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]