Revenue recovered from $254.5M in Q1 2025 to $324.9M in Q3 2026 and gross margin held between 51.4% and 57.0%, though the spike to a 44.9% operating margin in Q4 2025 appears to be an outlier that may not be sustainable.
Sotera Health Company (SHC) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 1.23B | 1.16B | 1.1B | 1.05B | 1B | 931.48M | 818.16M | 778.33M | 746.15M |
| Revenue Growth % | 6.9% | 5.74% | 4.88% | 4.54% | 7.75% | 13.85% | 5.12% | 4.31% | - |
| Cost of Goods Sold | 561.04M | 518.08M | 498.15M | 472.13M | 446.68M | 412.81M | 374.59M | 382.9M | 388.9M |
| COGS % of Revenue | - | 44.52% | 45.27% | 45% | 44.5% | 44.32% | 45.78% | 49.19% | 52.12% |
| Gross Profit | 668.71M | 645.53M | 602.29M | 577.16M | 557M | 518.67M | 443.57M | 395.43M | 357.25M |
| Gross Margin % | 54.38% | 55.48% | 54.73% | 55% | 55.5% | 55.68% | 54.22% | 50.81% | 47.88% |
| Gross Profit Growth % | - | 7.18% | 4.36% | 3.62% | 7.39% | 16.93% | 12.17% | 10.69% | - |
| Operating Expenses | 225.51M | 252.76M | 304.67M | 300.47M | 308.65M | 261.94M | 237.55M | 211.83M | 191.34M |
| OpEx % of Revenue | - | 21.72% | 27.69% | 28.64% | 30.75% | 28.12% | 29.04% | 27.22% | 25.64% |
| Selling, General & Admin | 247.21M | 252.76M | 242.63M | 236.67M | 245.71M | 198.16M | 178.53M | 147.48M | 133.36M |
| SG&A % of Revenue | - | 21.72% | 22.05% | 22.55% | 24.48% | 21.27% | 21.82% | 18.95% | 17.87% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 62.04M | 63.8M | 62.94M | 63.78M | 59.03M | 64.35M | 143.04M |
| Operating Income | 443.2M | 392.77M | 297.63M | 276.69M | 248.35M | 256.73M | 206.02M | 183.6M | 80.85M |
| Operating Margin % | 36.04% | 33.75% | 27.05% | 26.37% | 24.74% | 27.56% | 25.18% | 23.59% | 10.84% |
| Operating Income Growth % | - | 31.97% | 7.57% | 11.41% | -3.27% | 24.62% | 12.21% | 127.09% | - |
| EBITDA | 572.38M | 531.8M | 461.26M | 434.62M | 393.9M | 407.63M | 349.58M | 330.32M | 227.66M |
| EBITDA Margin % | 46.54% | 45.7% | 41.92% | 41.42% | 39.25% | 43.76% | 42.73% | 42.44% | 30.51% |
| EBITDA Growth % | 17.22% | 15.29% | 6.13% | 10.34% | -3.37% | 16.61% | 5.83% | 45.09% | - |
| D&A (Non-Cash Add-back) | 129.19M | 139.03M | 163.64M | 157.93M | 145.55M | 150.9M | 143.56M | 146.72M | 146.82M |
| EBIT | 413.21M | 303.23M | 278.56M | 248.91M | -162.97M | 249.91M | 176.4M | 156.81M | 167.55M |
| Net Interest Income | -138.33M | -155.72M | -164.69M | -142.88M | -80.14M | -74.19M | -215.26M | -157.73M | -143.33M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 138.32M | 155.72M | 164.69M | 142.88M | 80.14M | 74.19M | 215.26M | 157.73M | 143.33M |
| Other Income/Expense | -168.3M | -245.27M | -183.75M | -170.66M | -491.46M | -81.02M | -244.88M | -184.51M | -56.63M |
| Pretax Income | 274.89M | 147.51M | 113.87M | 106.03M | -243.11M | 175.72M | -38.86M | -916K | 24.22M |
| Pretax Margin % | 22.35% | 12.68% | 10.35% | 10.1% | -24.22% | 18.86% | -4.75% | -0.12% | 3.25% |
| Income Tax | 101.42M | 69.56M | 69.48M | 54.65M | -9.54M | 58.59M | -1.37M | 19.51M | 30.1M |
| Effective Tax Rate % | 36.9% | 47.16% | 61.01% | 51.54% | 3.92% | 33.35% | 3.52% | -2129.8% | 124.26% |
| Net Income | 173.47M | 77.95M | 44.4M | 51.38M | -233.57M | 116.88M | -38.62M | -20.85M | -5.87M |
| Net Margin % | 14.11% | 6.7% | 4.03% | 4.9% | -23.27% | 12.55% | -4.72% | -2.68% | -0.79% |
| Net Income Growth % | 212.98% | 75.57% | -13.58% | 122% | -299.83% | 402.67% | -85.21% | -255.2% | - |
| Net Income (Continuing) | 173.47M | 77.95M | 44.4M | 51.38M | -233.57M | 117.12M | -37.49M | -20.43M | -5.88M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 2.27M | 1.44M | 1.13M |
| EPS (Diluted) | 0.60 | 0.27 | 0.16 | 0.18 | -0.83 | 0.41 | -0.14 | -0.07 | -0.02 |
| EPS Growth % | 209.56% | 68.75% | -11.11% | 121.69% | -302.44% | 392.86% | -94.99% | -201.68% | - |
| EPS (Basic) | - | 0.27 | 0.16 | 0.18 | -0.83 | 0.41 | -0.14 | -0.07 | -0.02 |
| Diluted Shares Outstanding | 289.22M | 286.42M | 284.91M | 283.22M | 280.1M | 279.38M | 283.25M | 284.42M | 246.15M |
| Basic Shares Outstanding | 286M | 283.96M | 282.78M | 281.01M | 280.1M | 279.23M | 283.25M | 284.42M | 246.15M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying SHC stock.
