Mirion Technologies Inc. (NYSE:MIR) said Wednesday it agreed to buy Paragon Energy Solutions from Windjammer Capital Investors in a $585 million all-cash deal, expanding its offerings for nuclear power and small modular reactors (SMRs). Paragon, based in Fort Worth, Texas, provides engineered components and digital reactor protection systems for every operating reactor in North America. The company is projected to generate about $150 million in revenue by 2026 and have profit margins above 20%. Mirion sai ...

Core Viewpoint - Mirion has entered into a definitive agreement to acquire Paragon Energy Solutions for approximately $585 million in cash, enhancing its capabilities in the nuclear power industry and expanding its global reach [1][2]. Company Overview - Mirion is a global provider of radiation detection, measurement, analysis, and monitoring solutions, serving various end markets including nuclear, medical, defense, and research [13]. - Paragon Energy Solutions specializes in engineered solutions for the nuclear power industry, with a strong portfolio that includes critical nuclear systems and over 20,000 proprietary parts [3][13]. Financial Aspects - The acquisition price of $585 million represents approximately 18 times Paragon's expected Adjusted EBITDA for 2026, which is projected to be around $150 million with margins of 20% - 22% [2][4]. - The acquisition is expected to be accretive to diluted EPS in the first full year post-close and generate annualized commercial and cost synergies of $10 million [4][5]. Strategic Implications - The transaction is anticipated to broaden Mirion's offerings for nuclear power customers, including small modular reactors (SMRs), and strengthen the global supply chain for nuclear operations [2][4]. - Mirion's Chairman emphasized that the complementary capabilities of both companies will enhance customer experience and support the growing needs of the nuclear power sector [2]. Operational Details - The acquisition is supported by a fully committed bridge facility, with permanent financing expected to maintain a pro forma net debt to Adjusted EBITDA ratio of approximately 3.5x or lower [5]. - The transaction is expected to close before the end of 2025, subject to customary closing conditions and regulatory review [5]. Market Guidance - Mirion has revised its organic revenue growth guidance for the fiscal year ending December 31, 2025, now expecting growth of approximately 4.5% – 6.0%, down from a previous estimate of 5.0% – 7.0% [7][8].

Company Overview - Mirion Technologies, Inc. (MIR) shares increased by 8.4% to close at $24.6, supported by higher trading volume compared to normal sessions, and a total gain of 12.2% over the past four weeks [1] - The company is expected to report quarterly earnings of $0.11 per share, reflecting a year-over-year increase of 37.5%, with revenues projected at $226.1 million, up 9.3% from the previous year [2] Earnings Estimates and Trends - The consensus EPS estimate for Mirion Technologies has been revised down by 9.1% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [3] - Despite the downward revision, the stock currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook [3] Industry Context - Mirion Technologies is part of the Zacks Technology Services industry, which includes other companies like Cricut, Inc. (CRCT), that saw a 2.7% increase in its last trading session and a 16% return over the past month [3] - Cricut's EPS estimate for the upcoming report remains unchanged at $0.05, indicating stability compared to the previous year, and it also holds a Zacks Rank of 2 (Buy) [4]

Core Insights - Mirion has signed a partnership agreement with the International Atomic Energy Agency (IAEA) to enhance cooperation in radiation detection and measurement [1] Company Summary - Mirion is a leading provider of advanced radiation safety solutions [1] - The collaboration will leverage Mirion's advanced instrumentation and expertise in ionizing radiation [1] Industry Summary - The IAEA serves as the central intergovernmental forum for scientific and technical cooperation in the nuclear field [1]

