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]