Mercury Systems MRCY Q4 Earnings and Revenue Surpass Estimates, Shares Surge 27%

Mercury Systems (MRCY) Q4 earnings beat estimates, with non-GAAP EPS of 47 cents, up 104.3% YoY, and revenues of $273.1 million, up 9.9% YoY. Bookings were $341.5 million, and total backlog was $1.4 billion. Shares surged 27% and have outperformed the aerospace sector and peers year to date.

Title: Mercury Systems Reports Strong Q4 FY25 Earnings, Beating Estimates

Mercury Systems, Inc. (NASDAQ: MRCY), a leading provider of mission-critical processing power, reported strong financial results for the fourth quarter and fiscal year 2025. The company’s Q4 earnings exceeded estimates, with non-GAAP earnings per share (EPS) of 47 cents, up 104.3% year-over-year (YoY), and revenues of $273.1 million, up 9.9% YoY. Bookings totaled $341.5 million, while the total backlog stood at $1.4 billion. These impressive figures have driven a significant surge in share price, with MRCY’s stock surging 27% and outperforming its aerospace sector peers year to date.

The company’s Chairman and CEO, Bill Ballhaus, highlighted the strong performance, stating, “We delivered very strong results in the fourth quarter that were once again in line with or ahead of our expectations, resulting in solid year-over-year growth in backlog, revenue, net income, adjusted EBITDA, and free cash flow for our full fiscal year 2025.”

Key highlights from the Q4 FY25 results include:

- Revenue: Fourth quarter revenues were $273.1 million, a 9.9% increase from the previous year.
- Bookings: Total bookings for the fourth quarter reached $341.5 million, resulting in a book-to-bill ratio of 1.25.
- Backlog: The total backlog at June 27, 2025, was $1.40 billion, up 6% YoY.
- Free Cash Flow: Fourth quarter free cash flow was $34.0 million, contributing to a record full-year free cash flow of $119.0 million.

These results demonstrate Mercury Systems’ robust financial health and its ability to maintain strong growth amidst challenging market conditions. The company’s focus on innovation and its strategic execution have positioned it favorably within the aerospace and defense sectors.

Mercury Systems continues to invest in its technological capabilities and market position, aiming to deliver advanced processing solutions to its clients. The company’s future outlook remains positive, with management expecting continued growth and profitability.

References:

[1] https://ir.mrcy.com/news-releases/news-release-details/mercury-systems-reports-fourth-quarter-and-fiscal-2025-results