Executive Summary / Key Takeaways

• Nuclear Power Super Cycle at the Core: Mirion Technologies is uniquely positioned as a "category of one" to capitalize on the accelerating global nuclear power renaissance, driven by increasing electricity demand, AI-driven data centers, and supportive government policies. This segment, already 80% recurring from the installed base, is expanding its share of enterprise revenue to approximately 45% with recent acquisitions.
• Technological Leadership and Digital Transformation: Mirion's continuous innovation in radiation detection, measurement, and analysis, exemplified by the new Vital Platform, LightLink Technology, and strategic software acquisitions like Oncospace, provides a significant competitive moat and drives efficiency and safety across its critical end markets.
• Strategic M&A and Capital Optimization: Recent acquisitions of Certrec and the planned acquisition of Paragon Energy Solutions, alongside key partnerships with EDF and Westinghouse, are strategically broadening Mirion's portfolio, enhancing its U.S. market presence, and securing long-term revenue streams.
• Robust Financial Performance and Outlook: The company delivered strong Q3 2025 results, with revenue up 7.9% and Adjusted EBITDA up 14.7% year-over-year, driven by operational leverage and procurement savings. Mirion has raised its 2025 Adjusted Free Cash Flow guidance to $100 million-$115 million, reflecting improved profitability and capital structure optimization.
• Resilient Business Model Amidst Headwinds: Despite geopolitical risks, U.S. healthcare pressures, and tariff impacts, Mirion's specialized, safety-critical solutions and diversified global footprint provide resilience, with management actively implementing mitigation strategies and maintaining a confident outlook.

The Unseen Powerhouse of Ionizing Radiation

Mirion Technologies, Inc. (NYSE:MIR) stands as a specialized global provider of radiation detection, measurement, analysis, and monitoring solutions, carving out a "category of one" position in an indispensable, highly regulated industry. The company's core business is strategically aligned with two generational trends: the accelerating global nuclear power renaissance and the growing demand for radiation safety in cancer care. This foundational strength, coupled with a history of strategic refinement and operational discipline, underpins Mirion's compelling investment narrative.

The industry landscape is currently shaped by an unprecedented surge in demand for clean, baseload energy, largely fueled by the exponential growth of AI-driven data centers and broader electrification efforts. This has ignited a "nuclear super cycle," with governments worldwide increasingly recognizing nuclear power as a critical component of the energy solution. Similarly, the medical segment, particularly cancer care, benefits from an aging global population, rising cancer incidence rates, and a continuous push for higher standards of care. Mirion's overarching strategy involves capitalizing on these macro trends through organic innovation, targeted mergers and acquisitions, continuous capital structure optimization, and a relentless focus on operational excellence.

Technological Moats and Innovation Driving Growth

Mirion's competitive advantage is deeply rooted in its differentiated technology, which provides safety-critical solutions that are often compulsory for its customers. The company holds a leadership position in 17 of the 19 major product categories it serves, a testament to its superior quality, service, and unmatched global reach in the detection, measurement, and analysis of ionizing radiation. The high cost of failure in these highly regulated industries further solidifies Mirion's indispensable role.

Recent technological advancements underscore this leadership. The InstadoseVUE digital dosimeters, introduced in late 2023, are a key innovation driving growth in dosimetry services, contributing to a 7% organic revenue increase in Q3 2025. In Q2 2025, Mirion unveiled its Vital Platform, a digital ecosystem for nuclear energy designed to simplify monitoring, streamline operations, and improve safety. This platform facilitates real-time data collection from thousands of instruments and sensors, replacing over a dozen discrete supervisory software applications and offering a plug-and-play environment for expanding digital offerings. Another significant development is LightLink Technology, which enhances detection efficiency by replacing legacy photomultiplier tubes with silicon chips. This innovation enables hyper-accurate radiation detection, improves human factors, and increases ruggedization, aiming to redefine industry standards in operational productivity and reliability. Furthermore, the Apex-Guard Software Application, a next-generation digital platform, incorporates more comprehensive reporting and improved analytics to drive greater workplace efficiency and inferential reliability, particularly relevant for the expanding Nuclear Medicine sector. The acquisition of Oncospace in Q1 2025, a cloud-native data analytics platform for radiation oncology, is expected to catalyze growth in Mirion's radiation therapy software business, SunCHECK. Collaborations, such as the partnership with Westinghouse Electric Company LLC, are also driving digital innovation in Nuclear Instrumentation Systems (NIS), offering digital Ex-core NIS based on Mirion's proTK product line to enhance performance and ensure sustainability, representing an opportunity for market share gain rather than mere replacement.

