1. Sotera Health is like Charles River Laboratories for specialized sterilization and product safety testing of medical devices and pharmaceuticals.
2. Sotera Health is similar to Eurofins Scientific, but focused on sterilization and analytical chemistry testing for the medical device and biopharmaceutical industries.

• Sterilization Services: Sotera Health offers sterilization through various methods, including gamma and electron beam irradiation, and ethylene oxide (EO) processing.
• Lab Testing Services (Nelson Labs): Through its Nelson Labs segment, the company provides comprehensive microbiological and analytical chemistry testing for various industries.
• Advisory Services: Sotera Health delivers expert guidance and consulting specifically for the medical device and biopharmaceutical industries.

Sotera Health (SHC) operates on a business-to-business (B2B) model, providing sterilization, lab testing, and advisory services primarily to other companies.

Due to the diversified nature of its client base, Sotera Health does not publicly disclose individual "major customers," as no single customer accounts for a significant portion of its consolidated revenues (typically 10% or more, which would necessitate disclosure in financial filings). Therefore, specific named customer companies are not publicly identified.

Instead, Sotera Health serves a broad range of companies across the following major industries, which constitute its customer base:

• Companies in the medical devices industry.
• Companies in the pharmaceuticals industry.
• Companies involved in food and agricultural products.
• Companies in commercial, advanced, and specialty application industries.

Michael B. Petras, Jr. Chairman and Chief Executive Officer

Michael B. Petras, Jr. has served as Chief Executive Officer of Sotera Health since June 2016 and as Chairman of its board since October 2020. Prior to joining Sotera Health, Mr. Petras was the chief executive officer of Post-Acute Solutions at Cardinal Health, Inc. from 2015 to 2016, and chief executive officer of Cardinal Health at-Home from 2013 to 2015. From 2011 to 2013, he served as the chief executive officer for AssuraMed Holdings, Inc., a medical products supplier backed by Clayton, Dubilier & Rice and Goldman Sachs private equity firms, which was subsequently sold to Cardinal Health, Inc. in 2013 for approximately $2 billion. Before that, he was president and chief executive officer at GE Lighting, a General Electric Company business unit, from 2008 to 2011, having spent over two decades in various management roles at GE.

Jonathan M. Lyons Senior Vice President and Chief Financial Officer

Jonathan M. Lyons has served as Senior Vice President and Chief Financial Officer of Sotera Health since June 2023. Before his tenure at Sotera Health, Mr. Lyons was the Vice President, Corporate FP&A for Owens Corning, where he was also responsible for Mergers & Acquisitions. His prior roles at Owens Corning included segment CFO for the Insulation business and the Composites business, where he oversaw Supply Chain and Sourcing. He also served as the company's Treasurer, acting as a liaison to the Finance Committee of the Board and leading return to shareholders activities.

Riaz Bandali President, Nordion

Riaz Bandali has served as President of Nordion since February 2022.

Michael P. Rutz President, Sterigenics

Michael P. Rutz has served as President of Sterigenics since October 2020. He was previously the Chief Operating Officer of Sterigenics from May 2020 to October 2020. Before joining Sotera Health, he was Senior Vice President and General Manager of the Semiconductor Business Unit at Littlefuse, Inc.

Joseph A. Shrawder President, Nelson Labs

Joseph A. Shrawder holds the position of President, Nelson Labs.

The key risks to Sotera Health (SHC) primarily revolve around its sterilization services, particularly those involving ethylene oxide (EO), and its financial leverage.

1. Ethylene Oxide (EO) Litigation and Regulatory Pressures: Sotera Health faces substantial and ongoing legal and regulatory challenges related to its use of ethylene oxide (EO) for sterilization. The company's Sterigenics subsidiary has been subjected to hundreds of personal injury claims and tort lawsuits alleging health issues from long-term environmental exposure to EO emissions. Sotera Health has paid significant settlements, including $408.0 million to resolve over 870 lawsuits, with hundreds of additional claims still pending. Furthermore, increased regulatory scrutiny from the U.S. Environmental Protection Agency (EPA) through new NESHAP and FIFRA requirements necessitates material capital investments for environmental enhancements, such as approximately $51 million planned for 2026. There are also ongoing investigations into potential breaches of fiduciary duty by company officers concerning alleged false and misleading statements about emissions control systems.

2. Concentrated Supply Chain Risk: The company faces significant supply chain vulnerabilities due to its reliance on a limited number of suppliers for critical sterilization materials. A substantial portion of its Cobalt-60 (Co-60) is sourced under long-term contracts with a small group of Canadian and Russian reactors. Additionally, Sotera Health relies on a single EO supplier for its U.S. sterilization operations. This concentration exposes the company to potential disruptions stemming from geopolitical events or other supply-related issues.

