Sotera Health Company · NASDAQ:SHC

Sotera Health — Q2 2025 Earnings Presentation

29 slides from Sotera Health's earnings presentation, Aug 8, 2025

  1. Slide 1: Second-Quarter 2025 Earnings Results

    Safeguarding Global Health® Second-Quarter 2025 Earnings Results August 8, 2025 © 2025 Sotera Health Company | All Rights Reserved.

  2. Slide 2: Cautionary Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures

    Cautionary Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures 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 appropria

  3. Slide 3: Speakers

    Speakers Michael B. Petras, Jr. Chairman and Chief Executive Officer Jonathan M. Lyons Senior Vice President and Chief Financial Officer © 2025 Sotera Health Company | All Rights Reserved. 2

  4. Slide 4: Safeguarding Global Health

    Safeguarding Global Health® ~5,000 customers in over Over 3,000 employees Provide end-to-end Integrated global network of 50 countries solutions for our customers 62 facilities located in in highly-regulated markets 13 countries Trusted partnerships with blue-chip customers Customer relationships av

  5. Slide 5: Our Role in the Healthcare Supply Chain

    Our Role in the Healthcare Supply Chain R&D, materials Pre-FDA filing tests Product Sterilization Quality control Distribution and packaging and clinical trials manufacturing tests optimization ✓✓ ✓✓ ✓ ✓✓✓ ✓✓ ✓ ✓ ✓ © 2025 Sotera Health Company | All Rights Reserved. 4

  6. Slide 6: Three Integrated and Outstanding Business Segments

    Three Integrated and Outstanding Business Segments Global leader in comprehensive World’s Largest Provider of Global leader in microbiological sterilization solutions Cobalt-60 sealed sources and analytical lab testing 2,000+ Providing 2,000+ customers Customers(1) (1) peace of Providing customers e

  7. Slide 7: Sotera Health Revenue Growth

    Sotera Health Revenue Growth Our business model has demonstrated resilience through consistent revenue growth every year since 2005, including the great recession of 2008 and the COVID pandemic $1,200 100% $1,000 75% $800 $600 50% $400 25% $200 $0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

  8. Slide 8: Our Mission in Action: Safeguarding Global Health

    Our Mission in Action: Safeguarding Global Health® • Together, Sterigenics and Nelson Labs play a critical role in patient safety and supporting FDA approval of groundbreaking treatments. • From validation testing—such as biocompatibility and packaging, to routine sterilization, our teams contribute

  9. Slide 9: Q2 2025 Highlights

    Q2 2025 Highlights Business & Market Update Q2 ‘25 vs Q2 ‘24 Financial Performance (1)(2) • Strong total company revenue, Adj EBITDA growth, and margin (1) Net Revenues 6.4%, 6.0% CC expansion vs Q2 ‘24 Adjusted EBITDA 9.8%, 9.5% CC • Sterigenics Q2 ’25 double-digit revenue growth vs Q2 ’24 (1) • No

  10. Slide 10: Financials

    Financials © 2025 Sotera Health Company | All Rights Reserved. 9

  11. Slide 11: Q2 2025 Consolidated Financial Performance

    Q2 2025 Consolidated Financial Performance $ In millions, except Adjusted EPS and Adjusted EBITDA margin Second Quarter Year-to-Date $525 $549 $277 $294 Revenue 2024 2025 2024 2025 +6.4% / +6.0% CC +4.6% / +5.3% CC $249 $273 $137 $151 Adjusted EBITDA 49.7%(1) 51.2%(1) 47.5%(1) 49.7%(1) 2024 2025 202

  12. Slide 12: Sterigenics Financial Performance

    Sterigenics Financial Performance Second Quarter Year-to-Date $ In millions $343 $365 $195 $176 $108 $183 $196 $97 54.9%(1) 55.3%(1) 53.3%(1) 53.7%(1) 2024 2025 2024 2025 Revenue Segment Income Revenue Segment Income Revenue +10.5% / +10.0% CC Revenue +6.3% / +7.1% CC Segment Income +11.3% / +11.1%

  13. Slide 13: Nordion Financial Performance

    Nordion Financial Performance Second Quarter Year-to-Date $ In millions $75 $65 $41 $42 $41 $34 $23 $23 56.8%(1) 55.3%(1) 52.4%(1) 54.5%(1) 2024 2025 2024 2025 Revenue Segment Income Revenue Segment Income Revenue +2.9% / +3.4% CC Revenue +14.9% / +16.8% CC Segment Income +0.2% / +0.7% CC Segment In

