Company Overview - JBT Marel is part of the Business Services group, which consists of 258 companies and currently ranks 7 in the Zacks Sector Rank [2] - The company has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Performance Analysis - Year-to-date, JBT Marel has increased by approximately 6.6%, outperforming the average gain of 2.1% for Business Services stocks [4] - In comparison, Mirion Technologies, Inc. has shown a significant return of 24.6% since the beginning of the year [4] Earnings Estimates - The Zacks Consensus Estimate for JBT Marel's full-year earnings has risen by 1% over the past quarter, reflecting improved analyst sentiment [3] - In contrast, Mirion Technologies, Inc. has seen a 12.5% increase in its consensus EPS estimate over the last three months [5] Industry Context - JBT Marel operates within the Technology Services industry, which includes 122 companies and currently ranks 85 in the Zacks Industry Rank [6] - Stocks in the Technology Services industry have gained about 12.3% year-to-date, indicating that JBT Marel is slightly underperforming its industry [6] Future Outlook - Investors are encouraged to monitor JBT Marel and Mirion Technologies, Inc. for potential continued strong performance in the Business Services sector [7]

Industry Overview - The artificial intelligence (AI)-powered data center industry is thriving, leading to increased interest in nuclear energy as a hot sector over the past year [1] - The demand for nuclear energy is being driven by the energy-intensive nature of AI technologies [1] Company Profiles Mirion Technologies - Mirion Technologies, based in Atlanta, GA, specializes in radiation detection, measurement, analysis, and monitoring products and services across North America, Europe, and the Asia Pacific [2] - The company is focusing on digital innovation in the nuclear and radiation safety sectors, recently partnering with Westinghouse Electric Company to enhance nuclear instrumentation with digital solutions [3][4] - Mirion's digital systems provide precise measurements and are less affected by environmental changes, ensuring high-quality data collection [5] - The transition to digital systems allows for standardized data recording and remote monitoring capabilities, enhancing operational efficiency [6] BWX Technologies - BWX Technologies, headquartered in Lynchburg, VA, manufactures and sells nuclear components in the U.S., Canada, and internationally [2] - The company is expanding its commercial power segment and benefiting from strong bookings and government contracts, particularly in nuclear demand [8] - BWXT has secured contracts with the U.S. Department of Defense for developing a micro-nuclear reactor and is collaborating with commercial nuclear energy companies [9] - The company is preparing for growth in the small modular reactors market, anticipating multiple follow-on orders in North America and Europe [12] Financial Performance Mirion Technologies - Mirion expects total revenues to grow by 5-7% year-over-year in 2025, with organic revenue growth projected at 5.5-7.5% [7] - Adjusted EBITDA is anticipated to be in the range of $215-$230 million, and adjusted free cash flow is projected between $85-$110 million [7] - The company forecasts adjusted earnings per share (EPS) in the range of 45-50 cents [7] BWX Technologies - BWXT's 2025 sales and EPS estimates imply a year-over-year improvement of 12.9% and 6.6%, respectively [19] - The company faces challenges from zirconium cost impacts and an unfavorable mix in its commercial operations [13][22] Market Performance - Over the past year, BWXT shares have increased by 45.1%, while Mirion shares have surged over 101% [14] - Mirion Technologies is perceived to have a better price performance and focus on digital innovation compared to BWX Technologies [22]

