Sotera Health Co (NASDAQ:SHC) Surpasses Q3 2025 Earnings and Revenue Estimates

SOTERA HEALTH CO (NASDAQ:SHC) reported financial results for the third quarter of 2025 that surpassed analyst expectations, prompting a positive reaction in its stock during pre-market trading.

Earnings and Revenue Performance

The company's top and bottom-line results for the quarter ended September 30, 2025, came in ahead of market forecasts. Sotera Health posted revenue of $311.3 million, which represents a 9.1% increase compared to the same period last year. This figure exceeded the analyst consensus estimate of $306.7 million.

On the profitability front, the company reported non-GAAP earnings per share (EPS) of $0.26. This significantly outpaced the estimated EPS of $0.22. The strong earnings growth was also reflected in GAAP net income, which rose to $48 million, or $0.17 per diluted share, a substantial increase from $17 million, or $0.06 per share, in the third quarter of 2024.

Key financial highlights from the quarter include:

• Net Revenue: $311.3 million (Actual) vs. $306.7 million (Estimate)
• Non-GAAP EPS: $0.26 (Actual) vs. $0.22 (Estimate)
• Adjusted EBITDA: $164 million, a 12.2% year-over-year increase

Market Reaction and Updated Outlook

The better-than-expected earnings report was met with optimism by investors. In pre-market trading following the announcement, Sotera Health's stock was up approximately 2.35%, indicating a positive reception to the quarterly results and the company's updated guidance.

Management provided an enhanced outlook for the full 2025 fiscal year, raising its forecast for several key metrics. The company now anticipates:

• Adjusted EBITDA growth in the range of 6.75% to 7.75%, up from a previous outlook of 6.00% to 7.50%.
• Adjusted EPS in the range of $0.81 to $0.86, raised from the prior range of $0.75 to $0.82.
• The revenue growth outlook was reaffirmed in the range of 4.5% to 6.0%.

This raised guidance, particularly for profitability measures, appears to align with the positive market sentiment and provides a clearer, more confident picture for the remainder of the year.

Quarterly Business Highlights

Beyond the headline financial figures, the earnings release detailed strong operational performance across its business segments. The company's Sterigenics segment, its largest business unit, saw net revenues increase by 9.8% to $193 million. The Nordion segment reported particularly robust growth, with revenues up 22.4% to $63 million. While the Nelson Labs segment experienced a 5.0% decrease in revenue to $56 million, it still managed to increase its segment income by 1.9%.

The company also reported progress on its balance sheet, with its Net Leverage Ratio improving to 3.3x from 3.7x at the end of 2024, moving closer to its long-term target range.

For a detailed look at historical earnings performance and future analyst estimates for Sotera Health Co, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be taken as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.