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what it is
Sotera sterilizes medical products, tests them, and supplies the material that powers gamma sterilization.
how it gets paid
Last year Sotera Health made $1.2B in revenue. Sterigenics terminal sterilization was the main engine at $560M, or 48% of sales.
why it's growing
Revenue grew 5.7% last year. The number that mattered was $860M, because it was 176% above last year and showed demand was real.
what just happened
Sotera posted $860M in quarterly revenue, with EPS at $0.15 and gross margin at 55.8%.
At a glance
B balance sheet — gets the job done, barely
30/100 earnings predictability — expect surprises
88.8x trailing p/e — you're paying up for this one
5.3% return on capital — nothing to write home about
$0.21 fy2024 eps est
xvary composite: 54/100 — below average
What they do
Sotera sterilizes medical products, tests them, and supplies the material that powers gamma sterilization.
More than 40 of the top 50 medical device companies and 9 of the top 10 global drugmakers use Sotera. terminal sterilization → the last sterilization step before shipping → so your product cannot leave without them. It is the only vertically integrated global gamma sterilization provider, which means one vendor can control the chain instead of three.
How they make money
$1.2B
annual revenue · their business grew +5.7% last year
Sterigenics terminal sterilization
$560M
+7.0%
Nelson Labs testing
$280M
+5.0%
Nordion Co-60 supply
$170M
+6.0%
Validation and advisory services
$84M
+3.0%
Other healthcare services
$70M
0.0%
The products that matter
medical device sterilization
Sterigenics
$198.4M in this snapshot
this snapshot attributes $198.4M to Sterigenics. the bigger point is that sterilization sits at the center of a $1.164B business with a 20-year revenue growth streak.
core service
analytical lab testing
Nelson Labs
$198.4M in this snapshot
Nelson Labs is the testing side of the platform. at $198.4M here, it matters because validation and sterilization often travel together in regulated healthcare workflows.
complements sterilization
cobalt-60 supply
Nordion
$198.4M in this snapshot
Nordion supplies cobalt-60, the isotope behind gamma sterilization. a $198.4M revenue line tied to a scarce input is the kind of plumbing business you only notice when it breaks.
critical input
Key numbers
$1.164B
annual revenue
That is the whole pie. It tells you this is a real industrial service business, not a side project.
25.6%
operating margin
Operating margin → profit after running the business → so what: a quarter of sales stayed after costs.
$2.3B
long-term debt
Debt → borrowed money → so what: it is 37% of capital, so mistakes cost more.
5.3%
return on capital
Return on capital → profit made on money invested → so what: you get 5.3 cents back per dollar.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 10 / 100
- long-term debt $2.3B (37% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SHC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Sotera posted $860M in quarterly revenue, with EPS at $0.15 and gross margin at 55.8%.
Revenue rose 176% vs. prior year, according to EDGAR. EPS fell 12% vs. prior year, so the quarter was about volume, not a miracle in margins.
$860M
revenue
$0.15
eps
55.8%
gross margin
the number that mattered
The number that mattered was $860M, because it was 176% above last year and showed demand was real.
source: company earnings report, 2026
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What could go wrong
the #1 risk is ethylene oxide litigation and regulation.
med
ethylene oxide litigation
the company faces lawsuits tied to ethylene oxide, the gas used in part of its sterilization process. this is the kind of risk that can sit quietly for quarters and then dominate the story again in one headline.
if settlements, fines, or operating restrictions escalate, a business with $2.3B of debt gets less flexible fast.
med
premium multiple, thin earnings
the page shows SHC trading at 60.9x to 88.8x earnings against a 34.1x industry average. that is a premium multiple sitting on top of an EPS base around $0.21 and four years of flat earnings per share.
if the market stops paying up for durability, the re-rating risk comes before the operating risk does.
med
large-holder selling overhang
Warburg Pincus sold 15M shares in a block trade. one sale does not define the business, but it can cap the stock while buyers absorb the supply.
with shares already down 24% this year, more selling pressure would keep sentiment weak even if operations stay stable.
a stock down 24% this year still carries a 60.9x–88.8x earnings multiple, backed by just $78M of net income and $2.3B of long-term debt. that is not a margin for error. that's a demand for clean execution.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next report
Q1 2026 earnings around april 30, 2026
consensus sits at $0.17 EPS and $269.8M revenue. after a 20-year growth streak, you care less about a penny beat than whether the streak still looks intact.
regulation
EPA NESHAP and FIFRA rule updates
new ethylene oxide rules could force extra capital spending, slower throughput, or both. this is the headline path that can move the stock without changing quarterly revenue much at first.
flow
whether the 15M-share block sale was one-and-done
large-holder selling creates overhang even in a decent business. if more supply appears, valuation support gets tested again.
margin check
whether 55.8% gross margin still holds
the quiet part: margins are what make this business look special. if they slip while revenue growth stays mid-single-digit, the premium case weakens fast.
Analyst rankings
earnings predictability
30 / 100
in human-speak, analysts do not see this as a clean, steady quarter-to-quarter story.
risk rank
2
this measure says the company is safer than 80% of stocks. the price chart, with a 24% decline this year, says the market still hates uncertainty.
source: institutional data
Institutional activity
institutional ownership data for SHC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$18
current price
n/a
target midpoint · n/a from current
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