Slides
Page 1
Sotera Health Safeguarding Global HealthⓇ Second - Quarter and Year - to - Date 2026 Earnings Results August 6 , 2026 © 2026 Sotera Health Company | All Rights Reserved .
Page 2
© 2026 Sotera Health Company | All Rights Reserved. Cautionary Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures 1 Unless expressly indicated or the context requires otherwise, the terms “Sotera Health,” “Company,” “we,” “us,” and “our” in this presentation refer to Sotera Health Company, a Delaware corporation, and, where appropriate, its subsidiaries on a consolidated basis. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and reflects management’s expectations about future events and the Company’s operating plans and performance and speak only as of the date hereof. Forward-looking statements present our current forecasts and estimates of future events. These statements do not strictly relate to historical or current results and can be identified by words such as “anticipate,” “appear,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “seek,” “should,” “strategy,” “will” and other terms of similar meaning or import in connection with any discussion of future operating, financial or other performance. These forward-looking statements are subject to risks, uncertainties and other factors and actual results may differ materially from those results projected in the statements. These forward-looking statements are subject to various risks, uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. These risks and uncertainties include, but are not limited to, a disruption in the availability or supply of, or increases in the price of, Ethylene Oxide (“EO”), Cobalt-60 (“Co-60”) or our other direct materials, services and supplies, including as a result of geopolitical instability and/or sanctions against Russia by the United States, Canada, the United Kingdom and/or the European Union, or sanctions by Russia against those countries; fluctuations in foreign currency exchange rates; evolving changes in environmental, health and safety regulations; health and safety risks associated with the use, storage, transportation and disposal of potentially hazardous materials such as EO and Co-60; the impact and outcome of current and future legal proceedings and liability claims, including litigation related to the use, emissions and releases of EO from our current and former EO sterilization facilities, and the possibility that additional claims will be made in the future; allegations of our failure to properly perform services and potential product liability claims, recalls, penalties and reputational harm; compliance with the extensive regulatory requirements to which we are subject, the related costs, and any failures to receive or maintain, or delays in receiving, required clearances or approvals; adverse changes in industry trends; competition we face; market conditions and changes, including inflationary trends and the impact of tariffs, that impact our long-term supply contracts with variable price clauses and increase our cost of revenues; business continuity hazards, including supply chain disruptions, federal government shutdowns, and other risks associated with our operations; the risks of doing business internationally, including global and regional economic and political instability and compliance with various applicable laws and potentially inconsistent laws and regulations in multiple jurisdictions; our ability to increase capacity at existing facilities, build new facilities in a timely and cost- effective manner and renew leases for our leased facilities; our ability to attract and retain qualified employees; severe health events or environmental events; cybersecurity incidents, unauthorized data disclosures, and our dependence on information technology systems; the risks associated with the introduction of artificial intelligence technology; an inability to pursue strategic transactions, find suitable acquisition targets, or integrate strategic acquisitions into our business successfully; our ability to maintain effective internal control over financial reporting; our reliance on intellectual property rights to maintain our competitive position and the risk of claims from third parties that we have infringed or misappropriated, or are infringing or misappropriating, their intellectual property rights; our ability to comply with rapidly evolving data privacy and security laws and regulations in various jurisdictions and any ineffective compliance efforts with such laws and