Mercury Systems Surpasses Expectations, Shares Rise 5%

ANDOVER, Mass. - Mercury Systems, Inc. (NASDAQ:MRCY) announced that its financial results for the first quarter of fiscal year 2025 exceeded expectations. Following this announcement, the company's shares rose by 5.24% in after-hours trading on Tuesday.

The aerospace and defense technology company reported a diluted earnings per share of $0.04, surpassing analysts’ expectations of a $0.08 loss. Revenue reached $204.4 million, above the anticipated $181.7 million, reflecting a 13% increase compared to the same period last year.

Bill Ballhaus, Chairman and CEO of Mercury Systems, expressed optimism about the company’s strategic positioning, stating: "Our results for the first quarter of 2025 were generally in line with our expectations, and I am optimistic about our strategic positioning and the prospects for predictable organic growth, expanding margins, and strong free cash flow."

The company reported robust orders of $247.7 million, a 29% increase over the same period last year, resulting in an order-to-sales ratio of 1.21. This contributed to a record backlog of $1.3 billion, up 16% year-over-year.

Adjusted EBITDA for the quarter was $21.5 million, with an EBITDA margin of 10.5%. Both metrics showed significant improvement compared to the same period last year. However, the company still reported a GAAP net loss of $17.5 million or $0.30 per share. This figure represented an improvement over a loss of $36.7 million in the same quarter of the previous year.

Mercury Systems ended the quarter with $158.1 million in cash and cash equivalents, compared to $180.5 million at the end of the prior quarter.