Global Finance News
11 Nov 2026, 09:07
Mercury Systems Rises 1% After Hours as Record Bookings and Backlog Drive Higher FY2027 Outlook
Mercury Systems (NASDAQ: MRCY) shares rose about 1% in after-hours trading after the defense electronics company reported record first-quarter bookings, revenue and adjusted EBITDA and raised its fiscal 2027 outlook.
First-quarter revenue increased 12.4% year over year to approximately $253 million, while bookings surged 48% to $370 million. The strong order intake produced a book-to-bill ratio of 1.46 and pushed backlog to nearly $2.1 billion, up 44.7% from a year earlier.
Profitability also improved sharply. Mercury reported GAAP net income of $13 million, or $0.21 per diluted share, compared with a net loss of $13 million a year earlier. Adjusted EPS doubled to $0.52, while adjusted EBITDA rose 58.6% to $56 million and adjusted EBITDA margin reached 22.3%.
Cash flow remained a weaker point. Operating cash flow was negative $14 million, while free cash flow was negative $24 million, compared with negative $4 million a year earlier. Net debt, however, declined 19% year over year to $232 million.
Mercury said more than $1 billion of its backlog is expected to convert into revenue over the next 12 months. Management also said the stronger first-quarter execution prompted the company to raise its fiscal 2027 outlook.
The modest after-hours gain appears to reflect confidence in accelerating demand, improving margins and a record backlog, partly offset by continued near-term cash outflow.
Mercury Systems (NASDAQ: MRCY) shares rose about 1% in after-hours trading after the defense electronics company reported record first-quarter bookings, revenue and adjusted EBITDA and raised its fiscal 2027 outlook.
First-quarter revenue increased 12.4% year over year to approximately $253 million, while bookings surged 48% to $370 million. The strong order intake produced a book-to-bill ratio of 1.46 and pushed backlog to nearly $2.1 billion, up 44.7% from a year earlier.
Profitability also improved sharply. Mercury reported GAAP net income of $13 million, or $0.21 per diluted share, compared with a net loss of $13 million a year earlier. Adjusted EPS doubled to $0.52, while adjusted EBITDA rose 58.6% to $56 million and adjusted EBITDA margin reached 22.3%.
Cash flow remained a weaker point. Operating cash flow was negative $14 million, while free cash flow was negative $24 million, compared with negative $4 million a year earlier. Net debt, however, declined 19% year over year to $232 million.
Mercury said more than $1 billion of its backlog is expected to convert into revenue over the next 12 months. Management also said the stronger first-quarter execution prompted the company to raise its fiscal 2027 outlook.
The modest after-hours gain appears to reflect confidence in accelerating demand, improving margins and a record backlog, partly offset by continued near-term cash outflow.