Core Viewpoint - Mirion Technologies (MIR) is expected to report second-quarter 2025 results on July 31, 2025, with earnings estimated at 11 cents per share, reflecting a 10% increase year-over-year, and revenues projected at $218.1 million, indicating a 5.3% growth from the previous year [1][2][7]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for Q2 earnings is 11 cents per share, stable over the past 60 days, with a 10% increase from the year-ago quarter [1][2]. - Revenue estimates for Q2 are set at $218.1 million, showing a 5.3% increase compared to the same quarter last year [2]. Group 2: Factors Influencing Results - Strong demand from the nuclear power sector is expected to drive impressive nuclear order growth, positively impacting MIR's second-quarter results [3]. - The medical segment's revenues are anticipated to benefit from nuclear medicine, with strong operating leverage and procurement savings expected to enhance margins [4]. Group 3: Strategic Developments - MIR has entered a strategic partnership with Westinghouse Electric to provide advanced nuclear instrumentation systems, focusing on digital upgrades to reduce operator and maintenance burdens [4]. - The company became a founding member of the Texas Nuclear Alliance to promote safe nuclear power in Texas [4]. Group 4: Challenges and Market Position - Tariff-related uncertainties, particularly between the U.S. and China, may negatively impact results, especially in the medical equipment sector [5]. - Despite a solid 41.3% stock gain over the past three months, MIR's shares are trading at a premium compared to industry averages, with a forward price-to-sales ratio of 5.6X against an industry average of 3.29X [9][12]. Group 5: Investment Considerations - MIR's nuclear-focused technologies are essential across the nuclear energy lifecycle, with a commitment to expanding its reach in next-generation nuclear energy [16]. - The company faces foreign exchange risks and supply chain challenges, compounded by tariff-induced economic uncertainties [17].

Core Insights - Mirion Technologies (MIR) is focusing on digital innovation in the nuclear and radiation safety sectors, particularly through a partnership with Westinghouse Electric Company to enhance nuclear instrumentation with digital solutions [1][2]. Digital Innovation and Upgrades - The collaboration aims to upgrade analog systems to modern digital Ex-core Nuclear Instrumentation Systems, utilizing the Mirion proTK product line to improve existing analog neutron flux systems, thereby reducing operational burdens and enhancing performance in nuclear power plants [2]. - Digital equipment from Mirion provides precise measurements and is less affected by environmental temperature variations, ensuring high-quality data collection and reducing troubleshooting time [3]. Data Management and Remote Monitoring - Transitioning to digital systems allows for quick data recording and storage in a standardized format, ensuring data integrity and reproducibility [4]. - The Mirion Lynx II system enables real-time remote monitoring and control of germanium and neutron detectors, facilitating continuous observation over extended periods [4]. Industry Context - Constellation Energy (CEG) operates nuclear plants with a capacity factor of 94.6% in 2024, indicating strong production [5]. - CEG's acquisition of NRG Energy's 44% stake in the South Texas Project Electric Generating Station, a two-unit nuclear plant with a total capacity of 2,645 MW, is expected to expand its operations [6]. - BWX Technologies (BWXT) is involved in manufacturing nuclear components and has secured partnerships with the U.S. Department of Defense for developing micro-nuclear reactors [7]. Financial Performance - Mirion's shares have increased by 24.8% this year, outperforming the Zacks Technology-Services sector's 13.2% growth [8]. - Mirion is trading at a premium with a 12-month forward price-to-sales ratio of 5.6X, compared to the industry average of 3.29X [11]. - The Zacks Consensus Estimate for MIR's earnings for the second quarter, third quarter, and full year 2025 has remained stable over the past 60 days, with estimates at $0.11 for Q1 and Q2, and $0.47 for the full year [12][13].

