Mercury Awarded Contract To Develop Multi-Mission Subsystem for U.S. Military Programs
Rhea-AI Summary
Mercury Systems (NASDAQ: MRCY) said it was awarded a multi-year, cost-plus-fixed-fee development contract in September to build a multi-mission, multi-domain subsystem for a U.S. defense prime contractor. The program will use the Mercury Processing Platform capabilities including advanced microelectronics packaging, mixed-signal conversion and distribution, thermal management, and chassis-level integration.
The company said the award enables rapid development, trusted integrated solutions, and transition to high-rate manufacturing to support multiple national security platforms. The release reiterates standard forward-looking risk factors affecting program funding, timing, supply chain, and execution.
Positive
- Awarded multi-year cost-plus-fixed-fee development contract in September 2025
- Program leverages Mercury Processing Platform across silicon-to-system capabilities
- Contract designed to transition to high-rate manufacturing for multiple national security platforms
Negative
- Program execution exposed to continued defense funding and timing uncertainty
- Risks include supply chain shortages, production delays, and potential cost increases
- Forward-looking risks note potential impacts from regulatory, staffing, or cyber events
News Market Reaction 1 Alert
On the day this news was published, MRCY declined 4.15%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
ANDOVER, Mass., Oct. 22, 2025 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a global technology company that delivers mission-critical processing to the edge, today announced it was awarded a multi-year, cost-plus-fixed-fee development contract in September to develop a multi-mission, multi-domain subsystem for a U.S. defense prime contractor.
“This program will leverage open standards and a broad set of capabilities from the Mercury Processing Platform, including advanced microelectronics packaging, mixed signal conversion and distribution, thermal management, and chassis-level integration,” said Joe Plunkett, Vice President of Mercury’s Advanced Concepts Group, which will lead the program. “This award demonstrates the customer’s confidence in our ability to rapidly develop trusted, integrated solutions and subsequently transition to the high-rate manufacturing that is required to support multiple national security platforms.”
Mercury Systems – Innovation that matters®
Mercury Systems is a global technology company that delivers mission-critical processing to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has more than 20 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)
Forward-Looking Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company's focus on enhanced execution of the Company's strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company's products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, failure to achieve or maintain qualified business systems, such as those required by the DFARS, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 27, 2025 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.
INVESTOR CONTACT
Tyler Hojo, CFA
Vice President, Investor Relations
Tyler.Hojo@mrcy.com
MEDIA CONTACT
Turner Brinton
Senior Director, Corporate Communications
Turner.Brinton@mrcy.com
FAQ
What did Mercury Systems (MRCY) announce on October 22, 2025 about new contracts?
How will the September 2025 contract use Mercury's technology for MRCY?
Does the MRCY announcement specify contract value or revenue guidance?
What operational milestone did Mercury cite for the new MRCY program?
What risks did Mercury highlight that could affect delivery of the new contract (MRCY)?
