v3.26.3
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Three Months Ended September 30, 2026
(thousands of U.S. dollars)SterigenicsNordionNelson LabsTotal
Net revenues(a)
$209,305 $55,024 $60,557 $324,886 
Segment expenses(b)
83,002 20,002 39,709 142,713 
Corporate expense allocation(c)
8,816 1,298 1,394 11,508 
Segment income
$117,487 $33,724 $19,454 $170,665 
Three Months Ended September 30, 2025
(thousands of U.S. dollars)SterigenicsNordionNelson LabsTotal
Net revenues(a)
$192,845 $62,805 $55,662 $311,312 
Segment expenses(b)
76,925 23,426 35,367 135,718 
Corporate expense allocation(c)
8,765 1,331 1,308 11,404 
Segment income
$107,155 $38,048 $18,987 $164,190 
Nine Months Ended September 30, 2026
(thousands of U.S. dollars)SterigenicsNordionNelson LabsTotal
Net revenues(a)
$607,011 $146,182 $173,113 $926,306 
Segment expenses(b)
247,535 56,724 115,159 419,418 
Corporate expense allocation(c)
27,450 4,043 4,338 35,831 
Segment income
$332,026 $85,415 $53,616 $471,057 
Nine Months Ended September 30, 2025
(thousands of U.S. dollars)SterigenicsNordionNelson LabsTotal
Net revenues(a)
$557,368 $137,793 $165,015 $860,176 
Segment expenses(b)
226,752 54,638 105,968 387,358 
Corporate expense allocation(c)
27,712 4,208 4,134 36,054 
Segment income
$302,904 $78,947 $54,913 $436,764 
(a)Revenues are reported net of intersegment sales. Our Nordion segment recognized $0.6 million and $3.1 million in revenues from sales to our Sterigenics segment for the three months ended September 30, 2026 and 2025, respectively, and $30.1 million and $23.3 million in revenues from sales to our Sterigenics segment for the nine months ended September 30, 2026 and 2025, respectively, that are 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, selling, general and administrative expenses (“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 nine months ended September 30, 2026 and 2025 were as follows:
Nine Months Ended September 30,
(thousands of U.S. dollars)20262025
Sterigenics$121,993 $64,871 
Nordion12,490 15,234 
Nelson Labs10,967 7,214 
Total capital expenditures$145,450 $87,319 
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated
A reconciliation of segment income to consolidated income before income taxes is as follows:
(thousands of U.S. dollars)Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Segment income$170,665 $164,190 $471,057 $436,764 
Less adjustments:
Interest expense, net34,122 39,147 103,272 120,674 
Depreciation and amortization(a)
32,450 28,290 96,522 103,972 
Share-based compensation(b)
7,791 8,047 29,616 23,465 
Loss on refinancing of debt(c)
— 1,087 936 1,167 
Gain on foreign currency and derivatives not designated as hedging instruments, net(d)
(2,101)(167)(5,747)(1,294)
Business optimization expenses(e)
2,387 3,098 5,267 7,575 
Professional services relating to EO sterilization facilities(f)
11,656 11,152 34,860 37,515 
Illinois EO litigation settlements(g)
— — — 64,943 
Accretion of asset retirement obligation(h)
628 601 1,935 1,738 
Consolidated income before taxes$83,732 $72,935 $204,396 $77,009 
(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 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.