Industry Overview - The artificial intelligence (AI) sector, bolstered by the growth of cloud computing and data centers, is experiencing a robust demand scenario, with a significant surge in data center capacity needed to manage and store cloud-based data [1] - AI infrastructure capital expenditure (capex) is projected to exceed $1 trillion by 2028 according to Goldman Sachs and Bank of America, while JP Morgan and Citigroup forecast a cumulative total of $5 trillion by 2030. McKinsey & Co. estimates that global AI-powered data center infrastructure capex will reach around $7 trillion by 2030 [2] Company Recommendations - Investors are advised to buy and hold five non-technology U.S. companies that are expected to benefit from the AI-driven data center boom in 2026. These companies have shown significant stock performance in 2025 [3] - The recommended companies include Comfort Systems USA Inc. (FIX), Vertiv Holdings Co. (VRT), Mirion Technologies Inc. (MIR), BWX Technologies Inc. (BWXT), and EMCOR Group Inc. (EME), all of which currently hold a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [4] Company Insights Comfort Systems USA Inc. (FIX) - FIX operates primarily in the HVAC markets and is experiencing increased demand for specialized HVAC solutions due to the data center boom driven by AI and cloud computing [7][8] - The company is expanding its data center construction work, which is becoming a significant growth driver and attracting M&A activity [10] - Expected revenue and earnings growth rates for FIX are 14.7% and 16.4%, respectively, for the next year, with a 20.1% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [11] Vertiv Holdings Co. (VRT) - VRT is a leading provider of critical digital infrastructure for data centers and is benefiting from strong market demand and an extensive product portfolio [12][13] - The company is strategically expanding its capacity to meet the growing demand for AI-enabled solutions and has made acquisitions to enhance its service capabilities [13][14] - Expected revenue and earnings growth rates for VRT are 20.7% and 26.3%, respectively, for the next year, with a 6.8% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [15] Mirion Technologies Inc. (MIR) - MIR provides radiation detection and monitoring products and is focused on expanding its reach in the nuclear energy sector [16] - The company is integrating digital technologies into its radiation safety solutions and has recently partnered with Westinghouse Electric Company [17] - Expected revenue and earnings growth rates for MIR are 24.7% and 26.5%, respectively, for the next year, with a 1.6% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [18] BWX Technologies Inc. (BWXT) - BWXT manufactures nuclear components and is benefiting from strong bookings and government contracts, particularly in the nuclear sector [19][20] - The company's total backlog reached $7.4 billion, up 119% year over year, driven by robust federal demand and a growing pipeline [21] - Expected revenue and earnings growth rates for BWXT are 14.5% and 9.9%, respectively, for the next year, with a 0.2% improvement in the Zacks Consensus Estimate for next year's earnings over the last seven days [24] EMCOR Group Inc. (EME) - EME is a leading provider of critical infrastructure to AI-powered data centers, focusing on electrical infrastructure and cooling systems [25] - The company is gaining traction in the data center construction market, which is contributing to its expanding performance obligations [26][27] - Expected revenue and earnings growth rates for EME are 5.9% and 8.6%, respectively, for the next year, with a 1.2% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [28]

Shares of Mirion Technologies, Inc. (MIR) have gained 3.1% over the past four weeks to close the last trading session at $24.91, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $31.83 indicates a potential upside of 27.8%.The average comprises six short-term price targets ranging from a low of $29.00 to a high of $35.00, with a standard deviation of $2.79. While the lowest estim ...

Core Insights - Mirion Technologies, Inc. (NYSE:MIR) achieved an all-time high stock price following strong Q3 earnings and a positive growth outlook for 2025 [1][3][4] Financial Performance - The company reported a net income of $2.9 million for Q3, a significant turnaround from a net loss of $13.6 million in the same quarter last year [3] - Total revenues increased by 7.88% year-on-year, reaching $223.1 million compared to $206.8 million [4] Growth Outlook - For the full year 2025, Mirion Technologies maintained its revenue growth forecast of 7% to 9%, with adjusted EBITDA projected between $223 million and $233 million, and adjusted EPS expected to be between $0.48 and $0.52 [5] - The company revised its organic revenue growth forecast down to 4.5% to 6% from a previous range of 5% to 7% [6]

