Core Viewpoint - Madison Small Cap Fund underperformed its benchmark, the Russell 2000 Index, with a return of -0.4% compared to the benchmark's 2.2% in the fourth quarter of 2025 [1] Fund Performance - The fund's performance was negatively impacted by sector allocation, particularly in the healthcare sector, which was the weakest [1] - The fund remains cautious about the speculative market, acknowledging that "markets can stay irrational longer than you can stay solvent" [1] Company Highlight: Mirion Technologies, Inc. - Mirion Technologies, Inc. is a leader in radiation detection and monitoring solutions for the nuclear and medical sectors, with a market capitalization of $5.02 billion [2] - The stock closed at $20.04 per share on March 12, 2026, with a one-month return of -10.97% and a 52-week gain of 38.59% [2] Business Model and Growth Potential - Mirion Technologies has a recurring-revenue, consumption-based business model with EBITDA margins around 25%, with potential to expand to 30% [3] - The company is well-positioned to benefit from growth trends in nuclear power and cancer care, supported by a recent renaissance in nuclear energy [3] - Mirion holds a significant market presence, with a +60% market share in ionization radiation detection and monitoring, and is involved in 95% of nuclear power plants globally [3] Revenue Drivers and Valuation - Maintenance and upgrade cycles are crucial revenue drivers, as parts and subsystems are typically replaced like-for-like [3] - The intrinsic value of Mirion Technologies is estimated to be $30 [3]

Core Insights - Mirion Technologies, Inc. (NYSE:MIR) is recognized as a promising investment by hedge funds, despite recent price target reductions from major firms [1][2] Group 1: Financial Performance - Baird lowered its price target on Mirion from $30 to $29 while maintaining an Outperform rating, citing strong performance in the nuclear segment as a highlight [1] - Goldman Sachs reduced its price target from $33 to $29 but kept a Buy rating, noting Q4 adjusted EBITDA of $77.6 million, an 11.5% increase from $69.6 million in the same period in 2024, driven by strong margins in the Medical segment [2] - The company achieved over $400 million in orders for the first time, indicating robust demand [2] Group 2: Market Outlook - Despite a decline in stock value due to weaker organic growth and guidance suggesting improved performance in the second half of 2026, Goldman Sachs maintains a positive outlook for the Nuclear segment, presenting a potential buying opportunity [3] - Mirion Technologies is a global leader in radiation safety, providing solutions across various sectors including nuclear, medical, defense, and research [4]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $830.5 million, a 19.3% increase compared to 2024, driven by organic growth of 12.7% [7][24] - Consolidated adjusted EBITDA grew 21.3% year-over-year to $116.2 million, with an EBITDA margin of 14%, representing a 180 basis points improvement since 2022 [8][25] - The company reported a net loss of $0.8 million for the full year 2025, significantly improved from a net loss of $62.3 million in 2024 [27][30] Business Line Data and Key Metrics Changes - The Assessment, Permitting and Response segment saw a revenue increase of 43% to $307.4 million, driven by organic growth and contributions from acquisitions [31] - The Measurement and Analysis segment's revenue grew 9.6% to $245.9 million, with a significant margin expansion to 26.2% [32] - The Remediation and Reuse segment's revenue increased by 7.8% to $277.3 million, despite a strategic wind down of renewable services impacting margins [34] Market Data and Key Metrics Changes - Approximately 90% of the company's clients are in private sector industries such as energy, utilities, and technology, indicating a diverse client base [10] - The company noted increased demand from sectors like mining, pharmaceuticals, and technology, particularly in air monitoring and water treatment [10][12] Company Strategy and Development Direction - The company aims for organic revenue growth and margin expansion, with a focus on cross-selling services to existing clients [17] - Strategic capital allocation will include investments in technology and potential acquisitions, with a strong emphasis on maintaining a simplified balance sheet [21][22] - The addressable market for water treatment exceeds $250 billion, positioning the company for long-term growth beyond just PFAS-related services [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro and regulatory environment, stating that demand for environmental services remains strong despite regulatory uncertainties [9][11] - The company anticipates continued strong organic growth driven by increased industrial