Sotera Health Q2 2026: Revenue Climbs 9%, Net Income Hits $54M, Full-Year Outlook Raised
SHC sits 63% above its 52-week low of $11.
Summary
Sotera Health posted strong Q2 2026 results, with revenue up 9.2%, net income of $54 million, and raised full-year guidance. All three segments grew, margins expanded, and the balance sheet improved as net leverage reached the 3.0x target.
Key Events · Earnings and Guidance · SHC
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Q2 Revenue +9.2%, Net Income $54M
Total net revenues rose 9.2% (8.0% constant currency) to $321.4 million, with net income of $54 million ($0.19 per diluted share) compared to $8 million ($0.03) in Q2 2025.
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Adjusted EBITDA Up 10%, Margin 51.6%
Adjusted EBITDA increased 10.0% (8.7% constant currency) to $165.7 million, with margin expanding to 51.6%. Adjusted EPS of $0.26 was up 30% year-over-year.
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Full-Year 2026 Outlook Raised
Management raised revenue guidance to $1.236-$1.254 billion (5.25%-6.75% constant currency growth) and Adjusted EBITDA to $634-$643 million (5.75%-7.25% growth), with Adjusted EPS now seen at $0.95-$1.01.
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Net Leverage Hits 3.0x Target
Net leverage ratio improved to 3.0x as of June 30, 2026, achieving the long-term target range of 2.0x-3.0x, with available liquidity of approximately $950 million and no outstanding revolver borrowings.
Analysis · SHC · Industrial Applications And Services
A standout quarter for Sotera Health saw all three business units deliver high-single-digit constant currency growth, propelling net income to $54 million from just $8 million a year ago. Adjusted EBITDA margin expanded to 51.6%, and the company raised its full-year revenue and profit outlook, signaling confidence in sustained momentum. The balance sheet also strengthened, with net leverage hitting the long-term target range of 3.0x and liquidity at $950 million. This is a clear beat-and-raise quarter that materially improves the earnings trajectory.
At the time of this filing, SHC was trading at $17.98 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $5.1B. The 52-week trading range was $11.00 to $19.85. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.