Mirion Technologies, Inc. ((MIR)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Mirion Technologies, Inc. Earnings Call Reveals Strong Performance Amid Challenges
Mirion Technologies, Inc. recently held its fourth quarter and full year 2024 earnings call, showcasing a strong financial performance with record revenues and strategic expansions, particularly in the nuclear power and medical segments. Despite facing challenges such as foreign exchange impacts and market headwinds in China, the company remains well-positioned for continued growth, supported by a robust backlog and key strategic partnerships.
Record Fourth Quarter and Full Year Performance
Mirion Technologies reported exceptional results for the fourth quarter and full year 2024, achieving record highs in revenue, adjusted EBITDA, and adjusted earnings per share (EPS). The adjusted EPS increased significantly from $0.34 to $0.41 per share, underscoring the company’s strong financial health.
Strong Nuclear Power and Nuclear Medicine Growth
The company’s organic growth was notably driven by its nuclear power, nuclear medicine, and dosimetry segments. The fourth quarter saw nuclear power growth of approximately 7%, nuclear medicine at 21%, and dosimetry at 14%. For the full year, nuclear power activities increased by 8.5%, while nuclear medicine grew by an impressive 7.5%, highlighting the robust performance of these sectors.
Improved Capital Structure
Mirion has made significant improvements to its capital structure by completing the redemption of outstanding public warrants, repricing its term credit facility, and fully vesting all three tranches of founder shares. These actions have resulted in a cleaner capital structure as the company moves into 2025.
Expansion in Strategic Partnerships
The company has strengthened its strategic partnerships by signing an alliance with Siemens Healthineers and a partnership agreement with EDF, the largest operator of nuclear power plants. This positions Mirion as an exclusive supplier for new build projects over the next 20 years, enhancing its long-term growth prospects.
Positive Pipeline and Backlog
Starting 2025, Mirion boasts a strong backlog, accounting for 49% of expected revenue, up from 46% at the start of 2024. Additionally, there is a healthy pipeline of new order opportunities valued between $300 million and $400 million, indicating a promising outlook for future growth.
Foreign Exchange Headwinds
Despite the record performance, Mirion faced challenges due to sizable foreign exchange headwinds, which impacted revenue growth. This remains a critical area that the company needs to address to sustain its financial momentum.
Challenges in China
The company encountered difficulties in its radiation therapy quality assurance business, largely due to a significant 40% decline in the Chinese market. This decline negatively affected the total medical revenue by approximately 210 basis points.
Limited Growth in Medical Segment
Organic revenue growth in the medical segment was limited to 2.6% for the year. This limitation was primarily due to challenges in the Chinese market and the company’s strategic decision to exit the lasers business.
Forward-Looking Guidance
Looking ahead, Mirion Technologies has provided guidance for 2025, forecasting revenue growth between 4% and 6%, with organic growth expected between 5.5% and 7.5%. The company aims to achieve an adjusted EBITDA margin between 24.5% and 25.5% and anticipates adjusted free cash flow of $85 million to $110 million. The company remains optimistic about its strong backlog and continued momentum in both the nuclear power and nuclear medicine sectors.
In summary, Mirion Technologies’ earnings call reflected a positive sentiment with record-breaking financial performance, despite facing several external challenges. The company’s strategic expansions and partnerships, coupled with a strong pipeline and backlog, position it well for continued growth. Investors and stakeholders can look forward to sustained progress in the coming year, backed by solid forward-looking guidance.