3. High Debt Leverage and Financial Stability Concerns: Sotera Health carries a considerable amount of debt. While the company has been working to reduce its net leverage ratio, its Altman Z-Score of 1.59 indicates a potential risk of financial instability. The company's interest coverage is weak, and its liabilities significantly outweigh its cash and near-term receivables. Adverse legal outcomes from the ongoing EO litigation, if substantial enforceable judgments exceed specified thresholds, could potentially trigger events of default under its senior secured credit facilities and other indentures, directly linking legal and financial risks.

The intensifying regulatory scrutiny, litigation, and public pressure surrounding Ethylene Oxide (EO) sterilization, coupled with the active development and potential widespread adoption of alternative sterilization technologies, pose a significant emerging threat to Sotera Health's core sterilization services.

Sotera Health operates in several addressable markets for its main products and services:

• The company's overall serviceable addressable market (SAM) is estimated to be approximately $18 billion globally, which includes outsourced service segments and the in-house sterilization market.
• For its Sterigenics segment, the addressable market for sterilization services is $4.5 billion.
• The global sterilization services market was valued at approximately $3.75 billion in 2025 and is projected to reach $5.49 billion by 2030, growing at a CAGR of 7.9%. Another source estimates the global sterilization services market to reach $7.42 billion by 2031 from $5.74 billion in 2026, at a CAGR of 5.29%. North America held the largest share of this market in 2025, at 39.10%.
• For its Nelson Labs segment, the global healthcare analytical testing services market was valued at approximately $16.1 billion in 2025 and is projected to reach around $41.0 billion by 2035, with a CAGR of 9.8% from 2026 to 2035. North America accounted for over 41.5% of this market in 2025.
• Within healthcare analytical testing, pharmaceutical analytical testing services represented 62.3% of the market in 2025. The global pharmaceutical analytical testing outsourcing market was valued at $8.3 billion in 2023.

Expected drivers of future revenue growth for Sotera Health (SHC) over the next 2-3 years include:

1. Strategic Pricing Initiatives: Sotera Health has demonstrated pricing power across its business segments, with favorable pricing contributing to revenue growth in Sterigenics and Nordion in 2025. The company has also outlined plans for continued price increases in 2026 for Sterigenics (4%), Nordion (3%), and Nelson Labs (3%), which are expected to support top-line expansion.
2. Increased Volume and Demand for Sterilization Services: The Sterigenics segment has experienced strong volume and mix benefits, including a recovery from inventory destocking by hospitals and distributors that contributed to 10% revenue growth in 2025. This momentum in volume is anticipated to continue, driving overall revenue.
3. Capacity Expansion and Capital Investments: Sotera Health is committed to continuous investment in its facilities and technology to increase capacity, particularly within the growing medical device and pharmaceutical sectors. This ongoing capital deployment is aimed at strengthening existing businesses and meeting the increasing demand for its mission-critical services.
4. Growth in Core Lab Testing Services: While the Nelson Labs segment has faced some challenges in expert advisory services, the company anticipates growth in its core lab testing services. This area is expected to contribute to overall revenue growth as operational efficiencies, lab optimization, and favorable pricing in this segment continue.

Share Repurchases

• In November 2020, as part of its Initial Public Offering (IPO), Sotera Health used a portion of the proceeds to repurchase approximately 1.7 million shares from executive officers.

Share Issuance

• Sotera Health completed its Initial Public Offering (IPO) in November 2020, listing its shares on the Nasdaq Global Select Market.
• The number of shares outstanding increased from 0.253 billion at the end of 2020 to 0.286 billion by the end of 2025.
• The company's CEO and SVP received common shares in March 2026 from the conversion of performance-based Restricted Stock Units (RSUs) and Share Appreciation Units (SAUs) granted in prior years (e.g., 2024, 2025).

Outbound Investments

• In November 2021, Sotera Health acquired Wisconsin-based Regulatory Compliance Associates (RCA) for a purchase price of a little over $30 million, expanding its US-based quality, regulatory, and technical consulting capabilities.
• In August 2020, Sotera Health acquired Canadian-based Iotron Industries, which expanded its electron beam (EBeam) footprint and added expertise to its Sterigenics business.

Capital Expenditures

• Sotera Health's capital expenditures were $77 million for the first half of 2025, primarily focused on Sterigenics capacity expansions, US Ethylene Oxide (EO) facility enhancements, and Nordion's Cobalt development programs.
• The company projected its full-year 2024 capital expenditures to be between $175 million and $185 million.
• Capital expenditures are anticipated to decrease in 2025 and 2026, which is expected to accelerate free cash flow generation.