Mirion Technologies : Q1 2025 Presentation

Published: 2025-04-29 20:25:46 ET MIR

A p r i l 2 9 , 2 0 2 5

Mirion

1Q 2025 Key Takeaways

Strong

1Q performance

+6.0% Organic Revenue growth;

• +18.2% Adj. EBITDA growth;

• +11.5% Orders generation;

$29M Adj. Free Cash Flow

Resilient business model

Aligned with nuclear power

and cancer care super-cycles

Well-positioned for today's tariff landscape;

Mitigating actions identified and being implemented

1Q 2025

3 Earnings Presentation

Strong 1Q Performance

$202.0M

1Q'25 Revenue

$46.7M

1Q'25 adj. EBITDA

1.16M

shares repurchased

in 1Q'25

+6.0% organic vs. 1Q'24;

Sizeable 1Q Adj. FCF

Generation

~62% conversion of Adjusted EBITDA

+4.9% total; reflects continued strong demand from the nuclear installed base

+18.2% vs. 1Q'24;

Strong 1Q Orders

+11.5% vs. 1Q'24, reflects consistent demand; no large, one-time orders1

+260bps margin expansion; illustrates strong operating leverage & procurement improvements

Anti-dilutive share buyback; part of our capital deployment strategy from the Investor Day

For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures, please see the Appendix.

1 Refers to the potential $300 - $400 million of large one-time orders

currently in the bidding process, as discussed on the 3Q'24 and 4Q'24

4 earnings calls.

1Q 2025

Earnings Presentation

Mirion

Resilient Business Model

TRUSTED PARTNER

Global presence; safety-critical compulsory solutions; leader in 17 of 19

product categories

RESILIENT FINANCIALS

Organic growth through the cycle; 70%+ of revenue is recurring or repeat in nature; ~80% of Nuclear Power revenue come from the installed base

STRUCTURAL TAILWINDS

Aligned with attractive and diverse Nuclear Power and Cancer Care super-cycles

SELF-HELP INITIATIVES

Operating leverage, procurement savings, Mirion Business System opportunities

REGIONAL SUPPLY CHAINS

Local manufacturing sites serving most customers

Illustrating the Tariff Exposure

Well-positioned Based Off Today's Tariff Position

C H I N A

I M P A C T

R E S T O F W O R L D I M P A C T

M I T I G A T I N G A C T I O N S

F O R E I G N

E X C H A N G E R A T E S

($7M) - ($9M)

Primarily Medical products sold into

China from the U.S.; assumes 125%

Chinese tariff

($3M) - ($4M)

Primarily Nuclear & Safety Product from Europe to the U.S.; assumes 10% base rate tariff; USMCA-compliant

$8M - $5M

Includes alternative sourcing strategies, production shifts, price increases, and cost management

$5M - $0M

Assumes 1.13 Assumes 1.08

Largely based on a EUR-to-USD

foreign exchange rate

Net Adj. EBITDA 2025 Impact

kno

mitigating actions

foreign exchange rates

Orders Performance

1Q 2024 - 1Q 2025; Doesn't Include Any of the $300 - $400 Million Large One-time Orders Potential

($ millions)

11.5%

$24M

$203M

-$3M

$182M

Reflects a tough comparable in

the Medical Segment's Dosimetry

Services end-market

1Q 2024

Order Book

Nuclear & Safety Segment

Medical Segment

1Q 2025

Order Book

K E Y T A K E A W A Y S :

Nuclear & Safety segment reflects strong Nuclear Power orders

Dosimetry Services tough comparable partially offset by strong RTQA orders

$300 -

$400M

$300-$400M large one-time order potential still intact with up-side potential1

Mirion

First Quarter Ended March 31, 2025

Revenue

+4.9%

$ millions | % percentage

Adjusted EBITDA and Margin

$ millions | % percentage

Adjusted EPS

$ cents

1Q'25 vs. 1Q'24

Organic

+6.0%

Acquisition

(1.1%)

Total

+4.9%

$192.6

$202.0

+18.2%

$46.7

$39.5

+66.7%

$0.10

$0.06

1Q'24 1Q'25

Adjusted EBITDA

Margin:

1Q'24 1Q'25

20.5%

23.1%

1Q'24 1Q'25

Mirion Nuclear & Safety

First Quarter Ended March 31, 2025

NUCLEAR & SAFETY

K E Y T A K E A W A Y S :