Core Insights - Mirion Technology Inc (NYSE: MIR) is well-positioned to benefit from policies that promote nuclear power as global energy demand is expected to increase by over 20% by 2030 [1] Company Summary - Mirion Technology Inc is likely to gain from the growing emphasis on nuclear energy, which is seen as a crucial component in meeting the rising global power needs [1]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging [1] Group 1: Company Overview - Mirion Technologies, Inc. (MIR) is recommended as a cutting-edge growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 43.8%, with projected EPS growth of 22% this year, surpassing the industry average of 20.7% [5] Group 2: Financial Metrics - Year-over-year cash flow growth for Mirion Technologies is 5.3%, significantly higher than the industry average of -10.3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 1360.6%, compared to the industry average of 13.8% [7] Group 3: Earnings Estimates - The current-year earnings estimates for Mirion Technologies have been revised upward, with the Zacks Consensus Estimate increasing by 5% over the past month [8] - Mirion Technologies has earned a Growth Score of B and carries a Zacks Rank 2 due to positive earnings estimate revisions, indicating potential for outperformance [10]

Industry Overview - The AI-powered data center industry is experiencing significant growth, with nuclear energy emerging as a key solution to meet rising global electricity demand and transition to cleaner energy sources [1] - President Donald Trump has issued four executive orders to modernize the U.S. nuclear sector, aiming to increase nuclear capacity from approximately 100 GW in 2024 to 400 GW by 2050 [2] Company Performance - Mirion Technologies Inc. reported adjusted EPS of $0.11 and revenues of $222.9 million, exceeding estimates by 4.2% [6][10] - BWX Technologies Inc. achieved adjusted EPS of $1.02 and revenues of $764.04 million, surpassing estimates by 6.7% [12][10] - GE Vernova Inc. posted quarterly earnings of $1.86 per share and revenues of $9.11 billion, exceeding estimates by 3.3% [24][10] Future Outlook - Mirion Technologies expects revenue growth of 7% to 9% year-over-year in 2025, with adjusted EPS projected at $0.48 to $0.52 [7] - BWX Technologies anticipates total revenues of $3.1 billion in 2025, an increase from the previous estimate of $3 billion [12] - GE Vernova forecasts 2025 revenues to trend toward the upper end of $36–37 billion, with an adjusted EBITDA margin projected to grow to 8–9% [25] Market Demand and Trends - The demand for nuclear energy is significantly boosting the need for original equipment manufacturers (OEMs) in the sector [3] - Mirion Technologies is focusing on digital innovation in radiation safety solutions, partnering with Westinghouse Electric Company [9] - BWX Technologies is benefiting from strong bookings and government contracts, with a total backlog reaching $6 billion, up 70% year-over-year [17] Strategic Initiatives - Mirion Technologies is expanding its reach in next-generation nuclear energy by collaborating with small modular reactor developers [8] - BWX Technologies is working with the U.S. government on advanced nuclear reactor projects and has secured new contracts in the defense market [19] - GE Vernova is enhancing its nuclear power business through collaborations for the deployment of its BWX-300 small modular reactors [28][29]

Core Viewpoint - Mirion Technologies, Inc. (MIR) is showing a significantly improving earnings outlook, making it a potentially solid investment choice as analysts continue to raise their earnings estimates for the company [1][2]. Earnings Estimates - Analysts' optimism regarding Mirion Technologies' earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The consensus earnings estimates for the next quarter have increased considerably, with a current expectation of $0.13 per share, reflecting a year-over-year change of +62.5% [5]. - For the full year, the expected earnings are $0.53 per share, indicating a year-over-year increase of +29.3% [6]. Estimate Revisions - Over the past 30 days, the Zacks Consensus Estimate for Mirion Technologies has risen by 33.33%, with one estimate moving higher and no negative revisions [5]. - The consensus estimate for the current year has also increased by 12.5% during this timeframe [7]. Zacks Rank - Mirion Technologies has achieved a Zacks Rank 2 (Buy), indicating favorable estimate revisions that suggest strong investment potential [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8]. Stock Performance - Shares of Mirion Technologies have increased by 6.3% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [9].

