The quarter beat the published bar. Revenue reached $321.4 million versus published consensus of roughly $309.7 million, while adjusted EPS was $0.26 versus consensus of $0.24 — a clear beat on both headline measures.
| Metric | Q2 2026 | Q2 2025 | Market expectation |
|---|---|---|---|
| Net revenue | $321.4M | $294.3M | ~$309.7M |
| Adjusted EBITDA | $165.7M | $150.7M | — |
| Adjusted EBITDA margin | 51.6% | 51.2% | — |
| GAAP diluted EPS | $0.19 | $0.03 | — |
| Adjusted diluted EPS | $0.26 | $0.20 | ~$0.24 |
Growth was broad, but not equally healthy. Revenue rose 9.2% year over year and adjusted EBITDA rose 9.9%, with margin expanding modestly to 51.6% (Financial Highlights). Nordion was the standout, growing revenue 15.8% and segment income 19.2%, helped by the timing of Cobalt-60 harvests (Segment results — Nordion). Sterigenics also delivered solid 8.6% revenue growth and 9.6% segment-income growth (Segment results — Sterigenics).
Nelson Labs is the weak spot. Its revenue increased 6.3%, but segment income barely moved, up only 0.6% in the quarter; first-half segment income was down 4.9% despite 2.9% revenue growth (Segment results — Nelson Labs). That suggests pricing, mix, or cost pressure is absorbing much of the division's growth and keeps the quarter from being a clean operational win.
The most important forward signal is the raised outlook. Management said it is raising full-year 2026 guidance after the first-half performance, whereas the prior framework called for $1.233 billion-$1.251 billion of revenue and $632 million-$641 million of adjusted EBITDA. The supplied filing text does not include the revised ranges, so the size of the increase cannot be measured precisely.
Balance-sheet progress adds to the positive read. Net leverage improved to 3.0x from 3.2x at year-end as trailing adjusted EBITDA increased to $621.6 million and net debt declined to $1.878 billion (Net Debt and Net Leverage). Operating cash flow was $117.9 million, although capital expenditures rose to $92.6 million from $51.1 million in the first half (Cash Flow statement), limiting near-term free-cash-flow conversion. Overall, this is a genuine positive surprise: the earnings beat and raised outlook outweigh the softer Nelson Labs trend and heavier investment spending.
Read the original 8-K on SEC EDGAR ↗