MIR - Earnings call transcript Q3 2024 | Mirion Technologies, Inc.

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Operator

Ladies and gentlemen, greetings, and welcome to the Mirion Technologies Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

Now my pleasure to introduce your host, Eric Linn. Please go ahead.

Unknown Executive

Thank you, and good morning, and welcome to Mirion's Third Quarter 2024 Earnings Conference Call.

are Tom morning CFO, and this Schopfer. Brian me Mirion's Logan; CEO, Mirion's Joining

Risk today's allow that include prepared you begin forward-looking materially we Before remarks, in projected XX-Q filings reports ended in actual made Form otherwise XX-K actual the may caption Form our under the this on SEC results from and other differ annual those that The to on me during call Quarterly cause noted. today's statements, and discussed September will within Mirion's factors are reports in forward-looking statements. related results differ could unless comments references remind discussion Factors. to to the quarterly XX, are XXXX, quarter third

found also not principles. that financial will accompanying in earnings The appendix measures financial financial include the of those certain in GAAP Relations prepared Investor directly the accordance accounting can presentation the website accepted materials of comments section can at to were made Reconciliation comparable generally of measures our with www.mirion.com. non-GAAP measures All call. this most be in be during today's the found call

begin me With Tom, will call turn on Slide over now who X. to the that, let

Thomas Logan

share. we strong year's big the third for everyone. quarter. morning, EPS performance full the keeps pleased you, and compared EBITDA adjusted higher and last to previously on guidance. quarter. our third the X% $XX.X outstanding Adjusted Eric, per million compared A was pace million stated Thank basis good quarter with year Adjusted quarter, ago expectations. margin of XXX was us delivering to thank period. Mirion This of to in delivered announce points $XXX to improvement EBITDA I'm with team you that year another for consistent revenue $X.XX was EPS

generational Recall The that to continue and compete I'd trends environment shape. like in nuclear power favorable several to so-called these the execution. care past quarters the are and by in. both talking evolving over start we to provide take and to strategy cancer antenna detailed meaningfully be super our about macro trends I've expected tailwinds

Nuclear ] hyperscalers, on large-scale in accrued their with business Amazon news biggest leaders data is Moniker and in so-called [ state from deals the quarter. Microsoft, last deals center Let's Slide of following. announced X. Power Intelligence associated support the this who include nuclear Google of start with The the the models over Artificial power These vertical like

interchange with to recommissioning Power U.S. second to of prevailing event consume Power capacity X the PJM for the deal deal reflects Microsoft Island the because output extraordinary the next Nuclear Energy Nuclear it pricing An Plant back the bring and adds online. Constellation to unit First, decommissioned to the well Microsoft X-mile the Devon requires generating above [ Plant of plant of years ] XXX% XX of rates. nuclear

late is with ] of Energy, in the energy. XXXXs. to Energy, of XX Talen U.S. [ ] By Northwest Ex energy up ] developer deals Amazon's approximately additional and Fourth nuclear X Secondly, [ U.S. total the SMR today, Energy Generation generate gigawatts context, [ energy gigawatts ] nuclear to way of [ capacity by Dominion

well an building factor year is triple the a for appetite capacity. a [ major additional XXX SMR by electrical XXXX. iceberg, are at capacity large an the in deals of Thirdly, X developer energy. This that and Department These hyperscalers tip reliable the nuclear of of And the Energy Oracle clean energy that for U.S. the megawatts for the CROs baseload view voracious undisclosed U.S. reflecting permits of could they've secured data with to by Google location. center ], deal nuclear announcement generate lastly, SMRs

policy regulatory strictly the President a not demand summer, cutting support to broader and reducing But same This licensing on development global favorable. is nuclear processing nuclear by signed impact be clear, to continues Political the to times. be industry. phenomenon, fees and supply, support frameworks legislation this reflect U.S. the advanced the reactor

the funding opened earlier fact, $XXX to month, from up SMR applications this support in million to up administration In technology. incremental

acceleration seems As power fact disclosed appropriately working since we more million relationships the are to power of modest, hard forge clear as as commercial SMRs. And SMRs. of proportionally the emerging significant market we've strategic seen optimistic of the we're these we're our firms play And validation is approximately AI. percentage the initial order scaling instrumentation $XX and becoming is total as increasingly both sales pure and with nuclear of a nuclear while the greater plays players that is about previously, It booked all volume an nuclear the space. revenue that on by than excited in seen power a of secondary XXXX, most

