What Happened?
Shares of radiation safety company Mirion (NYSE: MIR) fell 7.9% in the afternoon session after it announced plans to acquire Paragon Energy Solutions for about $585 million, revealed plans for a $600 million capital raise, and lowered its 2025 revenue growth forecast.
To fund the acquisition, Mirion announced a $350 million public stock offering and a $250 million private offering of convertible bonds. Such offerings can put pressure on a stock's price by increasing the number of shares, which can dilute the value for existing shareholders. Compounding the negative sentiment, the company revised its 2025 organic revenue growth guidance downward to a range of 4.5% to 6.0%, from a previous estimate of 5.0% to 7.0%. Mirion attributed the weaker outlook to reduced expectations in its Labs & Research division, lower demand from China, and delays in a European defense order.
The shares closed the day at $21.43, down 2.5% from previous close.
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What Is The Market Telling Us
Mirion’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 7.6% on the news that the company reported underwhelming guidance as it lowered its full-year organic revenue growth forecast.
The revised guidance for fiscal year 2025 was reduced to a range of 4.5% to 6.0%, down from the previous expectation of 5.0% to 7.0%. Mirion cited several reasons for the lowered outlook, including reduced expectations in its labs and research market, lower demand from China unrelated to nuclear power, and a delayed defense order in Europe. The negative forecast overshadowed the simultaneous announcement that Mirion had agreed to acquire Paragon Energy Solutions for $585 million in cash. While the acquisition was expected to add to earnings in the first full year and create about $10 million in cost and commercial benefits by the fifth year, investors focused on the near-term headwinds highlighted by the guidance cut.
Mirion is up 26.8% since the beginning of the year, but at $21.45 per share, it is still trading 12.8% below its 52-week high of $24.60 from September 2025. Investors who bought $1,000 worth of Mirion’s shares 5 years ago would now be looking at an investment worth $2,024.
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