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Jun 27
Mercury Q4 2025 Earnings Report
Mercury Systems reported strong Q4 2025 results with record bookings and a return to profitability.
Key Takeaways
Mercury Systems delivered robust Q4 2025 results, achieving record quarterly bookings and backlog, higher revenue, and a swing to net income compared to a loss last year.
Q4 FY25 bookings reached a record $341.5 million, resulting in a book-to-bill ratio of 1.25.
The company achieved a record backlog of $1.40 billion, marking a 6% increase year-over-year.
Q4 FY25 revenue grew to $273.1 million, a 9.9% increase compared to the same period last year.
Adjusted EBITDA for Q4 FY25 was $51.3 million, with an adjusted EBITDA margin of 18.8%, both significantly up year-over-year.
Mercury
Mercury
Forward Guidance
Management highlighted strong execution and record backlog as a solid foundation for future growth but cautioned about potential macroeconomic, supply chain, and geopolitical risks.
Positive Outlook
- Record quarterly bookings and backlog provide revenue visibility
- Revenue, net income, and cash flow growth over last year
- Improved profitability metrics compared to prior year
- Strong free cash flow generation
- Continued alignment with strategic plan
Challenges Ahead
- Potential supply chain delays or volatility
- Geopolitical unrest and regional conflicts could impact demand
- Risk of changes in U.S. defense funding timing and amounts
- Exposure to inflation and labor shortages
- Possible delays or cost increases in development and manufacturing programs