Latest news with #SoteraHealth
Business Insider
2 days ago
- Business
- Business Insider
Wolfe Research Sticks to Its Buy Rating for Sotera Health (SHC)
In a report released today, Michael Polark from Wolfe Research maintained a Buy rating on Sotera Health, with a price target of $17.00. The company's shares closed today at $13.97. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to TipRanks, Polark is a 4-star analyst with an average return of 6.5% and a 50.31% success rate. Polark covers the Healthcare sector, focusing on stocks such as Insulet, Medtronic, and Steris. In addition to Wolfe Research, Sotera Health also received a Buy from Barclays's Luke Sergott in a report issued today. However, on August 1, TR | OpenAI – 4o reiterated a Hold rating on Sotera Health (NASDAQ: SHC). Based on Sotera Health's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $254.52 million and a GAAP net loss of $13.26 million. In comparison, last year the company earned a revenue of $248.18 million and had a net profit of $6.32 million
Yahoo
3 days ago
- Business
- Yahoo
Why Is Sotera Health Company (SHC) Stock Soaring Today
What Happened? Shares of healthcare services company Sotera Health (NASDAQ:) jumped 20% in the morning session after the company reported strong second-quarter 2025 results that surpassed analyst expectations and raised its full-year financial outlook. The healthcare sterilization and lab testing provider announced second-quarter adjusted earnings per share of $0.20, beating analyst estimates of $0.17. Revenue for the quarter came in at $294.3 million, a 6.4% year-over-year increase, which also surpassed the consensus estimate of $275.6 million. The company's profitability also improved, with adjusted EBITDA (a measure of operational profitability) of $150.7 million, beating analyst forecasts by 9.8%. Following the strong performance, Sotera Health raised its full-year 2025 guidance, increasing its forecast for adjusted earnings per share by 7.5% to $0.78 at the midpoint. Is now the time to buy Sotera Health Company? Access our full analysis report here, it's free. What Is The Market Telling Us Sotera Health Company's shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for Sotera Health Company and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 18 days ago when the stock gained 3.4% amid broader positive market sentiment ahead of a busy week for corporate earnings. U.S. stock futures indicated a higher open for the markets, setting a positive tone for investors who were anticipating a heavy slate of earnings reports from major companies during the week. Notably, the earnings season got off to a strong start: More than 85% of the S&P 500 stocks that reported earnings exceeded expectations, according to FactSet data. This robust performance fueled positive sentiment, suggesting that corporate profitability remained resilient despite ongoing economic uncertainties. Sotera Health Company is down 1.4% since the beginning of the year, and at $13.43 per share, it is trading 20.6% below its 52-week high of $16.91 from September 2024. Investors who bought $1,000 worth of Sotera Health Company's shares at the IPO in November 2020 would now be looking at an investment worth $534.90. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
3 days ago
- Business
- Yahoo
Sotera Health Reports Strong Second-Quarter and First-Half 2025 Results
(1) CLEVELAND, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Sotera Health Company ('Sotera Health' or the 'Company') (Nasdaq: SHC), a leading global provider of mission-critical end-to-end sterilization solutions, lab testing and advisory services for the healthcare industry, today announced financial results for the three- and six- months ended June 30, 2025. Second-quarter 2025 net revenues increased 6.4% to $294 million, compared to $277 million in the second-quarter 2024. Net revenues increased 6.0% on a constant currency basis. Net income was $8 million, or $0.03 per diluted share, which includes a pending and previously disclosed settlement of approximately $34 million related to ethylene oxide ('EO') claims against Sterigenics, compared to net income of $9 million, or $0.03 per diluted share, in the second-quarter of 2024. Adjusted EBITDA for the second-quarter 2025 increased 9.8% to $151 million compared to the second-quarter 2024, or 9.5% on a constant currency basis. Second-quarter 2025 Adjusted Earnings Per Diluted Share ('Adjusted EPS') increased $0.01 to $0.20 compared to the second-quarter of 2024. For the first six months of 2025, net revenues increased 4.6% to $549 million, compared to $525 million for the same period in 2024. Net revenues increased 5.3% on a constant currency basis. Net loss was $5 million, or $0.02 per diluted share, which includes pending and previously disclosed settlements of approximately $31 million and $34 million related to EO claims against Sterigenics, compared to net income of $15 million, or $0.05 per diluted share, for the same period last year. Adjusted EBITDA for the first half of 2025 increased 9.3% to $273 million, or 10.2% on a constant currency basis, compared to the same period last year. Adjusted EPS increased by $0.01 to $0.33 compared to the first half of 2024. 