Sotera Health Q4 Revenue Rises 4.6% to $303.4M, EPS Tops Forecast
Sotera Health posted Q4 revenue of $303.4 million, up 4.6% year-over-year and 1.2% above projections, with adjusted EPS of $0.26, beating estimates by 7%. Full-year 2026 guidance targets $1.24 billion in revenue at midpoint, 1.1% above expectations, and $0.97 adjusted EPS, 3.3% ahead of consensus.
1. Q4 Financial Results
Sotera Health delivered Q4 CY2025 revenue of $303.4 million, up 4.6% year-on-year and 1.2% above consensus. Adjusted EPS reached $0.26, a 7% beat, while adjusted EBITDA totaled $157 million at a 51.8% margin.
2. Profitability and Operating Metrics
Operating margin contracted to 23.2% from 30% a year earlier as expenses outpaced revenue growth. Organic revenue rose 2.5% year-over-year, slightly missing expectations and indicating modest core demand.
3. 2026 Guidance Outlook
The company set 2026 full-year revenue guidance at a $1.24 billion midpoint, 1.1% above estimates, and forecasts adjusted EPS of $0.97, 3.3% ahead of consensus, pointing to continued top-line expansion.
4. Cash Flow and Market Response
Free cash flow swung to $52.4 million from a $10.2 million deficit a year prior, reflecting improved cash generation. The stock rose 1.5% post-release, with market capitalization near $5 billion.