Core Viewpoint - Madison Small Cap Fund underperformed its benchmark, the Russell 2000 Index, with a return of -0.4% compared to the benchmark's 2.2% in the fourth quarter of 2025 [1] Fund Performance - The fund's performance was negatively impacted by sector allocation, particularly in the healthcare sector, which was the weakest [1] - The fund remains cautious about the speculative market, acknowledging that "markets can stay irrational longer than you can stay solvent" [1] Company Highlight: Mirion Technologies, Inc. - Mirion Technologies, Inc. is a leader in radiation detection and monitoring solutions for the nuclear and medical sectors, with a market capitalization of $5.02 billion [2] - The stock closed at $20.04 per share on March 12, 2026, with a one-month return of -10.97% and a 52-week gain of 38.59% [2] Business Model and Growth Potential - Mirion Technologies has a recurring-revenue, consumption-based business model with EBITDA margins around 25%, with potential to expand to 30% [3] - The company is well-positioned to benefit from growth trends in nuclear power and cancer care, supported by a recent renaissance in nuclear energy [3] - Mirion holds a significant market presence, with a +60% market share in ionization radiation detection and monitoring, and is involved in 95% of nuclear power plants globally [3] Revenue Drivers and Valuation - Maintenance and upgrade cycles are crucial revenue drivers, as parts and subsystems are typically replaced like-for-like [3] - The intrinsic value of Mirion Technologies is estimated to be $30 [3]

Core Insights - Mirion Technologies, Inc. (NYSE:MIR) is recognized as a promising investment by hedge funds, despite recent price target reductions from major firms [1][2] Group 1: Financial Performance - Baird lowered its price target on Mirion from $30 to $29 while maintaining an Outperform rating, citing strong performance in the nuclear segment as a highlight [1] - Goldman Sachs reduced its price target from $33 to $29 but kept a Buy rating, noting Q4 adjusted EBITDA of $77.6 million, an 11.5% increase from $69.6 million in the same period in 2024, driven by strong margins in the Medical segment [2] - The company achieved over $400 million in orders for the first time, indicating robust demand [2] Group 2: Market Outlook - Despite a decline in stock value due to weaker organic growth and guidance suggesting improved performance in the second half of 2026, Goldman Sachs maintains a positive outlook for the Nuclear segment, presenting a potential buying opportunity [3] - Mirion Technologies is a global leader in radiation safety, providing solutions across various sectors including nuclear, medical, defense, and research [4]

