Q3 2025 Mirion Technologies Inc Earnings Call

Speaker #3: Greetings and welcome to the Marian Technologies third quarter 2020 Earnings Conference Call . At this time , all participants are in a listen only mode .

Operator: Greetings and welcome to the Mirion 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 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Eric Linn, Treasurer and Head of Investor Relations. Thank you. You may begin.

Speaker #3: 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 .

Speaker #3: As a reminder , this conference is being recorded . It is now my pleasure to introduce your host , Eric Linn , treasurer and Head of Investor Relations .

Speaker #3: Thank you . You may begin .

Speaker #4: Thank you . Good morning and welcome to Marian's third quarter , 2020 earnings conference call . Joining me this morning are Marian's founder , chairman and CEO , Tom Logan .

[Analyst]: Thank you.

Tom Logan: Good morning and welcome to Mirion's third quarter 2025 earnings conference call. Joining me this morning are Mirion's founder, Chairman and CEO Tom Logan and Mirion.

Speaker #4: And Marian CFO and medical Group president Brian Schopfer . 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 .

[Analyst]: CFO and Medical Group President Brian Schopfer.

Tom Logan: 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.

[Analyst]: From those projected in the forward-looking statements.

Speaker #4: 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 other SEC filings .

Tom Logan: The factors that could cause actual results.

[Analyst]: To differ are discussed in our annual reports on Form 10-K, quarterly reports on Form 10-Q and in Mirion's other SEC filings under the caption Risk Factors Quarterly.

Speaker #4: 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 .

Tom Logan: References within today's discussion are related to the third quarter ended September 30, 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.

Speaker #4: Reconciliation of 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 .

[Analyst]: Of the presentation accompanying today's call.

Speaker #4: All earnings materials can be found in the Investor Relations section of our website at . Dot com . With that , let me now turn the call over to Tom , who will begin on slide three .

Tom Logan: All earnings materials can be found in the Investor Relations section of our website at www.mirion.com. With that, let me now turn the.

[Analyst]: Call over to Tom, who will begin on slide three.

Speaker #5: Eric , thank you and good morning to those joining us today . As always , we appreciate your interest in Marian . This morning .

Tom Logan: Eric, thank you. Good morning to those joining us today. As always, we appreciate your interest in Mirion Technologies. 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 end market. 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.

Speaker #5: 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 .

Speaker #5: 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 .

Speaker #5: As mentioned , we are pleased with our third quarter numbers . The business performed well , led again by our nuclear power end market .

Speaker #5: 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 generating ones .

[Analyst]: Driver for order growth.

Tom Logan: 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.

Speaker #5: Marianne runs counter to this narrative . Approximately 80% of our nuclear revenue comes from the installed base , meaning reactors that are operating today .

Speaker #5: More broadly , approximately 45% of Marianne'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 .

Speaker #5: Momentum continues to build for the nuclear renaissance , and Marianne is extremely well positioned to benefit from it . No matter which form it takes .

Speaker #5: Now let's get into the details of the quarter on panel for third quarter , revenue totaled 223 million , a nearly 8% increase from last year's third quarter .

Speaker #5: 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 .

Tom Logan: 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.

Speaker #5: 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 .

Speaker #5: I would 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.

Speaker #5: 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 .

Speaker #5: 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 .

Speaker #5: We are now expecting 2025 adjusted free cash flow to be between $100 million and $115 million, and conversion to be between 45% and 49% of adjusted EBITDA.

Tom Logan: 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's conversion of 32% and well on our way to our 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 debooking 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.

Speaker #5: A significant improvement versus 2020 four's conversion of 32% . And well on our way to our 2028 target of 60% . Lastly , on the panel , Q3 adjusted orders increased 2.4% .

Speaker #5: We led with adjusted orders this quarter because it's important to note that this excludes the impact of the Turkey Day booking in last year's third quarter .

Speaker #5: Importantly , nuclear power and 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 .

Speaker #5: 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 .

Speaker #5: 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.

Tom Logan: All of this is before we booked a large quantum of the onetime 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. Panel 5 illustrates several key performance indicators that demonstrate the vibrance of this end market. For example, third quarter nuclear power adjusted orders grew 21%, 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 total $26 million, a market acceleration versus the $17 million of orders in prior years. Lastly, nuclear power related organic revenue grew 9% in the quarter compared to the 4.4% for the collective Nucle safety segment year to date.

Speaker #5: We remain optimistic on the rest of this opportunity . Pipeline . The dominant thread throughout our quarterly results is nuclear power . Panel five illustrates several key performance indicators that demonstrate the vibrancy of this end market .

Speaker #5: For example , third quarter nuclear power adjusted orders grew 21% or 16% , excluding foreign exchange tailwinds , reflecting growth across each key vertical .

Speaker #5: 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 market acceleration versus the $17 million of order in prior years .

Speaker #5: 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 .

Tom Logan: 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 that 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. This is for the first time in nearly two decades. The average capacity factor was 83% globally in 2024, up from 82% in 2023. 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 versus 377 gigawatts today.

Speaker #5: 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 supercycle.

Speaker #5: Panel six showcases just a few of the recent headlines that 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 .

Speaker #5: 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% .

Speaker #5: 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 377GW today .

Speaker #5: And this is net of significant expected decommissioning activity over this 25-year time frame. As I've been predicting, we've also seen a spate of recent headlines around potential restarts in the U.S.

Tom Logan: This is net of significant expected decommissioning activity over this 25 year time frame. 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 Duane 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 + SMRs and 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.

Speaker #5: On Monday , it was announced that Google and NextEra energy will be partnering to restart the Duane Arnold facility in Iowa to help fuel Google's AI growth .

Speaker #5: Separately , Santee Cooper is in negotiations with Brookfield Asset Management regarding the potential completion of the two previously abandoned Ap1000 reactor projects at the V.C.

Speaker #5: 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 AP plus Smrs through financing guarantees and regulatory support .

Speaker #5: 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 .

Speaker #5: Turning to panel seven , in all , we're broadening our nuclear power portfolio . In the case of the Surtrac acquisition , we're enhancing Myriad's software solution suite by incorporating mission critical regulatory compliance solutions into our overall offerings .

Tom Logan: Turning to panel seven, in all, we're broadening our nuclear power portfolio. In the case of the CERTREC acquisition, we're enhancing Mirion's software solutions 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 Mirion's U.S. presence with additional products, software, and services, notably including safety-related critical radiation protection systems. In 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 CERTREC and Paragon's world-class talent to the Mirion family.

Speaker #5: These applications are critical to customers as they seek approval for life extensions for existing facilities and submit applications for new builds and SMRs.

Speaker #5: In the case of Paragon , we will broaden maryann's US presence with additional products , software and services , notably including safety related critical radiation protection systems like Marianne's Power and Market .

Speaker #5: 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 .

Speaker #5: We look forward to closing the Paragon deal and welcoming both Trek and Paragon's world class talent to the 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 .

Tom Logan: 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 are 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 U.S. healthcare environment is pressuring our U.S. 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.

Speaker #5: 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 .

Speaker #5: These include growing our software and service offerings through Sunshack within our Rtca segment , and E-squared within Nuclear medicine . This important lever has helped expand medical segment margins year to date .

Speaker #5: Conversely , the current US health care environment is pressuring our US Rtca 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 .

Speaker #5: However , timing and magnitude of a rebound remain clouded due to government shutdown headwinds . Meanwhile , we're pleased with the continued adoption of our new digital dosimeters .

Tom Logan: 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 end market grew 7% with our digital offering leading from the front. With that, I'll turn it over to Brian.

Speaker #5: 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 .

Speaker #5: 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 .

Speaker #5: Brian . Tom . Thank you and good morning , everyone . Let's continue to slide nine detailing our orders . Performance . As Tom noted earlier , the nuclear power and market continues to be a bright spot for us .

Brian Schopfer: Thank you and good morning everyone. Let's continue to slide 9 detailing our orders performance. As Tom noted earlier, the nuclear power end market continues to be a bright spot for us. Third quarter orders grew 2.4% versus an adjusted base. This normalizes for the $21 million Turkey-related debooking disclosed in last year's third quarter and Surtrec orders added as part of the acquisition in late July. On a reported basis, the order book grew 14.5%. The nuclear and safety segment order book grew $9.5 million on an adjusted basis, reflecting 21% growth from the nuclear power end market alone. Importantly, this incorporates growth across all three verticals. Interestingly, within the U.S. nuclear power end market, year-to-date orders are up 44%, most of which is related to the SMR activity. We see the U.S. market as the bellwether, with the European and Asian markets as lagging followers.

