Sotera Health CoSHC
Sotera Health Co Segments Disclosure
Segment and Geographic 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, the Chairman and Chief Executive Officer of Sotera Health Company (“CODM”), evaluates performance and allocates resources based on 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.”
Sterigenics
Sterigenics provides outsourced terminal sterilization and irradiation services for the medical device, pharmaceutical, food safety and advanced applications markets using three major technologies: gamma irradiation, EO processing and E-beam 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.
Segment Revenue Concentrations
For the year ended December 31, 2025, two customers reported within the Nordion segment individually represented 10% or more of the segment’s total net revenues. These customers represented 34.8% and 11.0% of the total segment’s external net revenues for the year ended December 31, 2025. For the year ended December 31, 2024, one customer reported within the Nordion segment individually represented 10% or more of the segment’s total net revenues. This customer represented 34.3% of the total segment’s external net revenues for the year ended December 31, 2024. For the year ended December 31, 2023, two customers reported within the Nordion segment individually represented 10% or more of the segment’s total net revenues. These customers represented 34.9% and 13.9% of the total segment’s external net revenues for the year ended December 31, 2023.
Financial information for each of our segments is presented in the following table:
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| (thousands of U.S. dollars) | Sterigenics | Nordion | Nelson Labs | Total | |||||||||||||||||||
Net revenues(a) | $ | 755,780 | $ | 187,618 | $ | 220,219 | $ | 1,163,617 | |||||||||||||||
Segment expenses(b) | 306,621 | 74,533 | 141,477 | 522,631 | |||||||||||||||||||
Corporate expense allocation(c) | 36,266 | 5,507 | 5,412 | 47,185 | |||||||||||||||||||
Segment income | $ | 412,893 | $ | 107,578 | $ | 73,330 | $ | 593,801 | |||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| (thousands of U.S. dollars) | Sterigenics | Nordion | Nelson Labs | Total | |||||||||||||||||||
Net revenues(a) | $ | 697,853 | $ | 173,355 | $ | 229,233 | $ | 1,100,441 | |||||||||||||||
Segment expenses(b) | 286,434 | 67,087 | 155,088 | 508,609 | |||||||||||||||||||
Corporate expense allocation(c) | 33,248 | 5,048 | 4,962 | 43,258 | |||||||||||||||||||
Segment income | $ | 378,171 | $ | 101,220 | $ | 69,183 | $ | 548,574 | |||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| (thousands of U.S. dollars) | Sterigenics | Nordion | Nelson Labs | Total | |||||||||||||||||||
Net revenues(a) | $ | 667,130 | $ | 160,459 | $ | 221,699 | $ | 1,049,288 | |||||||||||||||
Segment expenses(b) | 275,424 | 59,399 | 148,209 | 483,032 | |||||||||||||||||||
Corporate expense allocation(c) | 29,494 | 4,382 | 4,351 | 38,227 | |||||||||||||||||||
Segment income | $ | 362,212 | $ | 96,678 | $ | 69,139 | $ | 528,029 | |||||||||||||||
(a)Revenues are reported net of intersegment sales. Our Nordion segment recognized $25.9 million, $58.7 million and $43.9 million in revenues from sales to our Sterigenics segment for the years ended December 31, 2025, 2024 and 2023, 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 expense (income) attributable to each segment.
(c)Corporate operating expenses that are directly incurred by a segment are reflected in each segment’s income. The remaining Corporate operating expenses for executive management, accounting, IT, 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 years ended December 31, 2025, 2024 and 2023 were as follows:
| Year Ended December 31, | |||||||||||||||||
| (thousands of U.S. dollars) | 2025 | 2024 | 2023 | ||||||||||||||
| Sterigenics | $ | 99,383 | $ | 131,258 | $ | 163,043 | |||||||||||
| Nordion | 21,832 | 34,928 | 38,351 | ||||||||||||||
| Nelson Labs | 16,803 | 12,884 | 13,581 | ||||||||||||||
| Total capital expenditures | $ | 138,018 | $ | 179,070 | $ | 214,975 | |||||||||||
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 (loss) before taxes is as follows:
(thousands of U.S. dollars) | |||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
Segment income | $ | 593,801 | $ | 548,574 | $ | 528,029 | |||||||||||
| Less adjustments: | |||||||||||||||||
Interest expense, net | 155,722 | 164,691 | 142,878 | ||||||||||||||
Depreciation and amortization(a) | 136,428 | 161,797 | 157,925 | ||||||||||||||
Share-based compensation(b) | 31,068 | 36,896 | 32,364 | ||||||||||||||
Loss on refinancing of debt(c) | 1,462 | 24,168 | — | ||||||||||||||
Loss (gain) on foreign currency and derivatives not designated as hedging instruments, net(d) | 58 | 2,448 | (1,552) | ||||||||||||||
Business optimization expenses(e) | 8,068 | 9,368 | 7,662 | ||||||||||||||
Professional services relating to EO sterilization facilities(f) | 46,225 | 32,694 | 45,312 | ||||||||||||||
Illinois EO litigation settlements(g) | 64,943 | — | — | ||||||||||||||
Georgia EO litigation settlement(h) | — | — | 35,000 | ||||||||||||||
Accretion of asset retirement obligation(i) | 2,321 | 2,638 | 2,413 | ||||||||||||||
Consolidated income before taxes | $ | 147,506 | $ | 113,874 | $ | 106,027 | |||||||||||
(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. See Note 15, “Share-Based Compensation” for further information.
(c)Represents the write-off of unamortized debt issuance costs and discounts, as well as certain other costs incurred related to the refinancing activity for the Term Loans, the Secured Notes 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 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. See Note 19, “Commitments and Contingencies.”
(h)Represents the cost to settle 79 pending EO claims in Georgia under a settlement entered into on December 21, 2023. See Note 19, “Commitments and Contingencies.”
(i)Represents non-cash accretion of 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.
Geographic Information
Net revenues for geographic area are reported by the country’s origin of the revenues.
(thousands of U.S. dollars) | |||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 629,543 | $ | 616,684 | $ | 590,967 | |||||||||||
| Canada | 221,948 | 208,886 | 192,050 | ||||||||||||||
| Europe | 232,179 | 196,011 | 187,542 | ||||||||||||||
| Other | 79,947 | 78,860 | 78,729 | ||||||||||||||
Total | $ | 1,163,617 | $ | 1,100,441 | $ | 1,049,288 | |||||||||||
The ‘Other’ category above is primarily comprised of net revenues from Asian and Latin American countries that individually represent 2% or less of our total net revenues.
Long-lived assets are based on physical locations and are comprised of the net book value of property, plant, and equipment.
(thousands of U.S. dollars) | |||||||||||
| As of December 31, | 2025 | 2024 | |||||||||
| United States | $ | 620,410 | $ | 587,707 | |||||||
| Canada | 212,350 | 188,498 | |||||||||
| Europe | 204,453 | 174,227 | |||||||||
| Other | 93,351 | 86,460 | |||||||||
Total | $ | 1,130,564 | $ | 1,036,892 | |||||||
The ‘Other’ category above is primarily comprised of long-lived assets in Asian and Latin American countries that individually represent 3% or less of our total long-lived assets.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.