Financial Data and Key Metrics Changes - The company achieved a 5.7% growth in AFFO for 2025, which is among the best in the net lease industry, reflecting strong performance and record investment activity [3][12] - AFFO per share for Q4 was $1.27, a 5% increase year-over-year, while the full year AFFO totaled $4.97 per share [12][14] - The total return for shareholders was 25% for the year, placing the company in the top tier of publicly traded REITs [3] Business Line Data and Key Metrics Changes - The company allocated 68% of its investment volume to warehouse and industrial sectors, with retail accounting for 22% [6] - The average cash cap rate for investments was 7.6%, translating into an average yield just above 9% over long-term leases averaging 17 years [5][12] - Contractual same-store rent growth averaged 2.4% for both Q4 and the full year, with CPI-linked rent escalations averaging 2.6% [14][15] Market Data and Key Metrics Changes - 26% of the investment volume was in Europe, while 74% was in North America, predominantly in the U.S. [6] - The company expects cap rates to be incrementally lower in 2026, anticipating going-in cap rates in the mid- to low-7% range [10][41] Company Strategy and Development Direction - The company aims to continue generating higher investment volumes, with an initial investment volume guidance range of $1.25 billion to $1.75 billion for 2026 [10][19] - The Carey Tenant Solutions platform is expected to enhance the company's capabilities in build-to-suit and redevelopment projects, with a focus on increasing the volume of such projects [9][52] - The company is targeting to increase retail investments to 25%-30% of annual deal volume, focusing on tenant credit and lease structure [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining high levels of investment activity and delivering attractive AFFO growth in 2026, supported by strong funding positions and a sizable investment pipeline [8][29] - The company is taking a conservative approach to rent loss estimates, projecting $10-$15 million for 2026, while not seeing any material changes in credit quality across the portfolio [17][87] - The company anticipates portfolio occupancy to remain over 98% through a combination of releasing and dispositions [17] Other Important Information - The company successfully refinanced its euro-denominated term loan, locking in an attractive all-in rate below 3% [7] - The company ended the year with liquidity totaling $2.2 billion, including cash on hand and unsettled forward equity [27] - The quarterly dividend was increased by 4.5% year-over-year to $0.92 per share, supported by a payout ratio of approximately 73% [27] Q&A Session Summary Question: Expansion in U.S. retail and targeted categories - Management confirmed that retail accounted for about 22% of deal volume in 2025, with plans to increase this to 25%-30% [33] Question: Industrial asset types and competition - Management indicated that industrial remains a core part of the business, focusing on manufacturing and logistics, with expectations of cap rate tightening [40][41] Question: Development risks associated with Carey Tenant Solutions - Management explained that development risks are mitigated through fixed-price contracts and guaranteed rent start dates [52][53] Question: Credit loss estimates and portfolio management - Management stated that the $10-$15 million range for credit loss is a conservative estimate with no specific concerns in the portfolio at the moment [87] Question: Debt refinancing and overall debt composition - Management confirmed that they have flexibility in refinancing upcoming bonds and will likely replace them with unsecured debt in the same currencies [88][93]

Summary of Arcutis Biotherapeutics Conference Call Company Overview - **Company**: Arcutis Biotherapeutics (NasdaqGS:ARQT) - **Focus**: Development and commercialization of dermatological products, particularly ZORYVE for treating skin conditions such as psoriasis and atopic dermatitis Key Points Commercial Strategy and Growth - Arcutis aims to grow the ZORYVE franchise through three main pillars: expanding ZORYVE, building out the pipeline, and life cycle management initiatives [2][3] - ZORYVE was launched in 2022, targeting psoriasis, atopic dermatitis, and seborrheic dermatitis, with ongoing efforts to enhance its market presence [2] - The company has achieved cash flow break-even starting in Q4 2025 and expects to maintain this status throughout 2026 [3] Market Potential and Sales Forecast - Peak sales for ZORYVE are projected between $2.6 