'We are pleased to announce that we delivered more than 6% top-line growth for the quarter, supported by strong volume performance at Sterigenics. Adjusted EBITDA grew nearly 10% in the quarter with approximately 160 basis points of margin expansion, driven by over 500 basis points of improvement at Nelson Labs,' said Chairman and Chief Executive Officer, Michael B. Petras, Jr. 'These positive results reflect the essential nature of our services and our team's disciplined execution.' Petras continued, 'With improving momentum through the first half of the year, we are raising our full-year outlook for revenue, Adjusted EBITDA and Adjusted EPS, reflecting our confidence in continued execution and performance.' ________________________(1) This is non-GAAP financial measure used throughout this press release; please refer to the section 'Non-GAAP Financial Measures' for explanations of our non-GAAP financial measures and the schedules provided later in this release for reconciliations of reported GAAP to non-GAAP financial measures. Second-Quarter and First-Half 2025 Review by Business Segment Sterigenics Sterigenics delivered strong results for the second-quarter 2025 with net revenues up 10.5% to $195 million, or 10.0% on a constant currency basis, compared to the second-quarter 2024. Second-quarter 2025 segment income was $108 million, an increase of 11.3%. For the first six months of 2025, Sterigenics net revenues increased 6.3% to $365 million, or 7.1% on a constant currency basis, compared to the same period in 2024. Segment income increased 7.2% to $196 million. Revenue growth for the quarter was primarily driven by favorable volume and mix, pricing, and changes in foreign currency exchange rates. Segment income and segment income margin increased for the quarter due to favorable volume and mix, as well as pricing, partially offset by inflation. Nordion Nordion net revenues increased 2.9% to $42 million, or 3.4% on a constant currency basis, compared to the second-quarter 2024. Second-quarter 2025 segment income increased slightly to $23 million. For the first six months of 2025, Nordion net revenues increased 14.9% to $75 million, or 16.8% on a constant currency basis, compared to the same period in 2024. Segment income increased 19.6% to $41 million. Revenue growth for the quarter was driven by favorable pricing, as well as volume and mix, partially offset by unfavorable changes in foreign currency exchange rates. Segment income margin decreased primarily due to supplier mix. Nelson Labs Nelson Labs net revenues decreased 3.3% to $57 million, or 4.4% on a constant currency basis, compared to the second-quarter 2024. Nelson Labs second-quarter 2025 segment income increased 13.9% to $20 million. For the first six months of 2025, Nelson Labs net revenues decreased 6.3% to $109 million, or 6.4% on a constant currency basis, compared to the same period in 2024. Segment income increased 10.6% to $36 million. Change in revenues for the quarter were driven by improvement in core lab testing services, favorable pricing, and changes in foreign currency exchange rates, offset by a decline in expert advisory services revenues. Segment income and segment income margin increases were driven by volume and mix improvements, lab optimization, and favorable pricing. Balance Sheet and Liquidity As of June 30, 2025, Sotera Health had $2.3 billion of total debt, and $332 million in unrestricted cash and cash equivalents, compared to $2.3 billion in total debt and $277 million in unrestricted cash and cash equivalents as of December 31, 2024. Sotera Health's Net Leverage Ratio(1) as of second-quarter 2025 improved to 3.5x compared to 3.7x as of December 31, 2024. As of June 30, 2025 the Company had no balance outstanding on its $600 million revolving credit facility. 2025 Outlook Update Sotera Health is providing an update to its full-year 2025 outlook: Net revenues growth range raised to 4.5% - 6.0% from 4.0% - 6.0%, on a constant currency basis, Adjusted EBITDA growth range raised to 6.0% - 7.5% from 4.5% - 6.5%, on a constant currency basis, Foreign currency impact on full-year net revenues and Adjusted EBITDA expected to be neutral, based on average second-quarter 2025 exchange rates, Interest Expense in the range of $155 million to $165 million, Tax rate applicable to Adjusted Net Income(1) range improved to 31.5% - 33.5% from 33% - 35%, Adjusted EPS range raised to $0.75 - $0.82 from $0.70 - $0.76, A weighted-average fully diluted share count in the range of 286 million to 287 million shares, and Capital expenditures are now expected to be in the range of $170 million to $180 million, from previous outlook of $190 million to $210 million. The Company does not provide a reconciliation for non-GAAP financial measures on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort. The Company cannot reconcile its expected Adjusted EBITDA, Tax Rate Applicable to Net Income, Adjusted Net Income and Adjusted EPS without unreasonable effort because certain items that impact net