Sotera Health Company announced strong financial results for the second quarter ended June 30, 2025, with net revenues increasing 6.4% to $294 million, or 6.0% on a constant currency basis, compared to Q2 2024. Adjusted EBITDA for the quarter grew by 9.8% to $151 million, or 9.5% on a constant currency basis, with Adjusted EBITDA margins expanding by approximately 160 basis points.
Net income for the quarter was $8 million, or $0.03 per diluted share, which includes a $34 million settlement related to ethylene oxide (EO) claims against Sterigenics. Adjusted Earnings Per Diluted Share (Adjusted EPS) increased by $0.01 to $0.20 compared to Q2 2024. The company's net leverage ratio improved to 3.5x as of June 30, 2025, from 3.7x at year-end 2024.
Sterigenics net revenues rose 10.5% to $195 million, driven by favorable volume, mix, and pricing. Nelson Labs' segment income increased 13.9% to $20 million, with margins expanding over 500 basis points due to lab optimization and core testing demand, despite a 3.3% revenue decline. Nordion's net revenues increased 2.9% to $42 million. Based on this performance, Sotera Health raised its full-year 2025 outlook, now expecting constant currency revenue growth of 4.5% to 6.0% and Adjusted EBITDA growth of 6.0% to 7.5%. Adjusted EPS is projected in the range of $0.75 to $0.82, and capital expenditures are lowered to $170 million to $180 million.
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