Core Insights - Mirion Technologies reported Q2 2025 GAAP revenue of $222.9 million, exceeding analyst expectations of $216.2 million, and achieved adjusted EPS of $0.11, surpassing the consensus estimate of $0.10 [1][2] - The company experienced year-over-year growth in both GAAP revenue and net income, marking a significant turnaround from a GAAP net loss of $12.0 million in Q2 2024 to a net profit of $8.5 million in Q2 2025 [1][6] - Mirion raised its full-year revenue growth target to approximately 7.0%–9.0% for fiscal year 2025, while adjusting its organic revenue growth expectations down to 5.0%–7.0% due to challenges in specific submarkets [10] Financial Performance - Q2 2025 GAAP revenue increased by 7.6% year-over-year, and adjusted EBITDA rose by 4.9% from the previous year [2][5] - The adjusted EBITDA margin slightly decreased to 23.0% compared to 23.6% in Q2 2024 [2][6] - Cash from operations more than doubled in the first half of 2025, with cash on hand increasing from $175.2 million at the end of 2024 to $262.6 million by June 30, 2025 [6] Strategic Focus - Mirion specializes in radiation monitoring and measurement systems, serving nuclear energy plants, research labs, and hospitals [3][4] - The company is focusing on high-growth areas in nuclear power and medical radiation, relying on recurring revenue from system replacements and services [4] - Recent strategic moves include a $400 million convertible debt offering, refinancing of Term Loan B, and the acquisition of Certrec to enhance its nuclear offerings [7] Market Dynamics - The nuclear and safety segment benefited from strong installation and replacement cycles, supported by policy backing for nuclear energy [5] - The medical segment's growth is driven by rising cancer incidence and aging populations, although there are concerns regarding demand trends in China and the impact of tariffs on U.S.-made medical equipment [5][8] - Management is actively addressing tariff challenges through local sourcing and pricing adjustments, estimating a potential net impact on adjusted EBITDA between a $3 million gain and an $8 million loss [9]

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides Mirion Technologies, Inc.'s unaudited financial statements, management's discussion and analysis of financial performance, market risk disclosures, and internal controls [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Mirion Technologies, Inc. as of June 30, 2025, and for the three and six-month periods then ended, including Balance Sheets, Statements of Operations, Comprehensive Income, Stockholders' Equity, and Cash Flows, along with detailed notes Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $262.6 | $175.2 | | Total current assets | $693.2 | $594.7 | | Goodwill | $1,470.7 | $1,426.2 | | Total assets | $2,737.8 | $2,636.0 | | **Liabilities & Equity** | | | | Total current liabilities | $272.4 | $263.4 | | Debt, non-current | $444.5 | $685.2 | | Convertible debt | $387.9 | $— | | Total liabilities | $1,224.2 | $1,076.9 | | Total stockholders' equity | $1,513.6 | $1,559.1 | Condensed Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $222.9 | $207.1 | $424.9 | $399.7 | | Gross profit | $102.5 | $97.4 | $198.6 | $184.5 | | Income (loss) from operations | $9.9 | $2.3 | $18.6 | $(2.6) | | Net income (loss) | $8.5 | $(12.0) | $8.9 | $(38.5) | | Diluted EPS | $0.03 | $(0.06) | $0.04 | $(0.19) | Condensed Consolidated Statements of Cash Flows Highlights (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $48.0 | $21.2 | | Net cash used in investing activities | $(15.7) | $(21.8) | | Net cash provided by (used in) financing activities | $41.2 | $(2.8) | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes provide detailed disclosures on accounting policies, business combinations, debt, segment information, and other financial items, including recent financing activities and the acquisition of Certrec Corporation - The company operates through two reportable segments: Medical and Nuclear & Safety, providing radiation oncology QA and dosimetry solutions, and radiation detection for power plants, labs, and defense, respectively[33](index=33&type=chunk)[37](index=37&type=chunk) - In May 2025, the Company issued **$400.0 million** of 0.25% Convertible Senior Notes due 2030, with an initial conversion price of approximately **$23.11 per share**[44](index=44&type=chunk)[102](index=102&type=chunk)[104](index=104&type=chunk) - On June 5, 2025, the Company used proceeds from the convertible notes to repay **$244.6 million** of its term loan principal, extend the maturity to June 2032, and recorded a **$5.8 million** loss on