regulations; our ability to generate profitability in future periods; impairment charges on our goodwill and other intangible assets with indefinite lives, as well as other long- lived assets and intangible assets with definite lives; the effects of unionization efforts and labor regulations in countries in which we operate; adverse changes to our tax positions in U.S. or non-U.S. jurisdictions or the interpretation and application of U.S. tax legislation or other changes in U.S. or non-U.S. taxation of our operations; and our significant degree of leverage and how this leverage could adversely affect our ability to raise additional capital, limit our ability to react to challenges facing our Company or broader changes in our industry or the economy, limit our flexibility in operating our business through restrictions contained in our debt agreements and/or prevent us from meeting our obligations under our existing and future agreements governing our indebtedness. For additional discussion of these risks and uncertainties, please refer to the Company’s filings with the Securities and Exchange Commission, such as its Annual Report on Form 10-K and quarterly reports. We do not undertake any obligation to publicly update or revise these forward-looking statements, except as otherwise required by law. This presentation includes Adjusted EBITDA, Adjusted EBITDA Margin, Tax Rate Applicable to Adjusted Net Income, Adjusted Net Income, Adjusted EPS, Net Debt and Net Leverage Ratio, which are unaudited financial measures that are not based on any standardized methodology prescribed by GAAP . Adjusted EBITDA, Adjusted EBITDA Margin, Tax Rate Applicable to Adjusted Net Income, Adjusted Net Income, Adjusted EPS, Net Debt and Net Leverage Ratio may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Adjusted EBITDA, Adjusted EBITDA Margin, Tax Rate Applicable to Adjusted Net Income, Adjusted Net Income, Adjusted EPS, Net Debt and Net Leverage Ratio should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP . This presentation refers to, and in other communications with investors the Company may refer to, net sales or revenues or other historical financial information on a “constant currency” basis, which is a non-GAAP financial measure defined in the Appendix to this presentation. We use these non-GAAP financial measures as the principal measures of our operating performance. Management believes these measures allow management to more effectively evaluate our operating performance and compare the results of our operations from period to period without the impact of certain non-cash items and non-routine items that we do not expect to continue at the same level in the future and other items that are not core to our operations. We believe that these measures are useful to our investors because they provide a more complete understanding of the factors and trends affecting our business than could be obtained without these measures and their disclosure. In addition, we believe these measures will assist investors in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented. Our management also uses these measurements in their financial analysis and operational decision-making and Adjusted EBITDA serves as the key metric for the attainment of our primary annual incentive program. These measures may be calculated differently from, and therefore may not be comparable to, a similarly titled measure used by other companies. The Company does not provide a reconciliation for non-GAAP financial measures on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort. The Company cannot reconcile its expected Adjusted EBITDA, Tax Rate Applicable to Adjusted Net Income, Adjusted Net Income and Adjusted EPS without unreasonable effort because certain items that impact net income, earnings per share and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time, including uncertainties caused by changes to the regulatory landscape, restructuring items and certain fair value measurements, all of which are potential adjustments for future earnings. The outlook provided herein contains a number of assumptions, including, among others, the Company’s current expectations regarding supply chain continuity, particularly for the supply of EO and C-60, and the impact of inflationary trends including their impact on energy prices and the supply of labor. Our outlook is based on current plans and expectations and is subject to several known and unknown risks and uncertainties, including those set forth below under “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K, and in the Company’s other SEC filings. In addition, projections, assumptions and estimates of the Company’s future performance and the future performance of the markets in which the Company operates are necessarily subject to a high degree of uncertainty and risk. The Sotera Health name, our logo and other trademarks mentioned in this presentation are the property of their respective owners. All Company data and financial information included in this presentation is as of June 30, 2026, unless otherwise stated.
