8% constant currency revenue growth in Q2 2026, driven by strong performance across its Sterigenics and Nordion segments. Sterigenics benefited from stable demand and 4.3% favourable pricing, whilst Nelson Labs exceeded expectations with 5.4% growth. The company raised its full-year 2026 guidance, now projecting constant currency revenue growth of 5.25–6.75% and adjusted EBITDA growth of 5.75–7.25%. Capital expenditures are forecast at $200 million to $225 million for 2026, with a significant reduction expected in 2027 as facility upgrades near completion. Sotera Health reached its target leverage range of 2x to 3x, providing increased flexibility for capital allocation. The company completed a leadership transition at Nelson Labs and settled EO-related litigation in New Mexico for an immaterial amount.