Business Segments and Market Focus - Mirion operates in two segments: Nuclear & Safety and Medical, with a workforce of 534 scientists, engineers, and technicians, representing approximately 16% of its total workforce[30][32]. - Mirion's medical segment focuses on cancer care, with a presence in over 80% of cancer centers worldwide, capitalizing on the increasing incidence of cancer and the demand for advanced treatment technologies[31][39]. - The global nuclear medicine market is expected to grow due to rising cancer prevalence, with advancements in radiation therapy driving demand for Mirion's products and services[40]. - The company anticipates increased demand for nuclear energy due to the rising energy needs from cloud computing and AI data centers, with recommissioning of dormant nuclear power plants expected in 2024 and 2025[34]. - The nuclear sector has seen a resurgence in demand, driven by increased electricity demand, which presents both opportunities and risks for the company[108]. Strategic Partnerships and Acquisitions - Mirion signed a partnership agreement with the IAEA to enhance cooperation in radiation detection and measurement, leveraging its expertise in the nuclear field[38]. - Mirion has acquired 18 companies since 2016, including Certrec and Paragon in 2025, to enhance its product offerings and expand into new markets[62]. - The company acquired Certrec and Paragon in July 2025 and December 2025, respectively, with the success of these acquisitions dependent on effective integration[115]. Financial Performance and Revenue Sources - Sales to customers in the United States and Canada accounted for approximately 48% of total revenue for fiscal 2025, with 33% from Europe and 17% from Asia Pacific[52]. - Service revenue represented approximately 25.4% of consolidated revenue for the fiscal periods ended December 31, 2025, 2024, and 2023[63]. - Revenue generated from outside of North America accounted for approximately 37.1% of net sales for the year ended December 31, 2025[110]. - Revenue generated from international sales accounted for approximately 37% of net sales for the years ended December 31, 2025, 2024, and 2023[122]. - A significant portion of revenue is derived from contracts with U.S. governmental customers, which could be adversely affected by government budget cuts or shutdowns[125]. Research and Development - Mirion's strategic focus includes expanding its market share in nuclear power and medical sectors, with ongoing investments in research and development to drive innovation[30][27]. - Research and development expenses for the fiscal year ended December 31, 2025, were $38.9 million, an increase from $35.0 million in 2024 and $31.7 million in 2023[69]. - The company aims to develop new products and services by leveraging its understanding of customer needs and cross-pollination of technologies between end markets[59]. Workforce and Employee Engagement - The company employs approximately 172 software engineers and 362 scientists and technicians, representing about 16% of the total workforce as of December 31, 2025[69]. - The sales and marketing personnel consist of 324 employees, which is approximately 10% of the total workforce[71]. - The company is committed to providing competitive compensation and benefits, including a 401(k) plan with an employer match of up to 4% for eligible employees[100]. - The company has a focus on employee engagement, regularly conducting surveys to gather feedback and improve workplace culture[97]. Regulatory and Compliance Risks - The company faces risks related to geopolitical conditions, supply chain management, and regulatory compliance, which could impact future performance[13][10]. - The company is subject to substantial government regulations affecting product approvals, manufacturing, testing, and marketing[85]. - Manufacturing operations are subject to complex regulatory requirements, and failure to comply could lead to enforcement actions and financial losses[131]. - The company operates under extensive regulations, which could lead to penalties and legal expenses that materially affect its business and financial condition[135]. - Compliance with complex import and export controls and sanctions could adversely impact revenue and supply chain, especially due to trade wars and regulatory actions[136]. Market Opportunities and Challenges - The global nuclear power market is projected to grow, with the International Atomic Energy Agency (IAEA) raising its annual nuclear projections for the fifth consecutive year, driven by energy security and climate action initiatives[34]. - The U.S. installed base of nuclear reactors averages over 40 years old, indicating a significant opportunity for upgrades and replacements of radiation detection and measurement products[37]. - Mirion's products and services are utilized in over 98% of nuclear power plants globally, highlighting its strong market position and extensive customer base[31]. - The company has experienced fluctuations in demand for its products and services, particularly in the fourth quarter, reflecting customer spending cycles[108]. Financial Obligations and Debt Management - As of December 31, 2025, total remaining performance obligations amount to $1,104.3 million, up from $811.9 million as of December 31, 2024, representing a year-over-year increase of approximately 36%[66]. - Approximately 49% of remaining performance obligations are expected to be recognized in calendar year 2026[67]. - As of December 31, 2025, the company had $450.0 million in outstanding indebtedness under its senior secured term loan facility, with an additional availability of up to $175.0 million under its revolving facility[154]. - The company may incur additional debt in the future, which could increase risks associated with meeting debt obligations[156]. - The company’s indebtedness could limit its business flexibility and expose it to variable interest rate risks, potentially leading to default if scheduled payments are not made[155]. Intellectual Property and Legal Risks - The company's ability to protect its intellectual property is crucial for future growth, with risks of costly litigation and potential damages from infringement claims[139]. - Use of open source software could lead to legal disputes and disrupt business operations if compliance with licensing conditions is not met[140]. - Non-compliance with data privacy laws could result in government enforcement actions and reputational harm, increasing operational costs[141]. - The company does not control its suppliers and partners, and their actions could negatively impact its reputation and sales[143]. Environmental and Social Governance (ESG) Risks - Failure to meet environmental, social, and governance (ESG) expectations could harm the company's reputation and financial performance, potentially increasing operational costs[137]. - Violations of environmental laws could result in significant fines and penalties, adversely affecting the company's operations and financial condition[138]. - The company faces increasing cybersecurity risks, including potential data breaches that could result in significant costs and damage to reputation[128]. - The use of artificial intelligence in operations may lead to legal liabilities and increased compliance obligations, impacting financial condition[127].