Page 3
© 2026 Sotera Health Company | All Rights Reserved. Speakers 2 Alton Shader Chief Executive Officer Jonathan M. Lyons Senior Vice President and Chief Financial Officer Michael B. Petras, Jr. Executive Chairman of the Board
Page 4
© 2026 Sotera Health Company | All Rights Reserved. 3 ALTON SHADER CEO “We delivered another strong quarter, with high-single- digit growth, reflecting focused execution across all three of our business units. Since joining the Company, I have been impressed by the dedication of our teams, the trust our customers place in us and the industry-leading expertise that differentiates our business in highly regulated healthcare markets. Together, these strengths position us well to deliver consistent and reliable growth.” Second-Quarter Performance
Page 5
© 2026 Sotera Health Company | All Rights Reserved. Q2 2026 Highlights (1) 4 (1) All comparisons are against the second quarter of 2025. (2) This is a non-GAAP financial measure. Please refer to non-GAAP Financial Measures provided in the Appendix. (3) CC = constant currency. 9.2%; 8.0% CC (2)(3) 10.0%; 8.7% CC 36bps to 51.6% 30% to $0.26 Delivered strong, high-single-digit top- and bottom-line CC growth Expanded Adjusted EBITDA margin to nearly 52% Sterigenics: 7.0% CC revenue growth; segment income margin improvement of 53 basis points Nordion: 16.7% CC revenue growth; segment income margin improvement of 160 basis points Nelson Labs: 5.4% CC revenue growth; sequential segment income margin improvement of 438 basis points Net cash provided by operating activities of $88 million Net leverage Ratio (2) of 3.0x; achieved long-term target range of 2.0x to 3.0x Available liquidity of approximately $950 million Repriced term loan, saving ~$3.5 million of annual interest expense Completed final private equity sponsor secondary offering, with no remaining sponsor ownership Net Revenues Adjusted EBITDA (2) Adjusted EBITDA Margin (2) Adjusted EPS (2) Performance Other Activities Guidance Raised full-year 2026 CC revenue growth outlook to 5.25% - 6.75% Raised full-year 2026 CC Adjusted EBITDA growth outlook to 5.75% - 7.25%
Page 6
© 2026 Sotera Health Company | All Rights Reserved. $273 $300 2025 2026 $151 $166 2025 2026 +10.0% / +8.7% CC +10.2% / +7.9% CC $0.20 $0.26 2025 2026 +30% $0.33 $0.44 2025 2026 +33% Revenue Adjusted EBITDA $ In millions, except Adjusted EPS and Adjusted EBITDA margin Consolidated Financial Performance 5 Adjusted EPS 51.2% 51.6% YTD 49.7% 49.9% $294 $321 2025 2026 $549 $601 2025 2026 +9.2% / +8.0% CC +9.6% / +7.4% CC 5 +9.6% / +7.4% CC Second Quarter
Page 7
© 2026 Sotera Health Company | All Rights Reserved. $195 $212 $108 $118 2025 2026Revenue Segment Income Sterigenics Financial Performance 6 $ In millions Second Quarter YTD Net Revenues +8.6% / +7.0% CC Segment Income +9.6% / +7.9% CC Net Revenues +9.1% / +6.6% CC Segment Income +9.6% / +7.0% CC Second-quarter revenue growth was driven by favorable pricing, improved volume/mix, and a foreign currency benefit. Segment income and segment income margin also benefited from these factors, partially offset by inflation. $365 $398 $196 $215 2025 2026Revenue Segment Income 55.3% 55.8% 53.7% 53.9%
Page 8
© 2026 Sotera Health Company | All Rights Reserved. $75 $91 $41 $52 2025 2026Revenue Segment Income $42 $49 $23 $28 2025 2026Revenue Segment Income Nordion Financial Performance 7 $ In millions Second Quarter YTD Net Revenues +15.8% / +16.7% CC Segment Income +19.2% / +20.6% CC Net Revenues +21.6% / +20.8% CC Segment Income +26.4% / +26.0% CC Second-quarter revenue growth was driven by improved volume/mix, primarily due to the timing of Cobalt-60 harvests and favorable pricing, partially offset by foreign currency. Segment income and segment income margin also benefited from these factors, partially offset by inflation. 55.3% 56.9% 54.5% 56.7%
Page 9