Financial Performance - Total revenues for Q3 2025 reached $223.1 million, a 7.5% increase from $206.8 million in Q3 2024[18] - Net income attributable to Mirion Technologies, Inc. for Q3 2025 was $2.9 million, a significant improvement from a net loss of $13.6 million in Q3 2024[18] - The company reported a comprehensive income of $2.5 million for Q3 2025, compared to a comprehensive income of $6.3 million for Q3 2024[21] - Net income for the nine months ended September 30, 2025, was $12.0 million, a significant improvement from a net loss of $52.5 million for the same period in 2024[32] - The consolidated income before income taxes for the three months ended September 30, 2025, was $1.2 million, a recovery from a loss of $13.0 million in the same period of 2024[172] Revenue Segments - The Medical segment generated revenues of $78.5 million for the three months ended September 30, 2025, compared to $74.1 million in the same period of 2024, reflecting a 5.9% increase[172] - The Nuclear & Safety segment reported revenues of $144.6 million for the three months ended September 30, 2025, up from $132.7 million in the same period of 2024, marking a 9.5% increase[172] - Cancer care revenue increased to $62.0 million for the three months ended September 30, 2025, compared to $57.1 million in 2024, representing an increase of 15.6%[178] - The Nuclear & Safety segment's revenues for the nine months ended September 30, 2025, were $419.7 million, up from $392.4 million in the same period of 2024, representing a 7.0% growth[173] Cash and Liquidity - Cash and cash equivalents increased to $933.2 million as of September 30, 2025, up from $175.2 million at December 31, 2024[16] - The total cash, cash equivalents, and restricted cash at the end of the period was $933.6 million, a substantial increase from $133.7 million at the end of September 2024[32] - The company maintains cash in bank accounts that may exceed insured limits but has not experienced any losses[61] Assets and Liabilities - Total assets grew to $3,495.8 million as of September 30, 2025, compared to $2,636.0 million at December 31, 2024, marking a 32.6% increase[16] - Total liabilities rose to $1,603.8 million as of September 30, 2025, compared to $1,076.9 million at December 31, 2024[16] - Total debt as of September 30, 2025, was $451.6 million, down from $697.4 million as of December 31, 2024, reflecting a decrease of approximately 35.3%[93] Stock and Equity - The weighted average diluted shares outstanding increased to 255.662 million for Q3 2025, compared to 206.676 million for Q3 2024[19] - As of September 30, 2024, total stockholders' equity is $2,137.2 million, a decrease of $556.5 million from the previous period[24] - The company issued 19,906,322 shares of Class A common stock under a direct registered offering, generating $409.6 million in net proceeds[29] Expenses - Research and development expenses for the nine months ended September 30, 2025, were $28.8 million, compared to $26.9 million for the same period in 2024[18] - Stock-based compensation expense for the quarter is $4.2 million, reflecting an increase from $3.9 million in the previous quarter[24] - The company incurred restructuring expenses totaling $1.0 million for the three months ended September 30, 2025, compared to $1.8 million for the same period in 2024[204] Acquisitions and Investments - The Company acquired Certrec for approximately $82.2 million, which included $29.9 million in intangible assets and $54.6 million in goodwill[67] - The company reported a net cash used in investing activities of $103.8 million, up from $34.1 million in the previous year, primarily due to acquisitions of businesses[32] Debt and Financing - The Company completed a private offering of $400.0 million in Convertible Senior Notes due 2030, with a conversion price of approximately $23.11 per share[115][117] - The Company also completed a private offering of $375.0 million in Convertible Senior Notes due 2031, intended to fund the acquisition of WCI-Gigawatt Intermediate Holdco, LLC for approximately $585.0 million[121] - The term loan was refinanced, reducing the applicable margin rate from 2.75% to 2.25%, with a maturity date extended to June 5, 2032[99] Comprehensive Income and Other Adjustments - Other comprehensive income for the quarter is $20.5 million, compared to a loss of $5.5 million in the previous quarter[24] - Accumulated other comprehensive loss decreased from $93.0 million as of December 31, 2024, to $57.1 million as of September 30, 2025[211] - Cumulative foreign currency translation adjustment improved from $(93.6) million to $(28.5) million during the same period[211] Forward-Looking Statements - The discussion includes forward-looking statements that involve risks and uncertainties, indicating potential variability in actual results[213] - The company expects to recognize approximately 26%, 35%, 14%, and 7% of the remaining performance obligations as revenue during 2025, 2026, 2027, and 2028, respectively[51]