Revenue

$ millions | % percentage

Adjusted EBITDA and Margin

$ millions | % percentage

1st Quarter 2025

17.6% Nuclear Power revenue growth compared to 1Q 2024

1Q'25 vs. 1Q'24

Organic

+7.6%

Acquisition

(1.6%)

Total

+6.0%

$125.8 $133.4

$33.1

+18.4%

$39.2

+7.6%

Organic growth inline with targeted full-year rate

1Q'24 1Q'25

Adjusted EBITDA

Margin:

1Q'24 1Q'25

26.3%

29.4%

Margin expansion driven by operating leverage and procurement

Mirion Medical

First Quarter Ended March 31, 2025

MEDICAL

K E Y T A K E A W A Y S :

Revenue

$ millions | % percentage

Adjusted EBITDA and Margin

$ millions | % percentage

1st Quarter 2025

Revenue growth led by Nuclear Medicine ; double digit growth, excluding '24 ERP tailwind

1Q'25 vs. 1Q'24

Organic

+3.0%

Acquisition

(0.3%)

Total

+2.7%

$66.8 $68.6

$20.5

+13.2%

$23.2

($1M)

Revenue Head ind

($1M)

+ ($2M)

+ $4M

Laser Closure China Impact 1Q'25 RTQA ERP

1Q'24 NucMed ERP

vs. 1Q'24

($1M) Revenue Headwind

1Q'24 1Q'25

Adjusted EBITDA

Margin:

1Q'24 1Q'25

30.7%

33.8%

Adjusted EBITDA margin enhancement primarily due to higher software / service mix

Adjusted Free Cash Flow

I M P R O V E D N E T

W O R K I N G C A P I T A L

Driven by improved customer deposits; better Day Sales Outstanding (DSO)

Best First Quarter Adjusted Free Cash Flow Since Going Public

Adjusted Free Cash Flow & Conversion

$ millions | % adj. EBITDA percentage

% Conversion

C A P I T A L S T R U C T U R E

I M P R O V E M E N T S

Reflected in improved net cash interest expense

62%

29%

$29

$10

-20%

-11%

-$7

-$5

N O R M A L I Z I N G C A P E X

Returning to ~$40M in 2025E

1Q'22 1Q'23 1Q'24 1Q'25

2025 Guidance

Reaffirming Organic Revenue Growth, Adj. EBITDA, Adj. FCF, and Adj. EPS; Revising Total Revenue Growth & Adj. EBITDA Margin; Includes Net Tariff Impact with Mitigating Actions and FX

F Y 2 0 2 5

5.0 - 7.0%

Includes FX head ind of ~(40bps)

T O T A L R E V E N U E G R O W T H

5.5 - 7.5%

Includes a ~(30bps) lasers business closure headind from 2024

O R G A N I C R E V E N U E G R O W T H

A D J U S T E D E B I T D A 2

Margin %

$215 - $230M

24.0% - 25.5%

A D J U S T E D F C F

Adjusted FCF Conversion

% of Adjusted EBITDA

$85 - $110M

39% - 48%

A D J U S T E D

Revenue for every .01 ∆

+/- $1M

Adjusted EBITDA for every .01 ∆

F O R E I G N E X C H A N G E

S E N S I T I V I T Y 3

+/- $3.5M

E A R N I N G S P E R S H A R E

$0.45 - $0.50

per share

($0.05) / share headind from the

founders' shares vesting and

arrant redemptions in 2024

1 2025 guidance includes (1) 10% base tariff, USMCA-exemption, and 145% tariffs on China and 125% tariffs from China; (2) an assumed foreign exchange rate of 1.08 Euro-to-USD; and (3) identified mitigating factors.

2 Adjusted EBITDA ($ and %) guidance includes the ($2) million to ($8) million net expected headwind from today's tariffs and mitigating actions as well as a $0 million to $5 million foreign exchange rate tailwind.

12 3 Foreign exchange sensitivities are based on a static view of every foreign exchange rate where Mirion is exposed.