Core Insights - The company has experienced significant changes over the past 4.5 years, influenced by macroeconomic factors and evolving geopolitical dynamics [1] - The most exciting aspect for the company is the growth in the Nuclear Power segment, which is critical for its future [2] Revenue Breakdown - Approximately 47% of the company's revenue is derived from the commercial nuclear power industry, indicating its importance to overall financial performance [2] - The revenue from the nuclear segment is further divided between the installed base, which the company covers on a global basis [2]

Summary of Mirion Technologies Conference Call Company Overview - **Company**: Mirion Technologies (NYSE: MIR) - **Industry**: Nuclear Power and Radiation Therapy Key Points Industry and Market Dynamics - **Nuclear Power Segment Growth**: Approximately 47% of Mirion's revenue is derived from the commercial nuclear power industry, with a presence in over 95% of the global operating base [2][3] - **Global Electrical Generating Capacity Shortage**: The company views the current shortage as a generational tailwind for growth in the nuclear sector [3] - **AI Implications**: The integration of AI is expected to significantly impact operational efficiency and productivity within the company and the industry [3] Financial Performance and Guidance - **2026 Guidance**: The company anticipates accelerating organic growth across both segments, despite some crosscurrents such as government funding uncertainties and slower spending in nuclear labs [5][6] - **Record Orders and Backlog**: Mirion ended the previous year with record orders and backlog, indicating strong demand [6][7] - **Radiation Therapy Business Challenges**: The company faced challenges in its radiation therapy segment due to market softness in China and transitional issues in Japan, but remains optimistic about long-term growth [10][12] Growth Drivers - **Installed Base Growth**: The organic growth in the nuclear business was 11% last year, with expectations for continued double-digit growth driven by life extension and modernization of nuclear plants [45][49] - **Small Modular Reactors (SMRs)**: Orders for SMRs increased significantly, indicating a growing market, with $37 million in orders last year and expectations for further growth [52][67] - **Acquisition of Paragon Energy Solutions**: This acquisition is expected to enhance Mirion's capabilities in the nuclear sector, with Paragon projected to grow at 25% this year [78][79] Margin and Cost Management - **Margin Expansion**: The nuclear and safety segment saw a 40 basis point increase in margins to 29.4%, driven by procurement optimization and operational efficiencies [81][84] - **Long-term Margin Target**: The company aims for 30% EBITDA margins by 2028, with a focus on absorption and optimization strategies [84][87] AI and Technological Integration - **AI Initiatives**: Mirion launched 17 internal AI applications last year, with plans for further development, aiming to enhance productivity and operational efficiency [104][106] - **Software Exposure**: The company's software exposure is modest, between 5% and 7%, but is expected to grow as AI applications are integrated into operations [110][111] Future Outlook - **Nuclear Medicine Growth**: The nuclear medicine segment is expected to grow, driven by advancements in theranostics and radiopharmaceutical therapies [133][135] - **Emerging Trends**: Key trends include the increasing demand for electrical generating capacity and the transformative impact of AI on the industry [158][159] M&A Strategy - **M&A Pipeline**: Mirion plans to focus on smaller acquisitions to enhance its nuclear exposure while managing leverage, currently at 3.2 times EBITDA [148][150] Conclusion - Mirion Technologies is well-positioned to capitalize on growth opportunities in the nuclear power and radiation therapy sectors, with a strong focus on AI integration, margin expansion, and strategic acquisitions to drive future growth [159][160]

Core Viewpoint - Mirion will present at Citi's 2026 Global Industrial Tech and Mobility Conference, highlighting its leadership and strategic direction in the industry [1] Company Information - The presentation will be led by Chairman and CEO Thomas Logan, along with CFO and Medical Group President Brian Schopfer [1] - The event is scheduled for February 18, 2026, at 2:40 PM ET [1] - The presentation will be available via a live webcast on Mirion's Investor Relations Page [1]

