We need Small Modular Reactors (SMRs)We need solar, wind, and others... but small-scale nuclear is the only way we will be able to keep up with the demand.unusual_whales (@unusual_whales):Average US electricity price over the years, per Axios: https://t.co/dcdkUjbNKJ ...

The red-hot stock has more than doubled in 2025.Hardly anyone knew about NuScale Power (SMR 0.42%) until last year. The company went public in 2022 via a SPAC merger. Between its day of listing on May 3, 2022, and Dec. 31, 2023, shares of NuScale Power had plunged 69%. But if you had waited a few months, watched the stock reverse course, and then invested $1,000, in NuScale Power stock this time one year ago, your money would have more than tripled by now to nearly $3,100.NuScale Power hasn't even commercia ...

Summary of Mirion Technologies Conference Call on Acquisition of Paragon Energy Solutions Company and Industry - **Company**: Mirion Technologies (NYSE:MIR) - **Acquisition Target**: Paragon Energy Solutions - **Industry**: Nuclear Power and Energy Solutions Core Points and Arguments 1. **Strategic Acquisition**: Mirion announced a definitive agreement to acquire Paragon Energy Solutions, aiming to enhance its position in the U.S. nuclear power segment and broaden its international offerings [3][4][5] 2. **Human Capital**: Paragon brings a highly skilled team of approximately 150 engineers and technicians, which is seen as a critical asset for the combined company [4][5] 3. **Market Presence**: Paragon serves 100% of reactors in North America and over 140 nuclear reactors globally, indicating a strong market presence [4] 4. **Revenue Growth**: The acquisition is expected to double Mirion's potential revenue from small modular reactors (SMRs) and increase nuclear power-related revenue to 45% of consolidated revenue, up from 37% [9][10] 5. **Financial Details**: The purchase price is $585 million, representing approximately 18 times Paragon's expected 2026 EBITDA, with post-synergies valuation at about 14 times [10][11] 6. **Earnings Accretion**: The deal is expected to be accretive to earnings in the first year, adding $0.02 to $0.03 per share [10] 7. **Synergy Potential**: Expected annualized synergies of approximately $10 million by year five, driven by cost efficiencies and cross-selling opportunities [11][12] 8. **Recurring Revenue**: Approximately 94% of Paragon's revenue comes from the installed base, providing a stable revenue stream [8][42] Additional Important Content 1. **SMR Market Dynamics**: The U.S. SMR capacity could reach 6 to 10 gigawatts by 2040, with significant government support for nuclear power, enhancing growth prospects [7][35] 2. **Technological Integration**: Paragon's reactor protection system technology (HIPS) is the only modern system approved by the U.S. Nuclear Regulatory Commission in the last decade, which will enhance Mirion's product offerings [6][32] 3. **Market Challenges**: There has been a slowdown in order flow from China and a deferral of large customer orders, but the overall demand for nuclear power remains strong [20][21] 4. **Future M&A Pipeline**: Mirion is actively cultivating its M&A pipeline, with a focus on attractive adjacencies in nuclear power and nuclear medicine [18][19] 5. **Customer Relationships**: Paragon's strong customer relationships and commercial team are expected to enhance Mirion's market position and drive future growth [45][46] This summary encapsulates the key points discussed during the conference call regarding Mirion's acquisition of Paragon Energy Solutions, highlighting the strategic importance, financial implications, and market dynamics involved.