in with which improvement health global fleet the economic 'XX desire third orders markets. The our nuclear power global of run of X/X the of are nuclear an repeat revenue, to and booked of drives hotter, our base longer in an nature. AI, Beyond core gains frothiness the excludes recurring, the quarter in nuclear growth, XX% large of installed operated plants nuclear The seeing we order increasing most which core is and continued reflects roughly capacity. a solid power in the

where Power significant position New C Sizewell-C Kingdom. This station the Hinkley Nuclear level Station of new United we project awarded night, was in customer we the the that project project design announced pleased incumbency. similar a our of of the pipeline. extremely in with have with a are opportunities build Last Point strategic contracts on the Mirion has Finally, the and we bid engagement Power Nuclear front, quantum to

tables we the are here, run about to And by While pipeline, good by $XXX million which in excited we have opportunities projects our that fact to occur awarded we while order expect expect ratably, large we new don't of these today, year-end the don't be $XXX very feel prospects. million bid we our to XXXX.

lines: services. Within X, nuclear second medicine radiopharmaceutical changes the this Slide in on Mirion. in market, the primary in of radiation therapy is the opportunity our revolution let's which assurance, trend been medical Now comprised growth the is care is and to nuclear business group cancer Recall that market. quality X turn biggest medicine creating the for have macro therapy a where group, the dosimetry significant super

to will number radioactive often generation of we've targeting this the theranostics, building momentum which cells in cancer We tissues. of and is promise destroy new collateral the cancer dynamic As space dimensions. previously, catalyst cells a the from to as discussed delivering diagnostic a precisely minimal drugs with therapeutic the damage for collectively healthy that referred see the which and payloads, of introduction the of within in are

makers. First, well conference attendance dominated is industry and by radiopharmaceutical becoming increasingly up drug

energy higher overall much this in is there space. Second, deal-making

approximately first seen by Pilarified this sector of drugs growth sales the growth significant diagnostic Novartis, X prostate ], year-over-year, prostate Third, are seen and growth. therapeutic experiencing developed ], [ has blockbuster the of [ approximately in PluviCto XX%. cancer XX% a has cancer

seen has growth space of franchise unit shipments, year-to-date Mirion in XXXX. our calibrator dose XX% product finally, And versus in the

As medicine in our enormous toward evolving I've chain. nuclear value energy past, in noted we've the strategic position devoted the

software our in the and We emerging in compelling data set a both nuclear of instruments portfolio for solution are confident legacy space. aggregate, will, that participants management equipment radiation balance yield measurement incumbent increasingly of clinic medicine and

at unpacking are our December to looking our Day comprehensively X approach We Investor event. forward

Japanese force RTQA remain as radiation strategic announced in via as with Chinese to therapy this space, in Software anticorruption Japanese [ XXXX. is will process campaign, ongoing Chinese is therapy dynamics the the that half radiation we Healthineer and radiation Platform we stifled recovery the the flat further of and We've of has notably global the Sunset our first Siemens solutions. In solutions. therapy due of clinic seen market agreement independent weakness, which negatively market a agreement activities the leadership yen which We trade stimulus for in been expand will market largely a this market new growth sales in QX, combination in validation our year, alliance optimistic growth compliance and Healthineers position reach improve RTQA a well region. ] dynamics believe impacted

last operational The note to performance. I'd around highlight is like

yield our are to to is and XXX improving basis QX And efforts up up margin beginning XX medical to for approximately and velocity. basis points XX points last to EBITDA XX.X% We versus Net same continue is margins these XXXX system the working working EBITDA since drive of and year. period. The improved capital strategy the fruit. leveraging procurement hard Technologies bear by on QX in improvements margin business days capital

office, In our our commercial e-commerce of segments. and addition, Chief with will across both proficiency inside coupled the Revenue standardize enhance and creation Officer capabilities sales enhanced

operational key at address in expect again [ December. conference Endicia to against our ], We investor our progress