Core Insights - Mirion Technologies is expected to close with gains today, contrasting with the likely declines of the Dow Jones Industrial Average and S&P 500 [1] - As of 1:46 p.m. ET, shares of Mirion Technologies increased by 17.1% [2] Financial Performance - For Q3 2025, Mirion reported revenue of $223.1 million and adjusted earnings per share (EPS) of $0.12, surpassing analysts' expectations of $222.2 million in revenue and $0.10 in EPS [4] - The company's Q3 2025 revenue showed a year-over-year increase of 7.3%, while adjusted EPS reflected a 50% increase compared to the same period in 2024 [5] Future Guidance - Management reaffirmed its 2025 financial guidance, projecting revenue growth of 7% to 9% year-over-year and adjusted EBITDA between $223 million and $233 million, indicating a potential 12% year-over-year increase at the midpoint [6] Market Position - The acquisition of Paragon positions Mirion favorably within the small modular reactor (SMR) market, providing exposure without the associated risks of investing in SMR companies like NuScale Power and Oklo [7][9]

Core Insights - Mirion Technologies' shares surged 18.2% following a strong earnings report, driven by growth in its nuclear energy-related business [1] Financial Performance - In Q3, Mirion reported a revenue increase of 7.9% to $223.1 million and a 50% rise in non-GAAP earnings per share to $0.12, both exceeding expectations [2] - The company anticipates 7% to 9% growth for the year, with approximately 1 percentage point attributed to recent acquisitions in the nuclear segment [3] - Adjusted EPS is projected at $0.50 at the midpoint, with adjusted free cash flow expected between $100 million and $115 million, with the lower end of guidance raised since the last quarter [3] Segment Analysis - The nuclear segment is the larger and faster-growing part of Mirion's business, achieving 9% growth last quarter to $144.6 million, making up nearly two-thirds of total revenue, while the medical segment grew only 5.9% [4] - A 21% increase in the nuclear safety segment order book was reported, driven by a significant order from a small modular reactor customer, although the medical order book declined [5] Market Trends - The nuclear energy sector has seen substantial growth, with Mirion's stock up 70.3% for 2025, currently trading at over 70 times this year's adjusted free cash flow estimates [7] - Despite strong results, the stock is considered expensive, with expectations of mid-single-digit organic growth this year [9]

Financial Data and Key Metrics Changes - Third quarter revenue totaled $223 million, an increase of nearly 8% from the previous year, with organic revenue growth of 4.7% [7][20] - Adjusted EBITDA for the quarter was $52.4 million, up 14.7% year-over-year, with margin expansion contributing to the increase [8][21] - Adjusted free cash flow for the third quarter was $18 million, contributing to a year-to-date total of $53 million, leading to an increase in adjusted free cash flow guidance for 2025 to between $100 million and $115 million [8][25] - Adjusted EPS was $0.12 per share, a 50% increase compared to the same quarter last year [21] Business Line Data and Key Metrics Changes - The nuclear and safety segment revenue grew 9% to $144.6 million, with organic growth of 4.4% [23] - The medical segment revenue totaled $78.5 million, up 5.9%, with organic revenue growth of 5.2% [24] - Adjusted orders in the nuclear power end market grew 21%, reflecting strong demand across new builds, SMRs, and the installed base [10][16] Market Data and Key Metrics Changes - Year-to-date orders in the U.S. nuclear power end market increased by 44%, primarily driven by SMR activity [16] - The global nuclear fleet's average capacity factor reached 83% in 2024, indicating potential for increased operational efficiency [11] - The IAEA has raised its nuclear capacity forecast, expecting nearly a terawatt of nuclear capacity by 2050 [11] Company Strategy and Development Direction - The company is focused on broadening its nuclear power portfolio through acquisitions, including the recent Paragon Energy Solutions deal [6][14] - The strategy includes enhancing software solutions for regulatory compliance and expanding the U.S. presence with additional products and services [13][14] - The company aims to capitalize on the nuclear renaissance and is optimistic about the growth potential in the nuclear power sector [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power market's growth, citing strong order flow and favorable trends in SMR orders [9][10] - The medical segment is expected to normalize despite current pressures, with continued demand driven by aging populations and increased cancer incidence [35][37] - Management remains optimistic about achieving a level of equilibrium in the U.S. healthcare environment, which has been impacted by budgetary constraints [71][72] Other Important Information - The company expects to maintain a blended cost of debt of 2.8% into 2026, reflecting a significant improvement over the past year [8] - The company has a robust opportunity pipeline, with $285 million still to be awarded, of which $175 million is expected to be awarded by year-end [19][42] Q&A Session Summary Question: Regarding the commercial nuclear backlog and potential acceleration - Management indicated that the installed base and new utility scale builds are key drivers for future backlog growth, with government support expected to streamline project timelines [31][32] Question: Insights on the medical business amidst current pressures - Management remains positive about the medical business, citing strong demand drivers and expecting normalization in the RTQA segment [35][37] Question: Confidence in the $175 million pipeline and potential awards - Management expressed confidence in the pipeline, noting that timing is unpredictable but they feel they have a strong right to win on these opportunities [42] Question: Discussion on SMR opportunities and related projects - Management highlighted the expanding SMR opportunity set, with over 120 projects in development and significant government support aiding market evolution [46][62] Question: Pricing power trends in nuclear safety versus medical - Management noted that pricing power remains strong, particularly in the nuclear segment, while being more cautious in the medical segment due to current market conditions [68] Question: U.S. healthcare environment impacts on business - Management explained that Medicaid cuts and overall market noise have created a defensive CapEx environment, but they expect demand dynamics to normalize [71][72]

