Sotera Health Company reported a net revenue of $254.5 million for the first quarter of 2025, marking a 2.6% increase from $248.2 million in the same period of 2024. The growth was driven by a significant rise in product revenues, which surged by 41% to $30.6 million, attributed mainly to favorable volume and mix at Nordion, particularly related to Co-60 harvest schedules. However, service revenues experienced a slight decline of 1.1%, falling to $223.9 million, impacted by reduced expert advisory service revenue and adverse foreign currency exchange fluctuations.
The company's financial performance was affected by a net loss of $13.3 million for the quarter, a stark contrast to the net income of $6.3 million reported in the prior year. This loss was primarily due to a $30.9 million settlement related to ethylene oxide (EO) litigation in Illinois, which was recorded as a significant expense. Adjusted Net Income, which excludes certain non-recurring items, rose to $39.0 million, up 9.6% from $35.6 million in the previous year, while Adjusted EBITDA increased by 8.8% to $121.8 million.
Operationally, Sotera Health has seen changes in its customer base and service engagement. The company reported a total of 283,855 shares outstanding as of March 31, 2025, with a slight increase in employee headcount. The company continues to focus on its strategic initiatives, including the expansion of its sterilization services and lab testing capabilities. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs, with Sterigenics generating $169.7 million in revenue, a 1.9% increase year-over-year.
Looking ahead, Sotera Health anticipates continued growth in its product lines, particularly in the Nordion segment, while managing the ongoing challenges associated with litigation and regulatory compliance. The company has emphasized its commitment to safeguarding global health through its sterilization and lab services, which are critical to the healthcare supply chain. The outlook remains cautiously optimistic, with expectations for improved operational efficiencies and potential market share gains in the coming quarters.
About Sotera Health Co
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