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SHC

Sotera Health Company

SHC

Sotera Health Company • NASDAQ
$17.48 ▲ 0.23% (+0.04)
Market Cap $4.97 B
52w High $17.78
52w Low $9.53
Dividend Yield 0%
P/E 87.4
Volume 861.21K
Outstanding Shares 284.09M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $311.312M ▲ $66.384M ▼ $48.4M ▲ 15.547% ▲ $0.17 ▲ $138.415M ▲
Q2-2025 $294.341M ▲ $78.191M ▼ $7.962M ▲ 2.705% ▲ $0.028 ▲ $95.213M ▲
Q1-2025 $254.523M ▼ $78.388M ▲ $-13.26M ▼ -5.21% ▼ $-0.047 ▼ $66.857M ▼
Q4-2024 $290.203M ▲ $77.219M ▼ $12.323M ▼ 4.246% ▼ $0.043 ▼ $126.236M ▼
Q3-2024 $285.468M $77.517M $16.998M 5.954% $0.06 $127.391M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $301.026M ▼ $3.186B ▼ $2.636B ▼ $550.471M ▲
Q2-2025 $332.437M ▲ $3.217B ▲ $2.705B ▲ $511.283M ▲
Q1-2025 $304.39M ▲ $3.098B ▲ $2.683B ▲ $414.091M ▲
Q4-2024 $277.242M ▼ $3.072B ▼ $2.667B ▼ $404.911M ▼
Q3-2024 $306.738M $3.149B $2.679B $470.163M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $0 ▼ $69.561M ▲ $-33.335M ▼ $-75.746M ▼ $-33.246M ▼ $33.389M ▲
Q2-2025 $7.962M ▲ $57.416M ▲ $-31.229M ▼ $-6.933M ▲ $28.191M ▲ $26.187M ▼
Q1-2025 $-13.26M ▼ $55.521M ▼ $-19.881M ▲ $-8.087M ▼ $27.216M ▲ $35.603M ▲
Q4-2024 $12.317M ▼ $55.717M ▼ $-65.87M ▼ $-6.548M ▼ $-29.617M ▼ $-10.153M ▼
Q3-2024 $16.988M $95.603M $-36.352M $-804K $60.724M $59.214M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Product
Product
 $50.00M ▲$30.00M ▼$40.00M ▲$60.00M ▲
Service
Service
 $240.00M ▲$220.00M ▼$260.00M ▲$260.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown steadily over the past several years, and the core business appears structurally healthy with solid gross and operating profit. However, the path to bottom‑line profit has been bumpy. Earnings swung to a notable loss in one recent year and, even when positive, net profit margins are quite thin. This suggests a business that generates good operating performance but is sensitive to one‑off items, legal or regulatory costs, and interest expense. Overall, the income statement shows a resilient top line and stable core profitability, but with volatility in reported earnings that investors would want to understand in detail.

Balance Sheet

Balance Sheet The balance sheet is asset‑rich but heavily leveraged. Total assets have been relatively stable, but debt levels are high compared with the company’s equity, pointing to a meaningful reliance on borrowing. Cash on hand is reasonable but not large when viewed against the debt load, which limits flexibility if conditions worsen. The company appears to be managing within this structure, but the capital structure increases sensitivity to interest rates, refinancing conditions, and any sustained downturn in cash generation.

Cash Flow

Cash Flow Cash generation has been uneven. The business has produced solid operating cash flow in most years, but there was a recent year with a noticeable shortfall. Free cash flow has been modest and sometimes negative, largely because the company spends heavily on its facilities and technology. This reinvestment supports long‑term competitiveness but puts pressure on near‑term cash. Overall, cash flow supports the business but leaves less room for error given the debt burden and ongoing capital needs.

Competitive Edge

Competitive Edge Sotera Health operates in a specialized, mission‑critical niche of healthcare: sterilization, testing, and related advisory services. Its vertical integration across Cobalt‑60 supply, sterilization services, and lab testing gives it a strong moat, reinforced by high regulatory barriers, complex technology, and long‑standing customer relationships. Multi‑year contracts and global scale support stable demand and high switching costs for customers. Key risks are regulatory and legal scrutiny around sterilization methods, dependence on nuclear‑related inputs, and the need to keep investing to maintain capacity and compliance. Even with these risks, the company appears to occupy a strategically important and defensible position in its market.

Innovation and R&D

Innovation and R&D Innovation at Sotera Health is focused on improving processes, speed, and reliability rather than on traditional drug‑style R&D. Examples include faster sterility testing services, proprietary methods like RapidCert™, and expansion into X‑ray sterilization, which can handle more complex or dense products. On the supply side, the company is working to secure and diversify its Cobalt‑60 sources, which is essential to its gamma sterilization offering. It also uses acquisitions and advisory services to broaden capabilities. The opportunity is to set industry standards for speed and reliability; the risk is that these initiatives are capital‑intensive and must navigate tight regulatory oversight and evolving environmental expectations.

Summary

Sotera Health combines a steadily growing core business with a strong competitive moat in a specialized, regulation‑heavy corner of healthcare. The company benefits from recurring, contract‑based revenue and deep integration across the sterilization and testing value chain. At the same time, its financial profile shows notable leverage, thin and sometimes volatile net profits, and lumpy free cash flow driven by heavy investment needs. Future performance will likely hinge on balancing debt management and cash generation with continued investment in new technologies, capacity, and regulatory compliance. In essence, this is a strategically important, defensible business model, but one that carries meaningful financial and regulatory execution risk.

NEWS

November 6, 2025 · 4:37 PM UTC

Sotera Health Announces Secondary Offering of Common Stock

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November 4, 2025 · 7:00 AM UTC

Sotera Health Reports Strong Third-Quarter and Year-to-Date 2025 Results

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October 21, 2025 · 5:13 PM UTC

Sotera Health Announces Third-Quarter 2025 Earnings Release Date

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September 3, 2025 · 4:57 PM UTC

Sotera Health Announces Secondary Offering of Common Stock

Read more