Speaker #5: Third quarter orders grew 2.4% versus an adjusted base . This normalizes for the 21 million Turkey related D booking disclosed in last year's third quarter , and Star-trek orders added as part of the acquisition in late July .

Speaker #5: On a reported basis , the order book grew 14.5% . The Nuclear and Safety segment order book grew 9.5 million on an adjusted basis , reflecting 21% growth from the nuclear power end market alone .

Speaker #5: Importantly , this incorporates growth across all three verticals . Interestingly , within the US , nuclear power end market , year to date orders are up 44% .

Speaker #6: Most of which is related to the SMR activity . We see the US market as the bellwether with the European and Asian markets as lagging followers .

Speaker #6: We also experienced healthy order uptick in our defense and diversified end market from a non-nuclear decommissioning order , as well as a European based military safety equipment order .

Brian Schopfer: We also experienced healthy order uptake in our defense and diversified end market from a non-nuclear decommissioning order as well as a European-based military safety equipment order. This continues our long track record of serving the NATO armed forces. This was partially offset by our labs and research end market. As mentioned previously, demand from the U.S. Department of Energy has been muted since the launch of DOGE and the government shutdown. We also commented on the September investor call that order flow coming from China for laboratory instruments has slowed. We see this as a transitory dynamic and are optimistic about the equilibration of demand due to the safety-critical nature of our products. Through October, we continue to see orders from the labs, but we are seeing signs of funding strain in this market.

Speaker #6: This continues our long track record of serving the NATO armed forces . This was partially offset by our labs and research end market .

Speaker #6: As mentioned previously , demand from the US Department of Energy has been muted since the launch of Doge and the government shutdown . We also commented on the September investor call order flow coming from China for laboratory instruments has slowed .

Speaker #6: We see this as a transitory dynamic in our optimistic about the equilibrium . Of demand due to the safety critical nature of our products through October , we continue to see orders from the labs , but we are seeing signs of funding strain in this market as we discussed a few weeks back within our medical segment , adjusted orders declined $4.7 million .

Brian Schopfer: As we discussed a few weeks back, within our medical segment, adjusted orders declined $4.7 million. The RTQA end market's performance more than offset continued growth in our nuclear medicine end market. The dosimetry services business was relatively flat in the quarter. Digging into RTQA orders is a bit of a mixed bag. In the U.S. particularly, and to a lesser extent in China and Japan, RTQA hardware orders were down in the quarter. However, on a year-to-date basis, orders are closer to flat. This again stems from changing funding and trade dynamics, which are expected to normalize in the year ahead. Meanwhile, rest of world RTQA continues to see steady growth and be a bright spot. RTQA software and services remains a bright spot and a contributing factor to margin performance year to date.

Speaker #6: The end markets performance more than offset continued growth in our nuclear medicine end market . The dosimetry services business was relatively flat in the quarter .

Speaker #6: Digging in . Our orders . It is a bit of a mixed bag in the US , particularly , particularly and to a lesser extent in China and Japan .

Speaker #6: Rqa hardware orders were down in the quarter . However , on a year to date basis , orders are closer to flat . This again stems from changing funding and trade dynamics , which are expected to normalize in the year ahead .

Speaker #6: Meanwhile , rest of world Rqa continues to see steady growth and be a bright spot . Rqa software and Services remains a bright spot and a contributing factor to margin performance .

Speaker #6: Year to date . Taking a step back , what's particularly impressive about the third quarter order book is that it only includes approximately $10 million of large orders , a diverse composition of flow orders continues to drive the business .

Brian Schopfer: Taking a step back, what's particularly impressive about the third quarter order book is that it only includes approximately $10 million of large orders. A diverse composition of flow orders continues to drive the business. We expect a good Q4 as it comes to bookings, particularly in the nuclear power end market. Slide 10 contributes an update on the large opportunity pipeline. Through October we've been awarded $65 million from this pipeline. As mentioned, $10 million is reflected in our third quarter order book, while the other $55 million was awarded in October and will be reflected in our fourth quarter order book as we approach year end. $285 million of the opportunity pipeline is still to be awarded. $175 million of the $285 million should be awarded by year end, while the other $110 million is now likely to be awarded in 2026.

Speaker #6: We expect a good Q4 as it comes to bookings , particularly in the nuclear power end market . Slide ten contributes contributes an update on the large opportunity pipeline through October .

Speaker #6: We've been awarded 65 million from this pipeline . As mentioned , 10 million is reflected in our third quarter order book . While the other 55 million was awarded in October and will be reflected in our fourth quarter order book .

Speaker #6: As we approach year end , 285 million of the opportunity pipeline is still to be awarded 175 million of the 285 million should be awarded by year end , while the other 110 million is now likely to be awarded in 2026 .

Speaker #6: A large portion of the projects pushed to 2026 are U.S. government-related and are being impacted by the shutdown. Encouragingly, we continue to see new potential large projects materialize that are not included in the snapshot.

Brian Schopfer: A large portion of the projects pushed to 2026 are U.S. government related and are being impacted by the shutdown. Encouragingly, we continue to see new potential large projects materialize that are not included in the snapshots. To be clear, we have consistently communicated that we do not expect to be awarded every order, but maintain our strong conviction that we have a right to win on all of these opportunities. Now let's pivot to the P&L slide on Slide 11. Consolidated revenue for the company totaled $223.1 million, up 7.9% or $16.3 million over last year's third quarter. Nearly $12 million of the approximately $16 million increase came from our nuclear and safety segment. Adjusted EBITDA grew 14.7% or $6.7 million to $52.4 million, with both segments meaningfully contributing to the increase.

Speaker #6: To be clear, we have consistently communicated that we do not expect to be awarded every order, but maintain our strong conviction that we have a right to win on all of these opportunities.

Speaker #6: Now let's pivot to the slide on slide 11 . Consolidated revenue for the company totaled 223.1 million , up 7.9% , or 16.3 million , over last year's third quarter .

Speaker #6: Nearly 12 million of the approximately approximately 16 million increase came from our nuclear and safety segment . Adjusted EBITDA grew 14.7% , or 6.7 million , to 52.4 million , with both segments meaningfully contributing to the increase .

Speaker #6: Approximately $3 million of the adjusted EBITDA increase is related to greater volumes, followed by approximately $2 million of net price inflation, meaning we got $2 million more in price than cost, and approximately $2 million of procurement initiatives.

Brian Schopfer: Approximately $3 million of the adjusted EBITDA increase is related to greater volumes, followed by approximately $2 million of net price inflation, meaning we got $2 million more price than cost, and approximately $2 million of procurement initiatives. As you can tell, we're making strong progress on consolidating our supplier base and it's beginning to improve margin performance. As you will see on the coming slides, both segments contributed to the approximately 140 basis points of margin expansion. Lastly, adjusted EPS totaled $0.12 per share, a 50% increase versus the third quarter of last year. If you keep the share count constant to last year's third quarter, our adjusted EPS would have been $0.15 per share or nearly double last year's adjusted EPS.

Speaker #6: As you can tell , we're making strong progress on consolidating our supplier base , and it's beginning to improve margin performance . As you will see on the coming slides .

Speaker #6: Both segments contributed to the approximately 140 basis points of margin expansion . Lastly , adjusted EPs totaled $0.12 per share , a 50% increase versus the third quarter of last year .

Speaker #6: If you keep the share count constant to last year's third quarter , our adjusted EPs would have been $0.15 per share , or nearly double last year's adjusted EPs .

Speaker #6: Our adjusted EPs performance is a culmination of our progress across all parts of the business , from growing EBITDA to the tax projects we've discussed to lower net interest costs .

Brian Schopfer: Our adjusted EPS performance is a culmination of our progress across all parts of the business, from growing EBITDA to the tax projects we've discussed to lower net interest costs. Recall, our third quarter 2025 diluted share count reflects vested founder shares and the potential impact of our convertible notes. As a reminder, we put cap calls in place that limit the impact of both converts until a fairly material appreciation in the stock price. We have tables in the appendix that demonstrate this. The equity issuance we did in September to fund the expected Paragon acquisition is an immaterial impact in the third quarter. Since we didn't transact until late in September, we've included a detailed table in the appendix of our earnings call slides to bridge the differences and lay out all the movements that have taken place between 2024 and 2025.

Speaker #6: Recall our third quarter 2025 diluted share count reflects vested founder shares and the potential impact of our convertible notes . As a reminder , we put cap calls in place that limit the impact of both converts until a fairly material appreciation in the stock price .

Speaker #6: We have tables in the appendix that demonstrates this . The equity issuance we did in September to fund the expected Paragon acquisition is an immaterial impact .

