Mirion Technologies, Inc. (NYSE:MIR), a global leader in radiation safety, science and medicine, has reported its financial results for the first quarter of 2024, showcasing solid performance and continued momentum across its key business segments.

Financials

For the full year 2023, Mirion reported annual revenue of $800.9 million and a net loss of $96.9 million. The company generated annual operating cash flow of $95.2 million and annual free cash flow of $58.1 million. These strong financial results demonstrate Mirion's ability to navigate the dynamic market environment and deliver value to its customers and shareholders.

In the first quarter of 2024, Mirion reported total revenue of $192.6 million, representing a 5.8% increase compared to the same period in the prior year. Organic revenue growth was 5.5%, highlighting the underlying strength of the business. The company's Medical segment contributed $66.8 million in revenue, while the Technologies segment generated $125.8 million.

Mirion's first quarter adjusted EBITDA reached $39.5 million, up 7.9% year-over-year, with margins expanding 40 basis points to 20.5%. The Medical segment reported adjusted EBITDA margin of 30.7%, while the Technologies segment achieved a robust 26.3% adjusted EBITDA margin, expanding 170 basis points.

"I'm proud of our team's execution in the first quarter, which delivered solid financial results and continued progress on our strategic initiatives," said Thomas Logan, Chief Executive Officer of Mirion. "Our end markets remain healthy, supported by improving fundamentals, particularly in nuclear power and cancer care, and we are well-positioned to capitalize on these positive trends."

Business Overview

Mirion operates in two key business segments: Medical and Technologies.

Medical Segment

The Medical segment provides radiation oncology quality assurance, delivering patient safety solutions for diagnostic imaging and radiation therapy centers around the world. This segment also offers dosimetry solutions for monitoring the total amount of radiation medical staff members are exposed to over time, radiation therapy quality assurance solutions for calibrating and verifying imaging and treatment accuracy, and radionuclide therapy products for nuclear medicine applications such as shielding, product handling, medical imaging furniture, and rehabilitation products.

In the first quarter of 2024, the Medical segment reported revenue of $66.8 million, a 0.6% increase on both a reported and organic basis. The segment's adjusted EBITDA margin was 30.7%, generally flat compared to the same period last year. The segment's performance was impacted by approximately $4 million due to the implementation of a new ERP system within the nuclear medicine business, which was completed in February. Excluding this impact, the Medical segment would have achieved organic growth of approximately 7.1%.

Technologies Segment

The Technologies segment provides robust, field-ready personal radiation detection and identification equipment for defense applications and radiation detection and analysis tools for power plants, labs, and research applications. Nuclear power plant product offerings are used for the full nuclear power plant lifecycle, including core detectors, essential measurement devices for new build, maintenance, decontamination and decommission, and equipment for monitoring and control during fuel dismantling and remote environmental monitoring.

In the first quarter of 2024, the Technologies segment reported revenue of $125.8 million, an 8.7% increase on a reported basis and 8.4% on an organic basis. The segment's adjusted EBITDA margin expanded 170 basis points to 26.3%, driven by strong execution and operational improvements.

Robust Demand Across Key End Markets

Mirion's performance is underpinned by strong demand across its key end markets, particularly in nuclear power and cancer care, which together account for more than two-thirds of the company's total revenue.

Nuclear Power

The global demand for energy is increasing dramatically, with all geographies struggling to find reliable sources of cost-efficient clean power. The emergence of AI and the growth of high-energy-consuming data centers is putting increased demands on energy infrastructure. Additionally, continued decarbonization commitments globally and the push for energy independence are driving elevated interest in nuclear power.

Mirion is well-positioned to capitalize on this nuclear power resurgence, as the company is the leading provider of safety-critical radiation detection and measurement solutions to the global nuclear fleet. Mirion's unmatched product portfolio serves all three stages of the plant's life cycle: new construction, plant operations, and decommissioning. The company is also actively engaged with the burgeoning small modular reactor (SMR) community, further strengthening its strategic partnerships across the nuclear power industry.

Cancer Care

The cancer care market represents nearly 30% of Mirion's total revenue, driven by fundamental growth in radiation therapy and the revolution in nuclear medicine catalyzed by the emergence of therapeutic radio ligand treatments. An aging population and improving standards of care in developed and developing markets are fueling this growth, presenting significant opportunities for Mirion to participate and drive future expansion.

Mirion's comprehensive portfolio of solutions for radiation oncology quality assurance, dosimetry, and nuclear medicine applications positions the company as a key partner in the evolving cancer care landscape.

Operational Improvements and Strategic Initiatives

Mirion is focused on several key areas to drive continued operational improvements and strategic growth:

1. Enhancing the French business: The company is committed to improving organic growth, margins, and capital efficiency within its French operations.

2. Executing on self-help initiatives: Mirion is aggressively pursuing pricing optimization, cost reduction, procurement programs, and AI-driven automation to capitalize on its inherent operating leverage.

3. Investing in digital capabilities and new product development: The company is enhancing its solution set through investments in customer-facing AI and a robust new product pipeline.

4. Pursuing strategic and opportunistic M&A: Mirion is actively evaluating acquisitions that can provide new capabilities and defend or extend its category leadership.

Outlook

Mirion has reaffirmed its financial guidance for the full year 2024, projecting organic revenue growth of 4% to 6% and adjusted EBITDA of $193 million to $203 million. The company expects to be cash flow positive in the first half of the year and has reiterated its full-year adjusted free cash flow guidance of $65 million to $85 million.

"We remain confidently committed to reaching our 5-year 30% adjusted EBITDA margin target," said Logan. "Our solid start to 2024, coupled with the robust demand across our end markets, gives us confidence in our ability to deliver on our financial objectives for the year."

Conclusion

Mirion's first quarter 2024 results demonstrate the company's ability to capitalize on the strong demand trends in its key end markets, particularly nuclear power and cancer care. With a focus on operational improvements, strategic initiatives, and a robust product pipeline, Mirion is well-positioned to drive continued growth and value creation for its shareholders.