billion and $3.5 billion, with $300 million to $500 million expected from life cycle management expansions [23][25] - The company currently holds a 3% market share in the dermatology space, with aspirations to capture 15%-20% of the market share [25][26] Pediatric Market Opportunity - ZORYVE is approved for use in children aged 2 and above for atopic dermatitis, with ongoing studies to expand its use to younger patients [14][15] - Approximately 1 million patients aged 3 to 24 months are currently treated for atopic dermatitis, representing a significant market opportunity [15] Shift in Treatment Paradigms - There is a growing trend among dermatologists to reduce reliance on topical corticosteroids, with ZORYVE positioned as a viable alternative [4][7] - The American Academy of Dermatology is updating guidelines to reflect this shift, particularly for atopic dermatitis in young children [11][13] New Indications and Research - Arcutis is exploring new indications for ZORYVE, including vitiligo and hidradenitis suppurativa, based on positive off-label use reports from healthcare providers [35][38] - Initial studies for these new indications are planned for Q4 2026 and Q1 2027, respectively [41] Development of ARQ-234 - ARQ-234, a CD200R agonist, is being developed to modulate immune responses without causing immune suppression, potentially offering a more durable treatment option for various inflammatory diseases [52][53] - The company is considering expanding its focus beyond dermatology to adjacent areas such as asthma and rheumatological conditions [68][69] Investment in Commercialization - Arcutis plans to invest in its commercial operations, including adding 30 sales representatives to enhance outreach and prescription growth [28][78] - Marketing initiatives, including influencer partnerships, are also in place to boost product visibility and sales [79] Additional Insights - The company is committed to a methodical approach in expanding its market presence and exploring new therapeutic areas, ensuring that any new asset aligns with its strategic goals [69][70] - The development team has demonstrated efficiency in managing multiple indications simultaneously, which is a competitive advantage in the fast-paced biotech landscape [76]

Summary of InflaRx Conference Call Company Overview - **Company**: InflaRx - **Industry**: Biotechnology - **Headquarters**: Germany and the U.S. - **IPO**: Listed on NASDAQ in 2017 - **Focus**: Development of drugs targeting terminal complement inhibition, specifically C5a and C5a receptor 1 Key Molecules - **Vilobelimab**: Antibody targeting C5a - **Izicopan**: Small molecule targeting C5a receptor 1 - Recently completed a positive proof of concept Phase 2a study [2][5] Differentiation of Izicopan - **Pharmacological Properties**: - Higher bioavailability and plasma levels compared to avacopan (Amgen's drug) - Faster onset of receptor inhibition, achieving peak levels in days versus avacopan's 13 weeks [5][6] - Significantly lower inhibition of CYP3A4, reducing potential drug-drug interactions [6] - **Safety Profile**: - No observed hepatotoxicity in 200 treated patients, contrasting with avacopan's reported issues [8][9] Market Opportunities - **Potential Market Impact**: If avacopan were withdrawn, InflaRx sees an opportunity to position izicopan favorably [13] - **Hidradenitis Suppurativa (HS)**: - Conducted a 28-day study showing promising results, including reduction of draining tunnels and pain [15][16] - Data compared favorably to existing treatments, indicating a potential best-in-class profile [27] Future Development Plans - **Next Steps**: - Planning a Phase 2B study, as the initial four-week trial does not suffice for pivotal trials [23] - Ongoing discussions with the FDA regarding dosing and trial design [21][25] - **Capital Markets Day**: Expected in spring, with disclosures on HS and other indications [24][36] Financial Position - **Cost Reduction**: Fixed costs reduced by approximately 30% due to the deprioritization of vilobelimab and related activities [33] Additional Indications - **Chronic Spontaneous Urticaria (CSU)**: Encouraging data suggests potential for further trials, contingent on resources [30][32] Conclusion InflaRx is positioned to leverage its differentiated drug izicopan in the competitive landscape of autoimmune diseases, particularly HS and potentially CSU, while maintaining a strong safety profile and reducing operational costs. The upcoming Capital Markets Day will provide further insights into their strategic direction and clinical development plans.