activity and regulatory compliance needs [11][70] - Management highlighted the importance of their integrated service model and the resilience of their business model in various regulatory cycles [13][14] Other Important Information - The company achieved a record operating cash flow of $107 million in 2025, with a 93% conversion rate of consolidated adjusted EBITDA [35] - The company plans to initiate a $40 million share repurchase program, reflecting confidence in its business trajectory [22] Q&A Session Summary Question: Guidance on revenue and EBITDA expectations for 2026 - Management expects revenue to be split roughly 50/50 between the first and second halves of 2026, with EBITDA expected to be 40% in the first half and 60% in the second half [44][45] Question: Impact of AI on the business - Management believes that while AI may disrupt some sectors, their bespoke services are insulated from such disruptions, and they see opportunities to drive efficiency and revenue through AI [52][55] Question: Opportunities for organic growth - Management highlighted optimism in the water technology business and ongoing demand for testing and consulting services, particularly in mining and infrastructure [69][70] Question: PFAS revenue contribution - PFAS remains about 10%-15% of the business, with double-digit growth expected into 2026 [72][74] Question: M&A plans and timing - Management indicated that while there are no imminent acquisitions, they plan to pursue small, strategic acquisitions in the back half of the year [81][82]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $830.5 million, a 19.3% increase compared to 2024, driven by organic growth of 12.7% [7][24] - Consolidated adjusted EBITDA grew by 21.3% year-over-year to $116.2 million, with an EBITDA margin of 14%, representing a 180 basis points improvement since 2022 [8][25] - The company reported a net loss of $0.8 million for the full year 2025, significantly improved from a net loss of $62.3 million in 2024 [27][30] Business Line Data and Key Metrics Changes - The Assessment, Permitting and Response segment saw a revenue increase of 43% to $307.4 million, driven by organic growth and contributions from acquisitions [31] - The Measurement and Analysis segment's revenue grew by 9.6% to $245.9 million, with a significant margin expansion to 26.2% [32] - The Remediation and Reuse segment's revenue increased by 7.8% to $277.3 million, despite a strategic wind down of renewable services impacting margins [34] Market Data and Key Metrics Changes - Approximately 90% of clients are in private sector industries such as energy, utilities, and technology, indicating a diverse client base [10] - Demand for environmental services is expected to remain strong, particularly in the U.S., Australia, and Canada, with increased activity in mining and pharmaceuticals [10][12] Company Strategy and Development Direction - The company aims for organic revenue growth and margin expansion, with a focus on cross-selling services to existing clients [17] - Strategic capital allocation will include investments in technology and potential acquisitions, with a strong emphasis on maintaining a simplified balance sheet [21][22] - The addressable market for water treatment exceeds $250 billion, indicating significant growth potential beyond PFAS [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro and regulatory environment, stating that regulatory changes have not materially impacted services [11] - The company anticipates strong organic growth driven by ongoing demand in key markets and sectors, with a 2026 revenue guidance of $840 million to $900 million [19][20] - Management highlighted the importance of maintaining operational efficiency and cash flow generation, with expectations of 60% operating cash conversion in 2026 [18] Other Important Information - The company achieved record operating cash flow of $107 million in 2025, with a 93% conversion rate of consolidated adjusted EBITDA [35] - The company fully redeemed its Series A-2 preferred stock, simplifying its capital structure and eliminating future dividends [35] Q&A Session Summary Question: Guidance on revenue and EBITDA outlook for 2026 - Management expects revenues to be split roughly 50/50 between the first and second halves of 2026, with EBITDA split 40% in the first half and 60% in the second half [44][45] Question: Impact of AI on business - Management believes that AI presents opportunities for efficiency improvements and revenue generation, particularly in environmental services for technology clients [52][55] Question: Opportunities for organic growth - Management highlighted optimism in the water technology business and ongoing demand for testing and consulting services, particularly in mining and