Mirion (MIR)

Radiation safety company Mirion (NYSE:MIR) fell short of the market’s revenue expectations in Q4 CY2025, but sales rose 9.1% year on year to $277.4 million. Its non-GAAP profit of $0.15 per share was 7.8% below analysts’ consensus estimates.

Company Overview

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE:MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Companies in this sector, especially if they invest wisely, could see demand tailwinds as the world moves towards more IoT (Internet of Things), automation, and analytics. Enterprises across most industries will balk at taking these journeys solo and will enlist companies with expertise and scale in these areas. However, headwinds could include rising competition from larger technology firms, as digitization lowers barriers to entry in the space. Additionally, companies in the space will likely face evolving regulatory scrutiny over data privacy, particularly for surveillance and security technologies. This could make companies have to continually pivot and invest.

Mirion Technologies competes with companies like Thermo Fisher Scientific (NYSE: TMO), Fortive Corporation's Fluke Health Solutions (NYSE: FTV), and IBA Group in the radiation measurement and medical segments. In the nuclear safety and monitoring space, competitors include Framatome (owned by EDF), Westinghouse Electric Company, and Lockheed Martin (NYSE: LMT).

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

With $925.4 million in revenue over the past 12 months, Mirion is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand.

As you can see below, Mirion grew its sales at an excellent 11.8% compounded annual growth rate over the last five years. This is an encouraging starting point for our analysis because it shows Mirion’s demand was higher than many business services companies.

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Mirion’s annualized revenue growth of 7.5% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, Mirion’s revenue grew by 9.1% year on year to $277.4 million, missing Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 22.6% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and implies its newer products and services will catalyze better top-line performance.

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

Mirion was roughly breakeven when averaging the last five years of quarterly operating profits, one of the worst outcomes in the business services sector.

On the plus side, Mirion’s operating margin rose by 8.9 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q4, Mirion generated an operating margin profit margin of 9.2%, down 2.3 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Mirion’s full-year EPS dropped 9.2%, or 3% annually, over the last three years. We’ll keep a close eye on the company as diminishing earnings could imply changing secular trends and preferences.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Mirion, its two-year annual EPS growth of 18.8% was higher than its three-year trend. This acceleration made it one of the faster-growing business services companies in recent history.

In Q4, Mirion reported adjusted EPS of $0.15, down from $0.17 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects Mirion’s full-year EPS of $0.48 to grow 26.4%.

Although earnings are undoubtedly valuable for assessing company performance, we believe cash is king because you can’t use accounting profits to pay the bills.

Mirion has shown decent cash profitability, giving it some flexibility to reinvest or return capital to investors. The company’s free cash flow margin averaged 5.6% over the last five years, slightly better than the broader business services sector.

Taking a step back, we can see that Mirion’s margin expanded by 11.1 percentage points during that time. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability.

Mirion’s free cash flow clocked in at $63.2 million in Q4, equivalent to a 22.8% margin. This result was good as its margin was 3.5 percentage points higher than in the same quarter last year, building on its favorable historical trend.

EPS and free cash flow tell us whether a company was profitable while growing its revenue. But was it capital-efficient? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).

Although Mirion has shown solid fundamentals lately, it historically did a mediocre job investing in profitable growth initiatives. Its four-year average ROIC was 0.2%, lower than the typical cost of capital (how much it costs to raise money) for business services companies.

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. On average, Mirion’s ROIC increased by 3 percentage points annually each year over the last few years. its rising ROIC is a good sign and could suggest its competitive advantage or profitable growth opportunities are expanding.

Mirion reported $412.3 million of cash and $1.23 billion of debt on its balance sheet in the most recent quarter. As investors in high-quality companies, we primarily focus on two things: 1) that a company’s debt level isn’t too high and 2) that its interest payments are not excessively burdening the business.

With $227.9 million of EBITDA over the last 12 months, we view Mirion’s 3.6× net-debt-to-EBITDA ratio as safe. We also see its $27.1 million of annual interest expenses as appropriate. The company’s profits give it plenty of breathing room, allowing it to continue investing in growth initiatives.

We struggled to find many positives in these results. Its full-year EPS guidance missed and its EPS fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 6.7% to $21.86 immediately following the results.

Updated: February 11, 2026 at 9:13 PM EST

Before making an investment decision, investors should account for Mirion’s business fundamentals and valuation in addition to what happened in the latest quarter.

There are some positives when it comes to Mirion’s fundamentals. First off, its revenue growth was impressive over the last five years and is expected to accelerate over the next 12 months. And while its relatively low ROIC suggests management has struggled to find compelling investment opportunities, its rising cash profitability gives it more optionality. On top of that, its expanding operating margin shows the business has become more efficient.

Mirion’s P/E ratio based on the next 12 months is 38.9x. At this valuation, there’s a lot of good news priced in. Mirion is a good one to add to your watchlist - there are companies featuring superior fundamentals at the moment.

Wall Street analysts have a consensus one-year price target of $30.33 on the company (compared to the current share price of $21.32).