Radiation safety company Mirion (NYSE: MIR) beat Wall Street’s revenue expectations in Q1 CY2025, with sales up 4.9% year on year to $202 million. Its non-GAAP profit of $0.10 per share was 27.4% above analysts’ consensus estimates.

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StockStory’s Take

Mirion’s first quarter results were shaped by strong order growth in its nuclear power segment and improved operational efficiency. CEO Tom Logan credited the 11.5% increase in orders to demand from the existing nuclear fleet, noting, “79% of our nuclear order growth came from the installed base.” Management also highlighted procurement savings and operating leverage as key contributors to margin improvements, with the company’s adjusted EBITDA margins expanding by 260 basis points year over year.

Looking ahead, management’s forward guidance reflects both optimism and caution amid ongoing external uncertainties. The company maintained its full-year adjusted EPS and EBITDA guidance, citing structural tailwinds in nuclear power and cancer care, but also warned about the evolving impact of tariffs and foreign exchange. CFO Brian Schopfer emphasized that mitigating actions are underway, but “the situation is extraordinarily dynamic and is likely to take some time to stabilize.”

Key Insights from Management’s Remarks

Mirion’s management provided detailed insight into what drove the first quarter’s performance and the evolving business environment, focusing on operational execution and external headwinds.

• Nuclear Power Orders: The company saw notable growth in orders from existing nuclear power plants, which management said accounted for 79% of nuclear order growth. This reflects increased investments in plant upgrades and life extension as demand for clean, reliable electricity rises globally.
• Procurement Savings and Operating Leverage: Operating margin improvements were attributed to ongoing procurement initiatives and the Mirion business system, which have streamlined costs and driven better working capital performance. Management noted these efforts are central to their path toward a 30% adjusted EBITDA margin target by 2028.
• China Tariff Exposure: Management discussed the potential impact of retaliatory tariffs on U.S.-produced medical equipment sold in China but indicated that much of their product mix may ultimately be exempt. Tom Logan remarked, “there are three or four classification codes under which our products are shipped, where there’s an emerging body of thought and evidence that they’ll be exempt.”
• Acquisition of Oncospace: The acquisition of Oncospace, a cloud-based data analytics platform for radiation oncology, was highlighted as a strategic addition to Mirion’s cancer care portfolio. While financially small, management believes it could catalyze growth in their software business over time.
• Segment Performance Divergence: While nuclear and safety saw strong gains, the medical segment was held back by anticipated order timing and continued caution in China’s healthcare market. Management framed their China outlook as “cautious,” citing the lingering effects of anti-corruption campaigns and slower radiation therapy clinic build-outs.

Drivers of Future Performance

Mirion’s outlook for the rest of the year is shaped by structural industry trends, ongoing procurement initiatives, and the dynamic tariff environment.

• Nuclear Sector Tailwinds: The company expects continued demand from the nuclear power industry, driven by global electrification, data center growth, and increased investment in extending the life of existing reactors. Management believes these trends will support sustained order growth.
• Tariff and Foreign Exchange Uncertainty: While current guidance assumes manageable tariff impacts, management acknowledged the environment is subject to change, particularly in China. The company is actively pursuing alternative sourcing and pricing strategies to mitigate potential headwinds.
• Procurement and Efficiency Initiatives: Management remains focused on driving operating leverage through procurement savings and business system improvements, targeting further margin expansion even as revenue growth remains within a mid-single-digit range.

Top Analyst Questions

• Rob Mason (Baird): Asked about the evolving China tariff situation and timing for clarity. CEO Tom Logan indicated exemptions for some products may reduce the overall impact, but the situation remains fluid.
• Joe Ritchie (Goldman Sachs): Queried about the timing and composition of the $300–$400 million large project pipeline. Management expects most awards in 2025 and described the deals as notably larger than typical contracts.
• Vlad Bystricky (Citigroup): Sought detail on China medical demand and risks from anti-American sentiment. Tom Logan attributed slower growth to ongoing anti-corruption efforts in China’s healthcare sector rather than direct backlash.
• Chris Moore (CJS Securities): Asked about Mirion’s pricing power if tariffs persist. Tom Logan said the company’s competitive positioning could strengthen, allowing for both share gains and margin optimization.
• Yuan Zhi (B. Riley Securities): Asked for expectations around backlog growth and timing of large orders. CFO Brian Schopfer confirmed that major project awards are expected to be “back half loaded,” with backlog growth likely as they are secured.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will monitor (1) the pace and composition of large project awards from the $300–$400 million pipeline, (2) Mirion’s ability to manage evolving tariff and foreign exchange risks, and (3) the ongoing margin impact of procurement and efficiency initiatives. Progress on integrating the Oncospace acquisition and updates on China market dynamics will also be closely watched.

Mirion currently trades at a forward EV-to-EBITDA ratio of 21.9×. Should you double down or take your chips? Find out in our free research report.

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