Financial Data and Key Metrics Changes - In 2025, the company booked record orders totaling more than $1 billion, representing a 26% increase compared to 2024 [4][8] - Full year revenue totaled $925.4 million, up 7.5% versus 2024, with more than half of the growth being organic [22] - Adjusted EBITDA for the full year was $227.9 million, up 12% compared to 2024, with margins expanding by 90 basis points [22][26] - Adjusted EPS was $0.46, a 12% increase despite an approximately 50 million share increase in 2025 [23] Business Line Data and Key Metrics Changes - Nuclear power organic revenue grew more than 11% in 2025, while nuclear medicine organic revenue grew more than 13% [4] - The medical segment revenue declined 3.5% in Q4 2025, with full year medical segment revenue growing 3.7% [27] - Adjusted nuclear power orders grew 52% in 2025, supported by all three verticals: new utility-scale reactors, the installed base, and SMRs [20] Market Data and Key Metrics Changes - The nuclear power end market demonstrated the strongest growth, supported by $150 million from the large opportunity pipeline [8] - The defense and diversified end market saw a doubling of orders in Q4, primarily in the U.S. and with NATO [21] - The medical segment faced headwinds due to tough comps from the prior year, with nuclear medicine orders down only 6% in 2025 [9] Company Strategy and Development Direction - The company articulated a strategic priority to increase nuclear power exposure, acquiring Certrec and Paragon Energy Solutions to augment its North American nuclear power presence [5][11] - The company expects to leverage its strong international presence to take the capabilities of the acquired companies global [11] - The focus on AI and digital strategies is expected to enhance productivity and customer-facing applications, with significant investments being made in this area [61][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power sector, citing a robust demand for solutions due to the aging installed base and modernization needs [6][7] - The company anticipates double-digit organic growth in nuclear power and nuclear medicine for 2026, supported by favorable macro conditions [4][15] - Management noted that the headwinds faced in 2025 were seen as demand deferrals rather than a secular change in the market [10] Other Important Information - Adjusted free cash flow totaled $131 million in 2025, approximately double 2024's performance, reflecting improved earnings and reduced net interest expense [29] - The company expects 2026 total revenue to grow between 22%-24%, with organic revenue growth guidance of 5%-7% [15][16] Q&A Session Summary Question: Can the large opportunity pipeline translate to double-digit growth in backlog for 2026? - Management noted that while large project timing is complex, they feel good about the dynamics driving growth in the nuclear power vertical [36][38] Question: What is the expectation for medical growth in 2026? - Management indicated that they expect a quick recovery in medical, particularly in Europe and China, and are optimistic about mid-single-digit growth [39][40] Question: How does the Paragon acquisition impact growth expectations? - Management highlighted that Paragon's strong customer intimacy and market coverage are expected to drive significant growth, with a projected 25% growth for Paragon in 2026 [68][70] Question: What is the expected contribution from large orders booked in 2025? - Management clarified that while there will be some contribution, the first year of larger contracts tends to be the lightest [78] Question: How material are SMRs to the growth story? - Management acknowledged that while SMRs are currently a small percentage of total revenue, they see significant growth potential and are actively engaging with key players in the market [81]

Financial Data and Key Metrics Changes - In 2025, the company booked record orders totaling more than $1 billion, representing a 26% increase compared to 2024 [4][8] - Full year revenue totaled $925.4 million, up 7.5% versus 2024, with more than half of the growth being organic [22] - Adjusted EBITDA for the year was $227.9 million, up 12% compared to 2024, with margins expanding by 90 basis points [22][26] - Adjusted EPS was $0.46, a 12% increase despite an increase in diluted shares due to convertible notes and equity raises [23] Business Line Data and Key Metrics Changes - Nuclear power organic revenue grew more than 11% in 2025, while nuclear medicine organic revenue grew more than 13% [4] - The medical segment revenue declined 3.5% in Q4 2025, with full year medical segment revenue growing 3.7% [27] - Adjusted nuclear power orders grew 52% in 2025, supported by all three verticals: new utility-scale reactors, the installed base, and SMRs [20] Market Data and Key Metrics Changes - The nuclear power end market demonstrated the strongest growth, with $150 million from the large opportunity pipeline [8] - The defense and diversified end market saw a doubling of orders in Q4, primarily in the U.S. and with NATO [21] - The medical segment faced headwinds due to tough comps from the prior year, with nuclear medicine orders down only 6% in 2025 [9] Company Strategy and Development Direction - The company articulated a strategic priority to increase nuclear power exposure, acquiring Sertrek and Paragon Energy Solutions to enhance its North American nuclear power presence [5][12] - The company expects to leverage its strong international presence to take the capabilities of the acquired companies global [11] - The focus on AI and digital strategies is expected to enhance customer-facing applications and internal productivity, with significant investments being made in this area [58][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power sector, citing a robust demand for solutions due to the aging installed base and modernization needs [6][7] - The company anticipates double-digit organic growth in nuclear power and nuclear medicine for 2026, supported by favorable macro conditions [4][15] - Management acknowledged headwinds in the medical segment but remains optimistic about margin expansion and operational improvements [27][29] Other Important Information - Adjusted free cash flow totaled $131 million in 2025, approximately double that of 2024, reflecting improved earnings and reduced net interest expense [29] - The company expects 2026 total revenue growth between 22%-24%, with organic revenue growth guidance of 5%-7% [15][16] Q&A Session Summary Question: Can the large opportunity pipeline translate to double-digit growth in backlog for 2026? - Management noted that while large project timing is complex, they feel good about the underlying dynamics driving growth in the nuclear power vertical [34][36] Question: What is the expectation for medical segment growth in 2026? - Management indicated that they expect mid-single-digit growth in the medical segment, with a recovery anticipated in Europe and China [37][38] Question: How does the Paragon acquisition impact Q1 guidance? - Management stated that Q1 will be the lightest quarter for both Mirion and Paragon, with expected margin contraction due to the dilutive nature of the Paragon acquisition [44][46] Question: What is the expected contribution from SMRs to growth? - Management indicated that while SMRs are currently a small percentage of total revenue, they see significant growth potential and are actively engaging with key SMR developers [75][77] Question: Can you provide insights on the Sertrek acquisition? - Management highlighted that Sertrek broadens the nuclear power portfolio and enhances access to the SMR market, contributing positively to overall growth [79]