Core Viewpoint - Centrus Energy is positioned as a unique player in the nuclear energy sector, holding the only U.S. license to produce high-assay low-enriched uranium (HALEU), which is essential for next-generation nuclear reactors. The stock has seen significant growth but has recently experienced a decline, raising questions about its current investment appeal [1][2]. Company Overview - Centrus Energy is the only U.S.-owned enricher licensed to produce HALEU, a critical fuel for advanced nuclear reactors [2][4]. - The company has a contract with the U.S. Department of Energy, highlighting the importance of domestic HALEU production [6]. Financial Performance - In Q2, revenue from the technical solutions segment increased by nearly 50%, from $19.4 million to $28.8 million, largely due to the successful delivery of 900 kilograms of HALEU fuel [8]. - Revenue from the low-enriched uranium (LEU) segment decreased by approximately 26%, from $169.9 million to $125.7 million, but gross profit in this segment rose by 54% due to higher pricing and a better mix of contracts [9]. - As of June, Centrus had around $833 million in cash and approximately $483.2 million in near-term debt, indicating a strong balance sheet with positive cash flow [9]. Market Potential - The U.S. government is actively promoting a domestic nuclear fuel supply chain, with the Department of Energy expressing strong support for nuclear energy [10][11]. - The small modular reactor (SMR) market is projected to grow from $159.4 million in 2024 to $5.17 billion by 2035, which could significantly benefit Centrus as most SMRs are designed to operate on HALEU [13]. - Currently, there are no operational SMRs in the U.S., and HALEU is primarily used for testing advanced reactors, indicating that while the potential is significant, the technology is still in its early stages [14]. Investment Consideration - Centrus Energy's unique position as the sole U.S. supplier of HALEU, combined with anticipated demand for its products and services, makes it an attractive speculative investment for those with a high-risk tolerance [15].

Summary of the Uranium Industry Conference Insights Industry Overview - The conference focused on the uranium sector, particularly the nuclear energy industry, highlighting the need for increased nuclear capacity and investment in uranium supply [1][2] Key Insights 1. **Nuclear Capacity Growth**: The 2025 World Nuclear Fuel Report presented upward revisions for global nuclear capacity estimates for 2040, reflecting evolving nuclear ambitions across countries. However, there were downward revisions for the remainder of the 2020s due to slower restarts in Japan and extended offline periods for reactors in Korea and Ukraine [3][4] 2. **Uranium Demand vs. Supply**: In 2024, uranium demand exceeded supply by 12%, with demand at 67,223 tons of uranium (tU) compared to a supply of 60,213 tU. This mismatch is expected to persist, necessitating significant investment decisions as key mines deplete in the 2030s [4][10] 3. **Future Supply Needs**: The World Nuclear Association (WNA) estimates that by 2040, approximately 150,000 tU will be required, up from 69,000 tU in 2024. Current projections only account for 75,000 tU, indicating a substantial supply gap that will widen post-2030 [4][10] 4. **Investment in New Mines**: The development timeline for new uranium mines has increased from 8-15 years to 10-20 years, emphasizing the urgency for investment decisions to be made soon [11] 5. **Challenges in Conversion and Enrichment**: The global conversion capacity is tight, with only five major suppliers. The WNA projects a need for 150,000 tU of conversion supply by 2040, while the potential pipeline is less than 100,000 tU. Enrichment is currently oversupplied but geopolitical factors are creating regional tightness [11][12] 6. **Depleting Secondary Supply**: Secondary supply sources, which have historically helped meet uranium demand, are changing. The WNA identifies three main sources: enriched reprocessed uranium, Japan's stock drawdown, and potential future supply from laser enrichment [12] 7. **China's Nuclear Expansion**: China is leading in nuclear plant construction, achieving operational readiness in as little as 56 months, significantly faster than other countries. This is attributed to consistent policy, a strong domestic supply chain, and available financing [13] 8. **Workforce and Project Delivery Challenges**: The industry faces challenges in sourcing talent for nuclear development. The shift from fleet builds to project-by-project builds has raised costs and extended timelines, necessitating a return to efficient project delivery methods [14] 9. **Small Modular Reactors (SMRs)**: SMRs are anticipated to play a crucial role in future nuclear capacity additions, with various designs under development. They are seen as a solution to replace mid-size coal and gas plants [15] 10. **Life Extensions of Existing Reactors**: Approximately 450 of the 600 reactors built during the last nuclear renaissance are still operational but nearing the end of their life. Successful life extensions could alleviate some pressure on new builds [16] 11. **Safety and Regulatory Collaboration**: Maintaining a strong safety record is critical for the industry. Regulatory collaboration is necessary to streamline the approval process for new projects, particularly for SMRs [17][19] 12. **Financing Availability**: There is strong investor interest in nuclear projects, but replicable designs and financing frameworks are essential for success. The Sizewell C project aims to replicate 85% of the design of Hinkley Point [18] 13. **Technological Innovations**: Tech companies, including Microsoft, are entering the nuclear space, focusing on advanced nuclear technologies and supply chain resilience [20] 14. **Maritime Nuclear Opportunities**: Floating nuclear reactors and nuclear power for ships present new opportunities, although regulatory challenges remain [21] 15. **Positive Market Outlook**: The uranium spot price is forecasted to rise to $87 per pound by year-end, driven by supply disruptions and a supportive long-term narrative [21] Additional Considerations - The nuclear industry must regain its "muscle memory" for project delivery to meet future energy demands effectively [14] - The importance of standardization in reactor designs and regulatory processes was emphasized as a means to improve efficiency and reduce costs [14][19]