Speaker #6: In the third quarter , since we didn't transact until late in September . We've included a detailed table in the appendix of our earnings call slides to bridge the differences , and lay out all the movements that have taken place between 2024 and 2025 .

Speaker #6: Slide 12 illustrates our nuclear and safety segment . Financial performance . Revenue for this segment grew 9% , or 11.9 million , to 144.6 million , organic growth for the segment was 4.4% and reflects nuclear power and market growth of 9% , and defense and diversified end market growth of 7% , partially offset by our labs and research business .

Brian Schopfer: Slide 12 illustrates our Nuclear and Safety segment financial performance. Revenue for this segment grew 9% or $11.9 million to $144.6 million. Organic growth for the segment was 4.4%. It reflects nuclear power and market growth and defensive diversified end market growth of 7%, partially offset by our labs and research business. As we indicated a few weeks back when we announced Paragon, we now expect the Nuclear and Safety segment's organic revenue growth to be mid single digits driven by double digit nuclear power and market growth. Adjusted EBITDA was $40.6 million, or a 16.3% or $5.7 million increase over last year's third quarter. Adjusted EBITDA margins totaled 28.1% or 180 basis points higher than last year. This is a result of operational leverage, procurement initiatives, and lower incentive compensation. Year to date, Nuclear and Safety segment margins have expanded approximately 80 basis points. Moving on to Slide 13.

Speaker #6: As we indicated , a few weeks back when we announced Paragon , we now expect the nuclear and safety segment's organic revenue growth to be mid-single digits , driven by double digit nuclear power and market growth .

Speaker #6: Adjusted EBITDA was 40.6 million , or 16.3% , or $5.7 million increase over last year's third quarter . Adjusted EBITDA margins totaled 28.1% , or 180 basis points higher than last year .

Speaker #6: This is a result of operational leverage, procurement initiatives, and lower incentive compensation. Year to date, nuclear and safety segment margins have expanded approximately 80 basis points.

Speaker #6: Moving on to slide 13 . Medical segment revenue totaled 78.5 million , up 5.9% , or $4.4 million versus last year . Organic revenue grew mid-single digits at 5.2% , in line with the guidance shared on our July earnings call .

Brian Schopfer: Medical segment revenue totaled $78.5 million, up 5.9% or $4.4 million versus last year. Organic revenue grew mid single digits at 5.2% in line with the guidance shared on our July earnings call. We remain on track for full year organic growth of mid single digits for the entire Medical segment. Adjusted EBITDA was $28.2 million or nearly 10% better than last year. Margins also improved, up 120 basis points to 35.9%. This reflects healthy operating leverage and favorable mix, particularly from our dosimetry services. End market year to date our medical margins have expanded approximately 240 basis points. We do expect fourth quarter margin expansion in this business, but not at these levels. Adjusted free cash flow shown on slide 14 totaled $18 million in the third quarter and $53 million year to date. This equates to a 35% year to date conversion of adjusted EBITDA.

Speaker #6: We remain on track for full-year organic growth of mid-single digits for the entire medical segment. Adjusted EBITDA was $28.2 million, or nearly 10% better than last year.

Speaker #6: Margins also improved , up 120 basis points to 35.9% . This reflects healthy operating leverage and favorable mix , particularly from our dosimetry services and market year to date .

Speaker #6: Our medical margins have expanded approximately 240 basis points . We do expect fourth quarter margin expansion in this business , but not at these levels .

Speaker #6: Adjusted free cash flow shown on slide 14 , totaled $18 million in the third quarter and 53 million . Year to date . This equates to a 35% year to date conversion of adjusted EBITDA .

Speaker #6: This was driven by adjusted EBITDA growth , lower interest expense , and lower CapEx , partially offset by a use of cash from net working capital .

Brian Schopfer: This was driven by adjusted EBITDA growth, lower interest expense, and lower CapEx, partially offset by use of cash from net working capital. We are materially ahead of where we were at this time last year, which gives us good confidence on our year end targets. Before we move to Q&A, let me touch on our full year guidance on slide 15. The one item we've updated is our adjusted free cash flow guidance. We increased the low end from $95 million to $100 million and now expect adjusted free cash flow to be between $100 million and $115 million, equating to a conversion of adjusted EBITDA between 45% and 49%. With that, operator, please cue the line for questions.

Speaker #6: We are materially ahead of where we were at this time last year , which gives us good confidence on our year end targets .

Speaker #6: Before we move to Q&A , let me touch on our full year guidance on slide 15 . The one item we've updated is our adjusted free cash flow guidance .

Speaker #6: We increased the low end from 95 million to 100 million , and now expect adjusted free cash flow to be between 100 million and 115 million , according to a conversion of adjusted EBITDA .

Speaker #6: Between 45% and 49%, with that operator, please queue the line for questions.

Speaker #3: Thank you . We will now be conducting a question and answer session . If you would like to ask a question , please press star one on your telephone keypad .

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. The first question is from Andy Kaplowitz from Citigroup. Please go ahead.

Speaker #3: A confirmation tone will indicate your line is in the question queue . You may press star two . If you would like to remove your question from the queue for participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys .

Speaker #3: One moment please . While we pull for questions . The first question is from Andy Kaplowitz from Citigroup . Please go ahead .

Speaker #7: Good morning everyone .

[Analyst]: Good morning, everyone.

Speaker #6: Morning .

Speaker #8: Andy .

Brian Schopfer: Morning Andy.

Speaker #7: Morning . So there's obviously been a flurry of news announcements around commercial nuclear lately . As you mentioned , Tom . So with the understanding that nuclear is obviously very long lead , you haven't yet added to your $350 million large project opportunity funnel that you gave out quite some time ago .

[Analyst]: Morning. There's obviously been a flurry of news announcements around commercial nuclear lately, as you mentioned, Tom. With the understanding that nuclear is obviously very long lead, you haven't yet added to your $350 million large project opportunity funnel that you gave out quite some time ago. Brian, you talked about Mirion booking projects that are not part of the funnel. Should we really just be focused on your commercial nuclear backlog? Tom, would you expect a material acceleration in that backlog given the uptick in activity you mentioned?

Speaker #7: But , Brian , you talked about Marianne booking projects that are not part of the funnel . So should we really just be focused on your commercial nuclear backlog ?

Speaker #7: And Tom , would you expect a material acceleration in that backlog given the uptick in activity you mentioned ?

Speaker #5: Yeah . What I would say , Andy , is our view . That is that when you look at the core dynamics of the market right now , I think there there are three important drivers .

Brian Schopfer: Yeah.

Tom Logan: What I would say, Andy, is our view is that when you look at the core dynamics of the market right now, I think there are three important drivers. One is the installed basis. We've talked about previously, the desire to run these reactors hotter and at greater capacity factors, meaning greater capacity utilization, correlates strongly with CapEx. As that quest continues, noting that I put out there the World Nuclear Association report that the global fleet ran at about 83%. 90% is considered to be good. The U.S. fleet runs at 92%. I think there is a reasonable likelihood that we're going to see a continued uptrend in capacity factors across the global fleet, and that augurs well for our flow business in support of that fleet overall.

Speaker #5: One is the the installed base , as we've talked about previously , the the desire to run these reactors hotter and at greater capacity .

Speaker #5: Factors meaning greater capacity utilization correlates strongly with CapEx . So as that as that quest continues , you know , noting that I put out there the the world Nuclear Association report that the global fleet ran at about 83% , 90% is is considered to be good .

Speaker #5: The US fleet runs at 92% . I think there is a reasonable likelihood that we're going to see a continued uptrend in capacity .

Speaker #5: Factors across the global fleet and and that augurs well for our flow business in support of that . That fleet overall . Secondly , you have new utility scale builds .

Tom Logan: Secondly, you have new utility scale builds, and as we've seen in this flurry of news reports and obviously we see it on the ground day in and day out, there clearly is an acceleration in the planning and execution of more global utility scale projects. We expect that will build over time. Obviously, again, as we've been stated emphatically historically, the timing can be very, very difficult to predict as to when a new project commences. The good news is that in this country as well as in others, there is an unprecedented level of government support to streamline the regulatory timeline and burden and to provide additional financial support and essentially risk mitigation for sponsors of these plants. We do expect that trend to continue.

Speaker #5: And you know, as we've seen in this flurry of news reports, and obviously we see it on the ground day in and day out, there clearly is an acceleration in the planning and execution of more global utility-scale projects.

Speaker #5: We expect that that will build over time . Obviously , again , as we've been stated emphatically historically , the timing can be very , very difficult to predict as to when a new project commences .

Speaker #5: But the good news is that in this country , as well as in others , there is an unprecedented level of government support to streamline the the regulatory timeline and burden and to provide additional financial support and essentially risk mitigation for sponsors of these plants .

