SHCMEDIUM SIGNALOPERATIONAL10-K

Sotera Health is expanding its sterilization technology portfolio with new X-ray capabilities while demonstrating strong operational improvement with 75% net income growth.

The company is diversifying its sterilization methods beyond traditional gamma and EO processing by adding X-ray technology, which could reduce regulatory risk and expand market opportunities. The substantial improvement in profitability combined with strong cash generation suggests the business is gaining operational momentum and efficiency.

Comparing 2026-02-24 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

Sotera Health delivered strong financial performance with net income surging 75.6% to $77.9M and operating cash flow growing 28.1% to $287.2M, while the company reduced capital expenditures by 22.9%. The balance sheet strengthened significantly with stockholders' equity increasing 49.7% and cash rising 24.3%, though current liabilities also grew 30.7%. Overall, the financial picture shows a company generating strong profits and cash while building financial strength, though the liability increase warrants monitoring.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+75.6%
$44.4M→$77.9M

Net income grew 75.6% — bottom-line growth signals improving overall business health.

Stockholders Equity
Balance Sheet
+49.7%
$404.9M→$606.0M

Equity base grew 49.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Current Liabilities
Balance Sheet
+30.7%
$191.0M→$249.6M

Current liabilities surged 30.7% — significant near-term obligations; verify ability to meet short-term debt.

Operating Cash Flow
Cash Flow
+28.1%
$224.2M→$287.2M

Operating cash flow grew 28.1% — strong conversion of earnings to cash, healthy business fundamentals.

Cash & Equivalents
Balance Sheet
+24.3%
$277.2M→$344.6M

Cash grew 24.3% — improving liquidity position supports investment and shareholder returns.

Capital Expenditure
Cash Flow
-22.9%
$179.1M→$138.0M

Capex reduced 22.9% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Current Assets
Balance Sheet
+16.6%
$526.0M→$613.4M

Current assets grew 16.6% — improving short-term liquidity or inventory/receivables build.

Inventory
Balance Sheet
+10.6%
$49.2M→$54.4M

Inventory built 10.6% — monitor whether demand supports this build or if write-downs may follow.

LANGUAGE CHANGES
NEW — 2026-02-24
PRIOR — 2025-02-27
ADDED
As of February 17, 2026, there were 284,392,079 shares of the registrant s common stock, $0.01 par value per share, outstanding.
These forward-looking statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them.
We provide gamma irradiation services at 23 of our facilities, EO processing services at 17 of our facilities and electron beam ( E-beam ) irradiation services at eight of our facilities.
X-ray irradiation is a process in which products, such as medical devices and labware, are exposed to machine-generated radiation in the form of X-rays for the purpose of sterilization and decontamination.
Final qualification is currently underway for a new X-Ray facility adjacent to an existing gamma facility.
Sterilization Applications Sterigenics primarily provides sterilization services for medical device manufacturers and the pharmaceutical industry and also provides microbial reduction services for the food industry.
In most cases, customers are serviced by more than one facility.
Medical device sterilization is a regulatory requirement in many jurisdictions and an important and last step performed prior to clinical use for many healthcare products such as procedure kits and trays, implants, syringes, catheters, wound care products and medical protective barriers including PPE.
Sterigenics Customers Sterigenics serves more than 2,000 customers in industries ranging from medical device and healthcare products, pharmaceuticals, food and agricultural products as well as advanced commercial materials.
Sterigenics has achieved high historical customer retention and renewal rates Sterigenics has 100% renewal rates of its top ten customers for more than five consecutive years, and an average tenure of over a decade with its top 25 customers over the last five years and minimal customer concentration, as no single customer accounted for more than 10% of our total revenues.
REMOVED
As of February 20, 2025, there were 283,473,342 shares of the registrant s common stock, $0.01 par value per share, outstanding.
jurisdictions or the interpretation and application of recent U.S.
taxation of our operations; and our significant leverage and how this significant leverage could adversely affect our ability to raise additional capital, limit our ability to react to challenges confronting our Company or broader changes in our industry or the economy, limit our flexibility in operating our business through restrictions contained in our debt agreements and/or prevent us from meeting our obligations under our existing and future agreements governing our indebtedness.
We are a trusted partner to approximately 5,000 customers in over 50 countries.
Sotera Health Company was incorporated in Delaware in November 2017 as the parent company for Sterigenics, Nordion and Nelson Labs.
We completed our initial public offering and listed our shares of common stock on the Nasdaq Global Select Market ( Nasdaq ) in November 2020 under the ticker symbol SHC.
X-ray irradiation is a process in which products such as medical devices and lab ware are exposed to machine-generated radiation in the form of X-rays for the purpose of sterilization and decontamination.
X-rays are similar in performance to gamma rays and are useful for processing certain materials by virtue of the high penetration capabilities of X-ray.
We utilize X-ray irradiation at one of our sterilization facilities for bio-hazard reduction for the United States Postal Service ( USPS ).
Sterilization Applications Sterigenics primarily provides sterilization services for medical device manufacturers and the pharmaceutical industry.
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