SHC earnings analysis
What we found in SHC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Sotera Health reported strong Q1 2026 results with revenues of $280.0 million, a 10.0% year-over-year increase, and earnings per share (EPS) of $0.18, beating estimates. The Nordion segment significantly contributed to revenue growth, while management maintains a favorable outlook for the year, reaffirming their full-year guidance for revenue and EBITDA growth between 5.0%-6.5% and 5.5%-7.0%, respectively.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Q1 2026 revenues increased by $25.5 million, or 10.0%, to $280.0 million compared to $254.5 million in Q1 2025.
- Positive EPS Surprise
- Earnings per share for Q1 2026 were reported at $0.18, exceeding the estimate of $0.17 by 5.88%.
- Nordion Segment Surge
- Nordion segment revenues rose by 29.0% to $42.0 million, driven by favorable Co-60 harvest schedules.
- Improved Net Income
- Net income improved to $26.6 million from a loss of $13.3 million in Q1 2025, marking a 300.5% increase.
- Adjusted EBITDA Growth
- Adjusted EBITDA for Q1 2026 increased to $134.7 million, a 10.5% rise from $121.8 million in Q1 2025.
- Reinforced Guidance
- Management reaffirmed full-year revenue growth guidance of 5.0%-6.5%, pointing to sustained operational momentum.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Litigation Costs
- The $30.9 million payment for settling Illinois EO litigation impacts liquidity and may lead to further legal expenses.
- Interest Rate Exposure
- Rising interest rates could affect cash flows and financing costs, with a current average rate of 6.62% on existing debt.
- Revenues from Product Segment
- A decline in Nelson Labs revenue of 0.7% was noted, indicating potential challenges in that segment's performance.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.18
- Gross margin
- 40.4%
- Operating margin
- 9.5%
- Segment
- Sterigenics
- Segment
- Nordion
- Segment
- Nelson Labs
What they said about what is next.
Management anticipates continued growth in the range of 5.0% to 6.5% for overall revenue for the full year.
The filing reads better than the one before it.
What came before.
- 10-K · February 24, 2026
- Sotera Health (SHC) presents a business built on vertically integrated sterilization (Sterigenics + Nordion) and lab testing (Nelson Labs) with durable contract coverage and a global facility footprint. Fiscal 2025…
- 10-Q · November 4, 2025
- Sotera reported Q3 2025 revenue of $311.3M and diluted EPS of $0.17, driven by Sterigenics and Nordion growth while Nelson Labs declined. Gross margin expanded to 57.0% and operating margin widened to 35.7%…
- 10-Q · May 1, 2025
- Sotera Health reported Q1 revenue of $254,523,000 (up $6,347,000 vs. Q1 2024) with gross margin of 53.2% and a diluted loss per share of $(0.05). Operating margin compressed to 10.3% largely due to a $30,943,000…
- 10-K · February 27, 2025
- Sotera Health (SHC) describes a stable, recurring-revenue sterilization and lab-testing platform anchored by Sterigenics, Nordion and Nelson Labs. The company reported Q4 revenue of $290,203,000 and diluted EPS of $0.21…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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