Financial Data and Key Metrics Changes - The profit for the year decreased to CHF 7.9 million from CHF 10.7 million, attributed to a decline in dividend income and option income [7] - The management expense ratio improved slightly to 0.54% from 0.56%, indicating good value for an investment vehicle in this sector [8] - The ordinary dividend was maintained at €0.65, representing a yield of 6.5% [9] Business Line Data and Key Metrics Changes - The portfolio return was reported at 11.4%, underperforming the benchmark of 15.2% [11] - The previous year saw a strong outperformance with a portfolio return of 17.4% compared to the benchmark of 8.7% [13] Market Data and Key Metrics Changes - The company noted that certain sectors, particularly gold, performed well, but the company chose not to invest in that area due to the belief that it is more of a trading sector [14] - The company experienced volatility in stock performance, with some holdings significantly outperforming while others lagged [25] Company Strategy and Development Direction - The company undertook a one-for-seven rights issue to raise capital, which was well-received with a take-up of 119% [21] - The capital raising was aimed at providing additional capital to rebalance positions and reduce the management expense ratio [17] - The company emphasized a long-term investment approach, focusing on solid outperformance over longer timeframes [16] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook, noting that while cash positions are healthy, they will take a patient approach to deploying capital [60] - The company highlighted the importance of focusing on good businesses to ensure long-term returns, despite short-term market volatility [59] Other Important Information - The company reported a divergence in portfolio contributions, with significant gains from top holdings like Temple and Webster, which was up 127% [26] - The company acknowledged challenges with certain holdings, such as IDP, which faced pressures in the international education sector [29] Q&A Session Summary Question: Where is the Australian market developing? - The company noted that earnings growth is not robust across large economies, making it challenging to predict share price movements based on valuations alone [63] Question: What percentage of portfolio revenue comes from global sources? - Approximately 35% of revenue from the top 20 stocks comes from offshore sources, with a mix of domestic and international businesses [66] Question: Why is Technology One not invested in? - The company cited valuation concerns despite recognizing Technology One's strong earnings profile and management [70] Question: Why does the company still hold IDP? - The company believes IDP remains the market leader in its space, despite current pressures, and aims to weather the downturn [72] Question: What is the outlook for Macquarie Technology Group? - The company expressed confidence in Macquarie's long-term prospects, despite current challenges in obtaining development approvals [76] Question: Why was Sigma Healthcare exited? - The decision was based on portfolio management reasons, as Sigma's valuation increased significantly post-merger, moving it out of the investment universe [80] Question: Thoughts on Gentrack? - The company views Gentrack as a turnaround story that has grown significantly but needs time to consolidate its position [85]

Financial Data and Key Metrics Changes - The profit for the year decreased to CHF 7.9 million from CHF 10.7 million, attributed to a decline in dividend income and option income [7] - The management expense ratio improved slightly to 0.54% from 0.56%, indicating good value for an investment vehicle in this sector [8] - The ordinary dividend was maintained at €0.65, with a portfolio return of 11.4%, underperforming the benchmark return of 15.2% [9][11] Business Line Data and Key Metrics Changes - The portfolio's performance was driven by significant contributors such as Temple and Webster, which increased by 127%, and other companies like Hub24 and Life360 [25] - The underperformance was partly due to the absence of strong representation in high-performing sectors like gold [14] - The company sold down positions in high-performing stocks to manage volatility and maintain dividend capacity [27] Market Data and Key Metrics Changes - The company noted a strong recovery in the market after a significant drop earlier in the year, with a return to near peak levels by June [61] - Approximately 35% of revenue from the top 20 stocks comes from offshore sources, indicating a balanced exposure to global markets [72] Company Strategy and Development Direction - The company aims to provide long-term investment returns through holdings and attractive fully franked dividends, focusing on small and mid-sized companies [5][6] - A one-for-seven rights issue was executed to raise capital, allowing for portfolio rebalancing and lower management expense ratios [16][21] - The company plans to take a patient approach to deploying capital, focusing on long-term value rather than short-term market fluctuations [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term investment approach despite short-term volatility, emphasizing the importance of patience in capital deployment [63] - The company remains cautious about the current market environment, noting that high growth companies are well-rated, which may limit capital deployment opportunities [69][70] Other Important Information - The company has a history of paying out more in dividends than it receives from share purchase plans, indicating strong shareholder demand for investment opportunities [17] - The capital raising was well-received, with a take-up rate of 119%, leading to a fair outcome for shareholders [21][23] Q&A Session Summary Question: Where is the Australian market developing in a bull market? - The company noted that earnings and valuations drive share prices, but current economic growth is not strong enough to support significant re-ratings in valuations [67][68] Question: What percentage of portfolio revenue comes from global sources? - Approximately 35% of revenue from the top 20 stocks comes from offshore, with a mix of domestic and international businesses [72][73] Question: Why does the company still hold IDP? - The company believes IDP remains the market leader in its space despite current pressures, and it is important to weather the downturn [76][78] Question: What is the view on Macquarie Technology Group's development approval? - There are concerns about development approvals due to local council issues, but the company has faith in management's long-term decisions [80][82] Question: Why was Sigma Healthcare exited from the portfolio? - The exit was due to a rapid increase in value post-merger, making it difficult to justify maintaining a position given its size and valuation [84] Question: Thoughts on Gentrack's transition? - Gentrack has evolved into a robust business, but it may need time to consolidate its growth after a rapid increase in size [90] Question: Will IPD Group pursue further acquisitions? - The company expects IPD Group to continue acquiring businesses, but these will likely be smaller and not thesis-changing [93]