Speaker #5: So we do expect that trend to continue . And then finally , you have the the SMR projects , which , given the , you know , the enormous focus on AI driven data center , build out , you know , is increasingly becoming a more viable market .

Tom Logan: Finally, you have the SMR projects, which given the enormous focus on AI driven data center build out, is increasingly becoming a more viable market. In general, again, while timing is very difficult to predict, we do see that moving to the left. As we look ahead, it is a reasonable supposition that over time we will see the nuclear power related backlog beginning to grow. We will be conservative about how we disclose that over time, but I think that will be an important tell in terms of how this market will evolve over time. Finally, Andy, I would say that the flow business that does not necessarily become visible in backlog because it tends to transact quickly has been a very important driver of the overall nuclear power dynamic. We expect that again as that correlates with capacity factors that will continue to swell.

Speaker #5: And in general , again , while timing is very difficult to predict , we do see that moving to the left . So as we look ahead , it is a reasonable supposition that over time we will see the nuclear power related backlog beginning to grow .

Speaker #5: We will be conservative about how we we disclose that over time . But I think that will be an important tell in terms of how this market will evolve over time .

Speaker #5: You know , finally , Andy , I would say that that , you know , the flow business that does not necessarily become visible in backlog because it tends to tends to transact quickly , has been a very important driver of of the overall nuclear power dynamic .

Speaker #5: We expect that again, as that correlates with capacity factors, that will continue to swell.

Speaker #6: Yeah , maybe just two things to add to Tom's comments . Just one on the install base . You know , Paragon's definitely additive to that narrative , right ?

Brian Schopfer: Maybe just two things to add to Tom's comments, just one on the installed base. You know Paragon is definitely additive to that narrative, right? They're very strong in the U.S. installed base, 94% of their revenue in 2025 will come from that. You know, and I think we indicated on the call that their business has definitely grown double digits over the last couple of years. Then maybe on the new builds, just a reminder, there are no U.S. new builds in any of the numbers we've put out there. You know, that's something that again is very hard to predict, that will take time to come through. That is not in any of our planning assumptions through 2028, helpful.

Speaker #6: They're very strong in the US . Install base 94% of their revenue in 25 will come from that , you know , and I think we indicated on the call that that's their business is definitely growing double digits over the last couple of years .

Speaker #6: And then maybe on the new builds, just a reminder, there are no U.S. new builds in any of the numbers we've put out there.

Speaker #6: So just , you know , that's something that again , very hard to predict that will take time to come through . But but that is not in any of our planning assumptions through 28 .

Speaker #7: Helpful color . And then Tom O'Brien , how do we how are you thinking about your medical business in the current environment ? You you said pressure in rka , but you still delivered over 5% organic revenue growth in medical in Q3 .

[Analyst]: Color and then Tom Logan, how are you thinking about your medical business in the current environment? You set a pressure in RTQA, but you still delivered over 5% organic revenue growth in medical in Q3. Is that how we should think about the near and medium term growth in medical while there's still some uncertainty out there? I know Brian, you said you expect spend to normalize, but is there any visibility to that normalization?

Speaker #7: So is that how we should think about the near and medium term growth in medical ? While there's still some uncertainty out there ?

Speaker #7: I know, Brian, you said you expect spend to normalize, but is there any visibility to that normalization?

Speaker #5: Andy . So if you look at at the , you know , the medical business writ large , you know , we we continue to love this business overall .

Tom Logan: If you look at the medical business writ large, we continue to love this business overall. The dominant demand drivers that we've talked about ad nauseam, including an aging of the population demographic in the developed West, greater incidence rate of cancers of all forms, and the push to create a higher standard of care in the lesser developed markets, are all themes that are robust and continue to be in place. What we've seen in RTQA is strength coming out of international single payer systems that have not been exposed to the kind of budgetary and dose-related dynamics that we've seen in the U.S. market. As I noted, as Brian Schopfer noted, we do expect those factors to equilibrate. The demand hasn't changed, the need for the solutions that we offer here has not changed.

Speaker #5: You know the the dominant demand drivers that we've talked about ad nauseum , including , you know , an aging of the the population demographic and the developed West greater incidence rate of of cancers of all forms .

Speaker #5: And the , the push to create a higher standard of care and the lesser developed markets are all themes that are robust and continue to be in place .

Speaker #5: What we've seen in RTCA is strength coming out of international single-payer systems that have not been exposed to the kind of budgetary and dog-related dynamics that we've seen in the U.S. market.

Speaker #5: You know , as I noted , as Brian noted , we do expect those factors to equilibrate the demand hasn't changed . The the need for the solutions that we offer here has not changed .

Speaker #5: And so our view as a constructive one that that we will find an equilibrium sooner rather than later . And as we achieve that , you know , we we would expect the , the , the rka business to be back on trend in terms of , of nuclear medicine .

Tom Logan: Our view is a constructive one, that we will find an equilibrium sooner rather than later. As we achieve that, we would expect the RTQA business to be back on trend. In terms of nuclear medicine, again, the core dynamics there continue to be very favorable. The activity, the excitement, the tangibility of the growth of the radioligand market continues. We have a superb positioning in this market overall and we're confident that over time the numbers will be trending in a direction that's consistent with what we've guided historically. Lastly, on our medical dosimetry business, as noted, strong revenue growth in the quarter, 7%. The digital product line is coming off the peg. We feel good about the dynamic there.

Speaker #5: Again , the , the core dynamics there continue to be very favorable . The , the activity , the excitement , the tangibility of the growth of the Radioligand market continues .

Speaker #5: Again , we have a superb positioning in this market overall . And and we're confident that that , you know , over time , the numbers will will be trending in a in a direction that's consistent with what we've guided historically .

Speaker #5: You know , lastly , on our medical dosimetry business , you know , as noted , strong revenue growth in the quarter , 7% .

Speaker #5: The the the digital product line is coming off the peg . We feel good about the dynamic there . So to be clear , even though we spent most of our commentary on nuclear power .

Tom Logan: To be clear, even though we spent most of our commentary on nuclear power, we still love the medical business, still see it as an important contributor to the story overall.

Speaker #5: We still love the medical business . We'll see it as an important contributor to the to the story . Overall .

Speaker #6: I would just say in the very short term , and I think we talked a little bit about this last time . I mean , if you think about the Q4 , Q4 kind of revenue number , that's probably , you know , flattish for us on a on a pretty big comp .

Brian Schopfer: I would just say in the very short term, and I think we talked a little bit about this last time. I mean, if you think about the Q4, Q4 kind of revenue number, that's probably, you know, flattish for us on a pretty big comp. We had a very big dosimeter. I think we were up 14% last Q4 in dosimetry, which is a very tough comp on product sales. Tom's comments are all exactly what we're seeing and talking about in the medical side, you know, over probably the next 12 to 18 months. As you think about the next quarter, I think we do expect flattish, and that should not be a surprise because that's what we talked about last quarter.

Speaker #6: We had a very big dosimetry . I think we were up 14% last Q4 . And dosimetry , which is very tough comp on product sales .

Speaker #6: So , you know , Tom's comments are all exactly what we're seeing and talking about in in the medical side , you know , over probably the next 12 to 18 months .

Speaker #6: But as you think about the next quarter , I think , you know , I think we do expect flattish . And that should not be a surprise because that's that's what we talked about last quarter .

Speaker #3: The next question is from Joe Rishi from Goldman Sachs . Please go ahead .

Operator: The next question is from Joe Ritchie from Goldman Sachs. Please go ahead.

Speaker #9: Hi. Thanks. Good morning, guys.

[Analyst]: Thanks. Good morning, guys.

Speaker #5: Hey , Joe .

Tom Logan: Hey Joe.

Speaker #9: So just, just, just a few quick ones. The first one is just like, look, really interesting to see the $55 million award come through in the third quarter.

[Analyst]: Just a few quick ones. The first one is just like look really interesting to see the $55 million award come through in the third quarter. It's interesting that with just two months left in the year, you still have that $175 million pipeline. I guess just Tom, maybe what kind of what degree of confidence do you have that the $175 million will be awarded fully recognizing that you'll have some share of that if it does get awarded.

Speaker #9: It's interesting that you with just two months left in , in the year , you still have that $175 million pipeline . I guess .

Speaker #9: Just just Tom , maybe what kind of what degree of confidence do you have that the 175 will be awarded fully recognizing that , you know , you'll have some share of that if it does get awarded .

Speaker #5: Yeah . To be clear , firstly , Joe , just a minor correction . The 55 . Traded or was booked in in Q4 was booked in October .