Your next guest says the gains are likely not done. She just initiated coverage on Aqua with a buy rating. Let's welcome in Dimple Goai, clean energy analyst at Bank of America.The aforementioned Dimple Goai. It's good to have you on the program. Thank you for having me, Brian.The only problem with small module reactors is that currently there are no small modular reactors. This is still kind of a hope and a dream. They hope to roll this out in 2027 at Los Alamos.Is it going to work. Look, that's almost lik ...

Q2 2025 Highlights - Sales reached $877 million, a 12% increase overall, with 9% organic growth[6] - Operating Income increased by 20% to $160 million, resulting in a 130 bps year-over-year margin expansion to 183%[6] - Diluted EPS increased by 21% to $323[6] - Free Cash Flow increased by 17% to $117 million[6] - New Orders totaled $1 billion, resulting in a book-to-bill ratio greater than 11x, and backlog increased by 12% year-to-date[6] Full-Year 2025 Guidance - Total Sales growth is projected to increase by 9% - 10% due to strengthening A&D market growth[6] - Operating Income growth is targeted at 15% - 18%, with an Operating Margin of 185% - 187%, up 100 - 120 bps year-over-year[6] - The company is on track to deliver high-teens EPS growth (up 16% - 19%) and strong FCF generation (~108% conversion)[6] End Market Sales Growth Guidance - Aerospace Defense is expected to grow by 7% - 9%, contributing to 19% of sales[10] - Naval Defense is expected to grow by 7% - 9%, contributing to 26% of sales[10] - Commercial Aerospace is expected to grow by 13% - 15%, contributing to 13% of sales[10] - Power & Process is expected to grow by 16% - 18%, contributing to 19% of sales[10]