Estes, to a well details additional share just to Brian I'd who to Investor over to moment efforts past the it Jerry that taking as job Relations over turn there Jerry like led a for previously take Jerry. I X And before our did as our the no Now from quarter, his role done will is a time on IR. within doubt positive dosimetry it impact new have of I Thanks, he much business. a years. make during thank

details Brian from to I'll the Brian? more to With it of the turn that, quarter. share over

Brian Schopfer

joining on Thank up you, I'll X. you Tom, our and for call. all thank back Slide pick

medicine. power by prior strong revenue million. strong to primarily Third driven the X.X% from for group X.X% quarter. nuclear quarter and $XXX.X prior the Organic revenue activity versus year's grew nuclear The performance year was versus grew performance Technologies our third

million prior a fifth saw Xx. Group both margin solid the for more continues. operating to we was group while $XX.X expansion. basis growth from XX.X%, milestone, but rate, groups. X.X% Medical Adjusted XXX and is at organic leverage a point delivered significant technologies our a consecutive Our the below brought grew margins improvement We surely, work margin EBITDA of But year quarter the versus organic again EBITDA and This uplift quarter of growth. a X.X% the of

have approach of the guide. end the components we year, XXXX our of we fine-tuned As

remains However, unchanged. our guidance EPS detail I'll adjusted shortly. EBITDA get into and more

backlog Slide to X on orders Turning quarter and third trends.

year's rate order third quarter. versus Our XX% third declined approximately quarter prior

the XX%, we in large third last XX% approximately However, quarter orders of nuclear with year, Recall, the were power XX%. actually after grew for third total XXXX. the adjusting orders we comp X quarter since booked nuclear quarter grew against onetime this orders growing the company orders up in

from numbers of the has adjusted the base. flowed As business we underlying shared installed of The environment. have our direct more orders comparison power XX% I is order many historically a discussed nuclear approximately times,

encouraged we the are engagement we extremely by mentioned, space. pipeline the robust and project in Tom large are specifically Power seeing customer As Nuclear

quarter X% quarter the higher last same year. backlog was versus million Third $XXX or

of QX. As about million out talked QX you will of approximately $XX orders we recall, into moving

performance. orders, October, in was order order not the these this largest yesterday. Since or in of announced Sizewell-C represented booked order is the overall One backlog was the it QX

from another our delivered research revenue tailwinds our We X. growth year. solid in offset quarter, nuclear Slide our were These by Both to nuclear the due with broad-based to business. revenue margins prior contribution a primarily in increase in softer labs EBITDA partially quarter. the The as was double-digit and tough by and as comp within technologies Turning expanded group driven line expectations. gross power well growth medicine

leverage our operating nuclear business Solid the helped performance French and from improved margins. within operations our expand

business translating medicine business expansion, are nuclear exhibiting we've quarters touched the and self-help to few our is is Medical, The hold. to our take performance. Dosimetry on beginning good margin in initiatives growth past operating In

optimizing progress culture that expansion date, and ahead. Good We're our focused streamlining operations, I excited alive and lay operating and strong Our the organization. procurement well the made margin operating to and am footprint. opportunities about been driving throughout has still on is to savings commitment

dig segments. a let's the into Now bit deeper

growth. the Medicine to with momentum delivered growth X. The nuclear continued revenue acquisition anticorruption business from the despite X.X% and efforts announced The acquisition, higher closure grew of November in on and the with in build X.X% First, team quarter. to million, saw contribution continued Medical China X.X%. [ nuclear a $XX.X the Even contributions revenue RTQA squared organic Nuclear medicine quarter. XXXX, while XX% inorganic from Square Slide revenue in headwinds of ] volumes of our added medicine last growth sizable with EC revenue completed Medical favorable we business lasers the the acquisition. business absent EC approximately grew The

to offset solid helped had revenue in we quarter. Japan foreshadowed, a rebound this with these As

the Many or $XXX.X good Procurement been prior benefiting behind operations in headwinds a Turning year. and were operating across versus X.X% now XXX up XX. the Technologies Group revenue board. reflecting positively strong from Group have of Slide and higher driven was us French from by all tailwind are operating year. points, prior basis savings million Technologies our the our to Margins performance the quarter the are quarters leverage and results. are on

assumptions. and end around ended XX. X.Xx leverage free on expect flow the to guidance based leverage midpoint We cash and quarter the on Slide X.Xx of on with Next, XXXX our

capital is $XX.X this Moving below time free third in marks milestone Adjusted a quarter significant adjusted Year-to-date, leverage the million, flow cash cash flow $X.X structure was Xx million, in year. our last similar to free journey.