Tom Logan: Yeah. To be clear, firstly Joe, just a minor correction. The 55 traded or was booked in Q4 is booked in October. As we look at the pipeline, we've parsed between stuff that is largely impacted by government funding dynamics that we think spills into 2026 versus what we think trades in 2024. From a confidence standpoint, again with the caveat that on these large opportunities the timing is always unpredictable, I would tell you that our conviction improves. As Brian noted, we feel like we have a strong right to win on this opportunity set overall. We feel pretty good about.

Speaker #5: But as we look at the the the pipeline , you know clearly we've we've parsed between stuff that is largely impacted by government funding dynamics .

Speaker #5: So we think spills into 2026 versus what we think trades in in 2024 . And you know , from a confidence standpoint , again , with the caveat that on , you know , on these large opportunities , the the timing is always unpredictable .

Speaker #5: I would tell you that our conviction improves as Brian noted , we feel like we have a strong right to win on this opportunity .

Speaker #5: Set overall . So we feel pretty good about .

Speaker #9: Got it . Great . Yeah . And thanks for the clarification . I did mean for Q so I'm going to ask you the same question I asked you last quarter , given the flow of projects has been coming in around 200 million cubic , 55 million already in the fourth quarter .

[Analyst]: Got it.

Operator: Great.

[Analyst]: Thank you for the clarification. I did mean Q4, so I'm going to ask you the same question I asked you last quarter. Given the flow of projects have been coming in around $200 million, you booked $55 million already in the fourth quarter, you've got this pipeline out there. Why can't we have a good quarter that's above $300 million?

Speaker #9: You've got this pipeline out there . Why can't we have a quarter that's above 300 ?

Speaker #8: I think you can. I mean, look, I think.

Brian Schopfer: I think we will see, I think we could see strong double digit order growth in the fourth quarter for sure.

Speaker #6: I think we will see . I think we could see strong double digit order growth in the fourth quarter . For sure .

Speaker #9: Okay , great . And then lastly , I just want to understand this SMR opportunity a little further . So you mentioned that you booked the $10 million project in in three Q just had another company talk about 30 plus Smrs potentially being constructed in the next five years .

[Analyst]: Okay, great. Lastly, I just want to understand this SMR opportunity a little further. You mentioned that you booked the $10 million project in Q3. I just had another company talk about 30+ SMRs potentially being constructed in the next five years. When I think about the $10 million that you booked, is it, like, simplistically, is this like a, like, you know, maybe think about it as like a 250 type, you know, megawatt SMR? Is it for the full project? Is it for a portion of the project? I'm just trying to understand how to think about the related opportunity for you going forward.

Speaker #9: When I when I think about the 10 million that you booked , is it simplistically , is this like a , like a like , you know , maybe think about it as like a 250 type , you megawatt SMR ?

Speaker #9: Is it for the full project ? Is it for a portion of the project ? I'm just trying to understand how to think about the related opportunity for you going forward .

Speaker #5: Yeah . So the overall opportunity set is , is expanding . Joe . Firstly , the you know , noting that right now what you're seeing , I think there are over 120 .

Tom Logan: Yeah, so the overall opportunity set is expanding, Joe. Firstly, you know, noting that right now what you're seeing, I think there are over 120 discrete SMR projects in various forms of development around the world. Some of them are merely kind of PowerPoint presentations, others fairly mature in terms of the design evolution. What we're seeing now and what we're going to continue to see for the next probably few years will be the development of the first of a kind instances that are really going to prove the viability of the fleet. We do expect that there will be a consolidation, a shakeout, if you will, in this space, and that from that there will be clearly identified strong leaders that emerge and really begin to gain scale economies and momentum.

Speaker #5: Discrete SMR projects in various forms of development around the world . Some of them merely kind of PowerPoint presentations , others a fairly mature in terms of the design evolution .

Speaker #5: So what we're seeing now and what we're going to continue to see for the next probably few years , will be the development of the first of a kind instances that are really going to prove the the viability of the fleet .

Speaker #5: We do expect that there will be a consolidation , a shakeout , if you will , in this space . And that from that there will be clearly identified strong leaders that emerge and really begin to gain scale economies and momentum .

Speaker #5: Overall , our focus right now is that we want to be part of the overall solution set with all of them . And here I would note that with the the incipient paragon acquisition , coupled with the the Cercek addition and some of the other moves that we've made to augment our portfolio , we are extremely well positioned within this community in a broad fashion .

Tom Logan: Overall, our focus right now is that we want to be part of the overall solution set with all of them. Here I would note that with the incipient Paragon Energy Solutions acquisition, coupled with the CERTREC addition and some of the other moves that we've made to augment our portfolio, we are extremely well positioned within this community in a broad fashion. It's not only our traditional book of business in and around things like radiation monitoring systems and neutron flux measurement systems and health physics products, et cetera, but now it's expanded to more comprehensive physical and cybersecurity, a much broader position in instrumentation and control, with a far more compelling, cogent and coherent ecosystem of solutions in that arena. We are a critical partner to.

Speaker #5: It's not only our traditional book of business in and around things like radiation monitoring systems and neutron flux measurement systems and health physics products , etc.

Speaker #5: but now it's expanded to more comprehensive physical and cyber security , a much broader position in instrumentation and control , with a far more compelling , cogent and coherent ecosystem of of solutions .

Speaker #5: In that in that arena , we are a critical partner to a a strong plurality of these players as it relates to the the regulatory support through Surtrac .

Brian Schopfer: A.

Tom Logan: Strong plurality of these players as it relates to the regulatory support through CERTREC. We expect the ecosystem to continue to build. We expect that the foot race will continue, recognizing that I think many of these players, maybe most of these players, view this as analogous to the commercial space market and they all want to be SpaceX. We like where we sit. We're going to be conservative about how we call the ball in terms of how this market evolves. To be clear, as it in general becomes more tangible and as we continue to augment our relevance, our solution set into the space, we think it'll be an important addition to growth in the long term.

Speaker #5: And so we expect the ecosystem to continue to build . We expect that the the , the foot race will continue recognizing that I think many of these players , maybe most of these players , you know , view this as analogous to the commercial space market .

Speaker #5: And they all want to be space . And so we like where we sit , you know , again , we're we're going to be conservative about how we call the ball in terms of how this market evolves .

Speaker #5: But to be clear , as it in general becomes more tangible and as we continue to augment our relevance , our solution set into the space we think it'll be an important addition to to growth .

Speaker #5: You know , in the long term .

Speaker #6: Maybe just to make sure we put a fine point on a couple of things . You asked one , no , this is not our full suite of products .

Brian Schopfer: Maybe just to make sure we put a fine point on a couple things you asked. One, no, this is not our full suite of products with that player. I think we talked about seeing even momentum here in Q4. It's actually with different players than the $10 million that we booked. I think we continue to definitely be exciting. Yeah, this portfolio definitely comes in pieces in the order book, and this is just a piece of the portfolio that got awarded this quarter.

Speaker #6: With that , that player and I think we talked about seeing even momentum here in Q4 . It's actually with different players than than the 10 million that we booked .

Speaker #6: And , you know , I think we continue to definitely be exciting . But yeah , this is you know , that the portfolio definitely comes in pieces in the order book .

Speaker #6: And this is just a piece of a portfolio that got that got awarded this quarter .

Speaker #3: The next question is from Rob Mason from Baird. Please go ahead.

Operator: The next question is from Rob Mason from Baird. Please go ahead.

Speaker #10: Yeah . Hi . Good morning Tom Brian , when we entered this year , this fiscal this fiscal year , you know , there was commentary just around your your backlog and what that represented in terms of next 12 months conversion revenue coverage .

Brian Schopfer: Yeah, hi, good morning.

Tom Logan: When we entered this year, this fiscal.

Brian Schopfer: This fiscal year, there was.

Tom Logan: Commentary just around your backlog and what that represented in terms of next.

Brian Schopfer: 12 months conversion revenue coverage as you think about exiting 2025, how do you.

Speaker #10: As you think about exiting 25 , how do you think that metric looks on a relative basis to how we entered the year ?

Tom Logan: Think that metric looks on a relative basis to how we entered the year? I'm just curious if the $175 million of bolus of large orders or awards that are still out there does.

Speaker #10: And I'm just curious if the 175 million of bolus of large orders , that's or wars that are still out there , does that really influence that metric for the next 12 months ?