income, earnings per share and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time, including uncertainties caused by changes to the regulatory landscape, restructuring items and certain fair value measurements, all of which are potential adjustments for future earnings. The outlook provided above contains a number of assumptions, including, among others, the Company's current expectations regarding supply chain continuity, particularly for the supply of EO and Cobalt-60, the impact of inflationary trends, including the impact on energy prices and the supply of labor, and the expectation that average second-quarter 2025 exchange rates remain constant for the remainder of 2025. Our outlook is based on current plans and expectations and is subject to several known and unknown risks and uncertainties, including those set forth below under 'Cautionary Note Regarding Forward-Looking Statements.' Earnings Webcast Sotera Health management will host a conference call and live webcast to discuss the Company's financial results and operating highlights at 9:00 a.m. Eastern Daylight Time today. To participate in the live call, please dial 1-844-481-2916 (toll-free in the United States), or 1-412-317-0709 if dialing-in from other locations. A live webcast of the conference call will be accessible at this link or via the Investor Relations section of the Company's website at Presentation & Events | Sotera Health, along with accompanying materials. A replay of the webcast will be available on the Company's website. Updates on recent developments in matters relevant to investors can be found on the Investor Relations section of the Sotera Health website at Investor Relations | Sotera Health. For developments related to EO, updates can be found at Ethylene Oxide | Sotera Health. Cautionary Note Regarding Forward-Looking Statements Unless expressly indicated or the context requires otherwise, the terms 'Sotera Health,' 'Company,' 'we,' 'us,' and 'our' in this document refer to Sotera Health Company, a Delaware corporation, and, where appropriate, its subsidiaries on a consolidated basis. This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and reflects management's expectations about future events and the Company's operating plans and performance and speak only as of the date hereof. Forward-looking statements present our current forecasts and estimates of future events. These statements do not strictly relate to historical or current results and can be identified by words such as 'anticipate,' 'appear,' 'assume,' 'believe,' 'estimate,' 'expect,' 'forecast,' 'intend,' 'likely,' 'may,' 'plan,' 'project,' 'seek,' 'should,' 'strategy,' 'will' and other terms of similar meaning or import in connection with any discussion of future operating, financial or other performance. These forward-looking statements are subject to risks, uncertainties and other factors and actual results may differ materially from those results projected in the statements. These forward-looking statements are subject to various risks, uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. These risks and uncertainties include, but are not limited to, a disruption in the availability or supply of, or increases in the price of, EO, Co-60 or our other direct materials, services and supplies, including as a result of geopolitical instability and/or sanctions against Russia by the United States, Canada, United Kingdom and/or the European Union; fluctuations in foreign currency exchange rates; evolving changes in environmental, health and safety regulations or preferences, and general economic, social and business conditions; health and safety risks associated with the use, storage, transportation and disposal of potentially hazardous materials such as EO and Co-60; the impact and outcome of current and future legal proceedings and liability claims, including litigation related to the use, emissions and releases of EO from our facilities in California, Georgia, Illinois and New Mexico and the possibility that additional claims will be made in the future relating to these or other facilities; our ability to satisfy the conditions for settlement of the EO claims related to our former facility in Willowbrook, Illinois; allegations of our failure to properly perform services and potential product liability claims, recalls, penalties and reputational harm; compliance with the extensive regulatory requirements to which we are subject, the related costs, and any failures to receive or maintain, or delays in receiving, required clearances or approvals; adverse changes in industry trends; competition we face; market conditions and changes, including inflationary trends and the impact of tariffs, that impact our long-term supply contracts with variable price clauses and increase our cost of revenues; business continuity hazards, including supply chain disruptions and other risks associated with our operations; the risks of doing business internationally, including global and regional economic and political instability and compliance with various applicable laws and potentially inconsistent laws and regulations in multiple