Financial Data and Key Metrics Changes - Second quarter revenue totaled $222.9 million, reflecting a 5.4% increase in organic revenue and a 7.6% increase in total revenue compared to Q2 2024 [6][28] - Adjusted EBITDA for the second quarter was $51.2 million, up 4.9% year-over-year [7][29] - Adjusted EPS increased by 10% to $0.11 per share, with a note that excluding certain shares, adjusted EPS would have been $0.13 [30] Business Line Data and Key Metrics Changes - The Nuclear and Safety segment revenue grew 5.8% to $141.7 million, with organic revenue growth of 2.9% [31] - The Medical segment revenue grew 10.9% to $81.2 million, with organic revenue growth of 10.1% [33] - Adjusted EBITDA for the Medical segment was $30.1 million, up nearly 20% year-over-year, with margins increasing approximately 280 basis points [34] Market Data and Key Metrics Changes - Year-to-date, nuclear power orders grew 10%, reflecting strong momentum in the North American and French nuclear power installed base [25] - Approximately $9 million in small modular reactor (SMR) related orders were booked year-to-date, with a total of $17 million in aggregate SMR orders historically disclosed [10][21] - The project pipeline for 2026 is building, indicating a positive outlook for future orders [70] Company Strategy and Development Direction - The company is focusing on increasing adjusted free cash flow generation, optimizing capital structure, and pursuing mergers and acquisitions (M&A) [4][5] - The acquisition of Certrek is expected to enhance growth through commercial synergies and support the nuclear power sector's objectives [21][52] - The company is actively introducing new products and technologies, such as the Vital platform and LightLink technology, to meet customer needs and improve operational efficiency [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the nuclear power sector, citing increasing capital budgets and modernization opportunities within the installed fleet [12][60] - The company anticipates double-digit organic growth from the nuclear power end market in 2025, reflecting a bullish outlook [39] - Management is cautious about the SMR market but acknowledges accelerating activity and engagement with key players [80] Other Important Information - The company successfully completed a $400 million convertible note offering and refinanced its term loan, improving its capital structure [8][36] - Adjusted free cash flow for Q2 was $6 million, with expectations to reach $95 million to $115 million for the full year [9][40] Q&A Session Summary Question: Can you quantify the number of new nuclear opportunities compared to two years ago? - Management noted that both the number of new projects and their desired timing are accelerating, with significant discussions around new utility-scale nuclear projects in the US [44][47] Question: Can you elaborate on the Surtrac acquisition and its synergies? - The acquisition is seen as a strategic fit, with Surtrac's strong revenue from nuclear power customers and significant data assets that can enhance regulatory processes [48][50] Question: How bankable is the growth rate from the installed base? - Management indicated that the fundamentals are strong, with increasing capital budgets and modernization efforts expected to drive growth [60][62] Question: Is there a possibility of a $300 million order quarter? - Management expressed that while unlikely, they are optimistic about their position in the opportunity set and expect to win their fair share of large orders [66][68] Question: What is the outlook for margins in the nuclear segment? - Management reassured that project margins are expected to align with initial expectations, despite some fluctuations in accounting [72][74] Question: How resilient are the medical and lab businesses moving forward? - Management highlighted that the medical markets have held up well, driven by a higher proportion of Medicare reimbursements and efficiency improvements [84][85] Question: What is the current supply and demand dynamic in nuclear medicine? - Demand is growing faster than supply, with improved margin profiles due to pricing power and a shift towards software sales [88] Question: What is the growth from conventional nuclear power excluding SMR? - Management confirmed positive order growth in the nuclear power segment, even when excluding SMR orders [91]

Financial Data and Key Metrics Changes - Second quarter revenue totaled $222.9 million, reflecting a 5.4% increase in organic revenue and a 7.6% increase in total revenue compared to Q2 2024 [6][27] - Adjusted EBITDA for Q2 was $51.2 million, up 4.9% year-over-year, with adjusted EPS increasing by 10% to $0.11 per share [6][30] - Adjusted free cash flow generated in Q2 was $6 million, representing an 11% conversion of adjusted EBITDA [8] Business Line Data and Key Metrics Changes - The Nuclear and Safety segment revenue grew 5.8% to $141.7 million, with organic revenue growth of 2.9% [31] - The Medical segment revenue increased by 10.9% to $81.2 million, with organic revenue growth of 10.1% [33] - Adjusted EBITDA for the Medical segment was $30.1 million, up nearly 20% year-over-year, with margins increasing approximately 280 basis points [34] Market Data and Key Metrics Changes - Year-to-date nuclear power orders grew 10%, with significant engagement in the North American and French nuclear power installed base [25] - Approximately $9 million in small modular reactor (SMR) related orders were booked year-to-date, indicating accelerating growth in this sector [10] - The project pipeline for 2026 is building, with expectations for continued growth in the nuclear power market [69] Company Strategy and Development Direction - The company is focusing on increasing adjusted free cash flow generation, optimizing capital structure, and pursuing mergers and acquisitions, including the recent acquisition of Certrek [4][5] - There is a bullish outlook for the nuclear power sector, with expectations for double-digit organic growth in 2025 [39] - The company is actively introducing new products and enhancing its digital offerings, such as the Vital platform for real-time monitoring and data collection [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growing momentum in the nuclear power sector and the opportunities presented by modernization and life extensions of existing reactors [12][14] - The company is cautious about the SMR market but acknowledges the acceleration in activity and engagement with key players [78] - Management is closely monitoring the medical segment's performance amid budgetary uncertainties but has not seen significant negative impacts yet [84] Other Important Information - The company raised and tightened key 2025 guidance metrics, including total revenue growth and adjusted EBITDA, while slightly lowering organic revenue growth expectations for the labs and research business [38] - The acquisition of Certrek is expected to enhance growth through commercial synergies and a strong position in the regulatory compliance solutions market [21][22] Q&A Session Summary Question: Can you quantify the number of new nuclear opportunities compared to two years ago? - Management noted that both the number and timing of new projects are accelerating, with significant discussions around new utility-scale nuclear projects in the US [45][48] Question: Can you elaborate on the Surtrac acquisition and its synergies? - The Surtrac acquisition is seen as a unique asset with strong revenue and margin profiles, and it aligns with the company's focus on nuclear power and digital solutions [49][53] Question: How bankable is the growth rate from the installed base? - Management indicated that the fundamentals for nuclear power are strong, with increasing capital budgets and modernization efforts expected to drive growth [60][62] Question: What is the outlook for the $350 million order pipeline? - Management expects to win a fair share of the opportunities in the pipeline, although some government-related orders may shift to the right [66][69] Question: Are there lingering margin issues from project cost increases? - Management clarified that while project costs can impact margins in the short term, they expect to achieve the margin rates initially anticipated for the project [71] Question: Will the SMR orders become a more meaningful part of the order ramp-up? - Management remains cautious but acknowledges that SMR activity has accelerated faster than expected, with ongoing engagement with key players [78][80] Question: How resilient is the medical business amid funding uncertainties? - Management has not seen significant negative impacts on the medical segment and believes their solutions align well with the need for efficiency in radiation therapy [84][86]