© 2026 Sotera Health Company | All Rights Reserved. $109 $113 $36 $34 2025 2026Revenue Segment Income $57 $61 $20 $20 2025 2026Revenue Segment Income Nelson Labs Financial Performance 8 $ In millions Second Quarter YTD Net Revenues +6.3% / +5.4% CC Segment Income +0.6% / -0.6% CC Net Revenues +2.9% / +0.9% CC Segment Income -4.9% / -7.4% CC Second-quarter revenue and segment income growth were driven by favorable pricing, improved volume/mix, and a foreign currency benefit. Segment income margin was impacted by higher costs. 34.2% 32.4% 32.9% 30.4%
Page 10
© 2026 Sotera Health Company | All Rights Reserved. Liquidity, Net Leverage and Investments 9 $31 $46 Q2 2025 Q2 2026 3.7x 3.2x 3.0x 12/31/24 12/31/25 6/30/26 $277 $345 $357 $410 $592 $592 12/31/24 12/31/25 6/30/26 Unrestricted Cash Revolver Availability • Continued strong cash and liquidity position • No outstanding borrowings on revolving line of credit • Achieved long-term target range of 2.0x to 3.0x • Sterigenics: 2 capacity expansions; EO facility investments • Nordion: Cobalt-60 development projects • Nelson Labs: Cleanroom and embedded lab expansions $687 $ In millions Liquidity (1) Net Leverage Ratio CapEx $937 $948 (1) Amounts may not sum due to rounding
Page 11
© 2026 Sotera Health Company | All Rights Reserved. 10 2026 Outlook
Page 12
© 2026 Sotera Health Company | All Rights Reserved. Raising Full-year 2026 Outlook 11 (1) This is a non-GAAP financial measure. Please refer to non-GAAP Financial Measures provided in the Appendix. May 5th Outlook August 6th Outlook Net Revenues $1,233M to $1,251M +6.00% to 7.50% +5.00% to 6.50% CC $1,236M to $1,254M +6.25% to 7.75% +5.25% to 6.75% CC Adjusted EBITDA $632M to $641M +6.50% to 8.00% +5.50% to 7.00% CC $634M to $643M +6.75% to 8.25% +5.75% to 7.25% CC Interest Expense $135M to $145M $135M to $142M Tax Rate Applicable to Adjusted Net Income (1) 27.0% to 29.0% 27.0% to 28.0% Adjusted EPS $0.93 to $1.01 $0.95 to $1.01 Weighted Average Diluted Shares 289M to 291M 289M to 291M Capital Expenditures $175M to $225M $200M to $225M
Page 13
© 2026 Sotera Health Company | All Rights Reserved. Additional 2026 Outlook Items (1) 12 • Expected full-year foreign exchange benefit of 100 basis points; Foreign currency expected to be a slight headwind in Q3 • Total company pricing within our long-term 3% - 4% range • Net Leverage Ratio expected to improve • Outlook assumes no M&A activity Outlook Highlights • Sterigenics: Full-year CC revenue growth in the mid- to high-single digits • Nordion: Full-year CC revenue growth in the low to mid-single digits; Second-half revenue split approximately evenly between Q3 and Q4 • Nelson Labs: Full-year CC revenue growth in low-single digits; Segment income margins expected to be in the low-to-mid 30% range Business Outlook (1) Unless otherwise indicated, guidance commentary reflects expected changes versus full-year 2025 results.
Page 14
© 2026 Sotera Health Company | All Rights Reserved. Corporate Overview 13
Page 15
© 2026 Sotera Health Company | All Rights Reserved. Safeguarding Global Health® 14 Strong cash flow generation and disciplined capital allocation Customers include 40+ of top 50 medical device companies, and 9 of top 10 pharmaceutical companies (1) 70%+ of revenue tied to multi-year contracts (1) 70% of Sterigenics and Nelson Labs combined revenue comes from shared customers (1) Customer relationships average 15+ years across top 25 customers (1) Global customer base in over 50 countries Over 3,000 employees Provide end-to-end solutions for our customers in highly-regulated markets Integrated global network of 63 facilities located in 13 countries (1) For the year ended December 31, 2025.
Page 16
© 2026 Sotera Health Company | All Rights Reserved. Our Crucial Role in the Healthcare Supply Chain 15 R&D, materials and packaging optimization Pre-FDA filing tests and clinical trials Product manufacturing Sterilization Quality control tests Distribution ✓ ✓ ✓ ✓✓ ✓ ✓✓✓ ✓✓✓✓
Page 17
© 2026 Sotera Health Company | All Rights Reserved. 54% 41% 5% Routine Validation Expert Advisory Services Three Integrated Businesses Supporting the Global Healthcare Supply Chain 16 Providing customers end-to-end solutions across the Cobalt-60 supply chain Microbiology and analytical chemistry services include 900+ tests (1) For the year ended December 31, 2025. (2) Based on revenue for the year ended December 31, 2025. 2,000+ Customers (1) • Over 40 of the 50 top medical device companies(1) • 9 of the 10 top pharmaceutical companies(1) 49 facilities located across 13 countries and 4 continents ~3,000 customers (1) trust our quality and reliability to help ensure lifesaving products are safe Global leader in comprehensive sterilization solutions 48% 40% 12% Gamma EO E-beam Sterigenics Technology Mix (2) World’s Largest Provider of Cobalt-60 sealed sources Global leader in microbiological and analytical lab testing One of a Kind, CNSC licensed, Class 1B nuclear processing facility Providing 2,000+ customers (1) peace of mind through quality, reliability, and safety Nelson Labs Service Mix (2) ~30% ~70% Cobalt-60 sterilization All other technologies Global Sterilization Technology Mix for Single-Use Medical Devices
