v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We identify our operating segments based on the way we manage, evaluate and internally report our business activities for purposes of allocating resources and assessing performance. We have three reportable segments: Sterigenics, Nordion and Nelson Labs. We have determined our reportable segments based upon an assessment of organizational structure, service types, and internally prepared financial statements. Our chief operating decision-maker (“CODM”), the Chief Executive Officer of Sotera Health Company, evaluates performance and allocates resources based on net revenues and segment income after the elimination of intercompany activities. The CODM uses these performance measures to inform decisions about the operations of the business and dedication of resources to selling and general administrative matters pertinent to the Company. The accounting policies of our reportable segments are the same as those described in Note 1, “Significant Accounting Policies,” of the Company’s annual consolidated financial statements and accompanying notes in our 2025 10-K.
Sterigenics
Sterigenics provides outsourced terminal sterilization and irradiation services for the medical device, pharmaceutical, food safety and advanced applications markets using four major technologies: gamma irradiation, EO processing, E-beam and X-Ray irradiation.
Nordion
Nordion is a leading global provider of Co-60 used in the sterilization and irradiation processes for the medical device, pharmaceutical, food safety, and high-performance materials industries, as well as in the treatment of cancer. In addition, Nordion is a leading global provider of gamma irradiation systems.
Nelson Labs
Nelson Labs provides outsourced microbiological and analytical chemistry testing and advisory services for the medical device and pharmaceutical industries.
Three Months Ended June 30, 2026
(thousands of U.S. dollars)SterigenicsNordionNelson LabsTotal
Net revenues(a)
$211,571 $49,149 $60,655 $321,375 
Segment expenses(b)
83,507 19,704 39,450 142,661 
Corporate expense allocation(c)
9,939 1,465 1,571 12,975 
Segment income
$118,125 $27,980 $19,634 $165,739 
Six Months Ended June 30, 2026
(thousands of U.S. dollars)SterigenicsNordionNelson LabsTotal
Net revenues(a)
$397,706 $91,158 $112,556 $601,420 
Segment expenses(b)
164,533 36,722 75,450 276,705 
Corporate expense allocation(c)
18,634 2,745 2,944 24,323 
Segment income
$214,539 $51,691 $34,162 $300,392 
Three Months Ended June 30, 2025
(thousands of U.S. dollars)SterigenicsNordionNelson LabsTotal
Net revenues(a)
$194,839 $42,431 $57,071 $294,341 
Segment expenses(b)
76,973 17,417 36,049 130,439 
Corporate expense allocation(c)
10,121 1,537 1,509 13,167 
Segment income
$107,745 $23,477 $19,513 $150,735 
Six Months Ended June 30, 2025
(thousands of U.S. dollars)SterigenicsNordionNelson LabsTotal
Net revenues(a)
$364,523 $74,988 $109,353 $548,864 
Segment expenses(b)
149,827 31,212 70,601 251,640 
Corporate expense allocation(c)
18,947 2,877 2,826 24,650 
Segment income
$195,749 $40,899 $35,926 $272,574 
(a)Revenues are reported net of intersegment sales. Our Nordion segment recognized $10.3 million and $10.5 million in revenues from sales to our Sterigenics segment for the three months ended June 30, 2026 and 2025, respectively, and $29.5 million and $20.3 million in revenues from sales to our Sterigenics segment for the six months ended June 30, 2026 and 2025, respectively, that is not reflected in net revenues in the table above. Intersegment sales for Sterigenics and Nelson Labs are immaterial for all periods presented.
(b)Segment expenses are comprised of direct materials, labor, utilities, other costs of revenues, SG&A and other non-operating expenses (income) attributable to each segment.
(c)Corporate expenses that are directly incurred by a segment are reflected in each segment’s income. The remaining Corporate expenses for executive management, accounting, information technology, legal, human resources, treasury, investor relations, corporate development, tax, purchasing, and marketing not directly incurred by a segment are allocated to the segments primarily based on total net revenue.
Capital expenditures by segment for the six months ended June 30, 2026 and 2025 were as follows:
Six Months Ended June 30,
(thousands of U.S. dollars)20262025
Sterigenics$77,413 $36,501 
Nordion7,660 10,058 
Nelson Labs7,542 4,588 
Total capital expenditures$92,615 $51,147 
Total assets and depreciation and amortization expense by segment are not readily available and are not reported separately to the CODM.
A reconciliation of segment income to consolidated income before income taxes is as follows:
(thousands of U.S. dollars)Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Segment income$165,739 $150,735 $300,392 $272,574 
Less adjustments:
Interest expense, net34,405 40,651 69,150 81,527 
Depreciation and amortization(a)
33,328 34,948 64,072 75,682 
Share-based compensation(b)
7,383 8,149 21,825 15,418 
Loss on refinancing of debt(c)
936 80 936 80 
Gain on foreign currency and derivatives not designated as hedging instruments, net(d)
(4,270)(3,018)(3,646)(1,127)
Business optimization expenses(e)
1,923 2,430 2,880 4,477 
Professional services relating to EO sterilization facilities(f)
13,349 14,035 23,204 26,363 
Illinois EO litigation settlements(g)
— 34,000 — 64,943 
Accretion of asset retirement obligation(h)
634 563 1,307 1,137 
Consolidated income before taxes$78,051 $18,897 $120,664 $4,074 
(a)Includes depreciation of Co-60 held at gamma irradiation sites and excludes accelerated depreciation associated with business optimization activities.
(b)Represents share-based compensation expense related to employees and Non-Employee Directors.
(c)Represents the write-off of unamortized debt issuance costs and discounts, as well as certain other costs incurred related to the Refinancing Term Loans and the Revolving Credit Facility.
(d)Represents the effects of (i) fluctuations in foreign currency exchange rates and (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at Nordion.
(e)Represents (i) certain costs related to divestitures, acquisitions and the integration of acquisitions, (ii) professional fees and other costs associated with business optimization, cost saving and other process enhancement projects, and (iii) legal, consulting, and other fees associated with the secondary offerings and shareholder engagement.
(f)Represents litigation and other professional fees associated with our EO sterilization facilities.
(g)Represents (i) the cost to settle 97 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on April 3, 2025 and (ii) the cost to settle 129 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sheet entered into on July 23, 2025.
(h)Represents non-cash accretion of asset retirement obligations (“ARO”) related to Co-60 gamma and EO processing facilities, which are based on estimated site remediation costs for any future decommissioning of these facilities and are accreted over the life of the asset.