Core Insights - Cameco, a leading uranium miner, has seen its stock price surge approximately 250% over the past three years, significantly outperforming the S&P 500, which rose 60% during the same period [1] Company Overview - Cameco is based in Canada and operates uranium mines and mills in Canada, the U.S., and Kazakhstan, accounting for roughly 17% of the world's uranium production in 2024, making it the second-largest uranium miner after Kazatomprom [2] Historical Performance - From 2011 to 2021, Cameco's annual revenue declined from $2.41 billion to $1.18 billion, with no revenue growth during that decade, primarily due to the aftermath of the Fukushima disaster in 2011, which led to a global drop in uranium prices [4] - Uranium's spot price fell from over $70 per pound before the Fukushima disaster to below $20 in 2017, forcing Cameco to suspend operations at its largest mines and reduce production [5] Recent Recovery - Between 2021 and 2024, Cameco's revenue experienced a compound annual growth rate (CAGR) of 29% in Canadian dollar terms, with gross margins expanding into double digits over the past two years [6] - Revenue growth rates were reported at 27% in 2022, 39% in 2023, and 21% in 2024 [7] Market Dynamics - The recovery in Cameco's performance was driven by a significant increase in uranium spot prices, which rose from $29.63 in January 2021 to $78.50 in June 2024, prompting the company to restart mining operations at McArthur River and Key Lake in 2022 [8] - Several factors contributed to the rise in uranium prices, including reduced global supply due to production cuts by Cameco and Kazatomprom, alongside increased demand as countries resumed nuclear energy projects [10] Strategic Developments - In late 2023, Cameco partnered with Brookfield Asset Management to acquire a 49% stake in Westinghouse Electric, a nuclear power plant designer and builder, which is expected to stabilize its core mining business [9] - Global challenges, such as sanctions on Russia and supply chain issues in Kazakhstan and Niger, have further tightened uranium supply, benefiting Cameco [11] Future Outlook - Analysts predict that uranium prices will continue to rise as demand outpaces supply, with the growth of cloud and AI data centers driving interest in next-generation nuclear energy solutions [12] - Cameco's stake in Global Laser Enrichment (GLE) could position it as a comprehensive provider in the nuclear power sector, with the International Atomic Energy Agency (IAEA) projecting a potential 2.5 times increase in global nuclear capacity from 2024 to 2050 [13] - From 2024 to 2027, analysts expect Cameco's revenue to grow at a CAGR of 8% in Canadian dollar terms, with adjusted EBITDA projected to grow at a CAGR of 16% [14]