These technological differentiators are not just product enhancements; they are strategic assets that contribute directly to Mirion's competitive moat and financial performance. By offering solutions that provide superior reliability, higher precision, and enhanced efficiency, Mirion can command pricing power in specialized markets, drive recurring revenue through software royalties and services, and strengthen its market positioning. The company's dedicated focus on AI, as evidenced by CEO Thomas Logan's personal involvement, signals a commitment to leveraging artificial intelligence for both internal operational efficiencies and the development of advanced customer-facing solutions, further solidifying its long-term growth strategy.

Strategic Expansion: M&A and Partnerships Fueling Market Leadership

Mirion's growth trajectory is significantly shaped by its disciplined approach to strategic mergers and acquisitions and key industry partnerships. This strategy has been instrumental in expanding its market reach, deepening its solution offerings, and acquiring critical talent.

A notable recent acquisition is Certrec, acquired in July 2025 for approximately $82.2 million ($79.9 million net of cash). This addition to the Nuclear Safety segment significantly enhances Mirion's software solution suite by incorporating mission-critical regulatory compliance solutions for the U.S. nuclear industry and the broader energy power market. Certrec, which has demonstrated double-digit growth since 2022, derives approximately 55% of its revenue from nuclear power customers and 45% from the bulk electric system. Its unique asset includes 15 terabytes of industry data, offering substantial AI potential for streamlining regulatory approval processes. Following this, in September 2025, Mirion announced a definitive agreement to acquire Paragon Energy Solutions for approximately $585 million in cash, expected to close by year-end 2025. Paragon will broaden Mirion's U.S. presence with additional products, software, and services, including safety-related critical radiation protection systems, with 94% of its revenue stemming from the installed large-scale reactor base. These acquisitions are pivotal, introducing dynamic business models with established customer bases and significant growth potential, particularly in the U.S. nuclear market where orders are up 44% year-to-date, largely due to Small Modular Reactor (SMR) activity.

Beyond acquisitions, Mirion has forged powerful strategic alliances. In 2024, it signed a strategic partnership agreement with EDF, the world's largest nuclear power plant operator, making Mirion an exclusive supplier for EDF's nuclear new build projects for the next 20 years. Similarly, a strategic alliance agreement with Siemens Healthineers (SMMNY) in 2024 integrates Mirion's SunCHECK software platform into their core RTQA offerings. These partnerships, combined with internal product development, ensure Mirion remains at the forefront of industry innovation and market access.

Competitive Landscape: A Specialized Leader in a Diversified Field

Mirion operates within a competitive landscape characterized by both specialized niche players and large, diversified industrial and healthcare technology conglomerates. Its "category of one" positioning stems from its pure focus on radiation detection, measurement, and analysis, providing compulsory products in highly regulated industries where the cost of failure is exceptionally high.

Key direct competitors include Thermo Fisher Scientific (TMO), General Electric (GE) through its healthcare division, Philips (PHG), and Fortive (FTV). While these diversified giants possess greater scale and broader portfolios, Mirion differentiates itself through deep specialization and application-specific expertise. For instance, Mirion's radiation monitoring and dosimetry solutions offer materially better precision and tailored services in medical oncology and nuclear power applications compared to the broader analytical tools offered by TMO. Similarly, Mirion's radionuclide therapy products provide notably higher specialization in radiation safety than PHG's general health monitoring systems. In industrial applications, Mirion's products often exhibit greater durability in harsh environments, a critical advantage over FTV's more general industrial tools.

Mirion's competitive moats are formidable. Its proprietary technology in radiation detection systems delivers enhanced accuracy and superior reliability, translating into strong customer loyalty and recurring revenue streams. The company's extensive regulatory licenses and approvals in global markets enable access to restricted sectors, a significant barrier to entry for new players and a differentiator against competitors with less specialized compliance expertise. While larger competitors like TMO and GE may lead in overall technological integration and R&D investment, Mirion's focused innovation ensures its solutions remain cutting-edge for its core markets. Mirion's smaller scale, however, can be a vulnerability, potentially impacting innovation speed compared to the R&D budgets of its larger rivals and exposing it to supply chain dependencies that could lead to higher operational costs. Nevertheless, the high barriers to entry in its specialized markets, driven by stringent regulatory requirements and the need for deep domain expertise, help to protect Mirion's market position. The company's strategic acquisitions, such as Certrec, further solidify its specialized leadership by integrating critical regulatory compliance capabilities into its offerings.

Financial Performance: Delivering on the Growth Promise

Mirion has consistently demonstrated robust financial performance, reflecting the successful execution of its strategic initiatives and the inherent resilience of its business model. The company's financial trajectory is a direct outcome of its focus on high-growth end markets, technological innovation, and operational efficiency.