infrastructure [69][70] Question: PFAS revenue contribution - PFAS remains about 10%-15% of the business, with double-digit growth expected into 2026 [72] Question: M&A plans and timing - Management plans to pursue small, bolt-on acquisitions in the back half of 2026, focusing on strategic and financially accretive opportunities [81][82]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $830.5 million, a 19.3% increase compared to 2024, driven by organic growth of 12.7% [6][24] - Consolidated adjusted EBITDA grew 21.3% year-over-year to $116.2 million, with an EBITDA margin of 14%, reflecting a 180 basis point improvement since 2022 [7][25] - The company reported a net loss of $0.8 million for the full year 2025, significantly improved from a net loss of $62.3 million in 2024 [27][29] Business Line Data and Key Metrics Changes - The Assessment, Permitting and Response segment saw a revenue increase of 43% to $307.4 million, driven by organic growth and contributions from acquisitions [31] - The Measurement and Analysis segment's revenue grew 9.6% to $245.9 million, with adjusted EBITDA margin expanding to 26.2% [32] - The Remediation and Reuse segment's revenue increased by 7.8% to $277.3 million, despite a strategic wind down of renewable services impacting margins [34] Market Data and Key Metrics Changes - Approximately 90% of the company's clients are in private sector industries such as energy, utilities, and technology, indicating a diverse client base [10] - The company noted increased demand from sectors like mining, pharmaceuticals, and technology, particularly in air monitoring and water treatment [10][12] Company Strategy and Development Direction - The company aims for organic revenue growth and margin expansion, with a focus on cross-selling services to existing clients [17] - Strategic capital allocation will include investments in technology and potential acquisitions, with a strong emphasis on maintaining a simplified balance sheet [21][22] - The addressable market for water treatment exceeds $250 billion, indicating significant growth potential beyond PFAS-related services [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro and regulatory environment, stating that demand for environmental services remains strong despite regulatory uncertainties [9][11] - The company anticipates continued organic growth driven by increased industrial activity and regulatory tailwinds [11][13] - Management highlighted the importance of their private sector focus, which constitutes 90% of their work, as a buffer against federal regulatory changes [13] Other Important Information - The company achieved a record operating cash flow of $107 million in 2025, with a 93% conversion rate of consolidated adjusted EBITDA [35] - The company plans to initiate a $40 million share repurchase program, reflecting confidence in its business trajectory [22] Q&A Session Summary Question: Guidance on revenue and EBITDA expectations for 2026 - Management expects revenue to be split roughly 50/50 between the first and second halves of 2026, with EBITDA expected to be 40% in the first half and 60% in the second half [46][50] Question: Impact of AI on the business - Management believes that AI presents both risks and opportunities, with potential for efficiency gains and new revenue streams, particularly in environmental services for technology clients [55][57] Question: Opportunities for organic growth - Management highlighted the water technology business and consulting services as key areas for organic growth, driven by increased demand in various sectors [71][73] Question: PFAS revenue contribution - PFAS revenues represent about 10%-15% of the business, with double-digit growth expected into 2026 [75] Question: M&A plans and timing - Management indicated that while there are no imminent acquisitions, they are looking at small, bolt-on acquisitions in the second half of the year [84][85]

Core Viewpoint - Mirion, a leader in radiation detection and monitoring solutions, has announced new leadership appointments to enhance its focus on safety, innovation, operational excellence, and long-term growth [1] Leadership Appointments - Tighe Smith has been promoted to the newly created role of Chief Nuclear Officer, reporting to Thomas Logan [1]

