Sotera Health Company (SHC) investor relations material

Executive summary

• Net revenues for Q2 2026 increased 9.2% year-over-year to $321–$321.4 million, with net income rising to $53.6–$54 million from $8 million in Q2 2025, reflecting strong execution and positive stakeholder feedback.

• Adjusted EBITDA grew 10% to $165.7–$166 million (8.7% constant currency), and Adjusted EPS rose 30% to $0.26 per diluted share.

• Adjusted EBITDA margin expanded to 51.6%, with robust cash flow and improved net leverage ratio to 3.0x.

• Full-year 2026 outlook was raised for net revenues, Adjusted EBITDA, and EPS due to strong first-half results and business resilience.

• CEO transition completed in May 2026, with Alton Shader assuming leadership and Michael Petras, Jr. becoming Executive Chairman.

Financial highlights

• Q2 2026 net revenues: $321–$321.4 million, up 9.2% year-over-year (8.0% constant currency).

• Net income (GAAP): $53.6–$54 million ($0.19 per diluted share); Adjusted EBITDA: $165.7–$166 million (51.6% margin).

• Adjusted EPS: $0.26 per share; operating cash flow: $88 million in Q2; available liquidity: ~$950 million.

• Interest expense improved by over $6 million due to term loan repricing and debt reduction.

• CapEx for H1 2026: $92.6 million; Q2 CapEx: $46 million, supporting growth initiatives.

Outlook and guidance

• FY 2026 net revenues outlook raised to $1.236–$1.254 billion (5.25%–6.75% constant currency growth).

• Adjusted EBITDA outlook raised to $634–$643 million (5.75%–7.25% constant currency growth).

• Adjusted EPS guidance improved to $0.95–$1.01 per share; CapEx expected at $200–$225 million.

• Net leverage ratio improved to 3.0x, reaching long-term target range.

• Management expects sufficient liquidity from cash, operations, and credit facilities to meet all foreseeable needs.