Mercury Sys Inc Stock Price, News & Analysis

Mercury Systems (NASDAQ: MRCY) has strengthened its European defense presence by signing two significant agreements with a European defense prime contractor. The first is a five-year agreement to accelerate production of sensor processing subsystems using Mercury's HDS6605 6U OpenVPX multiprocessing boards for various radar systems.

The second agreement expands production of Monolithic Microwave Integrated Circuit (MMIC) products for electronic warfare sensors, featuring Mercury's mini-tuner modules and amplifiers for RF signal processing. These agreements build upon a decades-long relationship and demonstrate Mercury's commitment to supporting critical defense operations in Europe.

Mercury Systems (NASDAQ: MRCY) has secured two new production awards in June 2025 totaling $36.9 million for ground-based radar programs. These awards leverage Mercury's Common Processing Architecture and cybersecurity software from their recently acquired Star Lab division.

The contracts, awarded by two U.S. defense prime contractors, demonstrate the growing demand for Mercury's secure, high-performance processing solutions at the edge. The company's Mercury Processing Platform enables customers to access innovative capabilities from silicon to system scale, supporting over 300 programs across 35 countries in mission computing, sensor processing, command and control, and communications applications.

Mercury Systems (NASDAQ: MRCY) has secured a significant contract from the U.S. Department of Defense through its Industrial Base Analysis and Sustainment (IBAS) Program. The two-year, $8.5 million contract focuses on developing a next-generation RF signal conditioning multi-chip package (MCP) for X-band Active Electronically Steered Array radars.

The innovative solution aims to reduce size, weight, and power requirements by over 80% compared to existing hardware. Working with commercial partner Systems Innovation Engineering, Mercury will develop an ultra-compact signal conditioning package leveraging microwave and mixed signal technologies. The technology will enhance radar performance for air, sea, and ground-based applications while improving producibility and affordability for high-volume missions.

Mercury Systems (NASDAQ: MRCY) has unveiled ROCK3, the industry's first safety-certifiable, SOSA-aligned aviation mission computer. This innovative 3U OpenVPX mission computer features Intel Core i7 safety-certifiable processors, delivering up to 20 times the performance of PowerPC-based aircraft computers. ROCK3 is specifically designed for military and urban mobility aircraft applications, including mission management, sensor fusion, and surveillance. Key features include 11th Gen Intel Core i7 quad-core processors, DO-254 and DO-178C artifacts, 32GB DDR4 with ECC, and various avionics interfaces. The system's open architecture enables customers to break vendor lock, improve application interoperability, and deploy new capabilities more efficiently. Mercury will showcase next-generation mission computing applications at the Army Aviation Mission Solutions Summit 2025 in Nashville.

Mercury Systems (MRCY) reported Q3 FY25 results with revenues of $211.4 million, slightly up from $208.3 million in Q3 FY24. The company posted a GAAP net loss of $19.2 million ($0.33 per share), an improvement from the $44.6 million loss in Q3 FY24. Key metrics include bookings of $200.4 million with a trailing twelve-month book-to-bill ratio of 1.1, and adjusted EBITDA of $24.7 million (11.7% margin). Free cash flow improved significantly to $24.1 million, up $49.8 million year-over-year. The company's backlog reached $1.34 billion, a $51 million increase from the previous year, with $787.6 million expected to be recognized as revenue within 12 months.

Mercury Systems (NASDAQ: MRCY) has completed the acquisition of Star Lab, a subsidiary of Wind River Systems, to strengthen its secure processing capabilities for aerospace and defense applications. Star Lab specializes in anti-tamper and cybersecurity software solutions that protect mission-critical processors from advanced attacks.

The acquisition builds upon Mercury's decade-long relationship with Star Lab, whose technology has been integrated into Mercury's Common Processing Architecture and BuiltSECURE™ products. Star Lab will join Mercury's Processing Technologies business unit, enhancing Mercury's product portfolio including rugged servers, embedded processing cards, mixed signal cards, avionics, and integrated processing solutions.

Mercury Systems (NASDAQ: MRCY) has announced it will release its third quarter fiscal year 2025 financial results after market close on Tuesday, May 6, 2025. The company will host a conference call and webcast at 5:00 p.m. ET the same day to discuss quarterly results, business highlights, and outlook.

Participants can register for the conference call and webcast at ir.mrcy.com/events-presentations, with registration recommended a day in advance or at least 15 minutes before the call. A webcast replay will be available two hours after the call and archived for six months.

Mercury Systems, headquartered in Andover, Massachusetts, is a technology company providing mission-critical processing power for aerospace and defense missions. Their Mercury Processing Platform is currently utilized in over 300 programs across 35 countries, supporting various applications in mission computing, sensor processing, command and control, and communications.

Mercury Systems (NASDAQ: MRCY) has announced a strategic supply agreement with Cicor Group (SIX: CICN) involving the sale of Mercury's manufacturing operation in Plan-Les-Ouates, Switzerland. Under the five-year agreement, Cicor will supply electronic products to Mercury, with production relocating to Cicor's sites in Newport, UK, and Bronschhofen, Switzerland, over the next 18 months.

The transaction, expected to complete within one month subject to closing conditions, allows Mercury's facilities in Switzerland, Spain, and the UK to focus on engineering design and systems integration. This strategic move aims to meet increasing European and global demand for commercial defense products. Mercury will maintain a robust supply chain by sourcing boards from both Cicor and its U.S. operations.

Mercury Systems (NASDAQ: MRCY) reported Q2 FY25 results with revenue of $223.1 million, up 13% year-over-year. The company achieved bookings of $242.4 million with a book-to-bill ratio of 1.09 and reached a record backlog of $1.4 billion, up 6% year-over-year.

The company reported a GAAP net loss of $17.6 million ($0.30 per share), improving from a loss of $45.6 million ($0.79 per share) in Q2 FY24. Adjusted EBITDA was $22.0 million with a 9.9% margin, showing substantial year-over-year improvement from -$21.3 million. The quarter saw record operating cash flow of $85.5 million and free cash flow of $81.9 million, up $44.4 million year-over-year.