Mirion Technologies Signals Confident Path to 2026

Mirion Technologies, Inc. ((MIR)) has held its Q4 earnings call. Read on for the main highlights of the call.

Mirion Technologies’ latest earnings call struck a confident tone, with management leaning on record orders, expanding backlog, stronger cash generation, and ambitious 2026 targets to argue that the growth story is intact. Near-term softness in certain segments and dilution from recent deals were framed as manageable, timing-related issues rather than structural problems.

Record Order Intake and Backlog Growth

Mirion booked nearly $1.1 billion of orders in 2025, up 26% from 2024, underscoring strong demand across its portfolio and customer confidence in long-cycle projects. Backlog jumped 36% year over year, helped by Paragon’s contribution, while Q4 orders surged 62% and included about $140 million of large project wins that should support revenue visibility.

Strength in Nuclear Power and Nuclear Medicine

Nuclear power organic revenue grew roughly 11% in 2025, and nuclear medicine climbed more than 13%, making these Mirion’s clear growth engines. Management expects both end markets to post double‑digit organic growth again in 2026, supported by utility investments, global decarbonization trends, and steady expansion in nuclear imaging and therapy procedures.

Expanding Large Opportunity Pipeline

The company highlighted more than $400 million of large opportunities that could be awarded in 2026, including around $200 million carried over from 2025. Nearly half of the new prospects stem from Paragon, and Mirion stressed its strong “right to win” based on installed base, technical capabilities, and expanded reach in the North American nuclear market.

Robust 2026 Outlook

For 2026, Mirion guided to total revenue growth of 22–24%, with 5–7% organic growth when stripping out FX and acquisitions. Adjusted EBITDA is expected at $285–300 million, implying 25–26% margins and roughly 90 basis points of expansion, while adjusted free cash flow should rise to $155–175 million and adjusted EPS to $0.50–0.57.

Profitability and Margin Expansion

Full‑year adjusted EBITDA reached $227.9 million, up 12% year over year, with margins improving by about 90 basis points thanks to procurement savings and operating leverage. In Q4, adjusted EBITDA rose 11.5% to $77.6 million, and management cited roughly 100 basis points of 2025 margin benefit from procurement initiatives that it expects to build on.

Free Cash Flow Step Change and Lower Debt Costs

Adjusted free cash flow nearly doubled to $131 million in 2025 versus $65 million in 2024, representing a 57% conversion of adjusted EBITDA and giving Mirion more flexibility for investment and debt reduction. Capital structure actions lowered the pro forma cost of debt to about 2.9% in 2025, down sharply from 7.4% in 2024, which should support future earnings.

SMR Momentum and Strategic M&A

Small modular reactor momentum is building, with SMR‑related orders totaling $39 million in 2025 versus $17 million across 2023–2024 combined, and another roughly $10 million already recorded in January 2026. The Paragon and CertRec acquisitions broaden Mirion’s North American nuclear exposure, bring regulatory SaaS and data capabilities, and offer synergy and cross‑selling potential over time.

Revenue Shortfall Versus Guidance

Total 2025 revenue rose 7.5% to $925.4 million but fell short of initial guidance, as overall Q4 organic growth was just 0.5%. Management pointed to about 250 basis points of organic headwinds versus expectations, largely tied to government funding disruptions affecting labs and research, plus weakness in RTQA and certain U.S. Department of Energy‑related projects.

Medical Segment Pressure

The Medical segment grew only 3.7% for the year to $310.8 million, and Q4 revenue declined 3.5% to $82.5 million amid order softness. RTQA and broader medical orders faced tough comparisons to a strong 2024 and were hurt by Japanese market weakness, softer hardware demand in Asia and Europe, and cautious capital spending in the U.S.

Labs and Research Impacted by One‑Time Factors

Labs and research orders declined as U.S. labs tied to the Department of Energy fell about 15% for the year, and the global labs and research market dropped roughly 8.5%. Mirion attributed much of this to a 43‑day U.S. government shutdown and related disruptions, emphasizing that it views the impact as a deferral of demand rather than a lasting structural decline.

Adjusted EPS and Share Count Dilution

Full‑year adjusted EPS came in at $0.46, just below the $0.48–0.52 guidance range, due in part to tax headwinds and higher share count. Q4 adjusted EPS of $0.15 lagged the prior year by about $0.02, as the diluted share base rose roughly 50 million shares following convertible note issuance and equity raised to finance the Paragon deal.

Paragon’s Near‑Term Margin Drag

The December 2025 inclusion of Paragon weighed on Q4 margins and is expected to pressure overall profitability in Q1 2026, which management called the lightest quarter for revenue and EBITDA. Over the planning horizon, Mirion expects to realize synergies and procurement savings that should turn Paragon into a margin‑accretive asset.

Timing Risk Around Large Projects and RTQA Hardware

Management cautioned that the timing of large nuclear projects above $10 million remains unpredictable, which can shift revenue recognition and backlog conversion between quarters. RTQA hardware sales were sluggish across Japan, North America, and China, and while software and services held up well, the hardware softness weighed on orders and segment top‑line.

Forward‑Looking Guidance and Outlook

Looking ahead, Mirion expects Q1 2026 to be the weakest quarter, with low‑single‑digit organic revenue growth overall, mid‑single‑digit growth in Medical, and roughly flat Nuclear and Safety revenue. Margins should dip in Q1 due to Paragon, then expand in the second half as synergies, procurement gains, and a modest increase in AI‑related CapEx support the path to higher free cash flow and improved conversion.

Mirion’s earnings call painted a picture of a company with strong underlying demand, rising margins, and rapidly improving cash flow, even as certain segments and projects hit temporary bumps. For investors, the main debate now centers on execution and timing, but the combination of record backlog, SMR growth, and 2026 guidance suggests the long‑term thesis remains firmly intact.