Summary of C4 Therapeutics Conference Call Company Overview - C4 Therapeutics is focused on targeted protein degradation (TPD) with a clinical pipeline that includes its lead program, cemsidomide, an IKZF1/3 degrader, which is in later-stage clinical development [6][8] - The company has a phase 2 study called the MOMENTUM trial, which is set to start this quarter, and a phase 1/b study in combination with elranatamab planned for the second quarter [6][8] - C4 has collaborations with Betta Pharmaceuticals for an EGFR degrader in China, and ongoing partnerships with Biogen, Roche, and Merck KGaA [7] Pipeline and Development Focus - Cemsidomide is a key focus, but the company is also excited about its discovery efforts and collaborations [8] - The company plans to evaluate data from the phase 1 study for the EGFR degrader to determine potential U.S. clinical development [8] - The emphasis on discovery collaborations is crucial for the company's strategy [8] Regulatory Environment and MRD Negativity - The FDA's new draft guidance on minimal residual disease (MRD) as a surrogate endpoint for myeloma is seen as beneficial for expediting drug development [10][11] - C4 Therapeutics believes that incorporating MRD negativity as an endpoint can help de-risk drug development and support accelerated approval [11][14] - The company plans to measure MRD negativity in its trials to strengthen the case for cemsidomide's approval [13][14] Competitive Landscape - Upcoming data from Bristol's iberdomide and mezigdomide trials will provide insights into the efficacy of highly potent degraders, which could benefit the field [16][17] - C4 Therapeutics does not view these trials as direct competition but anticipates they will provide benchmark data for planning pivotal trials [17] Clinical Trial Design and Expectations - The company aims for a 40% response rate in the MOMENTUM trial, with a minimum expected response rate of 20% to support accelerated approval [25][24] - The timeline for patient enrollment is set at 12 months, with early readouts expected within a year of closing the study [26][23] - Full regulatory endpoints will require longer follow-up, projected into 2028 [26] Financing and Future Plans - Recent financing has extended the company's runway to the end of 2028, allowing for the execution of planned studies [28] - Additional funding of over $200 million could facilitate a swift transition from phase 1/b to phase 3 planning [28] Combination Studies and Dosing Strategies - The company is designing studies for cemsidomide in combination with elranatamab, focusing on patients with 2 to 4 lines of prior therapy [30] - Dosing strategies are being carefully considered to manage overlapping toxicities and ensure patient safety [34][35] Communication and Updates - C4 Therapeutics commits to providing reasonable top-line updates as the trial progresses, with the first update expected after completing the first cohort [37][39] Conclusion - C4 Therapeutics is strategically positioned in the TPD space with a strong focus on cemsidomide and its potential for accelerated approval through innovative trial designs and regulatory strategies [6][8][10]

OneMain Conference Call Summary Company Overview - **Company**: OneMain - **Industry**: Consumer Finance, Specialty Payments - **Focus**: Personal loans, auto loans, credit cards, primarily targeting subprime consumers [1][3] Key Insights on Non-Prime Consumer Health - **Resilience of Non-Prime Consumers**: The non-prime consumer segment is described as resilient, with income levels catching up to inflation. However, there has not been a dramatic improvement in their financial situation over the past year [4][5][6] - **Employment Trends**: Unemployment remains historically low, allowing most individuals seeking jobs to find employment. However, there are some crosscurrents affecting the economic landscape [5][6] - **Loan Approval Rates**: Approval rates are not a primary focus; instead, the emphasis is on whether applicants meet underwriting criteria. The company has seen a steady flow of applications [12][14] Portfolio Resilience and Underwriting Strategy - **Portfolio Management**: The current portfolio is considered resilient, with a conservative underwriting approach established since 2022. The company has implemented a minimum threshold of 20% return on equity (ROE) for loans [14][16] - **Stress Testing**: A stress test model predicts losses at 6.5%, accounting for a 30% stress overlay, indicating a conservative approach to potential economic downturns [14][16] - **Lessons Learned**: The importance of discipline in lending practices is emphasized, with a focus on data-driven decision-making and maintaining a conservative balance sheet [17][18] ILC Application Update - **ILC License Status**: No updates on the Industrial Loan Company (ILC) application; it is viewed as a "nice to have" rather than a necessity for the business [24][30] - **Operational Benefits**: If granted, the