Financial Data and Key Metrics Changes - Third quarter revenue totaled $223 million, an increase of nearly 8% from the previous year, with organic revenue growth of 4.7% [6][19] - Adjusted EBITDA for the quarter was $52.4 million, up 14.7% year-over-year, with margin expansion contributing to the increase [7][20] - Adjusted free cash flow for the third quarter was $18 million, contributing to a year-to-date total of $53 million, leading to an increase in adjusted free cash flow guidance for 2025 to between $100 million and $115 million [7][24] - Adjusted EPS was $0.12 per share, a 50% increase compared to the same quarter last year [20] Business Line Data and Key Metrics Changes - Nuclear and safety segment revenue grew 9% to $144.6 million, with organic growth of 4.4% [22] - Medical segment revenue totaled $78.5 million, up 5.9%, with organic revenue growth of 5.2% [23] - Adjusted orders in the nuclear power end market grew 21%, reflecting strong demand across new builds, SMRs, and the installed base [9][15] Market Data and Key Metrics Changes - Year-to-date orders in the U.S. nuclear power end market increased by 44%, primarily driven by SMR activity [15] - The global nuclear fleet's average capacity factor reached 83% in 2024, indicating a positive trend for nuclear power utilization [10] - The IAEA has increased its nuclear capacity forecast, expecting nearly a terawatt of nuclear capacity by 2050 [10] Company Strategy and Development Direction - The company is focused on expanding its nuclear power portfolio through acquisitions, including the recent Paragon Energy Solutions deal [5][12] - The strategy includes enhancing software solutions for regulatory compliance and broadening product offerings in the nuclear power sector [12][13] - The company remains optimistic about the nuclear renaissance and its positioning to benefit from it [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power market's growth, citing strong order flow and government support for new projects [31][32] - The medical segment is expected to normalize despite current pressures, with continued demand for cancer care solutions [36][71] - Management anticipates a rebound in the RTQA business as funding dynamics stabilize [36] Other Important Information - The company expects to close the Paragon acquisition by year-end, which will enhance its U.S. presence and product offerings [5][12] - The company is actively managing supply chain risks and has developed strategies to mitigate exposure to critical commodities [65][66] Q&A Session Summary Question: Regarding the commercial nuclear backlog and project activity - Management indicated that the installed base and new utility scale builds are key drivers for future backlog growth, with government support expected to streamline project timelines [30][31] Question: Insights on the medical business amidst current pressures - Management remains optimistic about the medical segment, citing strong demand drivers and expecting normalization in the RTQA business [34][36] Question: Confidence in the $175 million pipeline and potential awards - Management expressed confidence in the pipeline, noting that timing for large opportunities can be unpredictable but remains optimistic about winning a significant portion [41] Question: Clarification on SMR opportunities and project details - Management highlighted the expanding SMR project pipeline and the importance of government support in accelerating market growth [44][61] Question: Pricing power trends in nuclear safety versus medical - Management noted positive pricing dynamics in the nuclear segment, while being more cautious in the medical segment due to current market conditions [68] Question: Impact of U.S. healthcare environment on business - Management discussed the effects of Medicaid cuts and overall market noise on capital expenditures, but remains confident in the underlying demand for their solutions [71]