Core Viewpoint - Mirion Technologies reported strong financial results for the fourth quarter and full year 2025, with significant order growth and provided optimistic guidance for 2026, reflecting robust market fundamentals and strategic acquisitions [1][2]. Financial Results - For the fiscal year ended December 31, 2025, total revenues reached $925.4 million, up from $860.8 million in 2024, marking a year-over-year increase of approximately 7.0% [3]. - The company reported a net income of $29.8 million for 2025, compared to a net loss of $36.6 million in 2024 [3]. - Adjusted EBITDA for 2025 was approximately $227.9 million, an increase from $203.6 million in 2024, reflecting a margin of about 24.6% [5]. 2026 Guidance - Mirion anticipates adjusted earnings per share (EPS) to be between $0.50 and $0.57, including stock-based compensation [1]. - The company expects adjusted free cash flow to range from $155 million to $175 million, with an adjusted free cash flow conversion rate of approximately 54% to 58% of adjusted EBITDA [1]. - Organic revenue growth is projected to be between 5.0% and 7.0%, while total revenue growth is expected to be between 22.0% and 24.0% [1]. Order Growth and Market Position - In 2025, Mirion booked over $1 billion in orders, including approximately $150 million from a large opportunity pipeline, indicating strong demand across all three Nuclear Power verticals [1][2]. - The company highlighted its expanding nuclear power portfolio and strategic acquisitions, such as Paragon Energy Solutions, as key drivers for future growth [1][2]. Balance Sheet Highlights - As of December 31, 2025, total assets amounted to $3,588.1 million, up from $2,636.0 million in 2024, with significant increases in cash and cash equivalents [3]. - Total liabilities were reported at $1,671.2 million, compared to $1,076.9 million in the previous year, reflecting the impact of acquisitions and operational growth [3]. Cash Flow Analysis - Net cash provided by operating activities for 2025 was $143.3 million, an increase from $99.1 million in 2024 [4]. - The company reported a net cash used in investing activities of $694.6 million, primarily due to acquisitions [4].

Core Insights - Mirion Technologies, Inc. (NYSE:MIR) is recognized as one of the best stocks to buy for investment, with shares increasing over 73% in the past year as of January 27 [1] - Analysts show strong confidence in MIR, with 89% rating it a Buy and a median price target of $29, indicating an upside potential of nearly 14% [1] - Morgan Stanley has initiated coverage of MIR with an Equal Weight rating and a price target of $29, reflecting optimism about the company's growth prospects in the nuclear power sector [2][3] Company Overview - Mirion Technologies specializes in radiation detection, measurement, analysis, and monitoring products and services, operating through two segments: Medical and Nuclear & Safety [4] - The company's nuclear power solutions are utilized in over 95% of the world's nuclear reactors, while its medical products are present in 80% of cancer centers globally [3] Market Position and Strategy - The recent acquisition of Paragon Energy Solutions enhances Mirion's safety-related offerings for nuclear power plants and strengthens its position in the small modular reactor (SMR) market [3] - Analysts believe that the company will benefit from the increasing global nuclear power generation capacity, driven by the growth of data centers and the rapid adoption of new technologies [3]

Core Insights - TimesSquare Capital Management's "U.S. Small Cap Growth Strategy" reported a gross return of 2.26% and a net return of 2.01% for Q3 2025, significantly underperforming the Russell 2000 Growth Index, which returned 12.19% during the same period [1] - The fund's top five holdings include Mirion Technologies, Inc., which has shown a 44.66% increase in share value over the last 52 weeks [2] Company Overview - Mirion Technologies, Inc. specializes in radiation detection, measurement, analysis, and monitoring products, serving the Medical and Nuclear & Safety segments [2][3] - The company’s nuclear power solutions are utilized in over 95% of the world's nuclear reactors, while its medical products are present in 80% of the world's cancer centers [3] Financial Performance - In Q3 2025, Mirion Technologies reported revenue of $223 million, reflecting a year-over-year increase of nearly 8% [4] - As of January 5, 2026, Mirion's stock closed at $24.65 per share, with a market capitalization of $6.024 billion [2] Strategic Developments - Mirion Technologies recently acquired Paragon Energy Solutions, enhancing its safety-related offerings for nuclear power plants and increasing its relevance in the small modular reactor (SMR) market [3] - The company is not among the top 30 most popular stocks among hedge funds, with 44 hedge fund portfolios holding its shares at the end of Q3 2025, down from 46 in the previous quarter [4]

Core Viewpoint - Mirion has successfully completed the acquisition of Paragon Energy Solutions, enhancing its capabilities in the nuclear power industry [1] Group 1: Acquisition Details - The acquisition integrates Paragon's engineering capabilities specifically tailored for the nuclear power sector [1]