ILC license could simplify operations across different states and enhance the ability to issue credit cards directly [30][31] Funding Strategy - **Conservative Balance Sheet**: The company maintains a diversified funding strategy, including asset-backed securities (ABS) and bank lines totaling over $7 billion from 14 banks. This approach aims to mitigate liquidity risks [41][43][50] - **Long Liquidity Runway**: The company keeps about two years of liquidity to ensure operational stability during market disruptions [50][52] Auto and Credit Card Business Updates - **Auto Lending Growth**: The auto lending segment has been expanding, with a focus on independent dealerships and a recent acquisition of Foursight to enhance capabilities [56][57][58] - **Credit Card Strategy**: The credit card business is growing, with a focus on serving the non-prime consumer. The integration of credit cards into the overall strategy is seen as complementary to personal loans [62][63][66] Capital Allocation and Returns - **Capital Priorities**: The company prioritizes investing in business growth, maintaining a healthy dividend, and opportunistic share buybacks. A recent buyback program was increased to $1 billion through 2028 [93][94] - **M&A Considerations**: While open to M&A opportunities, the company currently favors organic growth and share repurchases as the best use of capital [95] Conclusion - **Investor Communication**: The company aims to clarify misconceptions about its risk profile, emphasizing the strength of its balance sheet and the stability of its non-prime lending model [102][103] - **Long-Term Strategy**: OneMain is positioned as a resilient player in the consumer finance space, focusing on disciplined lending practices and maintaining a strong balance sheet to navigate economic cycles [107][108]

Summary of GCM Grosvenor Conference Call Company Overview - **Company**: GCM Grosvenor (NasdaqGM:GCMG) - **AUM**: $91 billion across various investment strategies including private equity, infrastructure, real estate, credit, and absolute return [2][18] Core Business Model - **Solutions Provider**: Over 70% of client relationships are in customized separate accounts, indicating a consultative and interactive approach to client engagement [7][8] - **High Re-Up Rate**: The company boasts a 90% re-up rate for separate accounts, driven by strong performance and significant service value [11][12] Financial Performance - **Record Fundraising**: Raised $10.5 billion in the last year, marking the best year and quarter for fundraising [17][18] - **Margin Improvement**: Achieved operating leverage and margin improvement, indicating operational efficiency [18][49] - **Carry at NAV**: Approximately 20% of total enterprise value is tied to carry at net asset value, which has been depressed due to a challenging realization environment [51][52] Fundraising Environment - **Diversified Pipeline**: The fundraising pipeline for 2026 is larger than the previous year, with growth across all verticals including infrastructure, real estate, private equity, and private credit [22][23] - **Demand for Alternatives**: Despite market fluctuations, demand for alternative investments remains strong, with a full and diversified pipeline of opportunities [24][25] Individual Investor Channel - **Strategic Priority**: The individual investor business represents only 5% of capital but has significant growth potential due to underallocation in alternatives [26][27] - **New Initiatives**: Launched infrastructure interval fund and joint ventures to enhance distribution and presence in the wealth channel [28][29] Market Outlook - **Tailwinds for Wealth Channel**: The company anticipates continued growth in the wealth channel, supported by a favorable market environment [34][35] - **Infrastructure Growth**: Infrastructure is expected to grow due to fundamental demand for capital projects, with GCM Grosvenor positioned well in this space [59][60] Absolute Return Strategies - **Solid Business Model**: The absolute return strategies business has been slower-growing but remains a strong cash-generating segment with high client satisfaction [64][66] - **Market Valuation**: There is a belief that the market undervalues this segment compared to traditional asset management firms [67] Conclusion - **Optimistic Outlook**: GCM Grosvenor is positioned for growth with a strong pipeline, high re-up rates, and a focus on both institutional and individual investors, despite current market challenges [58][59]

