$SHC

Sotera Health Co

CIK:0001822479|SEC Filings

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Total net revenues	$ 321,375	$ 294,341	$ 601,420	$ 548,864
Cost of revenues:
Total cost of revenues	143,412	127,720	276,388	246,811
Gross profit	177,963	166,621	325,032	302,053
Selling, general and administrative expenses	68,156	68,893	136,367	131,954
Amortization of intangible assets	3,015	9,298	6,046	24,625
Interest expense, net	34,405	40,651	69,150	81,527
Loss on refinancing of debt	936	80	936	80
Foreign exchange (gain) loss, net	(3,746)	627	(4,317)	916
Other income, net	(2,854)	(5,825)	(3,814)	(6,066)
Income before income taxes	78,051	18,897	120,664	4,074
Provision for income taxes	24,408	10,935	40,432	9,372
Net income (loss)	53,643	7,962	80,232	(5,298)
Other comprehensive income (loss) net of tax:
Pension and post-retirement benefits (net of taxes of $(33), $24, $(69), and $27, respectively)	(98)	71	(202)	81
Interest rate derivatives (net of taxes of $403, $(386), $963 and $(652), respectively)	1,174	(1,123)	2,807	(1,895)
Foreign currency translation	(18,591)	82,217	(36,222)	101,777
Comprehensive income	$ 36,128	$ 89,127	$ 46,615	$ 94,665
Earnings (Loss) per share:
Basic (in dollars per share)	$ 0.19	$ 0.03	$ 0.28	$ (0.02)
Diluted (in dollars per share)	$ 0.19	$ 0.03	$ 0.28	$ (0.02)
Weighted average number of shares outstanding:
Basic (in shares)	285,773	283,933	285,333	283,747
Diluted (in shares)	288,148	285,756	287,915	283,747
Illinois EO litigation settlements
Cost of revenues:
Illinois EO litigation settlements	$ 0	$ 34,000	$ 0	$ 64,943
Service
Revenues:
Total net revenues	278,325	257,244	519,933	481,184
Cost of revenues:
Total cost of revenues	126,840	113,293	245,668	220,922
Product
Revenues:
Total net revenues	43,050	37,097	81,487	67,680
Cost of revenues:
Total cost of revenues	$ 16,572	$ 14,427	$ 30,720	$ 25,889

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net income (loss)	$ 80,232	$ (5,298)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	53,046	45,223
Amortization of intangible assets	11,165	30,597
Loss on refinancing of debt	936	80
Deferred income taxes	13,796	(25,099)
Share-based compensation expense	21,611	15,361
Accretion of asset retirement obligations	1,306	1,136
Unrealized foreign exchange (gain) loss	(4,334)	18,886
Unrealized loss (gain) on derivatives not designated as hedging instruments	682	(1,994)
Amortization of debt issuance costs	3,094	2,645
Other	(2,570)	(2,474)
Changes in operating assets and liabilities:
Accounts receivable	(13,256)	9,084
Inventories	(4,121)	(7,663)
Other current assets	(8,720)	(14,250)
Accounts payable	13,411	5,573
Accrued liabilities	(11,067)	(14,514)
Income taxes payable / receivable, net	497	(8,212)
Other liabilities	(94)	(27)
Other long-term assets	(3,684)	(1,060)
Net cash provided by operating activities	117,930	112,937
Investing activities:
Purchases of property, plant and equipment	(92,615)	(51,147)
Other investing activities	4,188	37
Net cash used in investing activities	(88,427)	(51,110)
Financing activities:
Payment on long-term borrowings	(3,558)	(7,547)
Payments of debt issuance costs	(878)	(2,326)
Shares withheld for employee taxes on equity awards	(9,074)	(3,654)
Other financing activities	(1,674)	(1,493)
Net cash used in financing activities	(15,184)	(15,020)
Effect of exchange rate changes on cash and cash equivalents	(4,048)	8,600
Net increase in cash and cash equivalents, including restricted cash	10,271	55,407
Cash and cash equivalents, including restricted cash, at beginning of period	346,456	278,865
Cash and cash equivalents, including restricted cash, at end of period	356,727	334,272
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	85,088	102,716
Cash paid during the period for income taxes, net of tax refunds received	24,158	32,207
Purchases of property, plant and equipment included in accounts payable	35,397	10,307
Illinois EO litigation settlements
Changes in operating assets and liabilities:
Illinois EO litigation settlements	$ (34,000)	$ 64,943

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 356,716	$ 344,621
Restricted cash short-term	11	1,835
Accounts receivable, net of allowance for uncollectible accounts of $2,812 and $2,968, respectively	150,538	139,329
Inventories, net	56,372	54,375
Prepaid expenses and other current assets	74,739	65,250
Income taxes receivable	8,082	8,000
Total current assets	646,458	613,410
Property, plant, and equipment, net	1,167,667	1,130,564
Operating lease assets	30,919	33,393
Deferred income taxes	3,738	3,853
Post-retirement assets	55,950	53,817
Other assets	40,632	36,694
Other intangible assets, net	270,171	288,227
Goodwill	1,091,255	1,103,232
Total assets	3,306,790	3,263,190
Current liabilities:
Accounts payable	101,018	77,963
Accrued liabilities	83,573	124,736
Deferred revenues	14,212	17,999
Current portion of long-term debt	13,923	13,973
Current portion of finance lease obligations	3,732	3,465
Current portion of operating lease obligations	5,472	5,755
Income taxes payable	9,308	5,693
Total current liabilities	231,238	249,584
Long-Term debt	2,125,534	2,126,724
Finance lease obligations, less current portion	91,575	93,835
Operating lease obligations, less current portion	27,853	29,901
Noncurrent asset retirement obligations	54,060	53,496
Deferred lease income	16,185	17,057
Post-retirement obligations	7,742	8,123
Noncurrent liabilities	5,376	7,360
Deferred income taxes	81,579	71,075
Total liabilities	2,641,142	2,657,155
See Commitments and contingencies note
Equity:
Common stock, with $0.01 par value, 1,200,000 shares authorized; 286,037 shares issued at June 30, 2026 and December 31, 2025	2,860	2,860
Preferred stock, with $0.01 par value, 120,000 shares authorized; no shares issued at June 30, 2026 and December 31, 2025	0	0
Treasury stock, at cost (675 shares and 1,666 shares at June 30, 2026 and December 31, 2025, respectively)	(9,288)	(17,013)
Additional paid-in capital	1,267,392	1,262,119
Retained deficit	(451,861)	(532,093)
Accumulated other comprehensive loss	(143,455)	(109,838)
Total equity	665,648	606,035
Total liabilities and equity	$ 3,306,790	$ 3,263,190