AI-extracted from the 10-Q filed 2026-08-06 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Sotera Health posted Q2 revenue of $321.4M (+9.2% YoY) driven by pricing gains and volume growth across sterilization and lab services, with net income of $53.6M vs. $8.0M prior year.
Biggest Revenue Drivers
Sterigenics$211.6M+8.6% YoY
Favorable pricing of 4.3% and volume/mix of 2.7%, plus 1.6% from foreign currency.
Nelson Labs$60.7M+6.3% YoY
Pricing of 2.8% and volume/mix of 2.6%, with foreign currency contribution.
Biggest Revenue Drivers
Total revenue: $321.4M+9.2% YoY
Sterigenics$211.6M+8.6% YoY
Favorable pricing of 4.3% and volume/mix of 2.7%, plus 1.6% from foreign currency.
Nelson Labs$60.7M+6.3% YoY
Pricing of 2.8% and volume/mix of 2.6%, with foreign currency contribution.
Nordion$49.1M+15.8% YoY
Volume/mix of 13.6% from favorable Co-60 harvest schedule timing and pricing of 3.1%.
Largest Expense Items
Cost of revenues$143.4M+12.3% YoY
Higher employee compensation, depreciation from recently placed assets, and unfavorable foreign exchange impact.
Interest expense, net$34.4M-15.4% YoY
Lower interest rate on Term Loan after Amendment No. 7 repricing and $75M principal paydown.
SG&A expenses$68.2M-1.1% YoY
Decrease driven mainly by lower litigation and professional services expenses.
Amortization of intangible assets$3.0M-67.6% YoY
Decline due to certain intangible assets fully amortized in May 2025.
Margins: Gross margin improved to 55.4% in Q2 2026 from 56.7% in Q2 2025, primarily due to higher cost inflation and unfavorable foreign exchange, partially offset by pricing benefits. Operating margins benefited from lower amortization of intangible assets.
Watch Items from the Filing
Ethylene oxide tort litigation in California (Vernon): ~150 personal injury/wrongful death claims with First Plaintiff Group of 8 cases prioritized for trials scheduled January-April 2027; Georgia: ~500 claims pending with ongoing appeals on general causation; Illinois: ~15 cases at various stages; company states losses 'not probable' but future settlements are 'reasonably possible.'
Capital expenditures increased significantly to $92.6M for H1 2026 vs. $51.1M in H1 2025, driven by facility expansion and Co-60 projects; company expects continued elevated capex for growth initiatives.
Nordion segment exhibited strong growth (+15.8% Q2 YoY, +21.6% H1 YoY) but results are subject to timing volatility from Co-60 harvest schedules and infrequent large gamma system sales, which can vary significantly quarter-to-quarter.
Nelson Labs segment income margin declined to 32.4% in Q2 2026 from 34.2% in Q2 2025, and H1 margin fell to 30.4% from 32.9%, driven by lower volume/mix and higher direct costs despite pricing gains.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About Sotera Health Co (SHC): stock profile, AI score and financials
Sotera Health Co (SHC) stock profile, AI quality score, and SEC EDGAR financial data, a Healthcare sector company. 13F Pro's AI-powered ranking engine scores SHC at 62.3/100 on a composite quality score built from its SEC filings, placing it at rank #719 of 2,925 stocks — the top 25% of the AI-ranked universe. SHC scores in the top quartile across institutional flow (84.9), earnings quality (80.8), profitability (77.0). Shareholder dilution risk is elevated at 34.1/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Sotera Health Co reports quarterly revenue of $321.4M, net income of $53.6M, an operating margin of 24.3%. Top institutional holders of SHC by reported 13-F value include Sessa Capital IM, L.P., Darsana Capital Partners, BlackRock, based on the most recent SEC filings. SHC trades on the Nasdaq exchange and files with the SEC under CIK 1822479. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate SHC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Sotera Health Co directly from SEC EDGAR.