Financial Data and Key Metrics Changes - In 2025, the company booked record orders totaling more than $1 billion, representing a 26% increase compared to 2024 [4][8] - Full year revenue totaled $925.4 million, up 7.5% versus 2024, with more than half of the growth being organic [22] - Adjusted EBITDA for the full year was $227.9 million, up 12% compared to 2024, with margins expanding by 90 basis points [22][26] - Adjusted EPS was $0.46, a 12% increase despite an approximately 50 million share increase in 2025 [23] Business Line Data and Key Metrics Changes - Nuclear power organic revenue grew more than 11% in 2025, while nuclear medicine organic revenue grew more than 13% [4] - The medical segment revenue declined 3.5% in Q4 2025, with full year medical segment revenue growing 3.7% [27] - Adjusted nuclear power orders grew 52% in 2025, supported by all three verticals: new utility-scale reactors, the installed base, and SMRs [20] Market Data and Key Metrics Changes - The nuclear power end market demonstrated the strongest growth, supported by $150 million from the large opportunity pipeline [8] - The defense and diversified end market saw a doubling of orders in Q4, primarily in the U.S. and with NATO [21] - The medical segment faced headwinds due to tough comps from the prior year, with nuclear medicine orders down only 6% in 2025 [9] Company Strategy and Development Direction - The company articulated a strategic priority to increase nuclear power exposure, acquiring Certrec and Paragon Energy Solutions to augment its North American nuclear power presence [5][11] - The company expects to leverage its strong international presence to take the capabilities of the acquired companies global [11] - The focus on AI and digital strategies is expected to enhance productivity and customer-facing applications, with significant investments being made in this area [61][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power sector, citing a robust demand for solutions due to the aging installed base and modernization needs [6][7] - The company anticipates double-digit organic growth in nuclear power and nuclear medicine for 2026, supported by favorable macro conditions [4][15] - Management noted that the headwinds faced in 2025 were seen as demand deferrals rather than a secular change in the market [10] Other Important Information - Adjusted free cash flow totaled $131 million in 2025, approximately double 2024's performance, reflecting improved earnings and reduced net interest expense [29] - The company expects 2026 total revenue to grow between 22%-24%, with organic revenue growth guidance of 5%-7% [15][16] Q&A Session Summary Question: Can the large opportunity pipeline translate to double-digit growth in backlog for 2026? - Management noted that while large project timing is complex, they feel good about the dynamics driving growth in the nuclear power vertical [36][38] Question: What is the expectation for medical growth in 2026? - Management indicated that they expect a quick recovery in medical, particularly in Europe and China, and are optimistic about mid-single-digit growth [39][40] Question: How does the Paragon acquisition impact growth expectations? - Management highlighted that Paragon's strong customer intimacy and market coverage are expected to drive significant growth, with a projected 25% growth for Paragon in 2026 [68][70] Question: What is the expected contribution from large orders booked in 2025? - Management clarified that while there will be some contribution, the first year of larger contracts tends to be the lightest [78] Question: How material are SMRs to the growth story? - Management acknowledged that while SMRs are currently a small percentage of total revenue, they see significant growth potential and are actively engaging with key players in the market [81]

Financial Data and Key Metrics Changes - In fiscal Q2 2026, total revenues were $20.7 million, reflecting a 2% year-over-year increase primarily due to a 6% increase in production and higher realized natural gas prices, offset by lower oil and NGL pricing [13] - Adjusted EBITDA increased by 41% year-over-year to $8 million, driven by stronger natural gas revenues, realized gains on derivative contracts, and lower lease operating costs [14] - Net income for the quarter was $1.1 million, or $0.03 per diluted share, compared to a net loss of $1.8 million, or $0.06 per share, in the prior year [13] Business Line Data and Key Metrics Changes - The company reported improved profitability and stronger cash flow due to diversification of its asset base and increased exposure to natural gas [4] - The minerals and royalty platform contributed to incremental cash flow and accelerated returns, with several wells turning to sales or entering drilling operations ahead of schedule [7] - Production from the Chaveroo field increased year-over-year, reflecting wells brought online over the past 12 months, despite no new drilling due to low oil prices [10] Market Data and Key Metrics Changes - Realized natural gas pricing improved compared to the prior year, although results were partially impacted by wider regional differentials due to mild winter conditions in the western U.S. [12] - The company continues to benefit from a balanced mix of oil and natural gas assets with low base decline and modest capital requirements [6] Company Strategy and Development Direction - The company aims to build a portfolio