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Mercury Systems beats expectations, shares up 5%

EditorRachael Rajan
Published 11/06/2024, 05:38 AM
© Reuters.
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ANDOVER, Mass. - Mercury Systems, Inc. (NASDAQ:MRCY) reported better-than-expected first quarter fiscal 2025 results, sending shares soaring 5.24% in after-hours trading Tuesday.

The aerospace and defense technology company posted adjusted earnings per share of $0.04, beating analyst estimates of a $0.08 loss. Revenue came in at $204.4 million, surpassing expectations of $181.7 million and rising 13% YoY.

Mercury Systems' Chairman and CEO Bill Ballhaus expressed optimism about the company's strategic positioning, stating, "Our first quarter 2025 results were generally as expected, and I am optimistic about our strategic positioning and expectations to deliver predictable organic growth with expanding margins and robust free cash flow."

The company reported strong bookings of $247.7 million, up 29% YoY, resulting in a book-to-bill ratio of 1.21. This contributed to a record backlog of $1.3 billion, representing a 16% increase from the previous year.

Adjusted EBITDA for the quarter was $21.5 million with a margin of 10.5%, both showing substantial YoY improvement. However, the company still recorded a GAAP net loss of $17.5 million, or $0.30 per share, though this was an improvement from the $36.7 million loss in the same quarter last year.

Mercury Systems ended the quarter with $158.1 million in cash and cash equivalents, down from $180.5 million at the end of the previous quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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