jurisdictions; our ability to increase capacity at existing facilities, build new facilities in a timely and cost-effective manner and renew leases for our leased facilities; our ability to attract and retain qualified employees; severe health events or environmental events; cybersecurity incidents, unauthorized data disclosures, and our dependence on information technology systems; an inability to pursue strategic transactions, find suitable acquisition targets, or integrate strategic acquisitions into our business successfully; our ability to maintain effective internal control over financial reporting; our reliance on intellectual property to maintain our competitive position and the risk of claims from third parties that we have infringed or misappropriated, or are infringing or misappropriating, their intellectual property rights; our ability to comply with rapidly evolving data privacy and security laws and regulations in various jurisdictions and any ineffective compliance efforts with such laws and regulations; our ability to generate profitability in future periods; impairment charges on our goodwill and other intangible assets with indefinite lives, as well as other long-lived assets and intangible assets with definite lives; the effects of unionization efforts and labor regulations in countries in which we operate; adverse changes to our tax positions in U.S. or non-U.S. jurisdictions or the interpretation and application of U.S. tax legislation or other changes in U.S. or non-U.S. taxation of our operations; and our significant leverage and how this significant leverage could adversely affect our ability to raise additional capital, limit our ability to react to challenges confronting our Company or broader changes in our industry or the economy, limit our flexibility in operating our business through restrictions contained in our debt agreements and/or prevent us from meeting our obligations under our existing and future agreements governing our indebtedness. For additional discussion of these risks and uncertainties, please refer to the Company's filings with the Securities and Exchange Commission, such as its Annual Report on Form 10-K and quarterly reports. We do not undertake any obligation to publicly update or revise these forward-looking statements, except as otherwise required by law. Non-GAAP Financial Measures To supplement our consolidated financial statements presented in accordance with GAAP, we consider Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted EPS, Net Debt and Net Leverage Ratio and constant currency, financial measures that are not based on any standardized methodology prescribed by GAAP. We define Adjusted Net Income as net income (loss) before amortization and certain other adjustments that we do not consider in our evaluation of our ongoing operating performance from period to period. We define Adjusted EBITDA as Adjusted Net Income before interest expense, depreciation (including depreciation of Co-60 used in our operations) and income tax provision applicable to Adjusted Net Income. Adjusted EBITDA margin is equal to Adjusted EBITDA divided by net revenues. Segment income margin is equal to segment income divided by net segment revenues. We define Adjusted EPS as Adjusted Net Income divided by the weighted average number of diluted shares outstanding. Our Net Debt is equal to our total debt net of unamortized debt issuance costs and debt discounts, less cash and cash equivalents. Our Net Leverage Ratio is equal to Net Debt divided by Adjusted EBITDA. Constant currency is a non-GAAP financial measure we use to assess performance excluding the impact of foreign currency exchange rate changes. We calculate constant currency net revenues by translating prior year net revenues in local currency at the average exchange rates applicable for the current period. The translated results are then used to determine year-over-year percentage increases or decreases. We generally refer to such amounts calculated on a constant currency basis as excluding the impact of foreign currency exchange rates. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP. We use these non-GAAP financial measures as the principal measures of our operating performance. Management believes these measures allow management to more effectively evaluate our operating performance and compare the results of our operations from period to period without the impact of certain non-cash items and non-routine items that we do not expect to continue at the same level in the future and other items that are not core to our operations. We believe that these measures are useful to our investors because they provide a more complete understanding of the factors and trends affecting our business than could be obtained without these measures and their disclosure. In addition, we believe these measures will assist investors in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented. Our management also uses these measurements in their financial analysis and operational decision-making and Adjusted EBITDA serves as the key metric for the attainment of our primary annual