that can perform across commodity price cycles, focusing on assets with durable cash flow characteristics and modest capital requirements [5][9] - The strategy includes expanding the minerals and royalty platform and pursuing acquisitions that enhance per-share value and support sustainable shareholder returns [9] - The company emphasizes operational flexibility and cost control, adjusting activity levels based on market conditions and expected returns [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate commodity cycles while continuing to reward shareholders, highlighting the importance of disciplined capital management [8][9] - The company anticipates meaningful contributions from newly acquired Haynesville-Bossier Shale mineral and royalty assets in the upcoming quarters [7] Other Important Information - Cash on hand totaled $3.8 million, with borrowings under the credit facility at $54.5 million, resulting in total liquidity of approximately $13.5 million [15] - The board declared a quarterly cash dividend of $0.12 per share, totaling $4.2 million in dividends paid during the quarter [15] Q&A Session Summary Question: Update on minerals acquisitions and natural decline rate - Management noted that minerals acquisitions will add incremental production without additional costs, contributing positively to the company's asset base [19] Question: Production levels from Haynesville-Bossier acquisitions - Management confirmed that these acquisitions will have a significant impact on production in the upcoming quarters, with ongoing completion activities [20][21] Question: Performance of the Delhi Field without CO2 injection - Management indicated that the field remains profitable despite reduced injection volumes, with expectations for improved performance as operational issues are resolved [28][29] Question: Interest in Northeast basins like Utica and Marcellus - Management acknowledged the potential of these basins but highlighted takeaway capacity constraints as a significant concern [54][55] Question: Outlook on reducing overall debt levels - Management stated a long-term target of 1x net debt, with plans to reduce leverage over time while maintaining comfort with current debt levels [57]

Financial Data and Key Metrics Changes - The company reported FFO of $0.90 per share for Q4 2025, including $0.06 from land sale gains, resulting in a full-year FFO of $3.48 per share, which is 2% higher than the midpoint of the original outlook for 2025 [8][24] - Net income for Q4 was $28.7 million, or $0.26 per share [24] - The initial 2026 FFO outlook is set at a midpoint of $3.54 per share, which is 5.7% higher than the initial 2025 outlook [8][26] Business Line Data and Key Metrics Changes - The company leased 526,000 sq ft of second-generation space in Q4, including 221,000 sq ft of new leases, with a total of 3.2 million sq ft signed for the year [8][19] - The development pipeline is now 78% pre-leased, up from 72% last quarter and 56% one year ago [9] - Cash rent spreads were positive, with GAAP rent spreads in the mid-teens, and net effective rents were 20% higher than in 2024 [9][19] Market Data and Key Metrics Changes - The Sun Belt markets are experiencing strong demand, with limited new supply and positive net absorption [18][20] - Charlotte generated more nominal jobs than any other metro area except New York City in 2025, indicating robust economic activity [20] - Dallas is noted as the number one market to watch, with significant net absorption and a strong Class A office market [22] Company Strategy and Development Direction - The company is focused on investing in high-quality office and BBD locations in the Sun Belt, with a projected NOI growth potential of $50 million-$60 million across eight buildings [6][7] - Future investments are expected to drive additional growth, with approximately $800 million invested over the past 12 months [7] - The company plans to complete $190 million-$210 million of additional dispositions by mid-year 2026 to fund acquisitions and maintain a leverage-neutral position [16][26] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the next few years due to strong fundamentals in core markets, limited new supply, and ongoing demand from companies [5][6] - The company expects to drive occupancy higher by roughly 200 basis points from the end of 2025 to the end of 2026 [6] - Management noted that expansions outpaced contractions 2.5-to-1 for Q4 and over 3-to-1 for the year, indicating a positive leasing environment [19] Other Important Information - The company has filed a new S-3 shelf registration statement with the SEC, allowing for future capital market transactions [32] - The company plans to fund recent acquisitions on a leverage-neutral basis, primarily through the sale of non-core assets [25][26] Q&A Session Summary Question: When does the company expect to realize elevated growth rates from capital recycling? - Management indicated that the impact on 2026 