1Q 2025

Earnings Presentation

13 Earnings Presentation

Backlog Trend

1Q23 - 1Q25

($ millions)

+10%

vs. 1Q'23

$857

-1%

vs. adj. 1Q'24

$799

$841

$21

$825

$815

$812

$814

$741

$743

$820

$21M Turkey De-booking

$820M = Adj. 1Q'24

1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25

14 Note: Backlog figures on an as reported basis. Backlog figures include acquisitions of ec2 after Dec-23.

1Q 2025

Earnings Presentation

Organic Growth

Performance and Trends CANCER CARE

5.5 to

7.5%

'25E ORGANIC

REVENUE GROWTH

Vertical markets are robust and healthy

MEDICAL

END MARKET

'24 ORGANIC

GROWTH

'25E ORGANIC GROWTH

COMMENTARY AND TRENDS

NUCLEAR & SAFETY

END MARKET

'24 ORGANIC

GROWTH

'25E ORGANIC GROWTH

MEDICAL

LSD

MSD

NUCLEAR & SAFETY

HSD

MSD+

RADIATION THERAPY

QUALITY ASSURANCE (RTQA)

FLAT

MSD

~40% decline in 2024 Chinese RTQA revenue

Lasers shutdown impacted 2024 Organic Revenue growth by 75 basis points

In 2025, expect to see growth from SunCHECK®; no assumed growth in China; first half 2025 headwind from lasers closure

Exposed to potential China retaliatory tariffs

NUCLEAR

HSD

NUCLEAR MEDICINE

HSD

2024 growth driven by increasing use of radiopharmaceuticals and demand

for molecular imaging capabilities in emerging markets

LABS & RESEARCH

MSD

LSD

DOSIMETRY

MSD

LSD+

Continued adoption of InstadoseVUE® in 2024

Product revenue elevated in 2024

DEFENSE & DIVERSIFIED INDUSTRIALS

MSD

COMMENTARY AND TRENDS

2024 driven by increased volumes of safety critical equipment

Continued supportive demand dynamics expected in 2025 across new builds and installed base

2024 growth from national labs, many of which are supporting SMR advancements

Specialized detectors for big science and research remains an attractive opportunity

2024 growth supported by strong European NATO partner sales of radiation detection equipment

Good defense pipeline of opportunities entering 2025

Non-GAAP Reconciliations

Adjusted Free Cash Flow and Net Leverage

($ millions)

2022

2023

2024

2025

Net cash provided by operating activities

$11.4

$(2.7)

$6.0

$35.6

Purchases of PPE and badges

(8.7)

(7.5)

(12.8)

(8.5)

Proceeds from derivative contracts

1.2

1.0

Cash used for non-operating expenses

7.3

3.0

1.1

0.7

Adjusted Free Cash Flow

$10.0

$(7.2)

$(4.5)

$28.8

Ending cash balance

$84

$88

$120

$186

Debt from first lien term loan

828

697

695

Net Debt

$744

$609

$575

$509

LTM Adjusted EBITDA

161

166

184

211

LTM Adjusted EBITDA Contribution from M&A

LTM Adjusted EBITDA Plus M&A Contribution

$165

$168

$187

$211

Positive adjusted free cash flow in 1Q 2025; on-track for 2025 guidance and a +50% improvement versus 2024

Net working capital was a source of cash in 1Q 2025 driven by

project cash timing and accounts receivables

Reflects better net cash interest expense versus the prior year

Capex better year-over-year, driven by Instadose VUE launch

investment in 1Q 2024

1Q 2025 ending cash balance of $186 million includes the impact from $18.6 million of shares repurchased in the quarter

Total Net Debt / M&A Adjusted EBITDA (Net Leverage)

4.5x

3.6x

3.1x

2.4X

Modeling Assumptions

Supporting 2025 Guidance

Amortization: (pre any potential M&A)

~$96M

Interest Expense:

SOFR + 2.25%

Capex:

~$40M

Net Working Capital:

improving productivity

Cash Taxes:

~$40M (reflects a $6M head ind due to 2024 timing)

Non-Operating Expense:

~$6M; (excludes M&A; primarily operating restructurings & ERP-related)

Effective Tax Rate:

~25% - 27%

Share Count:

~227M; (taking out the arrants & founders' shares vesting in 2024)

Foreign Exchange Rate (EUR-to-USD):

1.08

Stock-based Compensation:

~$13M

Revenue Growth

2-Year Growth Stacks

O R G A N I C

R E V E N U E G R O W T H

R E P O R T E D

R E V E N U E G R O W T H

T O T A L C O M P A N Y

N U C L E A R & S A F E T Y

M E D I C A L

2025

4.9%

2024

5.8%

5.0%

8.2%

10.4%

7.5%

2023

11.6%

12.2%

18.8%

5.7%

11.6%

a+b=d

2-Yr Stack 2025

10.7%

b+c=e

2-Yr Stack 2023

17.4%

17.2%

27.0%

16.0%

19.1%

a 2025 6.0%

2024

5.5%

3.6%

6.1%

10.3%

6.6%

2023

7.9%

8.4%

17.3%

5.3%

9.3%

a+b=d

2-Yr Stack 2025

11.5%

b+c=e

2-Yr Stack 2024

13.4%

12.0%

23.4%

15.6%

15.9%

2025

7.6%

2024

8.4%

4.1%

7.8%

13.9%

8.8%

2023

6.1%

9.3%

26.3%

3.0%

10.1%

a+b=d

2-Yr Stack 2025

16.0%

b+c=e

2-Yr Stack 2024

14.5%

13.4%

34.1%

16.9%

18.9%

2025

6.0%

2024

8.7%

3.7%

8.4%

13.2%

8.7%

2023

12.2%

18.5%

32.8%

5.1%

15.8%

a+b=d

2-Yr Stack 2025

14.8%

b+c=e

2-Yr Stack 2024

20.9%

22.2%

41.2%

18.3%

24.5%

2025

3.0%

2024

0.6%

2.6%

3.2%

3.7%

2.6%

2023

10.8%

6.9%

5.2%

9.6%

8.1%

a+b=d

2-Yr Stack 2025

3.6%

b+c=e

2-Yr Stack 2024

11.4%

9.5%

8.4%

13.3%

10.7%

2025

2.7%

2024

0.6%

7.7%

5.2%

5.3%

2023

10.5%

1.8%

0.1%

6.8%

4.7%

a+b=d

2-Yr Stack 2025

3.3%

b+c=e

2-Yr Stack 2024

11.1%

9.5%

7.8%

12.0%

10.0%

Nine Quarter Segment Reconciliation

Medical

Nine Quarter Segment Reconciliation

Nuclear & Safety

Nine Quarter Segment Reconciliation

Corporate & Other

Nine Quarter Segment Reconciliation

Consolidated

Non-GAAP Reconciliations

Consolidated - Income from Operations, Gross Profit & Adjusted EBITDA

Non-GAAP Reconciliations

Adjusted Earnings per Share

Share Count

Details1

Share Description

Outstanding Securities as of 3/31/20252

Outstanding Securities as of 12/31/20242

Notes

Shares of Class A Common Stock, including Treasury Stock

226,761,091

226,203,780

Shares as of close of trading on the New York Stock Exchange (NYSE), including treasury stock purchased by Mirion

Treasury Stock

(1,558,387)

(288,013)

During the three months ended March 31, 2025, Mirion purchased 1.16 million shares of Class A common stock as part of a share repurchase program.

Outstanding Shares of Class A Common Stock

225,202,704

225,915,767

Outstanding shares as of close of trading on the New York Stock Exchange (NYSE), excluding treasury stock

Shares of Class B Common Stock - Mirion Management3

6,372,385

6,504,885

Shares of Class B common stock are owned by certain current and former members of Mirion's management team and are paired on a one-for-one basis with shares of Class B common stock of Mirion Intermediate Co, Inc. (the "paired interests"). Holders of the paired interests have the right to have their interests redeemed for, at the option of Mirion, shares of Class A common stock on a one-for-one-basis or cash based on a trailing stock price average.

Illustrative Total Shares Outstanding

231,575,089

232,420,652

Outstanding Equity Awards4

3,186,678

2,802,871

Mirion had 1.5 million shares of restricted stock units and 1.7 million shares of performance stock units outstanding as of March 31, 2025. Additionally, Mirion had reserved an additional

40.0 million shares of Class A common stock for future equity awards issuance under its 2021 Omnibus Incentive Plan (subject to annual automatic increases) as of March 31, 2025.

Total Illustrative Fully Diluted Shares

234,761,767

235,223,523

All data on this slide is as of March 31, 2025, or December 31, 2024, unless otherwise noted. All share numbers and dollar amounts are subject to adjustment for stock splits or other similar events.

