MIR Q3 Deep Dive: Nuclear Power Drives Growth as Mirion Bolsters Portfolio with Acquisitions

Radiation safety company Mirion (NYSE:MIR) met Wall Streets revenue expectations in Q3 CY2025, with sales up 7.9% year on year to $223.1 million. Its non-GAAP profit of $0.12 per share was 17.1% above analysts’ consensus estimates.

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StockStory’s Take

Mirion’s third quarter results were received positively by the market, reflecting strong momentum in its core nuclear power business and improved profitability across both its Nuclear and Safety and Medical segments. Management attributed the quarter’s performance to robust organic growth in the nuclear end market, accelerated orders for small modular reactors (SMRs), and continued margin expansion through procurement initiatives. CEO Tom Logan emphasized that approximately 80% of Mirion’s nuclear revenue derives from the installed base of operating reactors, providing a stable foundation for growth. Logan also highlighted the company’s efforts to strengthen its position through recent acquisitions and operational improvements, which fueled both top-line growth and margin gains.

Looking ahead, Mirion’s guidance is shaped by increasing demand in the global nuclear industry, an expanding opportunity pipeline for large projects, and strategic additions like Paragon Energy Solutions. Management noted that government support and new financing initiatives for nuclear energy are expected to accelerate both utility-scale and SMR projects, though timing remains difficult to predict. CFO Brian Schopfer stated, “We have a strong right to win on this opportunity set overall,” underscoring confidence in Mirion’s positioning for new contract awards. The company is also focused on leveraging recent M&A to enhance its product offerings and talent pool, while maintaining discipline around margin targets and supply chain resilience.

Key Insights from Management’s Remarks

Management highlighted the quarter’s growth as driven by nuclear power demand, margin improvement initiatives, and progress in expanding the portfolio via acquisitions.

• Nuclear power end market strength: Mirion’s core nuclear power segment delivered 9% organic revenue growth and double-digit order increases, fueled by upgrades to operating reactors and growing demand for SMRs. Management cited global and U.S. government support for nuclear as catalysts for ongoing growth, with Logan noting that "momentum continues to build for the nuclear renaissance."
• Small Modular Reactor (SMR) momentum: Orders for SMR-related projects accelerated, with $17 million booked in the quarter and $26 million year-to-date—a sharp increase from previous years. Management sees SMRs as an expanding opportunity, supported by emerging partnerships and government funding aimed at data center energy needs and new reactor builds.
• Portfolio expansion through acquisitions: The acquisitions of Paragon Energy Solutions and Certrec are expected to broaden Mirion’s U.S. presence and enhance its offerings, particularly in regulatory compliance software and safety-related systems. Management emphasized the talent and capabilities gained through these deals as key to future growth.
• Medical segment resilience and challenges: While the Medical segment achieved mid-single-digit organic growth, U.S. RTQA (radiation therapy quality assurance) activity faced delays due to healthcare funding pressures and government shutdowns. Management expects this to be a timing issue, not a permanent decline, and highlighted continued adoption of digital dosimetry products.
• Margin expansion through procurement: Margin gains were supported by supplier consolidation and improved pricing discipline. Schopfer noted that procurement initiatives contributed to adjusted EBITDA growth, with both segments delivering operating leverage and improved profitability.

Drivers of Future Performance

Mirion expects continued growth from nuclear power demand, new project awards, and integration of recently acquired businesses, balanced by near-term uncertainty in medical markets.

• Accelerating nuclear project pipeline: Management anticipates further large project awards in the nuclear sector, driven by global trends toward higher reactor utilization, new utility-scale builds, and SMR adoption. Mirion’s growing backlog and strategic partnerships, such as with Westinghouse, are expected to support high-single-digit revenue growth, though the timing of contract awards can be unpredictable.
• Integration of Paragon and Certrec: The addition of Paragon and Certrec will expand Mirion’s installed base exposure and regulatory software offerings, enhancing cross-selling opportunities and strengthening the company’s positioning for new build and upgrade projects. Management believes these acquisitions will contribute to both revenue growth and improved margins over time.
• Medical segment normalization: While U.S. healthcare funding challenges have delayed some RTQA sales, management expects demand to rebound as market conditions stabilize. The continued rollout of digital dosimetry and international market strength are seen as supportive of mid-single-digit organic growth in the medical business, though near-term results may remain flat.

Catalysts in Upcoming Quarters

Looking ahead, our team will be tracking (1) the pace of new nuclear project awards and backlog growth, especially for SMRs and utility-scale builds, (2) the successful integration and operational impact of Paragon and Certrec acquisitions, and (3) recovery in the medical RTQA segment as U.S. health care funding pressures ease. Progress in margin expansion and procurement initiatives will also be key to watch.

Mirion currently trades at $30, up from $25.20 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).

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