Page 18
© 2026 Sotera Health Company | All Rights Reserved. 17 Excellence in serving our customers with end-to-end solutions Win in growth markets Driving operational excellence to enhance free cash flow Disciplined capital deployment 1 2 3 4 Strong Execution to Generate Value for Our Stakeholders Our Company’s Key Priorities
Page 19
© 2026 Sotera Health Company | All Rights Reserved. Global Leader Positioned for Sustainable Growth 18
Page 20
© 2026 Sotera Health Company | All Rights Reserved. Appendix 19
Page 21
© 2026 Sotera Health Company | All Rights Reserved. Non-GAAP Financial Measures 20 (unaudited) (dollars in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income (loss) $ 53,643 $ 7,962 $ 80,232 $ (5,298) Amortization of intangible assets 5,563 11,924 11,165 30,598 Share-based compensation(a) 7,383 8,149 21,825 15,418 Loss on refinancing of debt(b) 936 80 936 80 Gain on foreign currency and derivatives not designated as hedging instruments, net(c) (4,270) (3,018) (3,646) (1,127) Business optimization expenses(d) 1,923 2,430 2,880 4,477 Professional services relating to EO sterilization facilities(e) 13,349 14,035 23,204 26,363 Illinois EO litigation settlements(f) — 34,000 — 64,943 Accretion of asset retirement obligation(g) 634 563 1,307 1,137 Income tax benefit associated with pre-tax adjustments(h) (5,200) (20,063) (11,576) (41,485) Adjusted Net Income 73,961 56,062 126,327 95,106 Interest expense, net 34,405 40,651 69,150 81,527 Depreciation(i) 27,765 23,024 52,907 45,084 Income tax provision applicable to Adjusted Net Income(j) 29,608 30,998 52,008 50,857 Adjusted EBITDA(k) $ 165,739 $ 150,735 $ 300,392 $ 272,574 Net Revenues $ 321,375 $ 294,341 $ 601,420 $ 548,864 Adjusted EBITDA Margin 51.6 % 51.2 % 49.9 % 49.7 % Weighted average number of shares outstanding Basic 285,773 283,933 285,333 283,747 Diluted(l) 288,148 285,756 287,915 285,684 Earnings (Loss) per share Basic $ 0.19 $ 0.03 $ 0.28 $ (0.02) Diluted 0.19 0.03 0.28 (0.02) Adjusted earnings per share Basic $ 0.26 $ 0.20 $ 0.44 $ 0.34 Diluted 0.26 0.20 0.44 0.33
Page 22
© 2026 Sotera Health Company | All Rights Reserved. Non-GAAP Financial Measures (continued) 21 a) Represents share-based compensation expense related to employees and Non-Employee Directors. b) 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. c) 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. d) 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. e) Represents litigation and other professional fees associated with our EO sterilization facilities. f) Represents (i) the cost to settle 97 pending and threatened EO claims against Sterigenics in Illinois pursuant to the term sh eet 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. g) 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. h) Represents the income tax impact of adjustments calculated based on the tax rate applicable to each item. We eliminate the effec t of tax rate changes as applied to tax assets and liabilities and unusual items from our presentation of adjusted net income. i) Includes depreciation of Co-60 held at gamma irradiation sites and excludes accelerated depreciation associated with business op timization activities. j) Represents the difference between the income tax provision as determined under GAAP and the income tax benefit associated wit h pre-tax adjustments described in footnote (h). k) $28.9 million and $24.4 million of the adjustments for the three months ended June 30, 2026 and 2025, respectively, and $55.2 million and $48.6 million of the adjustments for the six months ended June 30, 2026 and 2025, respectively, are included in cost of revenues, primarily consisting of amortization of intangible assets, depreciation, and accretion of asset retirement obligations. l) For the six months ended June 30, 2025, the diluted weighted average shares outstanding presented in this table reflects the amo unt that would be reported under U.S. GAAP if the Company were to have net income in the six months ended June 30, 2025.