debt extinguishment[87](index=87&type=chunk) - Total remaining performance obligations were approximately **$819.0 million** as of June 30, 2025, up from **$811.9 million** at year-end 2024, with **37%** expected to be recognized as revenue during the remainder of 2025[48](index=48&type=chunk) - On July 31, 2025, the Company signed an agreement to acquire Certrec Corporation, a leader in regulatory compliance for the nuclear industry, for **$81.0 million** in cash[191](index=191&type=chunk) - In June 2023, a Russian customer demanded the return of **$10.2 million** for a cancelled project, leading to a September 2024 settlement for the company to refund **€4.4 million**, which was paid in June 2025[123](index=123&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results, highlighting a **7.6%** revenue increase in Q2 2025 to **$222.9 million**, driven by growth in both the Medical and Nuclear & Safety segments, with net income turning positive to **$8.5 million** in Q2 2025 from a **$12.0 million** loss in Q2 2024, primarily due to higher revenue, a significant foreign currency gain, and lower interest expense, despite a **$5.8 million** loss on debt extinguishment [Results of Operations](index=53&type=section&id=Results%20of%20Operations) For Q2 2025, revenue increased by **$15.8 million (7.6%)** to **$222.9 million**, and for H1 2025, revenue grew by **$25.2 million (6.3%)** to **$424.9 million**, driven by organic volume, price increases, and favorable foreign exchange rates in both Medical and Nuclear & Safety segments, resulting in a net income of **$8.5 million** for Q2 2025, a significant improvement from a net loss of **$12.0 million** in Q2 2024 Comparison of Results of Operations (in millions) | Metric | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | $222.9 | $207.1 | +$15.8 | $424.9 | $399.7 | +$25.2 | | Gross Profit | $102.5 | $97.4 | +$5.1 | $198.6 | $184.5 | +$14.1 | | Income from Operations | $9.9 | $2.3 | +$7.6 | $18.6 | $(2.6) | +$21.2 | | Net Income (Loss) | $8.5 | $(12.0) | +$20.5 | $8.9 | $(38.5) | +$47.4 | - The increase in net income for Q2 2025 was primarily driven by a **$13.5 million** unrealized foreign currency gain, increased revenues, decreased interest expense, and lower amortization, partially offset by a **$5.8 million** loss on debt extinguishment[221](index=221&type=chunk) - Selling, general and administrative (SG&A) expenses decreased by **$4.9 million** in Q2 2025 compared to Q2 2024, mainly due to lower amortization expense for intangible assets and reduced stock compensation and professional service spend[227](index=227&type=chunk)[228](index=228&type=chunk)[230](index=230&type=chunk) [Segment Analysis](index=55&type=section&id=Segment%20Analysis) In Q2 2025, the Medical segment's revenue grew **10.9%** to **$81.2 million**, with operating income increasing significantly to **$10.9 million** from **$5.0 million** year-over-year, driven by volume growth and lower amortization, while the Nuclear & Safety segment's revenue rose **5.8%** to **$141.7 million**, with operating income slightly up at **$19.0 million**, as revenue growth and lower amortization were partially offset by inflation and higher material costs Medical Segment Performance - Q2 (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $81.2 | $73.2 | +10.9% | | Income from operations | $10.9 | $5.0 | +118.0% | | Income from operations as a % of revenues | 13.4% | 6.8% | +6.6 p.p. | - Medical segment revenue growth in Q2 was driven by **$4.7 million** in domestic volume growth, **$2.0 million** in Asia-Pacific growth, and **$1.0 million** in price increases[243](index=243&type=chunk) Nuclear & Safety Segment Performance - Q2 (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $141.7 | $133.9 | +5.8% | | Income from operations | $19.0 | $18.5 | +2.7% | | Income from operations as a % of revenues | 13.4% | 13.8% | -0.4 p.p. | - Nuclear & Safety segment revenue growth in Q2 was due to **$2.9 million** in organic volume growth, **$2.5 million** in price increases, and **$2.4 million** in positive foreign exchange fluctuations[245](index=245&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had **$263.0 million** in cash and cash equivalents, an increase from **$175.6 million** at year-end 2024, with liquidity significantly impacted by financing activities in H1 2025, including the issuance of **$400.0 million** in convertible notes and the subsequent use of proceeds to repay **$244.6 million** of the term loan, repurchase **$31.0 million** in stock, and pay for **$44.6 million** in capped call transactions - Cash and cash equivalents stood at **$263.0 million** as of