MIR Q2 Deep Dive: Nuclear Power Momentum and Medical Margins Shape Outlook

Radiation safety company Mirion (NYSE:MIR) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 7.6% year on year to $222.9 million. Its non-GAAP profit of $0.11 per share was in line with analysts’ consensus estimates.

Is now the time to buy MIR? Find out in our full research report (it’s free).

StockStory’s Take

Mirion’s second quarter was marked by a negative market reaction despite revenue surpassing Wall Street expectations and adjusted profit meeting consensus. Management attributed the quarter’s top-line growth to broad contributions across all six end markets, with the Medical segment benefiting from shipment timing related to tariffs, while the Nuclear & Safety segment faced some nonrecurring cost pressures. CEO Tom Logan highlighted the company’s continued progress in increasing adjusted free cash flow and optimizing its capital structure, noting, “We demonstrated continued progress on key financial and strategic objectives, most notably increasing adjusted free cash flow generation, stepping up our M&A game and optimizing our capital structure.”

Looking ahead, Mirion’s guidance is underpinned by expectations of accelerating demand in nuclear power, particularly from modernization of existing fleets and life extension projects. Management raised its full-year outlook, citing increased organic growth in Nuclear Power and the recent acquisition of Certrec to support digital and regulatory offerings. CFO Brian Schopfer emphasized ongoing investments in operational leverage and AI-driven efficiencies, stating, “We are still very committed to the 30% EBITDA margin target...the idea generation and the tactical pipeline is still very robust.”

Key Insights from Management’s Remarks

Management pointed to growth in the Medical segment and momentum in nuclear power as key drivers, while also noting the impact of tariff-related shipment timing and nonrecurring project costs in Europe.

• Medical segment outperformance: The Medical division achieved double-digit organic revenue growth, aided by accelerated shipments to anticipate tariffs and strong performance across all sub-segments, especially in Nuclear Medicine.
• Nuclear Power installed base demand: Growth in the Nuclear & Safety segment was led by modernization and life extension projects for the existing nuclear fleet, which management described as a generational opportunity due to increased operator capital budgets and favorable policy shifts.
• Certrec acquisition: Mirion announced the acquisition of Certrec, a regulatory compliance SaaS provider to the nuclear industry and power grid sector, which brings recurring software revenue, high customer retention, and significant AI potential via extensive industry data assets.
• Margin dynamics and cost headwinds: Adjusted EBITDA margins in Nuclear & Safety contracted due to nonrecurring project cost increases in France and FX headwinds, though Medical margins expanded on procurement improvements and operating leverage.
• Capital structure optimization: The company completed a $400 million convertible note and refinanced its term loan, actions expected to lower cost of capital and provide greater flexibility for future investments.

Drivers of Future Performance

Mirion’s outlook is driven by nuclear modernization, digital expansion, and ongoing margin improvement initiatives, with management highlighting both sector tailwinds and execution challenges.

• Nuclear sector expansion: Management expects continued growth from modernization and capacity upgrades in nuclear power, supported by increased capital investment and policy support for both large-scale and small modular reactors (SMRs).
• Digital and AI initiatives: The integration of Certrec and internal investments in AI are anticipated to drive efficiency gains, new digital products, and recurring revenue streams, particularly as regulatory complexity increases in energy markets.
• Margin improvement focus: Operational leverage, procurement strategies, and further digitalization are projected to support long-term EBITDA margin expansion, though management acknowledged risks from project timing, tariff exposure, and government budget uncertainties.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will monitor (1) the pace of nuclear power modernization projects and the conversion of the order pipeline into revenue, (2) the scaling and integration of Certrec’s digital regulatory platform within Mirion’s broader portfolio, and (3) ongoing margin expansion efforts through procurement and AI-driven efficiencies. Progress in executing large nuclear and medical contracts, as well as further developments in SMR adoption, will also be critical markers of success.

Mirion currently trades at $22.34, in line with $22.33 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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