Sotera Health Company

Good morning and welcome to the Zotero Health second quarter 2025 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Vice President and Treasurer Jason Peterson. Please go ahead.

Good morning and thank you. Welcome to Sotera Health second quarter 2025 earnings call. You can find today's press release and accompanying supplemental slides on the investor section of our website at soterahealth.com. This webcast is being recorded and a replay will be available in the investor section of the Sotera Health website. On the call with me today are Chairman and Chief Executive Officer Michael Petras and Chief Financial Officer John Lyons. During the call, some of our comments may be considered forward-looking statements. The matters addressed in these statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Please refer to Cetera Health's SEC filings in the forward-looking statement slide at the beginning of this presentation for a description of these risks and uncertainties. The company assumes no obligation to update any such forward-looking statements. Please note that during the discussion today, the company will present both GAAP and non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, tax rate applicable to net income, adjusted net income, adjusted EPS, net debt and net leverage ratio, as well as constant currency comparisons. A reconciliation of GAAP to non-GAAP measures for all relevant periods may be found in the schedules attached to the company's press release and in the supplemental slides to this presentation. The operator will be assisting with the Q&A portion of the call today. Please limit yourself to one question and one follow-up so that we can give everyone an opportunity to ask questions. If you have any questions after the call, please feel free to reach out to me and the investor relations team. I will now turn the call over to Cetera Health Chairman and CEO, Michael Petras.

Good morning, everyone, and thank you for joining our quarterly earnings call. We're excited to share that Cetera Health delivered a strong second quarter building off our solid performance last quarter marked by growing momentum across our core businesses. This progress resulted in top-line growth of 6.4%, adjusted EBITDA growth of 9.8%, and an improvement in adjusted EPS compared to the second quarter of 2024. We continued to invest in our businesses to support organic growth and made further progress on reducing leverage, reinforcing our commitment to disciplined financial management and long-term value creation. Moving on to the performance in our businesses, Sterigenics increased customer demand through a strong volume and mixed performance in the quarter, resulting in 10.5% year-over-year revenue growth compared to the second quarter of 2024. Stronger volumes were driven by our core med device customers, along with continued momentum on bioprocessing, which was supported by our most recent facility expansion. NORDAN delivered stronger than expected second quarter revenue versus the second quarter of 2024, driven by the timing of Cobalt 60 shipments. At the request of our customers, certain deliveries originally scheduled for the third quarter were fulfilled in the second quarter. Nelson Labs delivered second quarter revenue in line with the expectations outlined during our first quarter earnings call. Improvements in core lab testing helped offset the anticipated impact from expert advisory services. The increased core lab testing volume and mix, along with our discipline optimization actions, resulted in segment income margin expansion of more than 500 basis points. This marks the fourth consecutive quarter of year-over-year margin improvement at Nelson Labs. Given the strong momentum through the first half of the year, we are raising our outlook for 2025 revenue-adjusted EBITDA. For revenue, we are raising our growth outlook to 4.5%, to 6% versus 2024. We're also raising our adjusted EBITDA growth outlook to 6% to 7.5%. These updates reflect improved performance expectations and now assume no impact from foreign currency for the full year. John will go through our 2025 outlook update in more detail in a few minutes. But first, I would like to highlight an example of how Solterra Health plays an essential role in safeguarding global health. Together, Sterigenics and Nelson Labs play a critical role in patient safety in supporting FDA approval of groundbreaking treatments. From validation testing such as biocompatibility and packaging to routine sterilization, our teams contribute to the launch of this new infusion set for advanced Parkinson's therapy. This innovative drug delivery device helps improve quality of life by managing tremors and rigid body movements. Our expertise helps customers commercialize new products and is a great example of how we play an essential role in safeguarding global health. Now, John will walk us through the financials.