Sotera Health Company · NASDAQ:SHC
Sotera Health — Q1 2025 Earnings Presentation
26 slides from Sotera Health's earnings presentation, May 1, 2025
Slide 1: First-Quarter 2025 Earnings Results
Safeguarding Global Health® First-Quarter 2025 Earnings Results May 1, 2025 © 2025 Sotera Health Company | All Rights Reserved.
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
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
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
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
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) with peace Providing customers
Slide 7: Sotera Health Growth
Sotera Health 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 2015 20
Slide 8: Our Mission in Action: Safeguarding Global Health
Our Mission in Action: Safeguarding Global Health® • The portfolio of services delivered by Nelson Labs and Sterigenics supported the FDA clearance of the first-ever bionic pancreas. • This breakthrough in diabetes management treats insulin dependent diabetic patients by fully automating 100% of all
Slide 9: Q1 2025 Highlights
Q1 2025 Highlights Business & Market Update Financial Performance (1) • Total company revenues and Adjusted EBITDA growth vs Q1 ’24 (1) • Adjusted EBITDA margin expansion of 276bps versus Q1 ‘24 Net Revenues 2.6% (4.4% constant currency(1)) • Sterigenics Q1 ’25 revenue growth as expected; volumes im
Slide 10: Financials
Financials © 2025 Sotera Health Company | All Rights Reserved. 9
Slide 11: Q1 2025 Consolidated Financial Performance
Q1 2025 Consolidated Financial Performance $ In millions, except Adjusted EPS and Adjusted EBITDA margin Revenue Adjusted EBITDA (1) $248 +2.6% $255 $112 +8.8% $122 45.1%(2) 47.9%(2) 2024 2025 2024 2025 Adjusted EPS (1) $0.13 $0.14 2024 2025 (1) This is a non-GAAP financial measure. Please refer to
Slide 12: Sterigenics Q1 2025 As Reported Financial Performance
Sterigenics Q1 2025 As Reported Financial Performance $ In millions Revenue +1.9% Segment income(1) +2.5% • Revenue growth for the quarter was driven by favorable pricing, partially $166 $170 offset by an unfavorable impact from changes in foreign currency exchange rates. $86 $88 • Segment income an
Slide 13: Nordion Q1 2025 As Reported Financial Performance
Nordion Q1 2025 As Reported Financial Performance $ In millions Revenue +35.6% Segment income(1) +61.5% • Revenue growth for the first-quarter 2025 was driven mainly by volume and mix, $33 which was largely attributable to the $24 timing of reactor harvest schedules, partially offset by changes in f
Slide 14: Nelson Labs Q1 2025 As Reported Financial Performance
Nelson Labs Q1 2025 As Reported Financial Performance $ In millions Revenue -9.3% • Favorable pricing and improvement in core Segment income (1) +7.0% lab testing services was offset by a decline in $58 expert advisory services revenue and $52 changes in foreign currency exchange rates. • Segment in
Slide 15: Net Leverage, Liquidity and Investments
Net Leverage, Liquidity and Investments $ In millions Liquidity Net Leverage Ratio(1) Capital Expenditures(2) 3.8x 3.7x $35 $696 $687 $715 3.6x $400 $410 $20 $410 $277 $304 $296 12/31/23 12/31/24 3/31/25 12/31/23 12/31/24 3/31/25 Q1 2024 Q1 2025 Unrestricted Cash and cash equivalents Revolver Availa
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 May 1, 2025 press release, Sotera Health does not provide a reconciliation of the forward- looking Adjusted EBITDA, Tax
Slide 17: Full-year 2025 Outlook
Full-year 2025 Outlook (1) FY 2025 Outlook Net Revenues(2) +4.0% to +6.0% Net Revenues Currency Impact(3) ~1.25% Adj EBITDA(2)(4) +4.5% to +6.5% Adj EBITDA Currency Impact(3) ~1.50% Interest Expense $155M to $165M Tax Rate Applicable to Adj Net Income(4) 33.0% to 35.0% Adj EPS(4) $0.70 to $0.76 Weig
Slide 18: Other 2025 Outlook Items
Other 2025 Outlook Items • 4.0% - 6.0% revenue outlook range and 4.5% - 6.5% Adjusted EBITDA outlook range, both on a constant currency basis (1) General • ~1.25% and ~1.50% FX headwinds on ‘25 net revenues and Adjusted EBITDA based on average March exchange rates, respectively • Total company price
Slide 19: 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
Slide 20: Appendix
Appendix © 2025 Sotera Health Company | All Rights Reserved. 19
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures (unaudited) Three Months Ended March 31, (dollars in thousands, except per share amounts) 2025 2024 Net (loss) income $ (13,260) $ 6,323 Amortization of intangible assets 18,674 20,124 Share-based compensation(a) 7,269 8,657 Loss on foreign currency and derivatives not de
Slide 22: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) (a) Represents share-based compensation expense to employees and Non-Employee Directors. (b) 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
Slide 23: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) (unaudited) (dollars in thousands, except per share amounts) Twelve months Year end December 31, ended March 31 2023 2024 2025 Net income $ 51,376 $ 44,398 $ 24,815 Amortization of intangible assets 81,348 79,377 77,927 Share-based compensation(a) 32,364 36,89
Slide 24: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) (a) Represents share-based compensation expense 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 and the Secure
Slide 25: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) As of December 31, As of March 31, 2023 2024 2025 Current portion of long-term debt $ 4,797 14,803 14,811 Long-term debt less current portion 2,223,674 2,208,100 2,205,355 Current portion of finance leases 8,771 2,923 3,039 Finance leases less current portion
Slide 26: 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
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