Sotera Health Company reported a net revenue of $1.1 billion for the fiscal year ending December 31, 2024, marking a 4.9% increase from $1.05 billion in 2023. The company's net income for the year was $44.4 million, a decrease from $51.4 million in the previous year. Adjusted net income was $198.5 million, down from $204.3 million in 2023, while adjusted EBITDA rose to $548.6 million from $528.0 million, reflecting a 3.9% increase. The growth in revenue was primarily driven by favorable pricing and improvements in service volume across all segments, despite some adverse impacts from foreign currency exchange rates.
In terms of operational developments, Sotera Health serves approximately 5,000 customers globally, including over 40 of the top 50 medical device companies and nine of the top ten global pharmaceutical companies. The company operates 62 facilities worldwide and employs over 3,000 individuals. The Sterigenics segment, which provides sterilization services, generated $697.9 million in revenue, while the Nordion segment, focused on Co-60 supply, reported $173.4 million. Nelson Labs, the company's lab testing segment, contributed $229.2 million in revenue. The company has also been actively investing in capacity expansion projects and exploring strategic acquisitions to enhance its market position.
Sotera Health's financial performance was impacted by significant litigation costs related to ethylene oxide (EO) emissions, with settlements amounting to $407.7 million in Illinois and $35 million in Georgia. These legal challenges have led to increased scrutiny and potential liabilities, which the company is vigorously defending. The company has established reserves for these liabilities and continues to monitor the situation closely, although it maintains that its operations do not pose safety risks to surrounding communities.
Looking ahead, Sotera Health anticipates continued growth driven by favorable market conditions and strategic investments. The company is focused on expanding its capacity in Europe, the Americas, and Asia, while also managing its significant debt load, which stood at approximately $2.26 billion as of December 31, 2024. The company has entered into various financing arrangements, including a refinancing of its term loans and the issuance of senior secured notes, to manage its capital structure effectively. Despite the challenges posed by litigation and regulatory scrutiny, Sotera Health remains committed to safeguarding global health through its sterilization and lab testing services.
About Sotera Health Co
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