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Mirion Technologies, Inc. (MIR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered solid growth and an estimates beat: revenue rose 7.6% to $222.9M and adjusted EPS was $0.11; both topped S&P Global consensus, while reported adjusted EBITDA of $51.2M tracked in line with management’s framework despite segment-specific headwinds . Revenue consensus was ~$216.2M and EPS consensus ~$0.10; EBITDA consensus was ~$51.5M though S&P’s EBITDA actual appears non‑adjusted at ~$44.1M, limiting comparability to company’s adjusted figure (see Estimates Context; values from S&P Global)*.
  • The company raised FY25 guidance for total revenue growth (to 7–9%), adjusted EBITDA ($223–233M), adjusted free cash flow ($95–115M), and adjusted EPS ($0.48–$0.52), while modestly lowering organic revenue growth (to 5–7%) amidst DOE budget/tariff pressures in Labs & Research .
  • Medical segment led with double‑digit organic growth and ~280 bps margin expansion; Nuclear & Safety grew but margins were pressured by FX transactional headwinds in France and UK project cost increases, which management characterized as non‑recurring .
  • Strategic catalysts: $400M converts and term loan refinancing optimize capital structure; acquisition of Certrec deepens regulatory/software capabilities; launch of the Vital digital platform and a Westinghouse partnership on digital nuclear instrumentation support medium‑term mix and margin tailwinds .

What Went Well and What Went Wrong

What Went Well

  • Broad-based growth with revenue up 7.6% YoY to $222.9M; organic revenue +5.4%, aided by FX tailwinds and shipments timing benefit in Medical to get ahead of tariffs .
  • Medical segment outperformed: revenue +10.9% to $81.2M, organic +10.1%, adjusted EBITDA ~$30.1M with ~280 bps margin expansion driven by operating leverage and procurement/mix improvements .
  • Strengthened capital structure and strategic positioning: “we successfully completed a $400 million convertible notes offering and refinanced our Term Loan B… Additionally, we announced the acquisition of Certrec…” (CEO) . Management also launched the Vital platform to unify radiological data and workflows, accelerating the digital roadmap .

What Went Wrong

  • Nuclear & Safety margins compressed on non-recurring items: FX transactional headwinds in France and a UK nuclear project cost increase weighed on Q2 segment margins; management guided this project to end at expected margin rates over its multi-year life .
  • Labs & Research softness and tariff uncertainty: DOE budget delays and China tariff uncertainty reduced Labs & Research organic growth expectations to modestly negative, prompting the small reduction in FY25 organic revenue guidance .
  • Orders mix/timing: consolidated orders grew only 1.6% due to tough prior-year comps in Nuclear Power, though management expects acceleration in 2H25 given the ~$350M large one-time pipeline .

Financial Results

Headline Financials by Quarter

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$254.3 $202.0 $222.9
GAAP Diluted EPS ($)$0.07 $0.00 $0.03
Adjusted EPS ($)$0.17 $0.10 $0.11
Adjusted EBITDA ($USD Millions)$69.6 $46.7 $51.2
Adjusted EBITDA Margin (%)27.4% 23.1% 23.0%

Segment Breakdown – Q2 2025

SegmentRevenue ($USD Millions)Organic Revenue Growth (%)Adjusted EBITDA ($USD Millions)
Nuclear & Safety$141.7 2.9% $37.9
Medical$81.2 10.1% $30.1

KPIs and Operating Metrics

KPIQ4 2024Q1 2025Q2 2025
Orders Growth (%)—+11.5% total orders to $203M +1.6%
Nuclear Power YTD Orders Growth (%)——+10%
SMR-Related Orders YTD ($USD Millions)——~$9
Large One-Time Orders Pipeline ($USD Millions)~$300–$400 disclosed prior ~$300–$400 in bid process ~$350 current pipeline
Adjusted Free Cash Flow ($USD Millions)—$28.8 $6.0
Capex YTD ($USD Millions)——~$17 (YTD)

Actual vs S&P Global Consensus (Q2 2025)

MetricConsensusActualResult
Revenue ($USD)$216.2M*$222.9M Beat
Primary EPS ($)$0.1007*$0.11 Beat
EBITDA ($USD)$51.5M*$44.1M*Miss (note: S&P EBITDA appears non‑adjusted vs company’s adjusted EBITDA $51.2M )

Values retrieved from S&P Global*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue Growth (%)FY 20255.0% – 7.0% 7.0% – 9.0% Raised
Organic Revenue Growth (%)FY 20255.5% – 7.5% 5.0% – 7.0% Lowered
Adjusted EBITDA ($USD Millions)FY 2025$215 – $230 $223 – $233 Raised
Adjusted EBITDA Margin (%)FY 202524.0% – 25.5% 24.0% – 25.0% Tightened lower bound maintained, upper bound trimmed
Adjusted Free Cash Flow ($USD Millions)FY 2025$85 – $110 $95 – $115 Raised
AFCF Conversion (% of Adj. EBITDA)FY 202539% – 48% 43% – 49% Raised
Adjusted EPS ($)FY 2025$0.45 – $0.50 $0.48 – $0.52 Raised
FX Tailwind (bps to revenue)FY 2025~40 bps headwind at EUR/USD 1.08 ~125 bps tailwind at EUR/USD 1.15 Improved FX

