Mercury Systems Earnings Call Transcripts
Fiscal Year 2026
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Record Q4 and FY 2026 results were driven by strong organic growth, margin expansion, and robust bookings, with a record backlog providing enhanced visibility for FY 2027 and FY 2028. Outlook calls for near double-digit revenue growth and margin improvement, with further upside possible from market tailwinds and automation initiatives.
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Q3 FY26 delivered record bookings, strong organic revenue growth, and margin expansion, with robust demand across missile, C4I, and space programs. FY26 outlook was raised, with positive Free Cash Flow and continued margin improvement expected.
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Q2 saw record backlog, strong revenue and adjusted EBITDA growth, and robust free cash flow, with operational improvements and margin expansion. Guidance for FY 2026 is maintained, with positive free cash flow and margin improvement expected as low-margin backlog is worked through.
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Q1 FY26 saw double-digit revenue growth, record backlog, and margin expansion, driven by accelerated deliveries and strong program execution. Guidance remains for modest full-year growth, with margin and Free Cash Flow improvement expected in the second half.
Fiscal Year 2025
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Q4 and FY2025 saw record bookings, backlog, and free cash flow, with revenue and margins up year-over-year. FY2026 is expected to deliver continued growth and margin expansion, supported by strong market demand and operational improvements.
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Q3 FY25 saw revenue and EBITDA growth, margin expansion, and strong free cash flow, with backlog up 4% year-over-year and key contract wins in radar and processing. FY25 guidance calls for mid-single-digit revenue growth and improving margins, with positive industry tailwinds.
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Q2 FY25 saw 13% revenue growth, record free cash flow, and margin expansion, driven by a shift to production contracts and operational improvements. Backlog and bookings hit new highs, with guidance raised to mid-single-digit revenue growth for FY25.
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Q1 FY25 saw 13% revenue growth, record bookings, and improved margins, with strong progress in production mix and backlog. Free cash flow and operating expenses improved year-over-year, and the outlook anticipates margin expansion and positive cash flow in the second half.
Fiscal Year 2024
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Q4 and FY 2024 results met or exceeded expectations, with record backlog and strong free cash flow. Operational improvements, risk reduction, and a favorable production mix position the business for margin expansion and growth in FY 2025, despite a flat revenue outlook for the year.