For the third quarter ended September 30, 2025, Mirion reported total revenues of $223.1 million, an increase of 7.9% year-over-year. Organic revenue growth stood at a healthy 4.7%, with both the Medical and Nuclear Safety segments contributing mid-single-digit organic growth. Notably, the nuclear power end market's organic revenue grew an impressive 9% in Q3 2025 and 11% year-to-date, underscoring its role as a primary growth engine. Adjusted EBITDA for Q3 2025 reached $52.4 million, marking a 14.7% increase year-over-year. This strong profitability was driven by approximately $3 million from greater volumes, $2 million from net price inflation (prices exceeding costs), and $2 million from ongoing procurement initiatives, resulting in a consolidated adjusted EBITDA margin expansion of approximately 140 basis points. Adjusted EPS for the quarter was $0.12, a 50% increase compared to the prior year.

Segment-wise, the Medical segment reported Q3 2025 revenues of $78.5 million (5.2% organic growth) and Adjusted EBITDA of $28.2 million, with margins expanding 120 basis points to 35.9%. Year-to-date, Medical segment margins have expanded approximately 240 basis points, reflecting healthy operating leverage and a favorable mix, particularly from dosimetry services. The Nuclear Safety segment delivered Q3 2025 revenues of $144.6 million (4.4% organic growth) and Adjusted EBITDA of $40.6 million, with margins increasing 180 basis points to 28.1%. Year-to-date, Nuclear Safety segment margins have expanded approximately 80 basis points, benefiting from operational leverage, procurement initiatives, and lower incentive compensation.

Mirion's capital structure has also seen significant optimization. As of September 30, 2025, the company held $933.6 million in cash and cash equivalents. The blended cost of debt is projected to be 2.8% by year-end 2025, a substantial 460 basis point improvement over the past year, and is expected to continue into 2026. This deleveraging trend is evident in the reduction of debt to trailing twelve months Adjusted EBITDA to 2.5x by the end of 2025, nearly two full turns in two years.

The company's liquidity is further supported by approximately $159.2 million available under its revolving credit facility. Adjusted free cash flow for Q3 2025 was $18 million, contributing to $53 million year-to-date, demonstrating improved conversion rates and disciplined capital allocation, including a commitment to an 18% reduction in CapEx for 2025 compared to 2024.

Outlook and Risks: Charting a Course for Continued Growth

Mirion's outlook for 2025 reflects management's strong confidence in its strategic direction and the underlying market tailwinds. The company has raised its 2025 Adjusted Free Cash Flow guidance to between $100 million and $115 million, representing a conversion rate of 45%-49% of Adjusted EBITDA, a significant improvement from 32% in 2024 and a clear step towards its 2028 target of 60%. Total revenue growth for 2025 is now expected to be between 7% and 9%, an increase from previous guidance, incorporating a 125 basis point foreign exchange tailwind and a 100 basis point contribution from the Certrec acquisition. Adjusted EBITDA is projected to be between $223 million and $233 million, with Adjusted EPS expected to be between $0.48 and $0.52 per share. The nuclear power end market is anticipated to deliver double-digit organic growth in 2025, while the Medical segment is expected to return to mid-single-digit organic growth. Management foresees strong double-digit order growth in Q4 2025, particularly in the nuclear power segment. The large opportunity pipeline, currently at $285 million, is expected to see $175 million awarded by year-end 2025, with some projects potentially shifting into 2026 due to U.S. government funding dynamics.

Despite this optimistic outlook, several risks warrant consideration. Geopolitical and trade conditions, including the ongoing Russia-Ukraine conflict (with $107.3 million in backlog and $17.8 million in contract assets tied to Russian-related projects), U.S.-China relations, and the Middle East conflict, could lead to increased inflation, supply chain disruptions, and project delays. The U.S. healthcare environment continues to pressure the RTQA business due to budgetary noise and government shutdown headwinds, although management views this as a delay rather than a decline. The Labs & Research business faces muted demand from the U.S. Department of Energy and slowed order flow from China, indicating funding strain. Tariffs, particularly a $7 million-$9 million headwind from U.S.-produced medical products sold into China, pose a challenge, though Mirion's mitigating actions and potential product exemptions are expected to keep the net impact manageable. Furthermore, the successful integration of recent acquisitions like Certrec and the planned acquisition of Paragon Energy Solutions remains crucial, and the conversion of convertible debt could lead to dilution for existing shareholders.

Conclusion

Mirion Technologies, Inc. presents a compelling investment case as a specialized leader poised for sustained growth within the critical sectors of nuclear power and cancer care. The company's "category of one" status, built on proprietary technology and deep regulatory expertise, provides a robust foundation. Strategic acquisitions and partnerships, coupled with a relentless focus on digital innovation and operational excellence, are expanding its market footprint and enhancing its competitive advantages. Mirion's strong financial performance, marked by consistent revenue growth, expanding margins, and a fortified balance sheet, demonstrates its ability to execute effectively against its strategic objectives. While macroeconomic and geopolitical headwinds persist, Mirion's resilient business model and proactive management of risks position it favorably. The company's commitment to achieving its 2028 financial targets, driven by the accelerating nuclear power super cycle and ongoing technological leadership, underscores its potential for continued value creation for discerning investors.