  14. Slide 14: Nelson Labs Financial Performance

    Nelson Labs Financial Performance Second Quarter Year-to-Date $ In millions $59 $117 $109 $57 $17 $20 $32 $36 29.0%(1) 34.2%(1) 27.8%(1) 32.9%(1) 2024 2025 2024 2025 Revenue Segment Income Revenue Segment Income Revenue -3.3% / -4.4% CC Revenue -6.3% / -6.4% CC Segment Income +13.9% / +12.1% CC Segm

  15. Slide 15: Net Leverage, Liquidity and Investments

    Net Leverage, Liquidity and Investments $ In millions Liquidity Net Leverage Ratio Capital Expenditures(1) $918 $77 3.8x 3.7x $696 $687 3.5x $586 $51 $400 $410 $277 $332 $296 12/31/23 12/31/24 6/30/25 12/31/23 12/31/24 6/30/25 YTD 2024 YTD 2025 (2) Unrestricted Cash and cash equivalents Revolver Ava

  16. Slide 16: 2025 Outlook

    2025 Outlook On the following slides, Sotera Health presents an overview of its full-year 2025 outlook, including certain non-GAAP financial measures. As outlined in the Company’s August 8, 2025 press release, Sotera Health does not provide a reconciliation of the forward- looking Adjusted EBITDA, T

  17. Slide 17: Full-year 2025 Outlook

    Full-year 2025 Outlook (1) Prior Outlook August 8th Outlook Net Revenues(2) +4.0% to +6.0% +4.5% to +6.0% Net Revenues Currency Impact(3) ~(1.25%) Neutral Adj EBITDA(2) +4.5% to +6.5% +6.0% to +7.5% Adj EBITDA Currency Impact(3) ~(1.50%) Neutral Adj EPS(2) $0.70 to $0.76 $0.75 to $0.82 (1) The outlo

  18. Slide 18: Full-year 2025 Outlook – Additional Items

    Full-year 2025 Outlook – Additional Items (1) Prior Outlook August 8th Outlook Interest Expense $155M to $165M $155M to $165M Tax Rate Applicable to Adj Net Income(2) 33% to 35% 31.5% to 33.5% Weighted Average Diluted Shares 286M to 287M 286M to 287M Capital Expenditures $190M to $210M $170M to $180

  19. Slide 19: Other 2025 Outlook Items

    Other 2025 Outlook Items • Raised revenue outlook to 4.5% - 6.0%; raised Adjusted EBITDA outlook to 6.0% - 7.5%, both on a constant currency basis General • No FX impact expected on FY ‘25 revenue and Adjusted EBITDA, based on average second-quarter ‘25 exchange rates Commentary • Total company pric

  20. Slide 20: Our Company Key Priorities

    Our Company Key Priorities 1 2 3 4 Excellence in Win in growth Driving Disciplined serving our markets operational capital customers with excellence to deployment end-to-end enhance free solutions cash flow Strong Execution to Generate Value for Our Stakeholders © 2025 Sotera Health Company | All Ri

  21. Slide 21: Appendix

    Appendix © 2025 Sotera Health Company | All Rights Reserved. 20

  22. Slide 22: Non-GAAP Financial Measures

    Non-GAAP Financial Measures (unaudited) Three Months Ended Six Months Ended (dollars in thousands, except per share amounts) June 30, June 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 58,996 109,3

  23. Slide 23: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) 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 employe

  24. Slide 24: Non-GAAP Financial Measures

    Non-GAAP Financial Measures (unaudited) Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share amounts) 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 compensati

  25. Slide 25: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) 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 Sec

  26. Slide 26: Non-GAAP Financial Measures

    Non-GAAP Financial Measures (unaudited) Twelve Months (dollars in thousands, except per share amounts) Year Ended December 31, Ended June 30, 2023 2024 2025 Net income $ 51,376 $ 44,398 $ 24,023 Amortization of intangible assets 81,348 79,377 70,096 Share-based compensation(a) 32,364 36,896 33,451 L

  27. Slide 27: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) 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 Sec

  28. Slide 28: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) As of December 31, As of June 30, 2023 2024 2025 Current portion of long-term debt $ 4,797 14,803 14,820 Long-term debt less current portion 2,223,674 2,208,100 2,202,651 Current portion of finance leases 8,771 2,923 3,237 Finance leases less current portion 6

  29. Slide 29: Non-GAAP Financial Measures Definitions

    Non-GAAP Financial Measures Definitions • Adjusted Net Income is defined 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. • Adjusted EBITDA is defined as Adjusted Net Income be

Sotera Health Company — Q2 2025 Earnings Presentation on 6ix