this a typically As reminder, fourth is loaded. metric quarter

this see cash flow adjusted free cadence last can year's You typical in build.

continue net working time We of team. capital on as lot spend a to efficiency a

Slide to now Turning XX.

to well makeup land bit slightly Medical the previous We for X% -- have higher previous at guidance range. revenue Organic X% Nuclear with X% to impact X% we range have at our negative versus our our grew higher Note changed organic X% of guidance, With growth one range of our year-end. end the contribution revenue in as X% fine-tuned a that to components now Group margins the range only the the of to the bounds result growth yield be of a medical into This left, is upper this to QX. now of mix to heading higher as our top X%. to growth a X% for will Medicine. previous expectations contribution on previous expected tightened has expected revenue versus to expected quarter

remain on adjusted Also, in to $XX this million free August so our X be dates in events. XX, in year-end million, cash we key million EPS investor We and expected a of $X.XX we the flow cash to several on adjusted XX tightened including range respectively. per line. Day Adjusted on range call expected on our to to earnings outlined to wider Investor to through EBITDA $XXX previously $X.XX will New and busy $XX of share, lower that $XXX we $XX million. York. and range, adjusted end December guidance guidance today's come unchanged earnings versus mentioned million at After $XX free previous million our We've with Slides call, Tuesday, flow our is

that, With ask line the to operator open questions. the I'll for

Operator

Joe session. and be a is Ladies gentlemen, conducting now will we from Ritchie first Instructions] question Goldman you. The [Operator Thank with question-and-answer Sachs.

Joseph Ritchie

Yes.

quarter. talk typically you try to it I'll then process the just just Maybe booked to debooked into through Maybe kind specifically, succinct. with the what that with And So can many something questions. be happened this And guys debooked? that debooking of we you start put us quarter through specific or that backlog? order? this was go why

Thomas Logan

specific here or related let Joe, essentially talk kind Hi business we to electrical the and about is in the accounting then relates talk backlog I'll project But this the is it about as where not. I'll to Brian our penetration this book about discipline what Tom. is Turkey, just for assemblies. in a order, of

due project. business regional to the all this some line a And dispute, into reasonable that a lost competitor. working is there are, for primary and many of to product think for because globally. we project, this uniquely a business details to through working And I'm not on reactors opportunity a not for back the this for is expectation are X units essentially at larger get is we going this in we building We us in or respects, qualified, but get only primary our a this to X turn contractor out essentially that contractual contractor

our so focused And on efforts really that. are internally

if of like, be of again, the look reactor that at see reactor that, a front like XX It's it we business the are again, that an focused and second tied can to the was Generally, of reasonably circumstance. is history that one production this, we and backlog, end. gain if doing you to package been but again, unusual the pivoted understand we dispute back. on look our on a contractual and bit can profiles as work years but now some the to this this, I've if debooking And can first at the narrowly a easily unusual relatively we for

want Brian, about? do to you talk

Brian Schopfer

we're second question. put sorry, things Joe, We mean And answer I backlog. disciplined your very put unfunded disciplined don't what we're there. -- very then into we about to in

have a it's contractual to we where clear have obligation have that We that.

understand these, the the X I had backlog guess, strong. years. last is of we in So I X

have The and tied macro the other was a to will to with turn how very to completely $XXX business. obviously do and that underlying in one cash. backlog the And of and we situation we're million in over revenue, EBITDA nothing both kind the confident

Joseph Ritchie

just you won't the up that contract, the question where it color. there. direct the the for Or that's case like Got it. of And maybe Tom. one helpful getting swapped get owner? kind a more lost were into and ended why you have But a That's look, I follow-up relationship Was a working specifics Got specific you of this and contractor was out it. business?

Thomas Logan

former. It's It's former, really Joe. really the the

Joseph Ritchie

Okay.

