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ANDOVER, Mass. - Mercury Systems Inc. (NASDAQ:MRCY) shares gained 2.5% after the defense technology company reported fourth-quarter fiscal 2025 results that surpassed analyst expectations, driven by record bookings and improved profitability.
The company posted adjusted earnings of $0.47 per share for the quarter ended June 27, significantly beating the analyst estimate of $0.22. Revenue reached $273.1 million, exceeding the consensus forecast of $243.61 million and representing a 9.9% increase from $248.6 million in the same period last year. The quarter saw record bookings of $341.5 million, resulting in a book-to-bill ratio of 1.25 and a record backlog of $1.40 billion, up 6% YoY.
"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," said Bill Ballhaus, Mercury’s Chairman and CEO.
Fourth-quarter adjusted EBITDA reached $51.3 million with an 18.8% margin, while free cash flow was $34.0 million. For the full fiscal year 2025, Mercury reported revenue of $912.0 million, up 9.2% YoY, and record free cash flow of $119.0 million.
The company’s GAAP net income for the quarter was $16.4 million, or $0.27 per diluted share, compared to a GAAP net loss of $10.8 million, or -$0.19 per share, in the fourth quarter of fiscal 2024.
Mercury Systems, which provides mission-critical processing power for aerospace and defense applications, has seen its operational improvements translate into stronger financial performance throughout fiscal 2025.
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