For fiscal year 2025, Sotera Health Company (SHC) reported total revenue of $1.16B. This represents a 55.9% increase compared to $746.1M in 2018.
Sotera Health Company (SHC) is profitable, generating $77.9M in net income for the fiscal year ending 2025 with a net profit margin of 6.7%.
Sotera Health Company (SHC) reported an operating income of $392.8M, resulting in an operating profit margin of 33.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Sotera Health Company (SHC) generated $645.5M in gross profit for the year, representing a gross profit margin of 55.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
EO regulatory and litigation exposure
Metrics are mathematically derived from official filings.
Revenue Re-accelerating After Mid-2025 Trough
Based on reported quarterly figures, SHC's revenue rose from $254.5M in Q1 2025 to $324.9M in Q3 2026, though year-over-year growth has moderated to 4.4% in the latest quarter after 9.2% and 10.0% in prior periods.
The sequential climb suggests volume recovery in the Sterigenics and Nelson Labs businesses following the 2025 softness, but the decelerating year-over-year rate in Q3 2026 indicates the rebound may be maturing. Investors should monitor whether the 4.4% print reflects a genuine slowdown in elective procedure volumes or simply tougher comparisons, as the answer materially changes the durability assessment.
Gross Margin Stability Above Peer Median
As reported in the income statement, SHC's gross margin held between 51.4% and 57.0% over the ten quarters, with the most recent quarter at 55.6%, a level that compares favorably with peers such as ICLR at 26.4% and CRL at 30.5%.
The consistency of gross margin across the cycle is consistent with a non-discretionary, regulation-mandated service that carries meaningful pricing power. The 55.6% level may reflect a toll-gate position within the medical supply chain, though the Q1 2026 dip to 51.4% shows that input costs or mix can still move the figure by several points within a single quarter.
Operating Leverage Tracking Revenue Growth
Based on reported figures, SHC's operating margin expanded from 22.4% in Q1 2025 to 35.0% in Q3 2026, with operating income rising to $113.6M while SG&A remained roughly flat near $57M to $68M per quarter.
Operating income compounding faster than revenue points to fixed-cost absorption in the facility base and disciplined overhead control. The operating margin of 35.0% in the latest quarter implies that incremental revenue is converting at a high rate, though investors should note that the Q4 2025 peak of 44.9% appears to have been inflated by one-time items and is not a clean run-rate.
Net Income Volatility Obscures Underlying Earnings
According to quarterly filings, SHC's net margin ranged from a negative 5.2% in Q1 2025 to 18.0% in Q3 2026, while the gap between operating margin and net margin remains wide, at roughly 17 points in the latest quarter.
The persistent spread between operating and net income likely reflects interest expense on a leveraged capital structure, intangible amortization from prior private equity ownership, and litigation-related accruals that create lumpy reported earnings. Analysts should adjust for these items before drawing conclusions about cash-generative earnings power, as reported net income alone understates or overstates the underlying business depending on the period.
Litigation and Compliance Costs Could Compress Margins
Based on the reported figures, SHC's Q4 2025 operating margin of 44.9% represents an outlier against a ten-quarter range of roughly 22% to 35% in other periods, raising questions about whether the peak reflects sustainable economics or temporary benefits.
A bear case would argue that the elevated Q4 2025 margin reflects timing benefits that may reverse as EPA NESHAP tightening requires capital outlays and emission control upgrades. With a reported debt-to-equity ratio of 3.75, limited balance sheet flexibility may constrain the company's ability to absorb settlement payments or compliance spending without pressure on earnings. This warrants further investigation into the accrual and reserve assumptions behind recent quarters.