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Introduction & Market Context
Mirion Technologies (NYSE:MIR) reported strong first-quarter 2025 results on April 29, showing continued momentum across its business segments despite potential headwinds from global tariffs. The radiation detection and measurement specialist delivered solid organic growth, significant margin expansion, and its best first-quarter free cash flow performance since going public.
The company’s stock closed at $15.39 on the day of the announcement and rose 1.73% in after-hours trading to $15.89, continuing its positive trajectory from the previous quarter’s strong performance. Mirion has maintained a 52-week range of $9.11 to $18.81.
Quarterly Performance Highlights
Mirion reported Q1 2025 revenue of $202.0 million, representing 4.9% total growth and 6.0% organic growth compared to Q1 2024. Adjusted EBITDA reached $46.7 million, increasing 18.2% year-over-year with 260 basis points of margin expansion to 23.1%. The company also reported a 66.7% increase in adjusted earnings per share, which rose to $0.10 from $0.06 in the prior-year period.
As shown in the following chart of Mirion’s first quarter financial performance:
Order generation grew by 11.5% compared to Q1 2024, reaching $203 million and reflecting consistent demand across the company’s portfolio. Management noted that this growth excludes any contribution from the potential $300-$400 million of large one-time orders currently in the bidding process, which remains intact from previous quarters.
The company’s order performance is illustrated in this chart:
Segment Analysis
Mirion’s Nuclear & Safety segment delivered particularly strong results, with revenue of $133.4 million representing a 6.0% increase from Q1 2024. The segment’s adjusted EBITDA reached $39.2 million with a 29.4% margin, showing significant improvement from the 26.3% margin in the prior-year period. Management highlighted 17.6% growth in Nuclear Power revenue compared to Q1 2024, driven by strong demand from the installed base.
The Nuclear & Safety segment’s performance is detailed in this chart:
The Medical (TASE:BLWV) segment reported more modest growth, with revenue increasing 2.7% to $68.6 million. However, the segment achieved impressive margin expansion, with adjusted EBITDA reaching $23.2 million and a 33.8% margin, up from 30.7% in Q1 2024. Management attributed this improvement primarily to a higher software and service mix. Nuclear Medicine achieved double-digit growth, excluding the ERP implementation tailwind from 2024.
The Medical segment’s performance is illustrated here:
Free Cash Flow and Balance Sheet Improvements
One of the most notable achievements in the quarter was Mirion’s adjusted free cash flow of $29 million, representing a 62% conversion rate of adjusted EBITDA. This marked the company’s best first-quarter free cash flow performance since going public, a significant improvement from the negative $5 million reported in Q1 2024.
The dramatic improvement in cash flow is visualized in this chart:
Management attributed the free cash flow improvement to better net working capital management, particularly improved customer deposits and better Days Sales Outstanding, along with capital structure improvements and normalizing capital expenditures.
The company’s balance sheet also continued to strengthen, with net leverage decreasing to 2.4x, down from 3.1x in the prior year and 4.5x two years ago, demonstrating Mirion’s commitment to deleveraging.
Tariff Impact and Mitigation Strategy
Mirion addressed the potential impact of global tariffs on its business, estimating a $7-9 million impact primarily from Chinese tariffs on medical products sold from the U.S. into China, and an additional $3-4 million impact from rest-of-world tariffs, primarily affecting Nuclear & Safety products from Europe to the U.S.
The company has identified $5-8 million in mitigating actions, including alternative sourcing strategies, production shifts, price increases, and cost management. When combined with potential foreign exchange benefits, Mirion estimates the net adjusted EBITDA impact for 2025 will range from a positive $3 million to a negative $8 million.
2025 Guidance and Outlook
Mirion reaffirmed most of its 2025 guidance while making slight adjustments to account for foreign exchange and tariff impacts. The company continues to expect:
- Organic revenue growth of 5.5-7.5%
- Total (EPA:TTEF) revenue growth of 5.0-7.0% (including a ~40bps foreign exchange headwind)
- Adjusted EBITDA of $215-230 million (24.0-25.5% margin)
- Adjusted free cash flow of $85-110 million (39-48% conversion)
- Adjusted earnings per share of $0.45-0.50
Management emphasized the company’s resilient business model, noting that 70% of revenue is recurring or repeat in nature, with approximately 80% of Nuclear Power revenue coming from the installed base. The company continues to benefit from structural tailwinds in both the nuclear power and cancer care markets, which management described as "super-cycles" driving long-term growth.
Mirion’s backlog remained stable at $814 million, representing a 10% increase compared to Q1 2023, providing visibility into future revenue streams. The company also noted that it repurchased 1.16 million shares in Q1 2025 as part of its capital deployment strategy.
With strong first-quarter performance, operational improvements, and strategic positioning in growing markets, Mirion appears well-positioned to deliver on its full-year targets despite the uncertain global tariff environment.
Full presentation:
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