Sotera Health Reports Q2 2025 Revenue Growth of 6.4% to $294.3 Million

Sotera Health Company reported its financial results for the second quarter of 2025, revealing a total net revenue of $294.3 million, a 6.4% increase from $276.6 million in the same period last year. The company's service revenue rose by 8.2% to $257.2 million, driven by improved volume and pricing in its Sterigenics and Nordion segments. However, product revenue saw a decline of 4.5%, totaling $37.1 million, primarily due to lower revenues from Co-60 in the Nordion segment. The company recorded a net income of $8.0 million for the quarter, down from $8.8 million in the prior year, while Adjusted EBITDA increased by 9.8% to $150.7 million.

For the first half of 2025, Sotera Health's total net revenues reached $548.9 million, up 4.6% from $524.8 million in the same period of 2024. The increase was attributed to a 3.7% rise in service revenues and an 11.8% increase in product revenues. Despite this growth, the company reported a net loss of $5.3 million for the six months ended June 30, 2025, compared to a net income of $15.1 million in the previous year. The decline in profitability was influenced by significant litigation expenses related to ethylene oxide (EO) claims, including settlements amounting to $64.9 million.

Operationally, Sotera Health has made strategic moves to enhance its market position. The company has been actively involved in settling EO litigation claims, with recent agreements to resolve 129 claims in Illinois for $34.0 million. Additionally, the company has focused on optimizing its operations, which has led to improved segment income across its three reportable segments: Sterigenics, Nordion, and Nelson Labs. The Sterigenics segment reported a 10.5% increase in net revenues, while Nordion's revenues grew by 2.9%. Nelson Labs, however, experienced a 3.3% decline in revenues, attributed to a drop in expert advisory services.

Sotera Health's balance sheet reflects a total asset value of $3.2 billion as of June 30, 2025, with cash and cash equivalents increasing to $332.4 million from $277.2 million at the end of 2024. The company has also reduced its long-term debt slightly to $2.2 billion. Looking ahead, Sotera Health anticipates continued growth in its service and product segments, although it remains cautious about potential impacts from ongoing litigation and market conditions. The company plans to leverage its operational efficiencies and strategic investments to enhance its competitive position in the sterilization and lab services markets.