This slide illustrates Mirion's outstanding and fully diluted shares based on certain assumptions set forth in the "Notes' column and is designed to be illustrative and provide investors with additional information only. Different assumptions will yield different results, and the actual number of our fully diluted shares in the future may differ significantly from those based on these assumptions. As a result, you should not rely on these forward-looking statements as predictions of future events. The information provided is not presented in accordance with Accounting Standards Codification (ASC) 260, Earnings Per Share (ASC 260) and does not represent a computation of weighted average shares nor are the numbers appropriate for calculating Basic or Diluted EPS under ASC 260.

The slide illustrates the assumption that all of the paired interests will be redeemed and exchanged for shares of Class A common stock.

The number of reserved shares are subject to automatic increases on the first day of each year in an amount equal to the lesser of (i) three percent (3%) of the outstanding shares of Class A common stock on the last day of the immediately preceding year, (ii) 9,976,164 shares of Class A common stock and (iii) such number of shares of Class A common stock as determined by Mirion Compensation Committee in its discretion.

Footnotes

Share Count and Adjusted Metrics

Share count

225,202,704 shares of Class A common stock were outstanding as of March 31, 2025. This excludes (1) 6,372,385 shares of Class B common stock outstanding as of March 31, 2025; (2) 1.5 million shares of Class A common stock underlying restricted stock units and 1.7 million shares of Class A common stock underlying performance stock units; and (3) any other shares issuable from future equity awards under our 2021 Omnibus Incentive Plan, which had 40,015,803 shares reserved (subject to annual automatic increases) as of March 31, 2025. The 6,372,385 shares of Class B common stock are paired on a one-for-one basis with shares of Class B common stock of Mirion Intermediate Co., Inc. (the "paired interests"). Holders of the paired interests have the right to have their interests redeemed for, at the option of Mirion, shares of Class A common stock on a one-for-one basis or cash based on a trailing stock price average. All share data is as of March 31, 2025, unless otherwise noted.

Reconciliation of Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.

Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

Organic revenues is defined as revenues excluding the impact of foreign exchange rates as well as mergers, acquisitions and divestitures in the period.

Adjusted gross profit is defined as gross profit adjusted to exclude the impact of amortization of acquired intangible assets, depreciation, the impact of purchase accounting on the recognition of deferred revenue and certain non-operating expenses (certain purchase accounting impacts related to inventory and costs to achieve operational synergies).

Adjusted EBITDA is defined as net income before interest expense, income tax expense, depreciation and amortization adjusted to remove the impact of foreign currency gains and losses, amortization of acquired intangible assets, changes in the fair value of warrants, certain non-operating expenses (restructuring and costs to achieve operational synergies, merger, acquisition and divestiture expenses and IT project implementation expenses), stock-based compensation expense, debt extinguishment and income tax impacts of these adjustments.

Adjusted net income is defined as GAAP net income adjusted for foreign currency gains and losses, amortization of acquired intangible assets, changes in the fair value of warrants, certain non-operating expenses (restructuring and costs to achieve operational synergies, merger, acquisition and divestiture expenses and IT project implementation expenses), stock-based compensation expense, debt extinguishment and income tax impacts of these adjustments.

Adjusted EPS is as adjusted net (loss) income divided by weighted average common shares outstanding - basic and diluted.

Adjusted free cash flow is defined as free cash flow adjusted to include the impact of cash used to fund non-operating expenses described above. We believe that the inclusion of supplementary adjustments to free cash flow applied in presenting adjusted free cash flow is appropriate to provide additional information to investors about our cash flows that management utilizes on an ongoing basis to assess our ability to generate cash for use in acquisitions and other investing and financing activities.

Adjusted free cash flow conversion is defined as adjusted free cash flow divided by adjusted EBITDA.

Free cash flow is defined as U.S. GAAP net cash provided by operating activities adjusted to include the impact of purchases of property, plant, and equipment, purchases of badges and proceeds from derivative contracts. Net leverage is defined as net debt (debt minus cash and cash equivalents) divided by Adjusted EBITDA plus contributions to Adjusted EBITDA if acquisitions made during the applicable period had been made before the start of the applicable period.

Operating Metrics

Orders and order growth are defined as the amount of revenue earned in a given period and estimated to be earned in future periods from contracts entered into in a given period as compared with such amount for a prior

period. Foreign exchange rates are based on the applicable rates as reported for the time period.

Disclaimer

Mirion Technologies Inc. published this content on April 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2025 at 00:25 UTC.