Financial Data and Key Metrics Changes - Third quarter revenue totaled $223 million, an increase of nearly 8% from the previous year, with organic revenue growth of 4.7% [5][17] - Adjusted EBITDA for the quarter was $52.4 million, up 14.7% year-over-year, with margin expansion contributing to the increase [6][18] - Adjusted free cash flow for the third quarter was $18 million, contributing to a year-to-date total of $53 million, with an increase in the low end of adjusted free cash flow guidance to between $100 million and $115 million for 2025 [6][22] Business Line Data and Key Metrics Changes - The nuclear and safety segment revenue grew 9% to $144.6 million, with organic growth of 4.4% driven by nuclear power end market growth of 9% [20] - The medical segment revenue totaled $78.5 million, up 5.9%, with organic revenue growth of 5.2% [21] - Adjusted orders in the nuclear power end market grew 21%, reflecting strong demand across new builds, SMRs, and the installed base [8][14] Market Data and Key Metrics Changes - Year-to-date orders in the U.S. nuclear power end market increased by 44%, primarily due to SMR activity [14] - The global nuclear fleet's average capacity factor reached 83% in 2024, indicating potential for increased operational efficiency [9] - The IAEA has raised its nuclear capacity forecast, expecting nearly a terawatt of nuclear capacity by 2050 [9] Company Strategy and Development Direction - The company is focused on broadening its nuclear power portfolio through acquisitions, including the recent Paragon Energy Solutions deal [5][11] - The strategy includes enhancing software solutions for regulatory compliance and expanding product offerings in the nuclear power sector [11] - The company remains optimistic about the nuclear renaissance and its positioning to benefit from it [5][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power market's growth, citing strong order flow and government support for new projects [28][30] - The medical segment is expected to normalize despite current pressures, with continued demand driven by demographic trends and cancer care needs [31][32] - Management anticipates a rebound in the RTQA business as funding dynamics stabilize [32] Other Important Information - The company expects a blended cost of debt of 2.8% by year-end 2025, reflecting a significant improvement over the past year [6] - Adjusted EPS for the third quarter was $0.12, a 50% increase compared to the same quarter last year [18] Q&A Session Summary Question: Regarding the commercial nuclear backlog and project activity - Management indicated that the installed base and new utility scale builds are key drivers for future growth, with expectations for a growing nuclear power-related backlog [25][27] Question: Insights on the medical business amidst current pressures - Management remains optimistic about the medical business, citing strong demand drivers and expecting a return to trend as market conditions normalize [31][32] Question: Confidence in the $175 million pipeline and potential awards - Management expressed confidence in the pipeline, noting that timing for large opportunities can be unpredictable but remains optimistic about winning contracts [36][37] Question: Discussion on SMR opportunities and project pipeline - Management highlighted the expanding SMR project landscape and the importance of government support in accelerating project development [39][54] Question: Impact of larger one-time orders on margin profiles - Management confirmed a commitment to maintaining a 30% adjusted EBITDA margin target, with expectations that new builds may have lower margins compared to installed base work [71]

Q3 2025 Performance - Revenue reached $223.1 million, with organic growth of 4.7% compared to Q3 2024[12] - Adjusted EBITDA increased by 14.7% to $52.4 million compared to Q3 2024, with contributions from both segments[15] - Adjusted Free Cash Flow generation was $18 million in Q3 2025, with $53 million YTD and a 35% YTD conversion rate[12] - Adjusted diluted EPS increased by 50% to $0.12[41] Nuclear Power Momentum - Nuclear Power end-market organic revenue grew by 11% YTD[8] - Adjusted Orders in Nuclear Power end-market increased by 21% in Q3 2025 compared to Q3 2024[16] - SMR-related orders amounted to $17 million in Q3 2025, a 9% increase compared to Q3 2024[17] - A $10 million SMR new build order was secured in Q3 2025, and a $55 million installed base order was secured in October 2025[8] Medical Segment Update - Approximately 75% of the Medical segment's revenue is directly related to cancer care[27] - Dosimetry organic revenue grew by 7%[57] 2025 Guidance - The company is on track for 2025 guidance[11] - Organic Revenue Growth is projected between 4.5% and 6.0%, and Total Revenue Growth between 7.0% and 9.0%[62]