numbers is one-time in nature, with growth expected to normalize in 2027 [34][35] Question: How is demand for the remaining leasing in the development pipeline? - Management reported strong demand, with continued progress in leasing throughout 2025 [37] Question: Has the company seen any impact from AI-related layoffs in its markets? - Management stated that they have not observed any significant impact from AI-related layoffs, with continued demand for office space [41][42] Question: What is the expected occupancy bridge throughout the year? - Management expects occupancy to improve steadily throughout the year, despite some initial drag from recent acquisitions [54][56] Question: What percentage of the $200 million non-core sales is related to land sales? - Management clarified that none of the $200 million is related to land sales, which are expected to occur later in the year [52] Question: What is the leasing target to grow occupancy? - Management indicated that approximately 700,000 to 750,000 sq ft of new leasing is needed to achieve the year-end occupancy target of 87.5% [73][75]

Financial Data and Key Metrics Changes - In 2025, the company booked record orders totaling more than $1 billion, representing a 26% increase compared to 2024 [4][8] - Full year revenue totaled $925.4 million, up 7.5% versus 2024, with more than half of the growth being organic [22] - Adjusted EBITDA for the year was $227.9 million, up 12% compared to 2024, with margins expanding by 90 basis points [22][26] - Adjusted EPS was $0.46, a 12% increase despite an increase in diluted shares due to convertible notes and equity raises [23] Business Line Data and Key Metrics Changes - Nuclear power organic revenue grew more than 11% in 2025, while nuclear medicine organic revenue grew more than 13% [4] - The medical segment revenue declined 3.5% in Q4 2025, with full year medical segment revenue growing 3.7% [27] - Adjusted nuclear power orders grew 52% in 2025, supported by all three verticals: new utility-scale reactors, the installed base, and SMRs [20] Market Data and Key Metrics Changes - The nuclear power end market demonstrated the strongest growth, with $150 million from the large opportunity pipeline [8] - The defense and diversified end market saw a doubling of orders in Q4, primarily in the U.S. and with NATO [21] - The medical segment faced headwinds due to tough comps from the prior year, with nuclear medicine orders down only 6% in 2025 [9] Company Strategy and Development Direction - The company articulated a strategic priority to increase nuclear power exposure, acquiring Sertrek and Paragon Energy Solutions to enhance its North American nuclear power presence [5][12] - The company expects to leverage its strong international presence to take the capabilities of the acquired companies global [11] - The focus on AI and digital strategies is expected to enhance customer-facing applications and internal productivity, with significant investments being made in this area [58][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power sector, citing a robust demand for solutions due to the aging installed base and modernization needs [6][7] - The company anticipates double-digit organic growth in nuclear power and nuclear medicine for 2026, supported by favorable macro conditions [4][15] - Management acknowledged headwinds in the medical segment but remains optimistic about margin expansion and operational improvements [27][29] Other Important Information - Adjusted free cash flow totaled $131 million in 2025, approximately double that of 2024, reflecting improved earnings and reduced net interest expense [29] - The company expects 2026 total revenue growth between 22%-24%, with organic revenue growth guidance of 5%-7% [15][16] Q&A Session Summary Question: Can the large opportunity pipeline translate to double-digit growth in backlog for 2026? - Management noted that while large project timing is complex, they feel good about the underlying dynamics driving growth in the nuclear power vertical [34][36] Question: What is the expectation for medical segment growth in 2026? - Management indicated that they expect mid-single-digit growth in the medical segment, with a recovery anticipated in Europe and China [37][38] Question: How does the Paragon acquisition impact Q1 guidance? - Management stated that Q1 will be the lightest quarter for both Mirion and Paragon, with expected margin contraction due to the dilutive nature of the Paragon acquisition [44][46] Question: What is the expected contribution from SMRs to growth? - Management indicated that while SMRs are currently a small percentage of total revenue, they see significant growth potential and are actively engaging with key SMR developers [75][77] Question: Can you provide insights on the Sertrek acquisition? - Management highlighted that Sertrek broadens the nuclear power portfolio and enhances access to the SMR market, contributing positively to overall growth [79]