Page 23
© 2026 Sotera Health Company | All Rights Reserved. Non-GAAP Financial Measures (continued) 22 (unaudited) (dollars in thousands, except per share amounts) Year end December 31, Twelve months ended June 30, 2024 2025 2026 Net income $ 44,398 $ 77,949 $ 163,479 Amortization of intangible assets 79,377 41,798 22,365 Share-based compensation(a) 36,896 31,068 37,475 Loss on refinancing of debt(b) 24,168 1,462 2,318 Loss (gain) on foreign currency and derivatives not designated as hedging instruments, net (c) 2,448 58 (2,461) Business optimization expenses(d) 9,368 8,068 6,471 Professional services relating to EO sterilization facilities(e) 32,694 46,225 43,066 Illinois EO litigation settlements(f) — 64,943 — Accretion of asset retirement obligations(g) 2,638 2,321 2,491 Income tax (benefit) provision associated with pre-tax adjustments(h) (33,487) (28,478) 1,431 Adjusted Net Income 198,500 245,414 276,635 Interest expense, net 164,691 155,722 143,345 Depreciation(i) 82,420 94,630 102,453 Income tax provision applicable to Adjusted Net Income(j) 102,963 98,035 99,186 Adjusted EBITDA(k) $ 548,574 $ 593,801 $ 621,619
Page 24
© 2026 Sotera Health Company | All Rights Reserved. Non-GAAP Financial Measures (continued) 23 a) Represents share-based compensation expense related to employees and Non-Employee Directors. b) 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, Secured Notes and the Revolving Credit Facility. c) 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. d) 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. e) Represents litigation and other professional fees associated with our EO sterilization facilities. f) 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. g) Represents non-cash accretion of asset retirement obligations 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. h) Represents the income tax impact of adjustments calculated based on the tax rate applicable to each item. We eliminate the effect of tax rate changes as applied to tax assets and liabilities, and unusual items from our presentation of adjusted net income. i) Includes depreciation of Co-60 held at gamma irradiation sites and excludes accelerated depreciation associated with business optimization activities. j) Represents the difference between the income tax provision as determined under U.S. GAAP and the income tax benefit/provision associated with pre-tax adjustments described in footnote (h). k) $97.1 million and $99.9 million of the adjustments for the years ended December 31, 2024 and 2025, respectively, and $106.5 million of the adjustments for the twelve months ended June 30, 2026 are included in cost of revenues, primarily consisting of amortization of intangible assets, depreciation, and accretion of asset retirement obligations.
Page 25
© 2026 Sotera Health Company | All Rights Reserved. Non-GAAP Financial Measures (continued) 24 (1) Represents Adjusted EBITDA for the years ended December 31, 2024 and December 31, 2025, and the twelve months ended June 30, 2026, respectively. Refer to the reconciliations of Adjusted EBITDA to net income for additional detail. (unaudited) (dollars in thousands) As of December 31, As of June 30, 2024 2025 2026 Current portion of long-term debt $ 14,803 $ 13,973 $ 13,923 Long-term debt less current portion 2,208,100 2,126,724 2,125,534 Current portion of finance leases 2,923 3,465 3,732 Finance leases less current portion 95,286 93,835 91,575 Total Debt 2,321,112 2,237,997 2,234,764 Less: cash and cash equivalents (277,242) (344,621) (356,716) Total Net Debt $ 2,043,870 1,893,376 $ 1,878,048 Adjusted EBITDA(1) $ 548,574 $ 593,801 $ 621,619 Net Leverage Ratio 3.7x 3.2x 3.0x
Page 26
© 2026 Sotera Health Company | All Rights Reserved. Non-GAAP Financial Measures Definitions 25 • Adjusted Net Income is defined as net income (loss) before amortization and certain other adjustments that we do not consider in our evaluation of our ongoing operating performance from period to period. • Adjusted EBITDA is defined as Adjusted Net Income before interest expense, depreciation (including depreciation of Co-60 used in our operations) and income tax provision applicable to Adjusted Net Income. • Adjusted EBITDA margin is equal to Adjusted EBITDA divided by net revenues. • Adjusted EPS is defined as Adjusted Net Income divided by the weighted average number of diluted shares outstanding. • Net Debt is equal to our total debt net of unamortized debt issuance costs and debt discounts, less cash and cash equivalents. • Net Leverage Ratio is equal to Net Debt divided by Adjusted EBITDA. • Tax Rate Applicable to Adjusted Net Income represents the difference between the income tax provision as determined under U.S. GAAP and the income tax benefit/provision associated with pre-tax adjustments used to calculate Adjusted Net Income. • We calculate constant currency net revenues by translating prior year net revenues in local currency at the average exchange rates applicable for the current period. The translated results are then used to determine year-over-year percentage increases or decreases. We generally refer to such amounts calculated on a constant currency basis as excluding the impact of foreign currency exchange rates.