Mirion Technologies (MIR): A High-Conviction Play in the Resurging Nuclear Power Sector

The nuclear power sector is undergoing a renaissance, driven by a confluence of technological innovation, regulatory tailwinds, and surging demand for clean, reliable energy. At the forefront of this transformation is Mirion Technologies (MIR), a company uniquely positioned to capitalize on the sector's evolution through strategic innovation, disciplined capital deployment, and a deep understanding of the infrastructure needs of a modernizing nuclear industry. For investors seeking exposure to a critical infrastructure market poised for long-term growth, Mirion offers a compelling case.

Strategic Innovation: Building the Digital and Physical Infrastructure of the Nuclear Future

Mirion's core strength lies in its ability to bridge the gap between traditional nuclear infrastructure and the next-generation demands of the sector. Its recent acquisition of CertRec, a leader in regulatory compliance solutions, exemplifies this strategy. By integrating CertRec's digital tools, Mirion is now better equipped to support the complex regulatory requirements of Small Modular Reactors (SMRs) and advanced reactor designs. This is particularly significant given that over $17 million in SMR-related orders have been secured year-to-date, with five major players leveraging Mirion's expertise.

The company's innovation pipeline further underscores its forward-looking approach. The Vital digital platform, for instance, is a game-changer in operational efficiency. By consolidating over a dozen legacy supervisory software applications into a single, scalable system, Vital enables real-time data collection from thousands of sensors, streamlining monitoring and safety protocols. This is not just a product—it's a digital ecosystem that aligns with the nuclear industry's push toward smarter, data-driven operations.

Meanwhile, technologies like LightLink and APEX GUARD are redefining radiation detection and workplace safety. LightLink's silicon chip-based design replaces outdated photomultiplier tubes, offering higher precision and lower maintenance costs. APEX GUARD, with its advanced analytics and reporting capabilities, enhances operational reliability in both nuclear power and medical applications. These innovations position Mirion as a key enabler of the sector's modernization, particularly as aging reactor fleets require upgrades and SMRs demand scalable, cost-effective solutions.

Sector Tailwinds: A Perfect Storm for Nuclear Growth

The nuclear power sector is experiencing a surge in momentum, driven by three critical factors: regulatory support, technological advancements, and market demand.

1. Regulatory and Financial Momentum: The U.S. Inflation Reduction Act (IRA) and the Energy Act of 2020 have injected financial incentives into the sector, including production tax credits and funding for advanced reactor demonstrations. Mirion's recent $400 million convertible note offering and refinancing of its term loan B demonstrate its proactive approach to optimizing capital structure, ensuring flexibility to fund growth initiatives. This is critical in a sector where long-term projects require stable funding.

2. SMR Expansion: With over 127 SMR designs in development globally, the market for modular, scalable nuclear solutions is expanding rapidly. Mirion's early mover advantage in securing SMR contracts—$9 million in new orders in Q2 2025 alone—highlights its role as a trusted partner for developers navigating the regulatory and technical complexities of SMR deployment. The acquisition of CertRec further strengthens Mirion's ability to provide end-to-end compliance and digital integration, a critical differentiator in a fragmented market.

3. AI and Data Center Demand: The exponential growth of AI-driven data centers is creating an urgent need for stable, carbon-neutral power. SMRs and advanced reactors are uniquely suited to meet this demand, and Mirion's partnerships with industry leaders like TerraPower (via its Natrium Reactor Demonstration Project) position the company at the intersection of energy and technology. The Natrium project, a public-private collaboration with the U.S. Department of Energy, underscores Mirion's credibility in delivering mission-critical systems like the Radiation Monitoring System (RMS) and Nuclear Instrumentation System (XIS).

Disciplined Capital Deployment: Strengthening the Balance Sheet for Long-Term Growth

Mirion's financial strategy is a model of prudence. Its Q2 2025 results—$222.9 million in revenue (up 7.6% YoY) and $51.2 million in adjusted EBITDA (up 4.9% YoY)—reflect disciplined execution. The company raised its full-year guidance, projecting revenue growth of 7–9% and adjusted EBITDA of $223–233 million, while forecasting free cash flow of $95–115 million. These metrics are underpinned by a strong liquidity position (current ratio of 2.23) and a debt refinancing strategy that reduced its cost of capital.

Importantly, Mirion is not just reinvesting in its business; it's doing so with a clear focus on shareholder returns. The company's ability to balance growth with capital efficiency—allocating resources to high-impact innovations like Vital and LightLink while maintaining a robust order pipeline—demonstrates a management team attuned to both operational and financial excellence.

Investment Rationale: A Conviction-Driven Opportunity

Despite its strong fundamentals, Mirion's stock fell 14.18% in after-hours trading following Q2 results, a reaction that appears to overstate short-term volatility while underappreciating the company's long-term potential. The nuclear sector is entering a phase of structural growth, and Mirion's strategic alignment with this trend—through SMR partnerships, digital innovation, and regulatory expertise—positions it as a high-conviction play.

For investors, the key question is not whether the nuclear sector will grow, but whether Mirion can outperform in this environment. With a robust order pipeline, a diversified product portfolio, and a management team that prioritizes both innovation and capital discipline, the answer is a resounding yes.

Conclusion: Positioning for the Nuclear Renaissance

Mirion Technologies is more than a supplier of radiation detection equipment—it's a strategic partner in the global shift toward nuclear energy. Its ability to innovate, adapt to regulatory changes, and deploy capital efficiently makes it a standout in a sector poised for decades of growth. For investors seeking a high-conviction, long-term position in a critical infrastructure market, Mirion offers a compelling case.

The nuclear renaissance is here. And Mirion is leading the charge.