Financial Performance & Portfolio Activity - Mirrabooka successfully raised $85.1 million through an Entitlement Offer and Top Up Facility, with a total take up of approximately 119%[17] - New shares were offered at $3.06 and are entitled to a final dividend of 6.5 cents per share[17] - The company has a significant cash holding of 11% of the portfolio value[25] Key Contributors & Detractors - Top contributors to FY25 performance included Temple & Webster (+127%), Hub 24 (+93%), and Life360 (+97%)[18] - Key detractors from FY25 performance included IDP Education (-75%), OFX (-67%), and Reece (-42%)[19] Portfolio Composition - The top 20 holdings comprise a significant portion of the portfolio, with the largest holding at 5.6%[23] - The company maintains an investment flexibility through tax effective portfolio repositioning[16] Strategic Outlook - The company will maintain a focus on patience and discipline in its investment approach[25] - Market volatility is expected to create buying opportunities for mid and small cap investors[26]

Core Insights - Mirion Technologies (MIR) has achieved a 59.2% gain over the past three months, outperforming BWX Technologies (BWXT) at 53.4% but trailing behind Cameco Corporation (CCJ) which gained 100.2% [1][7] Group 1: Performance and Market Position - MIR's growth is driven by AI-linked nuclear demand, strategic partnerships, and strong revenue guidance for 2025 [7] - The stock currently has a Momentum Score of A, indicating strong technical performance and market sentiment [5][7] Group 2: Business Environment and Opportunities - The U.S. Department of Energy forecasts that data center energy usage will double or triple by 2028, which is beneficial for nuclear energy demand [8] - Executive orders signed by President Trump aim to increase U.S. nuclear energy capacity from 100 GW to 400 GW by 2050, prioritizing domestic uranium supply [9] - Mirion's technologies are essential throughout the nuclear energy lifecycle, with a focus on small modular reactor development and partnerships with companies like Westinghouse Electric [10] Group 3: Financial Outlook - For 2025, MIR expects total revenue growth in the 5-7% range, with adjusted EBITDA projected between $215-$230 million and adjusted free cash flow between $85-$110 million [12] - The Zacks Consensus Estimate for 2025 revenues indicates a 5.3% increase from 2024, while earnings are expected to rise by 14.6% [11][12] Group 4: Challenges and Risks - Mirion faces foreign exchange-related risks, with a forecasted headwind of approximately 40 basis points for revenue growth [15] - Supply chain disruptions and tariff risks pose significant challenges, particularly due to the current U.S. administration's protectionist policies [16] - The company's shares are trading at a premium, with a 12-month forward price-to-sales ratio of 5.33 compared to the industry average of 3.31 [17]