Brian Schopfer: That really influence that metric for the next 12 months? Yeah, so a couple things, I mean, this comment really pertains to the kind of the current business. Right. Obviously we'll add Paragon on top of this and that'll have its own dynamics. I would say that, you know, Q4 is always a large order booking month or quarter for us. You know, so goes Q4, so goes kind of that metric. We've always said somewhere between 45% and 50% is the next 12 months coverage number. We'll continue to assess that as we go through the quarter. As you think about the 175, look, there's definitely revenue in 2026 for some of that, but all of those contracts will trade over multiple years. These are not kind of, you know, one year. We're going to take that, that, that type of revenue.

Speaker #6: Yeah . So a couple of things . I mean , this comment really pertains to the kind of the the current business , right ?

Speaker #6: Obviously , we'll add Paragon on top of this and that'll have its own dynamics . I would say that , you know , Q4 is always a large order booking month or quarter for us .

Speaker #6: And , you know , so goes Q4 . So goes kind of that metric . You know , we've always said somewhere between 45 and 50% is the next 12 months coverage number .

Speaker #6: And , you know , we'll continue to assess that as we go through the quarter . As you think about the 175 look , there's definitely revenue in 26 for some of that .

Speaker #6: But all of those contracts will trade over multiple years . So these are not kind of , you know , one year we're going to take that that that type of revenue .

Speaker #6: We tend to see kind of a smaller piece portion of the revenue in year one . You know , that kind of ramps in three .

Brian Schopfer: We tend to see kind of a smaller portion of the revenue in year one. That kind of ramps into three, maybe it comes down a little bit in four or five depending on the time period. That's kind of, you know, high level how we're thinking about it, I think. We'll talk about our coverage dynamic once we report our Q4 numbers.

Speaker #6: You know , maybe it comes down a little bit in 4 or 5 , depending on the time period . So that's kind of , you know , high level how we're thinking about it .

Speaker #6: And I think , you know , look , we'll talk about our coverage dynamic , you know , once we report our Q4 numbers .

Speaker #10: Sure , sure . Just as a follow up regarding some of the news flow of late , you know , the Westinghouse name has been prominent in some of these .

Tom Logan: Sure, sure.

Brian Schopfer: Just as a follow-up regarding some.

Tom Logan: Of the news flow of late, you.

Brian Schopfer: The Westinghouse name has been prominent in some of these, and you had that strategic partnership that you announced earlier.

Speaker #10: And you had that strategic partnership that you announced earlier in the year . At the time , that seemed to be more around the installed base opportunity , but I'm just I'm just curious if you could inform us on how does that relationship work on the new build side ?

Tom Logan: In the year at the time.

Brian Schopfer: Seemed to be more around the installed reactor base opportunity. I'm just curious if.

Tom Logan: You could inform us on, you know, how does that relationship work on the new build side and if you could, you know, fold Paragon's, you know, potential relationship there as well into the commentary. I'm just curious what their history would be with that player also. Yeah, what I would say, Rob, is that historically, you know, Westinghouse has been a critically important customer to Mirion and we've worked hard to continue to improve our relevance and augment our solution set to them. Overall, we're quite happy with the NFMS agreement that we talked about in the past. With Paragon, we think again, the relevance and attractiveness of the potential solution set that we can bring to bear not only for Westinghouse, but truly all of the NFMS, all of the strike that NSS or nuclear reactor designers globally will continue to swell. We're working hard to really.

Speaker #10: And if you could , you know , fold paragon's , you know , potential relationship there as well into the commentary . Just I'm just curious what their history would be with that player .

Speaker #10: Also .

Speaker #5: Yeah , what I would say , Rob , is that historically , you know , Westinghouse has been , you know , a critically important customer to to Marian .

Speaker #5: And we've worked hard to continue to improve our relevance and augment our solution set to them . Overall . You know , we're quite happy with the the FMS agreement that we talked about , you know , in the past and with Paragon , you know , we we think again , the relevance and , and attractiveness of the , the potential solution set that we can bring to bear not only for Westinghouse but but truly all of the FMS , all of the our strike that or nuclear reactor designers globally will will continue to swell .

Speaker #5: So yeah , we're working hard to to , you know , really represent our capabilities in a , in a fulsome way . And as it relates to , you know , the future of both system upgrades , as we look at life extensions and updates as favorable .

[Analyst]: Represent.

Tom Logan: Our capabilities in a fulsome way. As it relates to the future of both system upgrades, as we look at life extensions and upgrades, is favorable. We also expect that our positioning for new build activity will become more favorable as well.

Speaker #5: But we also expect that our positioning for new build activity will become more favorable as well .

Speaker #3: The next question is from Thomas Sano from JP Morgan . Please go ahead .

Operator: The next question is from Tomo Sano from J.P. Morgan. Please go ahead.

Speaker #11: Hello . Hello everyone .

[Analyst]: Hello everyone.

Speaker #5: Good morning Tomo .

Tom Logan: Morning Tomo.

Speaker #11: Morning . I'd like to ask . SMR as well . Could you talk about the pipeline for SMR projects within 285 million and beyond and if it's , if it would be great if you could touch on what factors could accelerate or delay these awards .

[Analyst]: Good morning. I'd like to ask about SMR as well. Could you talk about the pipeline for SMR projects within $285 million and beyond, and if it'd be great if you could touch on what factors could accelerate or delay these awards, please.

Speaker #11: Please .

Speaker #6: Yeah . Maybe taking the I mean , as you think about the 285 million , I mean , there's lots of factors that can that can delay awards .

Brian Schopfer: Yeah, maybe taking a second. I mean as you think about the $285 million, there's lots of factors that can delay awards. Some of it's making sure we cut a deal that we're happy with. We're less interested in cutting a deal just to hit a quarter than we are making sure we have a contract and a relationship that we can live with going forward. I think that's kind of how we think about this. We're fairly disciplined on margin rates and cash profiles, etc. There are approvals on their side. Those negotiations take time. It is the holiday season. Those are all things that can impact it. Again, to, I think, Joe's point, we're sitting two months out and we continue to kind of work very, very hard, as you noticed with a team in Asia last week that signed the deal.

Speaker #6: I mean, some of it's making sure we cut a deal that we're happy with. We're less interested in cutting a deal just to hit a quarter than we are in making sure we have a contract and a relationship that we can live with.

Speaker #6: Going forward . So I think that's kind of how we think about this , and we're fairly disciplined on margin rates and cash profiles , etc.

Speaker #6: . So , you know , there's , you know , approvals on their side . You know , those negotiations take time . It is the holiday season .

Speaker #6: I mean , those are all things that can impact it . But again , I mean to to I think Joe's point I mean , we're sitting two months out and you know , we continue to kind of work very , very hard , as you noticed , we had a team in in Asia yesterday that actually last week that signed the deal .

Speaker #6: So , you know , there's there's lots of activity going on . And you know , we'll continue to to press hard to get everything we can closed kind of by year end .

Brian Schopfer: There's lots of activity going on and we'll continue to press hard to get everything we can closed by year end, and your worst case before mid February. On the SMR question, I don't think there's any more SMR. There actually aren't any more SMR orders in those larger, that $10 million to $15 million kind of size pipeline that we've talked about. There's tons of stuff we're working.

Speaker #6: And you know worst case you know before kind of mid-February on the SMR question , I don't I don't think there's any more SMR .

Speaker #6: There actually aren't any more SMR orders in those larger , you know , that , you know , 10 to 15 million kind of size pipeline that we've talked about .

Speaker #6: But there's , there's there's tons of stuff we're working on , you know , more broadly than that .

[Analyst]: On.

Brian Schopfer: More broadly than that.

Speaker #5: Tom , I tag on a couple of things . Firstly , not to scoop Brian , but to scoop Brian . We booked another SMR related order yesterday for about 5.5 million .

Tom Logan: Tom, I tag on a couple of things. Firstly, not to scoot Brian, but to scoot Brian. We booked another related order yesterday for about $5.5 million. The momentum continues to swell there. I'd also note that the government support here is very, very important. The deal that was announced Monday for this $80 billion package of financing guarantees and regulatory support is inclusive of SMRs. Beyond that, the funding that's flowed from not only the Department of Energy in the U.S. but also the Department of War, formerly the Department of Defense, is very, very meaningful as it relates to the evolution and the rapidity within which this market evolves. As Brian noted, in that big opportunity set, because our threshold bar is set high, that tends to exclude the majority of SMR opportunities. We're happy overall with the way this market's evolving.

Speaker #5: So the the momentum continues to to , to swell . There . And I'd also note that the government support here is is very , very important .

Speaker #5: You know the the the deal that was announced Monday for this $80 billion package of financing guarantees and regulatory support is inclusive of Smrs .

Speaker #5: Beyond that , the the funding that's flowed from not only the Department of Energy in the US , but also the Department of War , formerly the Department of Defense , is very , very meaningful as it relates to the the evolution and the rapidity within which this this market evolves .