Okay. Great. project, you're the to that's previously. relationship you've already sure want that us seems it's on heard great. correctly. guys to like that All this Sizewell you winning make highlighted shifting It I right. gears, mentioned I EDF it already

was So was pushed from million that I $XX QX the hear QX vast orders right? that there of to contract? in roughly and that Did majority that got

Thomas Logan

That's correct.

Joseph Ritchie

then... And

Brian Schopfer

Joe, just come think mean other think and on I one thing. to we there's -- project as I the maybe this still I contract more progresses.

Joseph Ritchie

Okay.

what Tom, around look, of then, initial or the comments are And it. hyperscalers lot like a It's obviously, Great. buzz great. on doing your Okay. there's

expect you would your like think hearing? the also, over how then that for you how XX that to it's types orders announcements ultimately, next the based impacts on do months? in months? your over XX that guess, going And think of good terms the think ultimately And this you're about really be of I you like what business. do next I

Thomas Logan

Yes.

will primarily So right the to, of in and bit strategic space, dozens there a continuing gold now our broaden relationships will the of recognizing environment be the months we the of independent, worldwide. with there stance forged to on relevant be players. all in a had the integrate here. And really alliances, we're again, on the a are all But that's the if XX we taking all where and strategy. again, And are clear, what doing where you an efforts extending it's over rush above over fewer players to support focused we're swath is consolidation with strategic many time. which there focused well next technologies, always SMR that industry, And we've swiss that be nuclear of to exactly be initiatives ultimately be will, that

that, we the and additional is on reactor opportunity Where combination expect beyond will a us, for build-outs. But instrumentation control. and see SMR of commitments we that funding first-of-a-kind set

there's dosimetry action biggest is a the that early tends that and not Software systems, applications, and in and of that on, that to but for focused expect like. be software of the physics be see more around in we then equipment contamination will some stuff backbone a exclusively principally, we reactor software. downstream control opportunities instrumentation security health that, on space. the and the from plant But and balance clearance bit also around but of other in And

Joseph Ritchie

radiopharma your healthy seems growth a recently. more That's going one ask very it I competitors it. for one helpful. to outlook look, question, over And to Got be it everybody I'll of met space that like, seems else the turn with I after. super forward. business there in could If

in type helpful. like your into this business? long-term think any I on to this Just keep rate XX% How comments of lot do kind more around this forward? business X. XXXX. know teens up get a going mentioned growth -- that just you you'll any I think be high versus about Can opportunity mid- But December you the you being would

Thomas Logan

to approval is We this impacted what's Well, look indicator, in beneficial in is it's yes, at to Radiopharmaceutical happening by of think look at going for individuals theranostic that Therapy bit just terrible what's best tremendously as a We one be tease. a you that And pipeline any market the for for a cancer do really that believe revolution care. disease. drugs. are maybe if the FDA the leading in

In And and incredibly is II place the in pipeline that an investment robust terms of III taking I, trials. of reflective sector. heavy it's Phase Phase that's the Phase really

space. in of really management our market organizations, metro we take to the understand greater manufacturers, patient we're the Obviously, unique that that kind XXX,XXX are that's our driven and volume by there put data real have the the a line platform, makers, software our market. understanding perch to management top leading sizable expensive therapy growth course the And very, unique of it's dose, pick is industry ultimately, you've be research by data a CAGR growth connect that numbers a growth, true will like that exponential of projected the we even we per the very isotope data come of to seen revenue growth the today, for market. But out that provider revenue through do XX,XXX and the And But about drugs really others this the And American and the GE hard contract that focus down. of think where today. the in per is lot the flows this will clinicians producers, expect drug overall. the radiopharmacies, in

revenue. flows compelling a ultimately, to and that the gives value us the data further of become the in calibration where, global more the used to our there fact expect combination radiopharmaceuticals detection the arguably that we're just of uptake in capital and leader over kind baseline create for measurement the we in augmented and important critical with equipment by even That, time, measuring are and ecosystem through ability radiation than capabilities instruments that of very interesting

and I'm in we're detail and this doing it. our time, going this guidance any that at your we'll event, unpack update at what investor you on excited And that to very tell save overall to point, but market I specifically yes, in about we're will

