Mirion Technologies, Inc.

At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Eric Lin, Vice President of Investor Relations. Thank you. You may begin.

Okay. Thank you, Sarah. Good morning. Welcome to Marion's fourth quarter and full year 2024 earnings conference call. Joining me this morning are Marion's CEO, Tom Logan, and Marion's CFO, Brian Shopper. Before we begin today's prepared remarks, allow me to remind you that comments made during this call will include forward-looking statements, and actual results may differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ are discussed in our annual report on Form 10-K, quarterly reports on Form 10-Q, and in Marion's other SEC filings under the caption Risk Factors. Quarterly references within today's discussion are related to the fourth quarter and the December 31st, 2024, unless otherwise noted. The comments made during this call will also include certain financial measures that were not prepared in accordance with generally accepted accounting principles. Reconciliation of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the appendix of the presentation accompanying today's call. All earnings materials can be found in the investor relations section of our website at www.merion.com. With that, let me now turn it over to Tom, who will begin on slide two.

Thank you, and good morning, everyone. 2024 was an historic year at Merion. I'm pleased to report record fourth quarter and record 2024 performance as revenue, adjusted EBITDA, and adjusted earnings per share all topped previous highs. Let me offer a big thank you to the Marion team for delivering outstanding results. Not only did earnings grow, but also the quality of earnings grew as we expanded the adjusted EBITDA margin by 110 basis points for the full year and drove adjusted EPS from 34 cents to 41 cents per share for the year, all through planned operational and commercial actions. Importantly, we also delivered on our guidance for the second year in a row. Despite sizable foreign exchange headwinds, our results were in line with or better than our 2024 guidance. We also took significant steps in 2024 to improve our capital structure. In May, we completed the redemption of outstanding public warrants and repriced our term credit facility. In the fourth quarter, all three tranches of our founder shares fully vested. As a result, we entered 2025 with a much cleaner and simpler capital structure. The progress we made in 2024 is supporting momentum carrying into 2025. Firstly, on our current backlog, we are beginning 2025 with a healthy pipeline of new activity. Approximately 49% of our expected 2025 revenue is already in backlog, which compares favorably with the 46% coverage we had coming into 2024. Beyond the backlog, our book and build flow business is reflecting the positive momentum in both nuclear power and nuclear medicine that you've heard us detail over the past several quarters. Our business generates a high degree of recurring revenue supported by a strong installed base. We are seeing positive developments on the $300 million to $400 million of new order opportunities that we introduced on our October earnings call, and I reiterated during our investor day in December. It's still early days on these opportunities, but we like where we stand today. Importantly, we've lost none of these projects to date and are seeing additional bidding opportunities materialize. Conversations are maturing as the year gets underway. We hope to have more details to share as the year progresses. Secondly, we are poised for growth in 2025. Our business model is built for scale, and we expect to take a meaningful step forward in 2025 towards the long-range 2028 plan introduced at our investor day. Also, much of the heavy lifting done in 2024 on self-help, particularly in procurement, will be better reflected in our go-forward results. Thirdly, we are laser-focused on capital allocations. We made this clear at our December Investor Day, and I continue to be encouraged by the robust pipeline of both M&A and organic opportunities that lay ahead. Speaking of our Investor Day, we continue to receive positive feedback on both the strategy and opportunities available to Marion. One of the topics that comes up frequently in follow-up discussions is the category of want position that Marion occupies shown on panel four. For investors, we are a strong play for nuclear exposure, which is a scarcity in the nuclear instrumentation space. Approximately 37% of Mirion's 2024 revenue was derived from the commercial nuclear power landscape significantly more than any of our closest competitors. Mirion offers investors cradle-to-grave exposure to the 100-year nuclear power lifecycle, whether it's today's install days or new builds or decommissioning events. Near-end solutions are critical to the nuclear infrastructure. And this isn't just hyperbole. We believe fervently that we have a unique angle on the nuclear power market. We're seeing strong global demand today from our installed base, representing more than 95% of all operating commercial reactors worldwide. Operators are eager to invest in their existing reactors to extend the useful life or increase capacity. Moreover, new construction is active around the world as profitability dynamics have improved and the need for clean, reliable energy continues to grow. This nuclear power super trend remains strongly intact despite initial concerns around deep seek a few weeks ago. Hyperscalers are investing heavily in 2025 to continue building out capabilities and capacity. There's estimated that they will increase capital spending by about 44% in 2025 to more than $320 billion, and they continue to spend on both utility scale and small modular reactors to secure their future needs. Beyond the hyperscalers, the news reflects continued support and growing momentum for nuclear power. Some recent examples would include in the UK, where The government is expected to give developers more freedom over where they can build new reactors in support of growing clean energy demand. In France, as we've been speculating, EDF plans to prepare six sites for new data centers as AI demand is expected to drive infrastructure investment. In fact, ahead of a recent AI summit, French President Emmanuel Macron indicated more than 100 billion euro in AI projects in country. Here in the U.S., President Trump is prioritizing domestic energy sources, including nuclear, and South Carolina's governor recently advocated for reviving their nuclear energy sector, including the previously abandoned VC's summer nuclear expansion. The hardware, software, and service solutions we provide are mission critical to the customers we serve. We are the global leader in 17 of the 19 product categories we provide, thanks to a combination of superior quality and service, and a global reach that is unmatched by our competitors. Stated simply, we provide compulsory products to customers in highly regulated industries with high cost of failure. Our customers recognize our role and their success. We've increasingly formalized strategic alliances across both of our operating segments. For example, in our medical group, we signed a strategic alliance agreement with Siemens Healthineers last year. In nuclear power, we signed an MOU with Electronics Corporation of India a leader in the Indian market to support the rapid growth of India's nuclear sector. We also signed a strategic partnership agreement with EDF in 2024. EDF is the largest operator of nuclear power plants in the world, and we're now an exclusive supplier for all of their nuclear new build projects for the next 20 years. Mirion is in a category of one for its pure focus on the detection, measurement, and analysis of ionizing radiation. This isn't just a tagline. It's what we are to the customers we partner with, to the investors we represent, and to the markets we serve. Turning now to the quarter's performance on Panel 5, fourth quarter revenue was $254.3 million, a new quarterly record. This performance reflects the demand we continue to see from today's operating nuclear power plants. Approximately 80% of our nuclear revenue historically comes from this installed base. Nuclear reactor operators are investing in their facilities, whether to extend the operating lifetime or expand the capacity of their fleets. Each of these ambitions creates revenue opportunities for Marion. Fourth quarter performance also reflects attractive radiopharmaceutical demand. We continue to grow this part of the business as therapeutic nuclear medicine is revolutionizing cancer care. Also, we're increasingly finding new ways to market nuclear and safety products to our nuclear medicine customers. Last year alone, we sold more than $15 million of traditionally industrial equipment to medical customers, representing a 38% increase. Fourth quarter adjusted EBITDA was nearly $70 million. Adjusted EBITDA increased 14% compared to the same period last year, and margins expanded 90 basis points driven by procurement initiatives and operating leverage. This showcases strong operating performance driven by our business system, the foundation of our operating activities for more than 15 years. Fourth quarter adjusted EPS was 17 cents a share, a two-cent improvement over fourth quarter last year. Both fourth quarter and full year 2024 represent continued solid performance. We're executing on the strategy laid out at our investor day to capitalize upon our unique position. We see significant market opportunities, both organic and inorganic, and our growth drivers remain well on track. Now let me turn it over to Brian to discuss the quarterly and full-year results.