Speaker #5: So , again , as Brian noted in that big opportunity set , because our threshold bar is set high , that tends to exclude the majority of SMR opportunities .

Speaker #5: And we're happy overall with the way this market's evolving .

Speaker #11: Thank you .

[Analyst]: Thank you.

Speaker #12: By the way , I mean .

Brian Schopfer: By the way, Tom, I mean just it's worth pointing out we've booked $26 million of SMR orders to date. In the prior two years, year to date, in the prior two years I think that number was only $17 million combined. That doesn't include the $5.5 million that Tom just mentioned. I mean clearly there is lots going on and I think we're super proud of everything the team's doing.

Speaker #6: Tom, I mean, it's worth pointing out that we've booked $26 million of SMR orders to date in the prior two years, year to date, and the prior two years.

Speaker #6: I think that number was only 17 million combined . And that doesn't include the the five and a half that time . Just time .

Speaker #6: Just mentioned . So I mean , clearly there is lots going on and I think we're super proud of everything the team's doing .

Speaker #11: Thank you . Very helpful . And just one follow up on the talent and supply chains resilience . So to capture large pipeline , what steps are you taking to secure critical talent , including recent M&A .

[Analyst]: Thank you, very helpful. Just one follow up on the talent and supply chain resilience. To capture large pipeline, what steps are you taking to secure critical talent including recent M&A, and then strengthen your supply chains including some of the specialized components like Germany, please.

Speaker #11: And then strengthen your supply chains , including some of the specialized components like Germany . Please .

Speaker #5: Yes . So on that , on that front , Tomo firstly , you know , as we noted , one of one of the most important strategic elements of the the recent M&A activity .

Tom Logan: Yes. On that front, Tom, firstly, as we noted, one of the most important strategic elements of the recent M&A activity, and here I would highlight both CERTREC and Paragon Energy Solutions, is the talent acquisition. In each instance, we have just world-class teams that are going to meaningfully augment our corporate gene pool and give us capabilities that heretofore have been lacking in some dimension or another. This is a great place to work. We're pleased with our historical retention dynamic. As you might imagine, we're very focused on continuing that track record as we move ahead. To be clear, we feel happy and confident with the talent that we have in the barn today. That's more than adequate to drive our future growth, our future aspirations. In terms of the physical supply chain, here again we tend to be very conservative.

Speaker #5: And here I would highlight both Star Trek and Paragon is the talent acquisition . And each instance we have just world class teams that are that are going to meaningfully augment our corporate gene pool and , and give us capabilities that here to heretofore have , have , have , have been lacking in some dimension or another .

Speaker #5: You know , this is a great place to work . We're we're , you know , pleased with our historical retention dynamic , as you might imagine , we're very focused on continuing that track record as we as we move ahead .

Speaker #5: But to be clear , we we feel happy and confident with the talent that we have in the barn today , that that's more than adequate to to drive , you know , our future growth , our future aspirations in terms of the physical supply chain , you know , here we're again , we tend to be very conservative .

Speaker #5: And so , you know , as an example , when when looking at at precious metals or critical commodities relating to orders that are likely to trade longer term , we tend to diffuse that risk upfront by acquiring a all or a significant quantum of the exposure .

Tom Logan: As an example, when looking at precious metals or critical commodities relating to orders that are likely to trade longer term, we tend to defeat that risk up front by acquiring all or a significant quantum of the exposure there and do that with cash-funded customer advances overall. In terms of our exposure to precious metals like rhodium, other elements like germanium, et cetera, we over time have developed pretty decent heuristics for managing and mitigating that supply risk.

Speaker #5: There . And do that , you know , with cash funded customer advances overall . So in terms of our exposure to precious metals like rhodium , you know , other elements like germanium , etc.

Speaker #5: , you know , we over time have have developed pretty decent heuristics for , for managing and mitigating that supply risk .

Speaker #12: I think part of what we're doing .

Brian Schopfer: Yeah, I think part of what we're doing on all the supply chain work we've basically been doing for the last 18 months is not just about cost out, it's about shoring up the supply base, bringing together to find larger suppliers. It's about finding a second and third supplier in some cases, and it's about payment terms. We're tackling many things on top of just the cost structure as we've gone through that process.

Speaker #6: On all the supply chain work , we've we've basically been , you know , doing for the last 18 months is not just about cost .

Speaker #12: Out , right .

Speaker #6: It's about sharing up the supply base .

Speaker #12: You .

Speaker #6: Know , bringing together to find larger suppliers . It's about finding , you know , a second and third supplier in some cases .

Speaker #6: And it's about payment terms . So we're we're tackling many things on top of just the cost structure as we as we've gone through that process .

Speaker #3: The next question is from Chris Moore from CJS securities . Please go ahead .

Operator: The next question is from Chris Moore from CJS Securities. Please go ahead.

Speaker #13: Hi . This is Will on for Chris . Can you just talk broadly about how your pricing power is holding up . And you know , is it trending differently in nuclear safety versus medical ?

[Analyst]: Hi, this is Will on for Chris. Can you just talk broadly about how your pricing power is holding up, and you know, is it trending differently in nuclear safety versus medical?

Speaker #6: Look , I mean , I made a comment on on third quarter right . Price cost this quarter was $2 billion . Positive to us .

Brian Schopfer: Look, I mean, I made a comment on third quarter, right? Price cost this quarter was $2 million positive to us. I think we feel good about what we're doing internally, pricing. We've invested quite a bit in our pricing, heuristic methodologies, et cetera. I would say that, you know, we're probably a bit less aggressive right now on the medical, specifically the U.S. side, than we are on the other side of the house. We like the dynamic, and we like our portfolio and the moats that have been created around that product portfolio over the last 22 years.

Speaker #6: So you know , I think we feel good about about what we're doing internally pricing . We've invested quite a bit in , in our , you know , our pricing heuristic methodologies , etc.

Speaker #6: . And I would say that , you know , we're probably you know , we're probably a bit less aggressive right now on the medical , specifically the US side , than we are on the the other side of the house .

Speaker #6: But we like the dynamic, and we like our portfolio in the moats that have been created around that product portfolio over the last 22 years.

Speaker #13: Thank you .

[Analyst]: Thank you.

Speaker #3: The next question is from yuan V from B Riley , please go ahead .

Operator: The next question is from Yuan Zhi from B. Riley. Please go ahead.

Speaker #14: Thank you for taking our questions . And congrats on a good quarter . Can you expand on the US healthcare environment ? Is it due to the government grants or Medicare Medicaid reimbursement , delaying patient seeking treatment ?

[Analyst]: Thank you for taking our questions.

Brian Schopfer: Congrats on a good quarter. Can you expand on the U.S. health care environment?

[Analyst]: Is it due to the government grants or Medicare Medicaid reimbursement delaying patients seeking treatment there?

Speaker #14: There ?

Speaker #5: Yeah , I mean , overall it is it is driven more than anything else . One by by the aggregate noise . The the cuts in Medicaid have been the most pronounced , the most defined .

Tom Logan: Yeah, I mean overall it is driven more than anything else by the aggregate noise. The cuts in Medicaid have been the most pronounced, the most defined, and that has had a modest impact, recognizing that the majority of cancer treatment is actually funded out of Medicare versus Medicaid overall. To be clear, if you look at the profitability of the U.S. healthcare system, overall operating margins, and just again kind of the noise and kind of strategic haze around the space, all of those factors tend to put any entity on a more defensive CapEx footing, and I think that's what we're seeing. We noted that when we look at the demand dynamics out of single payer end markets, those have continued to be strong and in normalized ranges. Again, noting that the demand dynamics have not changed in the U.S. market.

Speaker #5: And that has had a , a modest impact , recognizing that the the majority of of of cancer treatment is is actually funded out of Medicare versus versus Medicaid overall .

Speaker #5: But to be clear , if you look at the the profitability of the US health system overall operating margins , you know , and just again , kind of the the , the the noise and , and kind of strategic haze around the space , you know , all of those factors tend to put put any entity on a more defensive CapEx footing .

Speaker #5: And I think that's what we're seeing . Again , we noted that when we look at at the the demand dynamics out of single payer and markets , those have continued to be to be strong .

Speaker #5: And , you know , in normalized ranges , again , noting that the the demand dynamics have not changed in the US market , we do expect to achieve a level of equilibrium .

Tom Logan: We do expect to achieve a level of equilibrium and at that point get back on trend here.

Speaker #5: And at that point , you know , get back on trend here .

Speaker #14: Got it . It's great to see the US government putting real money to invest into the Westinghouse nuclear reactors . Can you maybe talk about the economics contribution to your side ?