incentive program. These measures may be calculated differently from, and therefore may not be comparable to, a similarly titled measure used by other companies. About Sotera Health Sotera Health Company is a leading global provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the healthcare industry. Sotera Health goes to market through three businesses – Sterigenics®, Nordion® and Nelson Labs®. Sotera Health is committed to its mission, Safeguarding Global Health®. INVESTOR RELATIONS Jason Peterson Vice President Investor Relations & Treasurer, Sotera Health IR@ MEDIA Kristin GibbsChief Marketing Officer, Sotera Healthkgibbs@ Source: Sotera Health Company Sotera Health CompanyConsolidated Statements of Operations(in thousands, except per share amounts)(unaudited) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Revenues: Service $ 257,244 $ 237,756 $ 481,184 $ 464,237 Product 37,097 38,838 67,680 60,533 Total net revenues 294,341 276,594 548,864 524,770 Cost of revenues: Service 113,293 109,136 220,922 219,988 Product 14,427 14,667 25,889 24,876 Total cost of revenues 127,720 123,803 246,811 244,864 Gross profit 166,621 152,791 302,053 279,906 Selling, general and administrative expenses 68,893 60,575 131,954 118,784 Amortization of intangible assets 9,298 15,417 24,625 31,149 Illinois EO litigation settlements 34,000 — 64,943 — Interest expense, net 40,651 40,388 81,527 82,159 Loss on refinancing of debt 80 23,400 80 24,090 Foreign exchange loss (gain) 627 (611 ) 916 (1,183 ) Other income, net (5,825 ) (1,520 ) (6,066 ) (1,249 ) Income before income taxes 18,897 15,142 4,074 26,156 Provision for income taxes 10,935 6,388 9,372 11,079 Net income (loss) $ 7,962 $ 8,754 $ (5,298 ) $ 15,077 Earnings (Loss) per share: Basic $ 0.03 $ 0.03 $ (0.02 ) $ 0.05 Diluted 0.03 0.03 (0.02 ) 0.05 Weighted average number of common shares outstanding: Basic 283,933 282,894 283,747 282,403 Diluted 285,756 284,541 283,747 284,264 Sotera Health CompanySegment Data(in thousands)(unaudited) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Segment revenues: Sterigenics $ 194,839 $ 176,354 $ 364,523 $ 342,851 Nordion 42,431 41,244 74,988 65,251 Nelson Labs 57,071 58,996 109,353 116,668 Total net revenues $ 294,341 $ 276,594 $ 548,864 $ 524,770 Segment income: Sterigenics $ 107,745 $ 96,778 $ 195,749 $ 182,596 Nordion 23,477 23,420 40,899 34,205 Nelson Labs 19,513 17,137 35,926 32,478 Total segment income 150,735 137,335 272,574 249,279 Less adjustments: Interest expense, net $ 40,651 $ 40,388 $ 81,527 $ 82,159 Depreciation and amortization(a) 34,948 39,830 75,682 80,260 Share-based compensation(b) 8,149 10,206 15,418 18,863 Loss on refinancing of debt(c) 80 23,400 80 24,090 (Gain) Loss on foreign currency and derivatives not designated as hedging instruments, net(d) (3,018 ) (698 ) (1,127 ) 532 Business optimization expenses(e) 2,430 613 4,477 1,784 Professional services relating to EO sterilization facilities(f) 14,035 7,818 26,363 14,157 Illinois EO litigation settlements(g) 34,000 — 64,943 — Accretion of asset retirement obligation(h) 563 636 1,137 1,278 Consolidated income before income taxes $ 18,897 $ 15,142 $ 4,074 $ 26,156 (a) Includes depreciation of Co-60 held at gamma irradiation sites. The three and six months ended June 30, 2025 exclude accelerated depreciation associated with business optimization activities. (b) Represents share-based compensation expense related to employees and Non-Employee Directors. (c) Represents the write-off of unamortized debt issuance costs and discounts, as well as certain other costs incurred related to the Refinancing Term Loans, the Secured Notes and the Revolving Credit Facility. (d) Represents the effects of (i) fluctuations in foreign currency exchange rates and (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at Nordion. (e) Represents (i) certain costs related to divestitures, acquisitions and the integration of acquisitions, (ii) professional fees and other costs associated with business optimization, cost saving and other process enhancement projects, and (iii) legal, consulting and other fees associated with the secondary offerings and shareholder engagement. (f) Represents litigation and other professional fees associated with our EO sterilization facilities. (g) Represents (i) the cost to settle 97 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on April 3, 2025 and (ii) the cost to settle 129 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on July 23, 2025. (h) Represents non-cash accretion of ARO related to Co-60 gamma and EO sterilization facilities, which are based on estimated site remediation costs for any future decommissioning of these facilities and are accreted over the life of the asset. Sotera Health CompanyCondensed Consolidated Balance Sheets(in thousands)(unaudited) As of June 30, As of December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 334,272 $ 278,865 Accounts receivable, net 136,557 140,327 Inventories, net 59,949 49,158 Other current assets 77,397 57,687 Total current assets 608,175 526,037 Property, plant, and equipment, net 1,080,399 1,036,892 Operating lease assets 31,524 