Sotera Health Co (SHC) · Nov 3, 2026 · Earnings
Beat — Adjusted EPS $0.29 vs ~$0.27 consensus; revenue $324.9M vs ~$319.8M consensus
Sotera Health’s Q3 earnings beat revenue and adjusted EPS expectations, while reaffirmed guidance leaves Sterigenics carrying the growth story.
Sotera Health is in an execution-and-deleveraging phase: its three-business model is pursuing steady healthcare sterilization and lab-services growth while working down leverage. After raising its 2026 outlook in August, the market was looking for roughly $319.8 million of Q3 revenue and $0.27 of EPS.
The quarter cleared expectations on both key measures. Revenue reached $324.9 million versus approximately $319.8 million expected, while adjusted EPS was $0.29 versus roughly $0.27 consensus. That is a real beat, but not a major reset of the earnings story. (Financial Highlights)
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Net revenues (Financial Highlights) | $324.9M (+4.4%) | $311.3M | ~$319.8M |
| Adjusted EPS (Non-GAAP reconciliation) | $0.29 (+11.5%) | $0.26 | ~$0.27 |
| Adjusted EBITDA (Non-GAAP reconciliation) | $170.7M (+3.9%) | $164.2M | |
| Adjusted EBITDA margin (Non-GAAP reconciliation) | 52.5% | 52.7% |
Sterigenics remains the engine, while Nordion supplied the drag. Sterigenics revenue rose 8.5% and segment income rose 9.6%, but Nordion revenue fell 12.4% because of the already-expected timing of Co-60 harvests. Nelson Labs grew revenue 8.8%, though its segment-income growth was only 2.5%, showing some margin pressure from business mix. (Segment results)
The balance sheet improved, but the outlook did not advance. Net leverage declined to 2.9x from 3.2x at year-end as cash rose to $412 million, supporting the deleveraging narrative. (Net Debt and Net Leverage) However, management reaffirmed rather than raised its full-year revenue and Adjusted EBITDA growth ranges, so the beat strengthens execution without changing the current 2026 destination.
Bottom line: This was a modestly better quarter than expected, led by Sterigenics and helped by lower leverage. It advances the existing recovery story but does not rewrite it, because Nordion’s weakness was anticipated and full-year guidance was left unchanged.
Q4 report and full-year 2026 results
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