Brian Schopfer: Got it.

[Analyst]: It's great to see the U.S. government.

Brian Schopfer: Putting real money to invest into the Westinghouse nuclear reactors. Can you maybe talk about the economics?

[Analyst]: Contribution to your side? You know, let's say if we build a nuclear reactor for $10 billion. What's the percentage will go to, let's say your NIS systems or go to your Paragon services, etc.

Speaker #14: You know , let's say if we build a nuclear reactor for $10 billion , what's the percentage will go to , let's say your systems or go to your paragraph services , etc.

Speaker #14: ?

Speaker #5: Yeah . So the dynamic here continues to change , particularly with the the , the more recent acquisitions . Again , Paragon Search rec .

Tom Logan: Yeah, the dynamic here continues to change, particularly with the more recent acquisitions, again, Paragon, CERTREC, but also the Collins Aerospace cyber and physical security business that we acquired as well. Historically, and I guess most recently dating back to our 2024 Investor Day, we've talked about the front end opportunity for a new nuclear reactor. That, and given the specific example of the Hinkley Point C deal and our plant being built in the UK, where on the front end of that we book somewhere between $80 million and $90 million of backlog, and that's for a two reactor project. With the incremental capabilities, I would say that dynamic is improving and if anything, we would expect the quantum of the front end opportunity to increase.

Speaker #5: But also the , the Collins Aerospace cyber and physical security business that we acquired as well . You know , historically , you know , and I guess most recently dating back to our 2024 Investor Day , we've talked about the the front end opportunity for a new nuclear nuclear reactor .

Speaker #5: That and given the specific example of the Hinkley Point C deal in our plant being built in the UK , where on the front end of that , we book somewhere between 80 and $90 million of of backlog .

Speaker #5: And that's for a two reactor project . Our , you know , with the , the incremental capabilities , I would say that that dynamic is improving .

Speaker #5: And if anything , we would expect the quantum of the front end opportunity to to increase . And so I'm going to reserve on giving you a specific number as it relates to new builds in Westinghouse .

Tom Logan: I'm going to reserve on giving you a specific number as it relates to new builds in Westinghouse, but I would tell you that it's attractive or an attractive opportunity. Obviously, we're going to work hard to do everything we can to secure the trust, confidence, and ultimately the commitment from Westinghouse as they move down this pathway.

Speaker #5: But I would tell you that it's it's attractive or an attractive opportunity . And obviously we're going to work hard to do everything we can to secure the the trust , confidence and , and ultimately the commitment from , from Westinghouse as they move down this pathway .

Speaker #15: Got it . Thank you .

Brian Schopfer: Got it, thank you.

Speaker #3: The next question is from Jeff Graham from Northland Capital Markets . Please go ahead .

Operator: The next question is from Jeff Gramp from Northland Capital Markets. Please go ahead.

Speaker #16: Morning , everyone . Just to kind of put a finer point , just to put a finer point on that last topic , Tom , I'm curious , you know , relative to the Analyst Day metrics , you guys put out on kind of a dollar per megawatt of a revenue opportunity , given the data you guys have gathered since then , as well as potentially any benefits from search record , Paragon that that might help the additive to that number .

[Analyst]: Morning, everyone. Just to put a finer point on that last topic, Tom, I'm curious, you know, relative to the analyst day metrics you guys put out on kind of a dollar per megawatt of a revenue opportunity, given the data you guys have gathered since then, as well as potentially any benefits from CERTREC or Paragon that might help be additive to that number, is that still a decent proxy, as best you guys can tell, or any better updates that we should keep in mind as we look forward? Be helpful. Thanks.

Speaker #16: Is that is that still a decent proxy as best you guys can tell or any , any better update that we should keep in mind as we look forward , be helpful .

Speaker #16: Thanks .

Speaker #5: Yeah , again , Jeff , we're going to we're going to reserve on that for the time being . Firstly we want to get the the Paragon acquisition closed and you know our mode of operation is that whenever we acquire a new company , you know our first and most important rule is the Hippocratic Oath .

Tom Logan: Yeah, again, Jeff, we're going to reserve on that for the time being. Firstly, we want to get the Paragon acquisition closed. You know, our mode of operation is that whenever we acquire a new company, our first and most important rule is the Hippocratic oath, first, do no harm. We're going to spend a lot of time learning from them and they'll learn from us. We're going to work jointly to figure out the best integration pathway and ultimately how that informs the relevant product categories, the way we position those in the marketplace, and the way that we commercially prosecute growth. Having said all of that, and again, recognizing this is not just Paragon, but it's CERTREC, it's SIS. Beyond that, it's also expanded organic capabilities that we've developed internally. I think that the numbers move up over time.

Speaker #5: First , do no harm . And so we're going to spend a lot of time learning from them . And they'll learn from us .

Speaker #5: And we're going to work jointly to to figure out , you know , best integration pathway . And ultimately how that informs the , the relevant product categories .

Speaker #5: The way we position those in the marketplace and the way that we commercially prosecute growth , having said all of that , and again , recognizing this is not just paragraph paragon , but a Star rec , sis .

Speaker #5: But beyond that, it's also expanded organic capabilities that we've developed internally. You know, I think that the numbers will move up over time.

Speaker #5: I would tell you that I also continue to believe strongly that the premium in terms of dollars per megawatt will be of output will be higher in the SMR market .

Tom Logan: I would tell you that I also continue to believe strongly that the premium in terms of dollars per megawatt of output will be higher in the SMR market. Historically, we've talked about that being 60% or so higher than it is for utility scale. I think those numbers continue to hold for the time being. What I'd like to do is to come back early in the new year when we're talking about Q4 results and maybe do an update at that time or the subsequent quarter.

Speaker #5: Historically , we've talked about that being 60% or so higher than it is for utility scale . I think those numbers continue to hold for the time being .

Speaker #5: But what I'd like to do is to come back early in the new year when we're talking about Q4 results and and maybe do an update , you know , you know , at that time or the subsequent quarter .

Speaker #16: Understood . I appreciate those details . And for my follow up with respect to these larger one time orders , are you seeing or do you expect any material difference from a margin profile to the extent these become a larger piece of the of the revenue pie , looking ahead ,

[Analyst]: Understood, I appreciate those details and for my follow up with respect to these larger one time orders. Are you seeing or do you expect any material difference from a margin profile to the extent these become a larger piece of the revenue pie looking ahead?

Speaker #17: Yeah .

Brian Schopfer: Yeah, look, I think we're very focused on our 30% EBITDA margin target. That is something we are internally continue to be committed to. We've always said, you know, to the extent any of that stuff is new builds, you know, that does come with lower margin than kind of the installed base work. We're not moving off of our 30% EBITDA commitment at this time.

Speaker #6: Look , I think we're very focused on our on our 30% EBITDA margin target . That is something we are internally continue to be committed to .

Speaker #6: Look , we've always said , you know , to the extent any of that stuff is new , builds , you know , that does come with lower margin than kind of the installed base work .

Speaker #6: But we're not moving off of our 30% EBITDA commitment at this time .

Speaker #16: Got it . Thanks so much . Brian . Appreciate the time , guys .

[Analyst]: Got it. Thanks so much, Brian. Appreciate the time, guys.

Speaker #3: There are no further questions at this time . I would like to turn the floor back over to Thomas Logan for closing comments .

Operator: There are no further questions at this time. I would like to turn the floor back over to Tom Logan for closing comments.

Speaker #5: I thank you , operator , and thanks to everyone for your continued interest in Marion and listening to the call today . You know , we're progressing quarter by quarter on our journey towards becoming a great compounder .

Tom Logan: Thank you, operator, and thanks to everyone for your continued interest in Mirion and listening to the call today. You know we're progressing quarter by quarter on our journey towards becoming a great compounder. Mirion increasingly is a destination investment for revenue-generating exposure to global nuclear power tailwinds. With our acquisition of Paragon, we will be a top-tier supplier to the global nuclear power industry while remaining true to our core mission of harnessing our knowledge of ionizing radiation for the greater good of humanity. We'll look forward to sharing another update in the business on our fourth quarter earnings call in February. Until then, we appreciate you joining us today, and I hope you have a great day.

Speaker #5: Marion , increasingly is a destination investment for revenue generating exposure to global nuclear power tailwinds . And with our acquisition of Paragon , we will be a top tier supplier to the global nuclear power industry .

Speaker #5: While remaining true to our core mission of harnessing our knowledge of ionizing radiation for the greater good of humanity . We'll look forward to sharing another update in the business on our fourth quarter earnings call in February , and until then , we appreciate you joining us today , and I hope you have a great day .

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.