Free cash flow generation is highly inconsistent, swinging from a negative $25.2 million in 2024Q1 to a peak of $59.2 million in 2024Q3, largely driven by capital intensity that saw CapEx/Revenue ratios reach 22.7% in 2024Q4.
| Cash from Operations | 229.63M | 287.19M | 224.16M | -147.73M | 277.96M | 281.55M | 120.58M | 149.04M | 119.56M |
| Operating CF Margin % | - | 24.68% | 20.37% | -14.08% | 27.69% | 30.23% | 14.74% | 19.15% | 16.02% |
| Operating CF Growth % | -49.34% | 28.12% | 251.74% | -153.15% | -1.27% | 133.48% | -19.09% | 24.65% | - |
| Net Income | 117.8M | 77.95M | 44.4M | 51.38M | -233.57M | 117.12M | -37.49M | -20.43M | -5.88M |
| Depreciation & Amortization | 127.18M | 0 | 163.64M | 160.34M | 145.55M | 150.9M | 143.56M | 146.72M | 146.82M |
| Stock-Based Compensation | 23.77M | 0 | 36.78M | 32.24M | 21.21M | 13.87M | 10.99M | 6.88M | 6.94M |
| Deferred Taxes | -9.02M | 0 | 9.43M | 3.45M | -73.96M | -3.72M | -23.36M | -18.99M | -45.32M |
| Other Non-Cash Items | 96.33M | 181.2M | 12.55M | 8.15M | 9.49M | 15.96M | 38.68M | 43.21M | 12.96M |
| Working Capital Changes | -16.59M | 28.04M | -42.63M | -403.29M | 409.23M | -12.59M | -11.79M | -8.35M | 4.04M |
| Change in Receivables | -51K | 7.15M | 2.22M | -21.72M | -12.55M | -15.51M | 1.94M | 11.76M | -2.91M |
| Change in Inventory | 422K | -2.38M | -4.75M | -9.97M | 14.44M | -20.25M | 3.78M | -282K | -7.04M |
| Change in Payables | 1.89M | 5.18M | -6.64M | -5.33M | 1.11M | 19.76M | -6.02M | -8.97M | 15.13M |
| Cash from Investing | -115.26M | -135.14M | -179M | -214.91M | -181.9M | -159.83M | -158.69M | -57.26M | 96.64M |
| Capital Expenditures | -118.1M | -138.02M | -179.07M | -214.97M | -182.38M | -102.16M | -53.51M | -57.26M | -72.61M |
| CapEx % of Revenue | 9.93% | 11.86% | 16.27% | 20.49% | 18.17% | 10.97% | 6.54% | 7.36% | 9.73% |
| Acquisitions | 0 | 0 | 0 | 0 | 450K | -56.97M | -105.19M | 0 | 162.82M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.84M | 2.87M | 74K | 69K | 32K | -701K | 0 | 0 | 6.43M |
| Cash from Financing | -90.4M | -100.53M | -50.56M | 265.96M | 197.76M | -117.29M | 73.43M | -126.03M | -191.86M |
| Debt Issued (Net) | -85.89M | -86.1M | -11.76M | 297.5M | 200M | -100M | -1.03B | 583.52M | -14.63M |
| Equity Issued (Net) | -54K | 0 | -4.43M | -4.09M | -393K | -1.43M | 1.12B | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -691.17M | -175.84M |
| Share Repurchases | -54K | 0 | -4.43M | -4.09M | -393K | -1.43M | -34M | 0 | 0 |
| Other Financing | -4.46M | -14.43M | -34.38M | -27.45M | -1.85M | -15.85M | -21.2M | -18.38M | -1.38M |
| Net Change in Cash | 9.86M | 67.59M | -22.79M | -94.64M | 289.37M | 4.47M | 39.43M | -33.76M | 20.67M |
| Free Cash Flow | 111.53M | 149.18M | 45.09M | -362.71M | 95.58M | 179.38M | 67.08M | 91.78M | 46.95M |
| FCF Margin % | 9.38% | 12.82% | 4.1% | -34.57% | 9.52% | 19.26% | 8.2% | 11.79% | 6.29% |
| FCF Growth % | 7.2% | 230.81% | 112.43% | -479.47% | -46.72% | 167.42% | -26.92% | 95.49% | - |
| FCF per Share | 0.39 | 0.52 | 0.16 | -1.28 | 0.34 | 0.64 | 0.24 | 0.32 | 0.19 |
| FCF Conversion (FCF/Net Income) | 0.95x | 3.68x | 5.05x | -2.88x | -1.19x | 2.41x | -3.12x | -7.15x | -20.37x |
| Interest Paid | 55.3M | 0 | 179.92M | 173.84M | 75.85M | 58.77M | 211.28M | 151M | 138.85M |
| Taxes Paid | 19.99M | 0 | 65.83M | 50.21M | 75.5M | 52.01M | 23.99M | 44.61M | 68.61M |
Regulatory and litigation overhang
As reported in financial statements, Sotera Health's operating cash flow frequently decouples from net income, with OCF/NI ratios reaching as high as 7.21 in 2025Q2, suggesting that non-cash charges and litigation-related accruals significantly distort the company's true underlying cash-generative capacity for investors.
The wide variance between net income and operating cash flow indicates that reported earnings are not a reliable proxy for cash generation. Investors should monitor whether these accruals represent permanent legal liabilities or temporary accounting adjustments that may eventually normalize.
Based on quarterly data, SHC's free cash flow trajectory remains highly inconsistent, swinging from a negative $25.2 million in 2024Q1 to a peak of $59.2 million in 2024Q3, reflecting the lumpy nature of capital expenditures and the impact of ongoing regulatory compliance costs.
The inability to maintain a stable FCF margin suggests that the company's capital-intensive business model is susceptible to sudden cash outflows. This volatility complicates long-term valuation and highlights the sensitivity of cash flow to external operational and legal pressures.
According to recent SEC filings, SHC's capital intensity remains elevated, with CapEx/Revenue ratios peaking at 22.7% in 2024Q4, which underscores the significant ongoing investment required to maintain specialized sterilization infrastructure and comply with evolving environmental emission standards across its global facility footprint.
High capital intensity suggests that a substantial portion of operating cash flow is effectively committed to maintenance rather than growth. This structural requirement may limit the company's flexibility to pursue aggressive expansion or debt reduction without impacting its liquidity position.
As evidenced by the $46.1 million working capital outflow in 2026Q1, SHC's cash flow is frequently impacted by erratic changes in working capital, suggesting that the timing of collections and inventory management remains a volatile component of the company's overall liquidity profile.
The lack of consistent working capital management may indicate inefficiencies in the cash conversion cycle. Investors should investigate whether these swings are driven by seasonal demand patterns or underlying challenges in managing trade receivables and payables effectively.
Quick answers to the most common questions about buying SHC stock.
Sotera Health Company (SHC) generated $287.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sotera Health Company (SHC) generated $149.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sotera Health Company (SHC) spent $138.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.