Sotera Health Company · NASDAQ:SHC
Sotera Health — Q4 2024 Earnings Presentation
24 slides from Sotera Health's earnings presentation, Feb 27, 2025
Slide 1: Fourth-Quarter & Full-Year 2024 Earnings Results
Safeguarding Global Health® Fourth-Quarter & Full-Year 2024 Earnings Results February 27, 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: 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 4: 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. 3
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 Unique and Outstanding Business Segments
Three Unique 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 wit
Slide 7: Q4 2024 Highlights
Q4 2024 Highlights • Sterigenics continues to see year-over-year volume improvement Business & Market • Nordion revenue decline due to reactor harvest schedule timing, as expected Update • Nelson Labs continues to see growth in Embedded Labs segment; decline in Expert Advisory Services revenue, as e
Slide 8: 2024 Full Year Highlights
Continued strong results from annual customer satisfaction survey Another year of top- and bottom-line growth; margins of approximately 50% 19th consecutive year of annual revenue growth 2024 Full Year Completed two secondary equity offerings Highlights Successful refinancing of capital st
Slide 9: Financials
Financials © 2025 Sotera Health Company | All Rights Reserved. 8
Slide 10: Full-Year 2024 As Reported Consolidated Financial Performance
Full-Year 2024 As Reported Consolidated Financial Performance Fourth Quarter Full Year $ In millions, except Adjusted EPS and Adjusted EBITDA margin $310 -6% +5% $1,100 $290 $1,049 REVENUE 2023 2024 2023 2024 $167 -8% $528 +4% $549 $153 ADJUSTED EBITDA (1) (2) (2) (2) (2) 53.7% 52.7% 50.3% 49.9% 202
Slide 11: Sterigenics 2024 As Reported Financial Performance
Sterigenics 2024 As Reported Financial Performance $ In millions Fourth Quarter Full Year Revenue +4.2% Revenue +4.6% Segment income(1) +5.1% Segment income(1) +4.4% $172 $179 $667 $698 $95 $100 $362 $378 55.0%(2) 55.5%(2) 54.3%(2) 54.2%(2) 2023 2024 2023 2024 Revenue Segment Income Revenue Segment
Slide 12: Nordion 2024 As Reported Financial Performance
Nordion 2024 As Reported Financial Performance $ In millions Fourth Quarter Full Year Revenue -28.9% Revenue +8.0% Segment income(1) -33.8% Segment income(1) +4.7% $80 $160 $173 $53 $57 $97 $101 $35 66.8%(2) 62.1%(2) 60.3%(2) 58.4%(2) 2023 2024 2023 2024 Revenue Segment Income Revenue Segment Income
Slide 13: Nelson Labs 2024 As Reported Financial Performance
Nelson Labs 2024 As Reported Financial Performance $ In millions Fourth Quarter Full Year Revenue -7.3% Revenue +3.4% Segment income(1) -3.3% Segment income(1) +0.1% $58 $222 $229 $54 $19 $18 $69 $69 32.1%(2) 33.5%(2) 31.2%(2) 30.2%(2) 2023 2024 2023 2024 Revenue Segment Income Revenue Segment Incom
Slide 14: Net Leverage, Liquidity and Investments
Net Leverage, Liquidity and Investments $ In millions Liquidity Net Leverage(1) Capital Expenditures(2) $696 $687 3.8x 3.7x $215 3.2x $182 $179 $477 $400 $82 $410 $395 $296 $277 12/31/22 12/31/23 12/31/24 12/31/22 12/31/23 12/31/24 FY 2022 FY 2023 FY 2024 (3)(4) Unrestricted Cash and cash equivalent
Slide 15: 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 February 27, 2025 press release, Sotera Health does not provide a reconciliation of the forward-looking Adjusted EBITDA,
Slide 16: 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) (~2.25%) Adj EBITDA(2)(4) +4.5% to +6.5% Adj EBITDA Currency Impact(3) (~2.50%) 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
Slide 17: Other 2025 Outlook Items
Other 2025 Outlook Items • 4.0% - 6.0% revenue outlook range & 4.5% - 6.5% Adjusted EBITDA outlook range are both on a constant currency basis General (1) • ~2.25% and ~2.50% FX headwinds on ‘25 revenue and Adjusted EBITDA, respectively • Total company price expected around the mid-point of the 3% -
Slide 18: Our Corporate Responsibility Journey Continues
Our Corporate Responsibility Journey Continues… 2020 2021 2022 2023 2024 2025 Initial Public Offering Developed Corporate First Corporate Second Corporate Third Corporate Named Lead Responsibility Responsibility Report Responsibility Report Responsibility Report Independent Director Stra
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 December 31, Year ended December 31, (dollars in thousands, except per share amounts) 2023 2024 2022 2023 2024 Net income (loss) $ 38,681 $ 12,323 $ (233,570) $ 51,376 $ 44,398 Amortization of intangible assets 20,058 19,640 81,554 81,348 79
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 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 23: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) As of December 31, 2022 2023 2024 Current portion of long-term debt $ 197,119 $ 4,797 14,803 Long-term debt less current portion 1,747,115 2,223,674 2,208,100 Current portion of finance leases 1,722 8,771 2,923 Finance leases less current portion 56,955 63,793
Slide 24: 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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