Market Overview - The three major U.S. indexes, Dow Jones Industrial Average, Nasdaq Composite, and S&P 500, experienced losses of 1.32%, 0.94%, and 0.48% respectively last week due to escalating geopolitical tensions in the Middle East, particularly between Israel and Iran [1] - Trade policy uncertainty and the impact of tariffs are significant factors affecting the economic outlook, although lower-than-expected inflation and a cooling labor market provided some optimism [1] Inflation and Labor Market - The Consumer Price Index (CPI) and Producer Price Index (PPI) both increased by 0.1% in May, with year-on-year CPI rising by 2.4% and PPI advancing by 2.6% [2] - The U.S. labor market added 139,000 jobs in May, a decrease from 193,000 a year ago, while the unemployment rate remained steady at 248,000, with wage growth at 3.9% year-over-year [2] Stock Performance - Mirion Technologies, Inc. (MIR) shares increased by 42.8% since being upgraded to Zacks Rank 2 (Buy) on April 16, outperforming the S&P 500's 11% increase [3] - Oatly Group AB (OTLY) shares returned 37% since its upgrade to Zacks Rank 2 on April 14 [4] - Zacks Rank 1 (Strong Buy) stocks returned +6.51% in May 2025, compared to +4.47% for the S&P 500 [4] Hypothetical Portfolio Performance - A hypothetical portfolio returned -2.59% in 2025 (through June 2), underperforming the S&P 500's -1.12% [5] - The portfolio had a strong performance in 2024 with a return of +22.4%, compared to +28% for the S&P 500 [5] Zacks Model Portfolio - The Zacks Model Portfolio, consisting of Zacks Rank 1 stocks, has outperformed the S&P index by over 12 percentage points since 1988, with an annualized average return of +23.5% [6] - Avino Silver & Gold Mines Ltd. (ASM) shares advanced 81.6% since its upgrade on April 22, while Comfort Systems USA, Inc. (FIX) shares increased by 38.5% since its upgrade on April 24 [7] Focus List and Other Portfolios - Quanta Services, Inc. (PWR) gained 37.4% over the past 12 weeks, while Casey's General Stores, Inc. (CASY) returned 27.9% during the same period [10] - The Zacks Focus List portfolio returned +6.33% in April 2025, outperforming the S&P 500 index [11] - The Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, compared to the S&P 500 index's -4.30% decline [16] Dividend Portfolio Performance - Fastenal Company (FAST) returned 12.1% over the past 12 weeks, while Quest Diagnostics Incorporated (DGX) increased by 5.9% [19] - The Earnings Certain Dividend Portfolio (ECDP) returned +5.74% in Q1 2025, outperforming the S&P 500 index [20]

Industry Overview - The AI-powered data center industry is experiencing significant growth, leading to increased demand for nuclear energy, which has become a hot sector on Wall Street over the past year [1] - The U.S. Department of Energy projects that data center energy usage will "double or triple by 2028," following a doubling over the past decade [2] - Executive orders signed by President Trump aim to increase U.S. nuclear energy capacity from 100 GW to 400 GW by 2050, focusing on reactors near military installations and AI data center hubs [3] Company Highlights Constellation Energy Corp. (CEG) - CEG is a leading energy company with a focus on clean and nuclear energy, planning a $5.1 billion capital expenditure through 2025 to acquire nuclear fuel and increase inventory [7] - The company has acquired a 2,645 MW nuclear plant, enhancing its operational capacity in Texas [8] - CEG has entered into a 20-year agreement with Microsoft to revive the Three Mile Island nuclear plant, aiming to provide carbon-free electricity for data centers [9][10] - Expected revenue and earnings growth rates for CEG are -0.3% and 8.8%, respectively, for the current year [12] Vistra Corp. (VST) - VST operates as an integrated electricity and power generation company with a diversified clean energy portfolio, including nuclear assets [13] - The company is positioned to benefit from government contracts and public-private partnerships related to AI infrastructure and grid reliability [15] - Expected revenue and earnings growth rates for VST are 34% and -15.4%, respectively, for the current year [16] Mirion Technologies Inc. (MIR) - MIR provides radiation detection and monitoring products, essential for operational nuclear facilities and next-gen reactors [17][18] - The company is focused on expanding its reach in the nuclear energy sector by collaborating with small modular reactor developers [19] - Expected revenue and earnings growth rates for MIR are 5.3% and 14.6%, respectively, for the current year [20] BWX Technologies Inc. (BWXT) - BWXT manufactures nuclear components and operates in both government and commercial sectors [21] - The company is expanding its commercial power segment and is involved in developing micro-nuclear reactors [22] - Expected revenue and earnings growth rates for BWXT are 12.9% and 6.6%, respectively, for the current year [23] Cameco Corp. (CCJ) - CCJ is one of the largest uranium producers globally, supplying uranium for clean electricity generation in nuclear plants [24] - The company operates through three segments: Uranium, Fuel Services, and Westinghouse, providing various services and components for nuclear reactors [25] - Expected revenue and earnings growth rates for CCJ are 7.5% and 91.8%, respectively, for the current year [26]