27,551 Other intangible assets, net 300,109 317,653 Goodwill 1,104,502 1,081,073 Other assets 92,020 82,442 Total assets $ 3,216,729 $ 3,071,648 Liabilities and equity Total current liabilities $ 246,320 $ 191,002 Long-term debt, less current portion 2,202,651 2,208,100 Other noncurrent liabilities 208,407 198,135 Deferred income taxes 48,068 69,500 Total liabilities 2,705,446 2,666,737 Total equity 511,283 404,911 Total liabilities and equity $ 3,216,729 $ 3,071,648 Sotera Health CompanyCondensed Consolidated Statements of Cash Flows(in thousands)(unaudited) Six Months EndedJune 30, 2025 2024 Operating activities: Net (loss) income $ (5,298 ) $ 15,077 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Non-cash items 84,361 112,589 Changes in operating assets and liabilities 33,874 (56,672 ) Net cash provided by operating activities 112,937 70,994 Investing activities: Purchases of property, plant and equipment (51,147 ) (76,811 ) Other investing activities 37 37 Net cash used in investing activities (51,110 ) (76,774 ) Financing activities: Proceeds from long-term borrowings — 2,259,350 Payments on long-term borrowings (7,547 ) (2,260,600 ) Payments of debt issuance costs and debt discount (2,326 ) (30,204 ) Buyout of leased facilities — (6,736 ) Shares withheld for employee taxes on equity awards (3,654 ) (2,176 ) Other financing activities (1,493 ) (996 ) Net cash used in financing activities (15,020 ) (41,362 ) Effect of exchange rate changes on cash and cash equivalents 8,600 (6,754 ) Net increase (decrease) in cash and cash equivalents, including restricted cash 55,407 (53,896 ) Cash and cash equivalents, including restricted cash, at beginning of period 278,865 301,654 Cash and cash equivalents, including restricted cash, at end of period $ 334,272 $ 247,758 Supplemental disclosures of cash flow information: Cash paid during the period for interest $ 102,716 $ 111,169 Cash paid during the period for income taxes, net of tax refunds received 32,207 27,714 Purchases of property, plant and equipment included in accounts payable 10,307 13,538 Sotera Health CompanyNon-GAAP Financial Measures(in thousands, except per share amounts)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) $ 7,962 $ 8,754 $ (5,298 ) $ 15,077 Amortization of intangible assets 11,924 19,755 30,598 39,879 Share-based compensation(a) 8,149 10,206 15,418 18,863 Loss on refinancing of debt(b) 80 23,400 80 24,090 (Gain) Loss on foreign currency and derivatives not designated as hedging instruments, net(c) (3,018 ) (698 ) (1,127 ) 532 Business optimization expenses(d) 2,430 613 4,477 1,784 Professional services relating to EO sterilization facilities(e) 14,035 7,818 26,363 14,157 Illinois EO litigation settlements(f) 34,000 — 64,943 — Accretion of asset retirement obligation(g) 563 636 1,137 1,278 Income tax benefit associated with pre-tax adjustments(h) (20,063 ) (15,297 ) (41,485 ) (24,844 ) Adjusted Net Income 56,062 55,187 95,106 90,816 Interest expense, net 40,651 40,388 81,527 82,159 Depreciation(i) 23,024 20,075 45,084 40,381 Income tax provision applicable to Adjusted Net Income(j) 30,998 21,685 50,857 35,923 Adjusted EBITDA(k) $ 150,735 $ 137,335 $ 272,574 $ 249,279 Net Revenues $ 294,341 $ 276,594 $ 548,864 $ 524,770 Adjusted EBITDA Margin 51.2 % 49.7 % 49.7 % 47.5 % Weighted average number of shares outstanding Basic 283,933 282,894 283,747 282,403 Diluted(l) 285,756 284,541 285,684 284,264 Earnings (Loss) per share Basic $ 0.03 $ 0.03 $ (0.02 ) $ 0.05 Diluted 0.03 0.03 (0.02 ) 0.05 Adjusted earnings per share Basic $ 0.20 $ 0.20 $ 0.34 $ 0.32 Diluted 0.20 0.19 0.33 0.32 (a) Represents share-based compensation expense related to employees and Non-Employee Directors. (b) Represents the write-off of unamortized debt issuance costs and discounts, as well as certain other costs incurred related to the Refinancing Term Loans, the Secured Notes and the Revolving Credit Facility. (c) Represents the effects of (i) fluctuations in foreign currency exchange rates and (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at Nordion. (d) Represents (i) certain costs related to divestitures, acquisitions and the integration of acquisitions, (ii) professional fees and other costs associated with business optimization, cost saving and other process enhancement projects, and (iii) legal, consulting and other fees associated with the secondary offerings and shareholder engagement. (e) Represents litigation and other professional fees associated with our EO sterilization facilities. (f) Represents (i) the cost to settle 97 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on April 3, 2025 and (ii) the cost to settle 129 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on July 23, 2025. (g) Represents non-cash accretion of ARO related to Co-60 gamma and EO sterilization facilities, which are based on estimated site remediation costs for any future decommissioning of these facilities and are accreted over the life of the asset. (h) Represents the income tax impact of adjustments calculated based on the tax rate applicable to each item. We eliminate the effect of tax rate changes as applied