Mirion Technologies, Inc.

Greetings and welcome to the Merion Technologies third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Eric Lin, Treasurer and Head of Investor Relations. Thank you. You may begin.

Thank you. Good morning and welcome to Merion's third quarter 2025 earnings conference call. Joining me this morning are Merion's founder, chairman and CEO, Tom Logan, and Merion's CFO and medical group president, 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 reports on Form 10-K, quarterly reports on Form 10-Q, and in Miriam's other SEC filings under the caption risk factors. Quarterly references within today's discussion are related to the third quarter ended September 30th, 2025, 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 the call over to Tom, who will begin on slide three.

Eric, thank you, and good morning to those joining us today. As always, we appreciate your interest in Merion. This morning i'll focus my prepared remarks on three topics first i'll highlight the strong third quarter results and reassert that we remain on track for our 2025 guidance. Next i'll provide context to the double digit growth, we are seeing year to date from the nuclear power and market and finally i'll detail progress in 2025 to broaden our nuclear power portfolio through m&a. As mentioned, we are pleased with our third quarter numbers. The business performed well, led again by our nuclear power end market. Not only did this market support a strong quarter, it was also the main driver for order growth. There's been a lot of press recently about the exuberance of some emerging nuclear energy stocks, particularly the non-revenue generating ones. Mirion runs counter to this narrative. Approximately 80% of our nuclear revenue comes from the installed base meaning reactors that are operating today. More broadly, approximately 45% of Mirion's enterprise revenue will be generated from this end market with the addition of Paragon Energy Solutions. Recall we announced this acquisition last month and expect the deal to close by year end. Momentum continues to build for the nuclear renaissance, and Mirion is extremely well positioned to benefit from it, no matter which form it takes. Now let's get into the details of the quarter on panel four. Third quarter revenue totaled $223 million, a nearly 8% increase from last year's third quarter. On an organic basis, revenue grew 4.7%, reflecting mid-single-digit organic growth from both segments. The nuclear power end market organic revenue grew 9% in the quarter and 11% year-to-date. Adjusted EBITDA in the quarter was $52.4 million, up 14.7% versus third quarter last year. Both the nuclear and safety and medical segments contributed to the increase in both dollars and margin expansion. I'd also like to highlight our year-end 2025 expected blended cost of debt of 2.8%. This reflects a 460 basis point improvement over the past year as we took action to diversify our capital structure and reduce interest expense. The 2.8% blended cost of debt is expected to continue into 2026. Third quarter adjusted free cash flow was $18 million, contributing to an impressive $53 million of year-to-date adjusted free cash flow. Strong year-to-date performance gives us the confidence to raise the low end of adjusted free cash flow guidance. We are now expecting 2025 adjusted free cash flow to be between $100 million and $115 million and conversion between 45% and 49% of adjusted EBITDA. A significant improvement versus 2024 is conversion of 32% and well on our way toward 2028 target of 60%. Lastly, on the panel, Q3 adjusted orders increased 2.4%. We led with adjusted orders this quarter because it's important to note that this excludes the impact of the Turkey de-booking in last year's third quarter. Importantly, nuclear power end markets orders grew double digits in the quarter. Additionally, favorable trends we mentioned last quarter, like accelerating SMR orders, continued into the third quarter as well. I'd also note that we've seen meaningful SMR order flow early in Q4. Notably, we also booked our first modest EPR new build order under the auspices of the EDF strategic agreement we announced last year. All of this is before we booked a large quantum of the one-time orders we've been foreshadowing for several quarters. We remain optimistic on the rest of this opportunity pipeline. The dominant thread throughout our quarterly results is nuclear power. Channel 5 illustrates several key performance indicators that demonstrate the vibrance of this end market. For example, third quarter nuclear power adjusted orders grew 21% or 16% excluding foreign exchange tailwinds, reflecting growth across each key vertical, new builds, SMRs, and today's installed base. Third quarter orders include $17 million of SMR-related orders. Year-to-date SMR orders totaled $26 million, a marked acceleration versus the $17 million of order in prior years. Lastly, nuclear power-related organic revenue grew 9% in the quarter compared to the 4.4% for the collective nuclear and safety segment. Year-to-date nuclear power organic revenue is on track for the double-digit organic revenue growth we've guided for 2025. We continue to believe that we're still in the early innings of a nuclear super cycle. Panel 6 showcases just a few of the recent headlines to support this belief. Take, for instance, the recent World Nuclear Association headline stating that nuclear reactors set a new record for electricity generation in 2024, and this is for the first time in nearly two decades. The average capacity factor was 83% globally in 2024, up from 82% in 2023. And just a note here that the U.S. fleet ran at 92%, so there's plenty of upside for the global fleet. Growth expectations for the overall global nuclear fleet continue to increase. The IAEA recently increased its nuclear capacity forecast, expecting almost a terawatt of nuclear capacity by 2050, versus 377 gigawatts today, and this is net of significant expected decommissioning activity over this 25-year timeframe. As I've been predicting, we've also seen a spate of recent headlines around potential restarts in the U.S. On Monday, it was announced that Google and NextEra Energy will be partnering to restart the Dwayne Arnold facility in Iowa to help fuel Google's AI growth. Separately, Santee Cooper is in negotiations with Brookfield Asset Management regarding the potential completion of the two previously abandoned AP1000 reactor projects at the VC Summer site in South Carolina. New builds have also gained considerable support from the Trump administration's $80 billion deal announced this Monday to support eight new Westinghouse AP1000s plus SMRs through financing guarantees and regulatory support. Lastly, global support for nuclear power was recently on display in South Africa, where the first ever G20 high-level meeting on nuclear energy was held. Turning to panel seven, in all, we're broadening our nuclear power portfolio. In the case of the SIRTREC acquisition, we're enhancing Mirion's software solution suite by incorporating mission-critical regulatory compliance solutions into our overall offerings. These applications are critical to customers as they seek approval for life extensions for existing facilities and submit applications for new builds and SMRs. In the case of Paragon, we will broaden Merion's U.S. presence with additional products, software, and services, notably including safety-related critical radiation protection systems. Like Mirion's nuclear power end market, 94% of Paragon's revenue stems from the currently installed large-scale reactor base. In both cases, these will be attractive additions to our portfolio, adding energetic business models with built-in customer bases and room for substantial growth. We look forward to closing the Paragon deal and welcoming both Certrek and Paragon's world-class talent to the Mirion family. Before I hand it over to Brian to walk through the details of the quarter, let me spend a minute on panel eight sharing a medical segment update. We're strategically aligned with the cancer care revolution underway today. Recall 75% of our medical segment revenue stems from this market. We continue to make steady progress on key strategic elements outlined at our 2024 investor day. These include growing our software and service offerings through SunCheck within our RTQA segment, and EC squared within nuclear medicine. This important lever has helped expand medical segment margins year to date. Conversely, the current US healthcare environment is pressuring our US RTQA business. We expect this to be a delay instead of a decline in customer activity due to the safety critical nature of our solution set. However, timing and magnitude of a rebound remain clouded due to government shutdown headwinds. Meanwhile, we're pleased with the continued adoption of our InstaDos View digital dosimeters. As a reminder, we introduced our latest digital offering to the market in late 2023. We're making great progress converting existing customers and attracting new customers as well. In fact, third quarter organic revenue from our dosimetry services and market grew 7% with our digital offering leading from the front. With that, I'll turn it over to Brian. Brian?