June 30, 2025, with approximately **$157.7 million** available under its revolving credit facility[283](index=283&type=chunk) - In May 2025, the company issued **$400.0 million** in 0.25% Convertible Senior Notes due 2030, with net proceeds of **$387.7 million** used to repurchase stock (**$31.0 million**), pay for capped calls (**$44.6 million**), and refinance the term loan (**$256.0 million**)[294](index=294&type=chunk)[300](index=300&type=chunk) - On June 5, 2025, the company repaid **$244.6 million** of its term loan principal and extended the maturity to June 5, 2032, reducing the outstanding balance to **$450.0 million**[291](index=291&type=chunk) - Net cash provided by operating activities increased by **$26.8 million** to **$48.0 million** for the six months ended June 30, 2025, primarily due to a **$47.4 million** increase in net income[307](index=307&type=chunk) - The company has a share repurchase program for up to **$100 million**, authorized until November 2029, with **1.2 million** shares repurchased under this program as of June 30, 2025[302](index=302&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=61&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that there have been no material changes to its quantitative and qualitative disclosures about market risk from those reported in its Annual Report on Form 10-K for the year ended December 31, 2024 - There are no material changes to the disclosures on market risk compared to the Annual Report on Form 10-K for the year ended December 31, 2024[314](index=314&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes to the company's internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[316](index=316&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[318](index=318&type=chunk) [PART II - OTHER INFORMATION](index=62&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, key risk factors, details on unregistered equity sales and use of proceeds, and other relevant corporate information [Item 1. Legal Proceedings](index=63&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is subject to various legal proceedings in the ordinary course of business, with specific details on commitments and contingencies referenced in Note 11 of the financial statements, and management does not expect the outcomes to have a material effect on the business - The company is subject to legal actions arising from the ordinary course of business, but does not expect them to have a material effect; for details, see Note 11, Commitments and Contingencies[321](index=321&type=chunk) [Item 1A. Risk Factors](index=63&type=section&id=ITEM%201A.%20Risk%20Factors) This section highlights that the company's operating results are subject to risks from worldwide economic conditions, international trade issues, tariffs, and geopolitical tensions, particularly involving Russia and China, which could increase costs, disrupt supply chains, and adversely affect business, revenue, and financial condition - The company's business is subject to global economic and geopolitical risks, including tariffs, trade barriers, and conflicts, which could increase costs and adversely affect operations[324](index=324&type=chunk) - Significant uncertainty exists regarding trade relationships between the U.S. and other countries, notably Russia and China, which could lead to further tariffs, export controls, and supply chain disruptions[325](index=325&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a share repurchase program for up to **$100 million**, expiring in November 2029, and during Q2 2025, it repurchased **1,777,523** shares of its Class A common stock at an average price of **$17.44** per share, which was an open-market transaction connected to the May 2025 convertible notes offering and separate from the publicly announced repurchase program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining in Program (in millions) | | :--- | :--- | :--- | :--- | | April 1 - 30, 2025 | — | $— | $81.4 | | May 1 - 31, 2025 | 1,777,523 | $17.44 | $81.4 | | June 1 - 30, 2025 | — | $— | $81.4 | - The **1,777,523** shares repurchased in May 2025 were part of an open-market transaction connected to the company's convertible notes offering and were not under the publicly announced repurchase plan[328](index=328&type=chunk) [Item 5. Other Information](index=64&type=section&id=ITEM%205.%20Other%20Information) The company reports that during the three months ended June 30, 2025, no director or officer adopted or terminated a Rule 10b5-1 trading plan or any non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the second quarter of 2025[335](index=335&type=chunk)