to tax assets and liabilities and unusual items from our presentation of adjusted net income. (i) Includes depreciation of Co-60 held at gamma irradiation sites. The three and six months ended June 30, 2025 excludes accelerated depreciation associated with business optimization activities. (j) Represents the difference between the income tax provision or benefit as determined under U.S. GAAP and the income tax provision or benefit associated with pre-tax adjustments described in footnote (h). (k) $24.4 million and $23.4 million of the adjustments for the three months ended June 30, 2025 and 2024, respectively, and $48.6 million and $47.2 million of the adjustments for the six months ended June 30, 2025 and 2024, respectively, are included in cost of revenues, primarily consisting of amortization of intangible assets, depreciation, and accretion of asset retirement obligations. (l) For the six months ended June 30, 2025, the diluted weighted average shares outstanding presented in this table reflects the amount that would be reported under U.S. GAAP if the Company were to have net income in the six months ended June 30, 2025. Sotera Health CompanyNon-GAAP Financial Measures($'s in thousands except Net Leverage)(unaudited) As of June 30, As of December 31, 2025 2024 Current portion of long-term debt $ 14,820 $ 14,803 Long-term debt 2,202,651 2,208,100 Current portion of finance leases 3,237 2,923 Finance leases less current portion 95,420 95,286 Total Debt 2,316,128 2,321,112 Less: cash and cash equivalents (332,437 ) (277,242 ) Net Debt $ 1,983,691 $ 2,043,870 Adjusted EBITDA(a) $ 571,869 $ 548,574 Net Leverage 3.5x 3.7x (a) Represents Adjusted EBITDA for the twelve months ended June 30, 2025 and December 31, 2024, respectively. Refer to the reconciliation of net income (the most comparable GAAP measure) to Adjusted EBITDA on the following page. Sotera Health CompanyNon-GAAP Financial Measures(in thousands)(unaudited) Twelve MonthsEnded June 30, Twelve MonthsEnded December 31, 2025 2024 Net income $ 24,023 $ 44,398 Amortization of intangible assets 70,096 79,377 Share-based compensation(a) 33,451 36,896 Loss on refinancing of debt(b) 158 24,168 Loss on foreign currency and derivatives not designated as hedging instruments, net(c) 789 2,448 Business optimization expenses(d) 12,061 9,368 Professional services relating to EO sterilization facilities(e) 44,900 32,694 Illinois EO litigation settlement(f) 64,943 — Accretion of asset retirement obligation(g) 2,497 2,638 Income tax benefit associated with pre-tax adjustments(h) (50,128 ) (33,487 ) Adjusted Net Income 202,790 198,500 Interest expense, net 164,059 164,691 Depreciation(i) 87,123 82,420 Income tax provision applicable to Adjusted Net Income(j) 117,897 102,963 Adjusted EBITDA(k) $ 571,869 $ 548,574 Net Revenues $ 1,124,535 $ 1,100,441 Adjusted EBITDA Margin 50.9 % 49.9 %(a) Represents share-based compensation expense related to employees and Non-Employee Directors. (b) Represents the write-off of unamortized debt issuance costs and discounts, as well as certain other costs incurred related to the Refinancing Term Loans, the Secured Notes and the Revolving Credit Facility. (c) Represents the effects of (i) fluctuations in foreign currency exchange rates and (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at Nordion. (d) Represents (i) certain costs related to divestitures, acquisitions and the integration of acquisitions, (ii) professional fees and other costs associated with business optimization, cost saving and other process enhancement projects, and (iii) legal, consulting and other fees associated with the secondary offerings and shareholder engagement. (e) Represents litigation and other professional fees associated with our EO sterilization facilities. (f) Represents (i) the cost to settle 97 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on April 3, 2025 and (ii) the cost to settle 129 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on July 23, 2025. (g) Represents non-cash accretion of ARO related to Co-60 gamma and EO sterilization facilities, which are based on estimated site remediation costs for any future decommissioning of these facilities and are accreted over the life of the asset. (h) Represents the income tax impact of adjustments calculated based on the tax rate applicable to each item. We eliminate the effect of tax rate changes as applied to tax assets and liabilities and unusual items from our presentation of adjusted net income. (i) Includes depreciation of Co-60 held at gamma irradiation sites and excludes accelerated depreciation associated with business optimization activities. (j) Represents the difference between the income tax provision or benefit as determined under U.S. GAAP and the income tax provision or benefit associated with pre-tax adjustments described in footnote (h). (k) $98.5 million and $97.1 million of the adjustments for the twelve months ended June 30, 2025 and December 31, 2024, respectively, are included in cost of revenues, primarily consisting of amortization of intangible assets, depreciation, and accretion of asset retirement obligations.
