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]