Revenue growth remains cyclically volatile, reaching 10.0% in 2026Q1, while operating margins have fluctuated significantly from a low of 21.4% to a peak of 44.9% due to non-recurring charges.
| Sales/Revenue | 1.19B | 1.16B | 1.1B | 1.05B | 1B | 931.48M | 818.16M | 778.33M | 746.15M |
| Revenue Growth % | 7.44% | 5.74% | 4.88% | 4.54% | 7.75% | 13.85% | 5.12% | 4.31% | - |
| Cost of Goods Sold | 531.97M | 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 | 657.17M | 645.53M | 602.29M | 577.16M | 557M | 518.67M | 443.57M | 395.43M | 357.25M |
| Gross Margin % | 55.26% | 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 | 242.59M | 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 | 257.91M | 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 | 414.59M | 392.77M | 297.63M | 276.69M | 248.35M | 256.73M | 206.02M | 183.6M | 80.85M |
| Operating Margin % | 34.86% | 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 | 517.3M | 303.23M | 461.26M | 434.62M | 393.9M | 407.63M | 349.58M | 330.32M | 227.66M |
| EBITDA Margin % | 43.5% | 26.06% | 41.92% | 41.42% | 39.25% | 43.76% | 42.73% | 42.44% | 30.51% |
| EBITDA Growth % | 11.13% | -34.26% | 6.13% | 10.34% | -3.37% | 16.61% | 5.83% | 45.09% | - |
| D&A (Non-Cash Add-back) | 102.72M | 0 | 163.64M | 157.93M | 145.55M | 150.9M | 143.56M | 146.72M | 146.82M |
| EBIT | 356.03M | 303.23M | 278.56M | 248.91M | -162.97M | 249.91M | 176.4M | 156.81M | 167.55M |
| Net Interest Income | -114.93M | -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 | 149.59M | 155.72M | 164.69M | 142.88M | 80.14M | 74.19M | 215.26M | 157.73M | 143.33M |
| Other Income/Expense | -209.64M | -245.27M | -183.75M | -170.66M | -491.46M | -81.02M | -244.88M | -184.51M | -56.63M |
| Pretax Income | 204.94M | 147.51M | 113.87M | 106.03M | -243.11M | 175.72M | -38.86M | -916K | 24.22M |
| Pretax Margin % | 17.23% | 12.68% | 10.35% | 10.1% | -24.22% | 18.86% | -4.75% | -0.12% | 3.25% |
| Income Tax | 87.14M | 69.56M | 69.48M | 54.65M | -9.54M | 58.59M | -1.37M | 19.51M | 30.1M |
| Effective Tax Rate % | 42.52% | 47.16% | 61.01% | 51.54% | 3.92% | 33.35% | 3.52% | -2129.8% | 124.26% |
| Net Income | 117.8M | 77.95M | 44.4M | 51.38M | -233.57M | 116.88M | -38.62M | -20.85M | -5.87M |
| Net Margin % | 9.91% | 6.7% | 4.03% | 4.9% | -23.27% | 12.55% | -4.72% | -2.68% | -0.79% |
| Net Income Growth % | 374.7% | 75.57% | -13.58% | 122% | -299.83% | 402.67% | -85.21% | -255.2% | - |
| Net Income (Continuing) | 117.8M | 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) | 0.41 | 0.27 | 0.16 | 0.18 | -0.83 | 0.41 | -0.14 | -0.07 | -0.02 |
| EPS Growth % | 369.39% | 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 | 287.62M | 286.42M | 284.91M | 283.22M | 280.1M | 279.38M | 283.25M | 284.42M | 246.15M |
| Basic Shares Outstanding | 284.89M | 283.96M | 282.78M | 281.01M | 280.1M | 279.23M | 283.25M | 284.42M | 246.15M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Regulatory and Litigation Overhang
As indicated by the most recent quarterly data, SHC's revenue growth has fluctuated significantly, reaching a 10.0% year-over-year increase in 2026Q1, following a period of contraction in 2024Q4, suggesting that the company's top-line performance remains sensitive to both elective procedure volumes and broader macroeconomic demand shifts.
The inconsistent revenue trajectory highlights the company's reliance on steady medical device throughput, which appears susceptible to periodic disruptions. Investors should monitor whether the recent return to double-digit growth represents a sustainable recovery or merely a rebound from previous quarterly volatility.
According to the provided financial statements, SHC has maintained gross margins consistently above 50%, peaking at 58.0% in 2023Q4, which underscores the company's structural pricing power as a critical, non-discretionary service provider within the highly regulated medical device sterilization and testing supply chain.
The ability to sustain these margins despite regulatory pressures suggests that customers have limited alternatives for essential sterilization services. However, the slight compression observed in 2026Q1 to 52.5% warrants investigation into whether rising input costs or compliance-related expenses are beginning to erode this core profitability advantage.
Based on reported figures, SHC's operating margin has swung from a low of 21.4% in 2024Q1 to a high of 44.9% in 2025Q4, demonstrating that while the business possesses inherent operating leverage, it is frequently obscured by lumpy expenses and non-recurring charges that impact bottom-line efficiency.
The wide variance in operating margins suggests that management's ability to scale profitability is often hampered by the costs associated with legal settlements and regulatory compliance. Analysts should look past these headline fluctuations to determine if the underlying cost structure is becoming more efficient over time.
As reported in financial filings, SHC's net income has experienced extreme volatility, including a net loss of $13.3 million in 2025Q1, which appears largely driven by non-operating items and litigation-related accruals rather than a fundamental deterioration in the company's core service-based business model.
The disconnect between robust gross profit and erratic net income suggests that investors must adjust for one-time legal and regulatory charges to assess true earnings power. The reliance on these adjustments makes it difficult to gauge the company's normalized profitability and long-term cash generation potential.
Based on the provided income statement data, the persistent threat of tightening EPA standards for Ethylene Oxide emissions poses a significant risk to future profitability, as the company may be forced to incur substantial capital expenditures that could permanently compress operating margins and limit free cash flow.
Short-term margin improvements may be misleading if they do not account for the looming necessity of facility retrofitting. The market may be underestimating the long-term impact of these regulatory requirements on the company's ability to maintain its current competitive moat and pricing power.
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.