Mirion Technologies (MIR) investor relations material

Strategic growth and market trends

• Nuclear power segment now represents 47% of revenue, with a presence in over 95% of the global operating base, driven by a global shortage in electrical generating capacity.

• Small modular reactors (SMRs) and utility-scale new builds are accelerating, with $37 million in SMR orders last year and a strong pipeline for future growth.

• Paragon acquisition is fueling 25% expected growth, focusing on replacement parts and instrumentation for the North American fleet.

• International expansion includes a sole supplier deal with EDF for 8–14 reactors in France and growing opportunities in Poland, North Africa, the Arab Gulf, and Ukraine.

• The installed base is experiencing double-digit organic growth, with operators prioritizing life extension, capacity upgrades, and digital modernization.

Financial performance and guidance

• Achieved record orders, backlog, margin expansion, and free cash flow conversion in the past year.

• Guidance for 2026 anticipates accelerating organic growth in both core segments, despite crosscurrents in laboratory and radiation therapy businesses.

• Backlog remains stable year-over-year, with a $400 million large order pipeline and optimism for continued growth.

• Free cash flow conversion improved to 57% of EBITDA, with a target of 60%+ and further productivity improvements expected.

• Leverage is at 3.2x EBITDA, with a low cost of debt and a focus on smaller, accretive M&A to further strengthen the portfolio.

Segment updates and operational highlights

• Radiation therapy business faced international softness and U.S. capital spending constraints, but fundamentals remain strong with new product launches expected to drive growth in 2026.

• Nuclear medicine is positioned for double-digit growth, driven by advances in theranostics and radiopharmaceutical therapies, with strong software and equipment integration.

• Medical segment delivered margins above 42% in Q4, with growth expected to continue, though at a more moderate pace.

• Margin expansion in nuclear and safety is targeted to reach 30% EBITDA by 2028, leveraging procurement optimization, volume absorption, and AI-driven productivity.

• Paragon and Sun Nuclear acquisitions demonstrate a track record of margin improvement through operational discipline and integration.