Operator

Moore CJS question Securities. Chris with next from The is

Christopher Moore

couple. I'll take a

million prepared year. by you $XXX new of remarks, think, million I end that think, during talked $XXX the bids to the about, I in the you Tom, hear

get trying these size sense to of a Just deals? of average the

Thomas Logan

all they're But bid said, of our clear I the Yes. I or firstly, to on in just what what bidding process on. meaning deals will bid the tell on already queue, map, I of that said are mean you, in Chris. be we've I active

For aggregate we large scale the about to from projects, but over there. $XXX these not all are to that board, is the concentration industry The see million. heavy exclusively deals top $XXX of well quantum an in the range and million end $XXX million below Heavy, that. nuclear

the to been that know obvious nominally year-over-year takeaway trend, But I fact how on overall the up and focus main correlates only we're there of business. just is there's backlog some growth that the the that our

tried And revenue in to we pretty and out there. really recurring the importantly, degree so revenue flow the hard by of degree in is are greater unpack called clearly a enjoy. that today presentation and And the that the we've show to the how what think I commentary business, a kind very far we've driven dynamics

But having is is all us. not million typical. I very that what unusually in time. you about not large think range kind we given very as by that's It's of We're standard we it in would see tell of to or project encouraged exciting to bid our a it. $XXX how a million is this amount. of That $XXX will that, said This pipeline, an large moment at

Brian Schopfer

now of to trade think the And that be XXXX. could between end just and we clear,

Thomas Logan

point. good Yes,

Christopher Moore

that. good I helpful. appreciate switching just shape. That's in Maybe you. leverage gears, Got is

about of year. talked the X.X by You the end

your specific of you're time. pipeline focused on at point full? the Is this areas in really on? kind Just -- relatively thoughts any M&A Anything

Thomas Logan

got noted, as pipeline. Yes. great The we've you -- a Chris, M&A

We actively remainder noted, develop we're to down continue to continue eager in deals. like very to M&A close to expect in more normative Again, do high-quality the not we range. equilibrium deals quarter. any is into Brian bring a executable is what mid-X leverage of as the kind the feel We very a of

build posture. deals in technology just just see in on be strategically some M&A our but expect will we been well. don't to the trying active but year, we that on side the that we've as on, would based of we next see medical that that of today. of on said smaller ball could be do But zone that, Obviously, small that not anything important beyond that the side to having the ecosystems continues very focused some we're And terms kind to what expect change, we be out,

Christopher Moore

I will Thanks guys. Perfect. leave it there.

Operator

question next with The Andy from Citigroup. is Kaplowitz

Andrew Kaplowitz

Is still morning, I the and Brian, of everyone. reach regarding you're you was a bit addition projects this geographies the color guidance by year-over-year $XXX nuclear backlog Good can Tom 'XX end give Sizewell-C maybe or the grow year-end you have and backlog you flattish more in that your around some then nuclear segment QX. $XXX previous share activity that the for the could regarding to think year. of that what thinking pipeline? incremental with could us you And even new expectations the and million you to million market mentioned, large of given

Brian Schopfer

Tom first deal the one, always flow first year. Look, this second. the the can take in Sizewell color I'll for Maybe in give off, was Yes. some

expecting. not So a bluebird we like that's weren't that

will I QX us and candidly -- could bit we timing until a in little that I the flattish at think of on not the for thought of quarter, the between just were in QX. get back get we look ] think February I do the we expecting think front. to -- orders I the Q [ zone flash. last we and booked was shifted when end when said look we be Yes, to December, headwind it we I from

ahead get to there. work do think But a I for be to to of opportunities sure. we are here there think I lot to have from

the think of little a but understand I flattish, in -- bit probably I of to I of end the I at a we're still that's I think bit the more So being of day, a think squishy answer, opportunity zone do that's little a be. there's and think

Thomas Logan

even a that The ArbGulf total of Andy, range gravity balance a then, you at tell of in lot is in kind quantum little talked composition I region. U.S.-related the end from so the half that geographically, is that the about in ] terms the we U.S., the opportunities. And than of accrue center would in the [ split, Europe, would upper bit more