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Nuclear power momentum (installed base, new builds, SMR)Entered 2025 with ~half of expected FY25 revenue in backlog; large orders potential $300–$400M . Q1 orders +11.5%, bullish on nuclear power demand .Raised nuclear power organic growth to double-digit; installed base accounts for ~80% of nuclear power revenue; modernization/life extensions driving opportunity .Strengthening; more visibility and higher growth outlook
AI/digital initiativesProgress toward 2028 plan; margin expansion focus .Vital platform launched; LightLink and next-gen Apex Guard highlighted; CEO dedicating cycles to AI to accelerate efficiency and customer utility .Accelerating product digitization and AI integration
Supply chain/tariffsRegionalized supply chain seen as competitive advantage; reaffirmed FY25 guidance despite tariffs .Shipments timing benefit ($2M) to get ahead of tariffs in Medical; minimizing tariff exposure to date .Managed; localized mitigation actions continue
Regulatory/legal positioning—Acquisition of Certrec (NRC/NERC compliance SaaS); every US reactor uses Certrec; ~$81M purchase price; high recurring revenue and strong margins .Enhanced regulatory/software capability, recurring mix improves
Regional trends—North America and France nuclear installed base showing good momentum; FX transactional headwinds in France impacted segment margin in Q2 .Mixed: growth strong; FX a temporary headwind
Capital structureSimplified capital structure and improved net leverage in 2024; positive momentum into 2025 .$400M convert issued; term loan refinanced to smaller $450M; maturity extended and interest savings expected .Improved flexibility and lower cost of capital

Management Commentary

  • “Our second quarter results demonstrate continued progress towards key 2025 financial targets… Nuclear power and cancer care tailwinds remain vibrant… [and] we successfully completed a $400 million convertible notes offering and refinanced our Term Loan B… Additionally, we announced the acquisition of Certrec…” — Thomas Logan, CEO .
  • “Adjusted EBITDA dollars grew, [but] margins contracted slightly due to… FX related transactional headwinds in France [and] project cost increases for a nuclear project in the UK” — Brian Schopfer, CFO .
  • “We are seeing sizable opportunities across the nuclear landscape… modernization CapEx is the greatest near-term opportunity… life extensions… perhaps the largest opportunity source” — CEO .
  • “Vital helps operators… simplify monitoring, streamline operations, and improve safety by facilitating real-time monitoring and data collection” — CEO on Vital launch .

Q&A Highlights

  • Nuclear pipeline and timing: Management sees accelerating timelines for utility-scale projects (e.g., Westinghouse discussing up to 10 AP1000s in the U.S. before 2030) and is moving toward frame agreements; however, they will not quantify specific longer-term rates and acknowledge timing slippage risks in government/new project orders .
  • Backlog trajectory: Asked if they’d be disappointed if commercial nuclear backlog isn’t higher by year-end, management said yes, reflecting confidence in 2H order conversion .
  • SMR cadence: Engagement accelerating, but management remains cautious given expected sector consolidation and first-of-a-kind risks; SMR orders may become more meaningful over the next few years, but near-term revenue is minimal .
  • Segment margin clarity: Nuclear & Safety margin pressure in Q2 tied to accounting timing and non-recurring items; the UK project is expected to end at planned margins over its life; long-term EBITDA margin target of 30% by 2028 reiterated .
  • Medical resilience: Despite reimbursement uncertainties, radiation therapy’s payer mix and Mirion’s efficiency-oriented solutions (SunCHECK/software, hardware across multiple platforms) support stability; no erosion observed to date .

Estimates Context

  • Q2 actuals vs S&P Global consensus: Revenue beat ($222.9M vs $216.2M*), adjusted EPS beat ($0.11 vs $0.1007*), while S&P’s EBITDA consensus ($51.5M*) compares to S&P’s reported EBITDA actual ($44.1M*), which appears non-adjusted and isn’t directly comparable to Mirion’s reported adjusted EBITDA ($51.2M) . Values retrieved from S&P Global*.
  • Implications: Street likely revises FY25 up on total revenue, adjusted EBITDA, adjusted FCF and adjusted EPS guidance increases; organic revenue reduction should be viewed as a mix shift (Labs & Research softness offset by stronger nuclear power), not a deterioration in the core thesis .

Key Takeaways for Investors

  • Momentum intact with estimates beat and raised FY25 guide; narrative is shifting toward double-digit nuclear installed base growth, supported by modernization and life extensions, which are higher-margin opportunities .
  • Medical segment’s margin trajectory and procurement/mix gains bolster the 30% long-term EBITDA margin target; Vital platform and broader digitization can add structural margin tailwinds .
  • Capital structure actions (converts; term loan refi) lower interest costs and increase flexibility; combined with higher FCF guide ($95–$115M), this supports deleveraging and optionality for M&A/product investments .
  • Watch 2H25 order conversion: ~$350M large one-time pipeline and stronger nuclear installed base activity should lift backlog; timing is the swing factor for quarterly volatility .
  • Tariffs/FX are being actively mitigated (shipment timing, localized supply chain); near-term headwinds were contained in Q2; Medical saw a ~$2M benefit from preemptive shipments .
  • Strategic assets add to recurring mix: Certrec (NRC/NERC compliance SaaS, high retention) and Westinghouse partnership (digital NIS) deepen moat and support mix/up-sell into the installed base .
  • Trading setup: Positive estimate revisions and raised FY guide are constructive; near-term catalysts include large order wins/backlog growth and Vital/AI-related customer traction; monitor FX/tariff dynamics and Nuclear & Safety margin normalization in Q3 ahead of a seasonally strong Q4 .