Mercury Selected to Develop Cockpit Communications Subsystem for New U.S. Military Aircraft

Rhea-AI Summary

Mercury Systems (NASDAQ: MRCY) has secured a significant $12.3 million development contract from a defense prime contractor to develop an avionics subsystem for a new U.S. military aircraft. The three-year agreement, signed in July, involves developing a Communication Management Unit (CMU) control head that will consolidate and manage multiple cockpit communications systems.

The contract represents a strategic expansion for Mercury's Displays and Networking product line, introducing both a new product and customer relationship. The technology will leverage Mercury's Processing Platform to enhance pilot-machine interface capabilities for improved decision-making in critical aerospace and defense missions.

Positive

• Secured new $12.3 million development contract for military aircraft systems
• Three-year agreement represents expansion with new customer and end-user
• Contract validates Mercury's technological capabilities in critical defense systems
• Expands presence in military aviation market with new product line

Negative

• Long development cycle with three-year timeline before potential revenue impact
• Project execution risks due to complex supply chain and manufacturing requirements
• Exposure to defense budget uncertainties and program funding risks

Insights

Defense Industry Analyst

Mercury Systems won a $12.3M contract to develop critical communication systems for new military aircraft, expanding their customer base.

Mercury Systems has secured a $12.3 million development contract to create a Communication Management Unit control head for a new U.S. military aircraft. This three-year agreement, signed in July with an unnamed defense prime contractor, represents significant business development for Mercury as it involves both a new customer and new end-user.

The CMU will consolidate and manage multiple cockpit communications systems—a critical component that enhances pilot-machine interface for faster decision-making. This represents a strategic expansion of Mercury's Displays and Networking product line into new territory.

The contract's value extends beyond the immediate financial impact. By securing a role in a new aircraft program, Mercury positions itself for potential follow-on contracts as the platform moves from development to production and sustainment phases. Defense programs typically have long lifecycles, offering steady revenue streams over many years once established.

This win demonstrates Mercury's continued relevance in the competitive defense electronics market, particularly in developing sophisticated avionics that enhance operational effectiveness. Their Mercury Processing Platform continues to gain traction with defense primes seeking advanced mission computing and communications capabilities for next-generation military aircraft.

ANDOVER, Mass., Sept. 25, 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 received a $12.3 million development contract from a defense prime contractor to develop an avionics subsystem for a new U.S. military aircraft.

Under the three-year agreement signed in July, Mercury will develop a Communication Management Unit (CMU) control head that consolidates and manages multiple cockpit communications systems and is expected to be deployed on a new fleet of aircraft.

“The Mercury Processing Platform offers unique technologies that enhance the pilot-machine interface to enable faster, better decisions,” said Tom Smelker, Mercury’s Senior Vice President of Processing Technologies. “This award represents a new product from our Displays and Networking product line with a new customer and new end-user, indicating their confidence in our ability to develop and deliver a critical hardware element for this mission.”

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
Vice President, Investor Relations
Tyler.Hojo@mrcy.com

MEDIA CONTACT
Turner Brinton
Senior Director, Corporate Communications
Turner.Brinton@mrcy.com

FAQ

What is the value of Mercury Systems' (MRCY) new military aircraft contract?

Mercury Systems secured a $12.3 million development contract to develop an avionics subsystem for a new U.S. military aircraft.

What type of system will Mercury Systems (MRCY) develop for the military aircraft?

Mercury will develop a Communication Management Unit (CMU) control head that consolidates and manages multiple cockpit communications systems.

How long is the development contract for Mercury Systems' (MRCY) new military aircraft system?

The contract is a three-year agreement that was signed in July 2025.

What is the strategic significance of this contract for Mercury Systems (MRCY)?

This contract represents a new product from their Displays and Networking product line with both a new customer and new end-user, demonstrating market expansion and technological validation.

Where will Mercury Systems' (MRCY) new communication system be deployed?

The system is expected to be deployed on a new fleet of U.S. military aircraft.