So it's diversified. bit more a

Andrew Kaplowitz

forecast, different Helpful. when question He a if about ask your next in revenue nuclear year this to of Like lasting? you XX the rate And commercial excitement high raised single I actually does Obviously, that. at want run the that commercial months. but to forecast a I know asked high maybe lot look it growth you support slightly nuclear way. Joe's lower than around we single-digit had dispatch, digits you

sustain So can on in comments run moving rate of maybe you had forward? 'XX if this that kind any you

Thomas Logan

Yes. this X operators operators so the changed decade a about about money. losing overall. free detail fundamentally, during as spending money, Talking is any -- have overall lot then of most on the when other little CapEx be they is things, just guidance a say a talk de-stocking. that I would at that But to again, tease since the One bit we in Investor is set the initially factor, that nuclear Day. One two we'll Andy. most bit A making to in and ago, And [indiscernible]. OpEx. important a industry, globally This are were health nuclear of the the of like tend more things industry.

where higher the of are having want which doing want for This just run And in leading of hotter, not an also that very they're cycles reactors been one baseline margin life the in dynamics terms us those software -- capacity happening the operating want the extraordinary capacity. industry. demands our better bearing turnarounds, product within the for well. of is at creates they beyond operators financial incentive year, only And and today and a meaning the broader of making extraordinarily replacement they're a cadence so to then this the France, more to extend for in are all what's none impact resources last long-term -- truly but certain tough of also of services some of see kind kind just beneficial and have than favorable because always year, them. enjoying, money. And to customers, all cases, And year. things factors they of certain EDF they operate Today, categories had has you the even

is de-stock to very debut. had that we be clear, again, the means ago very healthy think considerably industry market. longer to healthy for about what thing. we our It's we're was years us. first for than is there going public It's a good point healthier December So when talk the and But X event. And it at it's the term that

us heard XX-XXs the start The is that before times think different really is second revenue. say of happening you've where that's world, a thing seeing ramp kind we many in what's this phenomenon material before in SMR a we

kind fourth-generation reactors not All desperate reactors it's of almost And energy. clean reflective modular it's gas-cooled that just interesting discussion far the group real, is to technology. or for froth, rather or demand downsized. a hyperscalers, of that third-generation And technology, legacy a what's high-temperature robust. than sodium small about water The this embrace this variants table is of an of bed are greater it's willingness they with light cooled moderated have

scalability kind Viewing rapidly of legacy get the the could like more of being SpaceX a right firms time a of and degree not demand these that of the and the because than believed. to now. the leapfrog more firms previously And again, people to clear be that frame as that, activity think significant and kind perhaps position is, upstart incredible we some can players changing game is accelerating

bullish to again, more of time to more the talk just about Day. cause ambitious that December, does we'll frame. kind the in more be it on And tease on you this So us Investor about sector,

Andrew Kaplowitz

it agree just debooking. or said ask the been which was we've of unusual, The was more the past, it competitive? conditions In a or purely new sanctions. X these. about that? want debooking you to do past, with just In you geopolitical maybe question one I They've to I with. of has result Turkey Tom, X seen as changing the Or anything

Thomas Logan

The punch all we of our clearly No. longer finish since ratably we of driven. getting project our year in -- that use was of of be geopolitical overall. are business, public it's what some is was of company. company. a was no there's projects the loss odds And And this it's a of or and geopolitically of one purely gut project, And public nature that which related terms we've to this in us debookings like the [indiscernible] which was the Russian as recognized IDIQ then, That great back seen first because occurred positioned backlog nature in the of other our them. kind technology -- was military a only contractual as kind a of the to that book because some because year in the again, for a specific in they And that debut matter. --

a part war week note a ahead coupled if the for are kind I with with a would event near beneficial markets infrastructure settled. broader term, opportunity the exposure. a would And it's be the between to implications So a event help Russian very, of geopolitical XXXX, a that at of have election that into for would that that and it nuclear If we for settlement not look overall. when that very next us. rapidity mall rebuild the Ukraine which there But and in West, market Ukraine there, approach reopening is be significantly could is the the beneficial general Russia an industry the come of meaning

the also the probably near not market, terms term. on it nuclear biggest would see of side. the the we for in the of but kind Russian be potential side, And geopolitical event us, in medical only -- that That's