Financial Data and Key Metrics Changes - In 2025, Mirion Technologies booked record orders totaling more than $1 billion, representing a 26% increase compared to 2024 [4][8] - Full year revenue totaled $925.4 million, up 7.5% versus 2024, with more than half of the growth being organic [23] - Adjusted EBITDA for the full year was $227.9 million, up 12% compared to 2024, with margins expanding by 90 basis points [23][27] - Adjusted EPS for the full year was $0.46, a 12% increase despite an increase in diluted shares [24] Business Line Data and Key Metrics Changes - Nuclear power organic revenue grew more than 11% in 2025, while nuclear medicine organic revenue grew more than 13% [4] - The medical segment revenue declined 3.5% in Q4 2025, but full year medical segment revenue grew 3.7% [28] - The nuclear and safety segment revenue for Q4 was $194.9 million, up 15.5%, with organic revenue increasing 3.1% [25] Market Data and Key Metrics Changes - The nuclear power end market demonstrated the strongest growth, supported by $150 million from the large opportunity pipeline [8] - The defense and diversified end market saw a doubling of orders in Q4, primarily in the U.S. and with NATO [22] - Medical segment orders faced headwinds due to tough comps from the prior year, with nuclear medicine orders down only 6% in 2025 [9] Company Strategy and Development Direction - The company articulated a strategic priority to increase nuclear power exposure, acquiring Sertrek and Paragon Energy Solutions to augment its North American nuclear power presence [5][12] - The focus is on broadening exposure to dynamic verticals and enhancing customer intimacy through acquisitions [12] - The company expects to leverage AI for both customer-facing applications and internal productivity improvements [59][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power sector, citing a robust demand for solutions due to a shortage in generating capacity in developed markets [6] - The company anticipates double-digit organic growth in nuclear power for 2026, supported by a growing opportunity pipeline [6][20] - Management noted that headwinds in 2025 were seen as demand deferrals rather than a secular change in the market [10] Other Important Information - Adjusted free cash flow for 2025 totaled $131 million, approximately double that of 2024, with a 57% conversion rate [30] - The company expects 2026 total revenue growth between 22%-24%, with organic revenue growth guidance of 5%-7% [16][17] Q&A Session Summary Question: Can the large opportunity pipeline translate to double-digit growth in backlog for 2026? - Management noted that while large project timing is complex, they feel good about the underlying dynamics driving growth in the nuclear power vertical [36][39] Question: What is expected for medical segment growth in 2026? - Management indicated that they expect mid-single-digit growth in the medical segment, with a stronger performance anticipated in the second half of the year [40][41] Question: How does the Paragon acquisition impact margins and growth? - Management expects Paragon to contribute positively to margins over time, with significant growth anticipated in 2026 [65][66] Question: What is the expected contribution from large orders booked in 2025 to 2026 revenue? - Management indicated that while there will be some contribution, the first year of larger contracts tends to be the lightest [74] Question: How material are SMRs to Mirion's growth story? - Management noted that while SMRs currently represent a small percentage of total revenue, they are excited about the growth potential and ongoing engagement with SMR developers [75][76]

February 10, 2026 Fourth Quarter & Full Year 2025 Earnings Presentation Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipate", "believe", "continue", "could", "estimate", "expect", "hope", "intend", "may", "might", "plan", "possible", "potential", "predict", "project", "should", "strive", "seeks", "plans", "would", "will", "understand" and similar words are i ...