Sotera Health reported mixed financial results for the fourth quarter and full-year 2024, alongside its 2025 outlook.

For Q4 2024, net revenues declined by 6.5% to $290 million, primarily due to anticipated lower revenue at Nordion caused by the timing of cobalt harvest schedules. Net income fell sharply to $12 million ($0.04 per diluted share), compared to $39 million ($0.14 per share) in Q4 2023. Adjusted EBITDA dropped 8.3% to $153 million, while adjusted EPS decreased by $0.02 to $0.21.

For the full year 2024, net revenues increased 4.9% to $1.10 billion, and net income declined slightly to $44 million ($0.16 per share) from $51 million ($0.18 per share) in 2023. Adjusted EBITDA grew by 3.9% to $549 million, while adjusted EPS decreased by $0.02 to $0.70. Revenue growth was driven by strong performances in the Sterigenics and Nelson Labs segments, partially offset by fluctuations in foreign currency and supply challenges in Nordion.

Sterigenics, Sotera’s largest segment, reported a 4.6% increase in full-year revenues to $698 million, driven by favorable pricing and higher demand. Nordion, which provides cobalt-60 for radiation-based sterilization, posted an 8.0% increase in annual revenues to $173 million, despite a sharp Q4 decline due to timing issues in supply harvest schedules. Nelson Labs, the company’s testing and advisory business, grew 3.4% in 2024 to $229 million, supported by strong demand for its services.

Sotera Health ended the year with $277 million in cash and $2.3 billion in total debt, maintaining a net leverage ratio of 3.7x.

For 2025, the company expects net revenue growth of 4.0% to 6.0% (constant currency) and adjusted EBITDA growth of 4.5% to 6.5%. However, foreign currency exchange rates are expected to be a headwind, reducing revenue and adjusted EBITDA by approximately 2.25% and 2.50%, respectively. Adjusted EPS is projected between $0.70 and $0.76, while capital expenditures are estimated at $190 million to $210 million.

Management emphasized continued customer satisfaction, strategic facility expansions, and improved governance, with Chris Simon (CEO of Haemonetics) joining the board and Vince Petrella appointed as lead independent director.

Sotera Health will discuss its results in a conference call today at 9:00 a.m. ET, with additional investor events planned in March.