Operator

line with of the from Riley Zhi B. Securities. is Yuan question next The

Yuan Zhi

quarter. good on Congrats [indiscernible]

around the Regarding dynamics, X investors backlog parts. maybe question

the break you can segment. First, by down backlog

medical of well pattern on for have about then backlog revenue. the We Does more technologies short-term are And technology more side. orientated. side, as as curious side are recurring the the the they medical

Brian Schopfer

Yes.

take XX-XX, technology, think backlog's said I we've Look, that and before, XX% the So XX% that. medical. I'll

significant said think months backlog XX% rolling a we XX changed about don't has from next So don't piece in changed. I I medical. anything how XX% backlog. think think there's has anything in sitting is that's the always into to revenue. revenue We've

midpoint, range about think as are think at future we that now kind right the forward. I the end of of we probably high going the

of true they're you very bill. and medical the on revenue kind is side kind services that cetera. also of XX% the more contracts, business remind components, that that recurring majority of revenue book et and revenue the a would it's in deferred evergreen is little backlog, But sits of distributory of Yes, I that actually

churn more content. faster of a much a that's high very has So but also repeat business, kind

how And about think we're now. we I I we where it. like So that's of kind think said, sitting right like really

Yuan Zhi

maybe Probably second and more to of with it. can as Can EDF. of the you relationship -- if this relationships you my show kind part color example Got you have get I provide on the you fees the or how more on question. to the other relationship covered Sizewell-C will this more relationship to to how contract, an leverage this orders. similar use leverage pivot

Thomas Logan

an very very operation. the the very to XX The under one nuclear and and is globally reactors additional with Emmanuel France XX nearly of relationship active And made continue -- EDF clear be operator China clear power outside of country largest plants to been are would markets. like Yes. for on export Macron to French build a reactors important up in nuclear that They President, very us. the of has it they

Hinkley to we talked really around C, about did is With Point the Sizewell specifics the the work follow-on that deal that, was which before. at we've a that

in more control, million project being end, again, tied instrumentation penetration on where into, and we things et assemblies physics electrical a like applications, various As than $XX front backlog health booked cetera. the

to So Sizewell that. is follow-on really a

a of recall nature a the and next that with we the meaning or used is that begun activities on And had size XX or EPRs, agreement their with over to that work those well negotiation that of cover that ago. may strategic that supplier on independent mix we frame months the expect outside overall a couple But very third-generation you the that a decades EDF. that, strategic technology. effectively point, frame frame announced with And associated relationship importantly, a strategic agreement those agreement strategic we the reactors EDF of are This in falls up we of it be significant could source export content become plus X EDF to so. reactor sole France, in of

new et and for it of have reactor them. is more economic and of again, advantage EDF overall terms that efficient that are is and with parameters, relationship far The makes in cetera, terms to prenegotiated, that, and we're a speeds, of honored conditions, everything it the process thrilled building

Operator

Thank you.

hand Tom comments. the As are closing over questions, no like now would to to for there further I Logan conference

Thomas Logan

end will I today.

in those. want including vertical that demonstrated Firstly, fortunate expansion, We've we as positioning participants measures, working all at in by the Q&A right to velocity a improvements when company and very capital is other margin the delivering hard I and very what well. in through markets. our team very, a we are for tailwinds that X improve be reiterate working some variety our just we're And noted, to executing look in robust of sustainable you the listening particularly to and now dynamics thanking evolve key believe Thanking that continue will the today that, company measures. received. quarter. for truly believe and again, we impacting great have I the to

detail and particularly go at really are that the works the growth NTM beyond look we more Today, line fundamentally, as we're the for outlook we and is backlog a again, correlation coverage still how are understand drivers, And provided But in how our that well understanding young around top which public noting bullish. revenue our that overall and company, and backlog overall metric. backlog growth, demand the to trying growth, people relatively we between and like. dynamics

So bit. today. we We and outlook, appreciate there feel the we advanced quarterly the Again, attention understanding performance, good about about and time little happy hopefully, a positioning. your our

all we'll to and for next quarter. in look speaking of you the thank forward that, So you with

Operator

concludes teleconference. This you. today's Thank

You your Thank your may lines time. this you at disconnect participation. for

Mirion (MIR) 30 Oct 242024 Q3 Earnings call transcript