Yahoo
4 days ago
- Business
- Yahoo
Sotera Health Company (SHC) Q2 Earnings: What To Expect
Healthcare services company Sotera Health (NASDAQ:) will be reporting results this Friday before market open. Here's what to expect. Sotera Health Company beat analysts' revenue expectations by 3.1% last quarter, reporting revenues of $254.5 million, up 2.6% year on year. It was a strong quarter for the company, with a solid beat of analysts' organic revenue estimates and a solid beat of analysts' EPS estimates. Is Sotera Health Company a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Sotera Health Company's revenue to be flat year on year at $275.6 million, slowing from the 8.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sotera Health Company has missed Wall Street's revenue estimates twice over the last two years. Looking at Sotera Health Company's peers in the research tools & consumables segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mettler-Toledo delivered year-on-year revenue growth of 3.9%, beating analysts' expectations by 2.9%, and Thermo Fisher reported revenues up 3%, topping estimates by 1.6%. Mettler-Toledo traded down 3% following the results while Thermo Fisher was up 11.3%. Read our full analysis of Mettler-Toledo's results here and Thermo Fisher's results here. Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. While some of the research tools & consumables stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.7% on average over the last month. Sotera Health Company is down 4.6% during the same time and is heading into earnings with an average analyst price target of $14.58 (compared to the current share price of $11.06). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
27-07-2025
- Business
- Yahoo
3 Stocks Estimated To Be Up To 49.9% Below Their Intrinsic Value
In the last week, the United States market has been flat, yet it has seen an 18% increase over the past year with earnings projected to grow by 15% annually. In this context, identifying stocks that are potentially undervalued can be a strategic move for investors seeking opportunities where current prices may not fully reflect intrinsic value. Top 10 Undervalued Stocks Based On Cash Flows In The United States Name Current Price Fair Value (Est) Discount (Est) Sotera Health (SHC) $12.11 $24.19 49.9% Semrush Holdings (SEMR) $9.58 $19.08 49.8% Roku (ROKU) $90.05 $174.73 48.5% Rapid7 (RPD) $22.53 $43.87 48.6% Hims & Hers Health (HIMS) $57.32 $114.17 49.8% FB Financial (FBK) $48.09 $93.90 48.8% Definitive Healthcare (DH) $4.00 $7.90 49.4% Ategrity Specialty Insurance Company Holdings (ASIC) $21.74 $43.44 50% ACNB (ACNB) $42.67 $84.73 49.6% Acadia Realty Trust (AKR) $18.95 $36.77 48.5% Click here to see the full list of 169 stocks from our Undervalued US Stocks Based On Cash Flows screener. Let's review some notable picks from our screened stocks. Celsius Holdings Overview: Celsius Holdings, Inc. is involved in the development, processing, manufacturing, marketing, selling, and distribution of functional energy drinks across various regions including the United States, North America, Europe, and the Asia Pacific with a market cap of $11.95 billion. Operations: The company's revenue primarily comes from its non-alcoholic beverages segment, generating $1.33 billion. Estimated Discount To Fair Value: 10.3% Celsius Holdings, trading at US$46.31, is undervalued relative to its estimated fair value of US$51.6. Despite a recent decline in profit margins and net income, the company anticipates significant earnings growth of 31.8% annually over the next three years, surpassing market averages. Recent amendments to increase authorized shares and shelf registration filings indicate potential capital raising efforts, which could impact future valuations but may also support growth initiatives. Our expertly prepared growth report on Celsius Holdings implies its future financial outlook may be stronger than recent results. Click here to discover the nuances of Celsius Holdings with our detailed financial health report. Sotera Health Overview: Sotera Health Company offers sterilization, lab testing, and advisory services to the healthcare industry across the United States, Canada, Europe, and internationally with a market cap of $3.36 billion. Operations: The company's revenue is derived from three segments: Nordion ($181.91 million), Nelson Labs ($223.84 million), and Sterigenics ($701.04 million). Estimated Discount To Fair Value: 49.9% Sotera Health is trading at US$12.11, significantly below its estimated fair value of US$24.19, suggesting it may be undervalued based on cash flows. Despite a net loss in the recent quarter and lower profit margins compared to last year, earnings are forecast to grow significantly at 49.2% annually over the next three years. Recent additions to multiple Russell growth indices highlight increased market visibility, potentially enhancing investor interest despite current financial challenges. Upon reviewing our latest growth report, Sotera Health's projected financial performance appears quite optimistic. Click to explore a detailed breakdown of our findings in Sotera Health's balance sheet health report. MINISO Group Holding Overview: MINISO Group Holding Limited is an investment holding company involved in the retail and wholesale of lifestyle and pop toy products across China, Asia, the Americas, Europe, Indonesia, and globally with a market cap of approximately $5.37 billion. Operations: The company generates revenue from its MINISO Brand, excluding Africa and Germany, amounting to CN¥16.60 billion, and from its TOP TOY Brand at CN¥1.12 billion. Estimated Discount To Fair Value: 41.4% MINISO Group Holding, trading at US$18.95, is valued 41.4% below its estimated fair value of US$32.34, indicating potential undervaluation based on cash flows. Earnings are projected to grow significantly by 21.2% annually over the next three years, outpacing the broader U.S. market's growth rate of 14.9%. However, its dividend yield of 3.45% isn't well-supported by free cash flows, which may warrant investor caution despite robust profit forecasts and strategic expansions in Canada and planned IPOs for Top Toy in Hong Kong. In light of our recent growth report, it seems possible that MINISO Group Holding's financial performance will exceed current levels. Get an in-depth perspective on MINISO Group Holding's balance sheet by reading our health report here. Next Steps Delve into our full catalog of 169 Undervalued US Stocks Based On Cash Flows here. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Curious About Other Options? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CELH SHC and MNSO. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
