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Investing.com -- Sotera Health Co . (NASDAQ:SHC) reported second-quarter earnings that surpassed analyst expectations, driven by strong performance in its sterilization business, sending shares up 2.7% following the announcement.
The global provider of sterilization solutions and lab testing services posted adjusted earnings per share of $0.20 for the quarter, exceeding the analyst estimate of $0.17. Revenue came in at $294.3 million, significantly above the consensus estimate of $275.9 million and representing a 6.4% increase YoY. On a constant currency basis, revenue grew 6.0% compared to the same period last year.
The company also raised its full-year 2025 outlook, now expecting adjusted earnings per share between $0.75 and $0.82, compared to the previous guidance of $0.70 to $0.76. The midpoint of this new range is above the analyst consensus of $0.75.
"We are pleased to announce that we delivered more than 6% top-line growth for the quarter, supported by strong volume performance at Sterigenics," said Chairman and CEO Michael B. Petras, Jr. "Adjusted EBITDA grew nearly 10% in the quarter with approximately 160 basis points of margin expansion, driven by over 500 basis points of improvement at Nelson Labs."
The Sterigenics segment was the standout performer, with revenues increasing 10.5% to $195 million compared to the second quarter of 2024. Nordion revenues grew 2.9% to $42 million, while Nelson Labs revenues decreased 3.3% to $57 million.
Adjusted EBITDA for the quarter increased 9.8% to $151 million compared to the same period last year, or 9.5% on a constant currency basis.
The company also improved its net leverage ratio to 3.5x as of the second quarter, down from 3.7x at the end of 2024, with $332 million in unrestricted cash and cash equivalents.
"With improving momentum through the first half of the year, we are raising our full-year outlook for revenue, Adjusted EBITDA and Adjusted EPS, reflecting our confidence in continued execution and performance," Petras added.
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