Financial Data and Key Metrics Changes - Q4 bookings reached a record of $342 million, with a book-to-bill ratio of 1.25, resulting in a record backlog of $1.4 billion, up 6% year over year [8][19] - Q4 revenue was $273 million, reflecting a 9.9% increase year over year, while full-year revenue was $912 million, up 9.2% year over year [8][24] - Q4 adjusted EBITDA was $51 million, with an adjusted EBITDA margin of 18.8%, and full-year adjusted EBITDA was $119 million, with a margin of 13.1% [8][24] - Free cash flow for Q4 was $34 million, contributing to a record full-year free cash flow of $119 million [8][24] Business Line Data and Key Metrics Changes - Significant contract awards in Q4 included $36.9 million for ground-based radar programs and a $22 million contract for sensor processing subsystems [10][11] - The company recognized $4.7 million of net adverse EAC changes in Q4, indicating ongoing improvements in program management and operations [9] Market Data and Key Metrics Changes - The company reported a strong demand across various end markets, including land, sea, and space, with positive conversations with domestic and European primes [100][101] - The backlog margin is expected to improve as lower-margin programs are completed and replaced with higher-margin bookings [12][49] Company Strategy and Development Direction - The company focuses on four priorities: performance excellence, driving organic growth, expanding margins, and improving free cash flow [6][8] - The strategic emphasis is on accelerating customer deliveries and optimizing operations to enhance margins and cash flow [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market backdrop and the company's ability to deliver results aligned with targeted growth and margin profiles [16][80] - For FY 2026, the company anticipates low single-digit revenue growth, with the first half expected to be relatively flat year over year [16][18] Other Important Information - The company ended Q4 with $309 million in cash, reflecting strong cash generation from operations [25] - Net working capital decreased by $90 million year over year, demonstrating improved efficiency [27] Q&A Session Summary Question: Regarding factory capacity allocation tied to unbilled receivables - Management indicated that while unbilled balances will improve free cash flow, they have little impact on revenue, as most revenue has already been recognized [35][56] Question: On net working capital levels - Management stated that a normalized level for net working capital could be in the 35% range, with ongoing efforts to reduce it further [36] Question: On revenue pull-forward and execution - Management explained that improved execution and customer demand have allowed for the acceleration of deliveries, contributing to strong Q4 results [44][46] Question: On margin expectations - Management expects gross margins to continue increasing over time, driven by improvements in backlog margins and operational efficiencies [72][73] Question: On annual guidance rationale - Management refrained from providing specific annual guidance due to uncertainties in delivery acceleration and market conditions, but remains positive about the outlook [78][80]

Financial Data and Key Metrics Changes - Q4 2025 bookings reached a record $342 million, up 20% year over year, with a book-to-bill ratio of 1.25, resulting in a record backlog of $1.4 billion [7][18] - Q4 revenue was $273 million, reflecting a 9.9% increase year over year, while full year revenue totaled $912 million, up 9.2% year over year [7][22] - Q4 adjusted EBITDA was $51 million, a 65% increase year over year, with an adjusted EBITDA margin of 18.8% [20][12] - Full year adjusted EBITDA was $119 million, significantly up from the previous year, with adjusted earnings per share of $0.64 compared to a loss per share of $0.69 in the prior year [24][20] - Free cash flow for Q4 was $34 million, while full year free cash flow reached a record $119 million, compared to $26 million in the prior year [20][25] Business Line Data and Key Metrics Changes - Significant contract awards in Q4 included $36.9 million for ground-based radar programs and a $22 million contract for sensor processing subsystems [10][11] - The company recognized $4.7 million of net adverse EAC changes in Q4, indicating ongoing improvements in program management and operations [8][12] - The focus on accelerating customer deliveries contributed approximately $30 million of revenue and $15 million of adjusted EBITDA planned for FY 2026 [9][12] Market Data and Key Metrics Changes - The backlog grew by 6% year over year, reflecting solid execution across the company's production and development programs [7][18] - The company noted a positive market backdrop with increased defense budgets and demand for technology capabilities, particularly in the U.S. and European markets [82][103] Company Strategy and Development Direction - The company is focused on four priorities: performance excellence, driving organic growth, expanding margins, and improving free cash flow [5][6] - The strategy includes simplifying and optimizing operations to achieve targeted adjusted EBITDA margins in the low to mid-twenty percent range [12][16] - The company aims to allocate factory capacity to programs with unbilled receivable balances to drive free cash flow, although this may have little impact on revenue [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's leadership position and the expected ability to deliver results in line with target profiles of above-market growth and margin expansion [15][17] - For FY 2026, the company anticipates low single-digit revenue growth, with the first half expected to be relatively flat year over year [15][16] - Management highlighted the importance of ongoing discussions with customers regarding increased production quantities and acceleration of deliveries [82][103] Other Important Information - The company ended Q4 with $309 million in cash, driven by strong cash flow from operations [25] - Net working capital decreased by approximately $90 million year over year, demonstrating progress in reversing a multi-year trend of growth in working capital [27][28] Q&A Session Summary Question: Regarding factory capacity allocation tied to unbilled receivables - Management indicated that while this allocation is beneficial for free cash flow, it has little impact on revenue, and they expect to work through this headwind in FY 2026 [35][36] Question: Normalized level for net working capital - Management stated that a normalized level could be in the 35% range, with ongoing efforts to reduce working capital further [38][39] Question: Acceleration of revenues into Q4 - Management attributed the acceleration to improved execution and customer demand, emphasizing the importance of supply chain management [44][45] Question: Margin expectations for FY 2026 - Management expects adjusted EBITDA margins to approach mid-teens in FY 2026, with potential for expansion in the second half of the year [16][92] Question: Rationale behind not providing annual guidance - Management cited the need to quantify ongoing discussions and potential accelerations before providing specific guidance for FY 2026 [80][81] Question: Demand by product category and end market - Management noted strong demand across various segments, including land, sea, and space, with positive conversations with both domestic and European primes [102][103]

Part I [Business](index=3&type=section&id=Item%201.%20Business) Mercury Systems delivers mission-critical processing solutions for the aerospace and defense industry, focusing on secure, open, and modular platforms - Mercury Systems is a technology company providing mission-critical processing solutions for the aerospace and defense sectors, with products deployed in over **300 programs** across **35 countries**[12](index=12&type=chunk) Fiscal Year 2025 vs. 2024 Key Financials | Metric | Fiscal 2025 | Fiscal 2024 | | :--- | :--- | :--- | | **Consolidated Revenues** | $912.0 million | $835.3 million | | **Net Loss** | $(37.9) million | $(137.6) million | | **Diluted Loss Per Share** | $(0.65) | $(2.38) | | **Adjusted EPS** | $0.64 | $(0.69) | | **Adjusted EBITDA** | $119.4 million | $9.4 million | - The company's business strategy focuses on four key areas: Performance Excellence, Thriving Growth Engine, Margin Expansion, and Cash Release[20](index=20&type=chunk)[21](index=21&type=chunk) - As of June 27, 2025, the company's order backlog was approximately **$1.4 billion**, an increase from **$1.3 billion** as of June 28, 2024, with **$807.8 million** expected as revenue within the next twelve months[68](index=68&type=chunk) Revenue Concentration by Major Customer | Customer | FY2025 Revenue % | FY2024 Revenue % | FY2023 Revenue % | | :--- | :--- | :--- | :--- | | RTX Corporation | 13% | 10% | 14% | | Lockheed Martin | 10% | 11% | 13% | | United States Navy | 10% | <10% | <10% | | L3Harris | <10% | 12% | <10% | | Northrop Grumman | <10% | <10% | 11% | [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from defense program dependence, customer concentration, intense competition, supply chain disruptions, and M&A integration - The company is heavily dependent on defense electronics programs, with sales to the U.S. government and its prime contractors accounting for approximately **97%** of total net revenues in fiscal 2025[82](index=82&type=chunk) - A small number of customers, including RTX Corporation (**13%**), Lockheed Martin (**10%**), and the U.S. Navy (**10%**), accounted for a significant portion of total net revenues in fiscal 2025[86](index=86&type=chunk) - The company operates in highly competitive markets with rapid technological changes, and failure to innovate or operational challenges could lead to customer loss[88](index=88&type=chunk)[94](index=94&type=chunk) - As of June 27, 2025, the company had **$591.5 million** of outstanding borrowings, which could limit operational flexibility and increase vulnerability to interest rate changes[125](index=125&type=chunk)[126](index=126&type=chunk) - The company faces risks from cybersecurity threats, which could lead to financial loss and reputational damage[141](index=141&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[151](index=151&type=chunk) [Cybersecurity](index=25&type=section&id=Item%201C.%20Cybersecurity) Cybersecurity risk is managed through an enterprise risk management process overseen by the CIO and Board of Directors - Cybersecurity risk is managed through an enterprise risk management (ERM) process, overseen by the CIO and the Board of Directors' management Compliance Committee[152](index=152&type=chunk)[157](index=157&type=chunk) - The company actively collaborates with government agencies like the DoD, NSA, and FBI to share real-time threat information and best practices[154](index=154&type=chunk) - To date, no cybersecurity incidents have had a material effect on the company's financial position, results of operations, or cash flows[160](index=160&type=chunk) [Properties](index=26&type=section&id=Item%202.%20Properties) The company's significant properties are leased facilities primarily in the United States, with major sites in Andover, Phoenix, and Hudson Significant Leased Properties (as of June 27, 2025) | Location | Size (Sq. Feet) | Lease Expiration | | :--- | :--- | :--- | | Andover, MA | 145,262 | 2032 | | Phoenix, AZ | 125,756 | 2033 | | Hudson, NH | 121,553 | 2030 | | Torrance, CA | 58,405 | 2029 | | Oxnard, CA | 47,774 | 2027 | [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to various legal proceedings but does not expect a material impact on its financial condition - The company is subject to litigation, claims, and investigations in the ordinary course of business but believes the outcomes will not have a material impact on its financial position[162](index=162&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[163](index=163&type=chunk) [Information About Our Executive Officers](index=26&type=section&id=Item%204.1.%20Information%20About%20Our%20Executive%20Officers) This section provides biographical information for the company's executive officers, including the President, CEO, CFO, and Chief Legal Officer - William L. Ballhaus was appointed President and CEO effective August 15, 2023, and became Chairman of the Board in October 2023[165](index=165&type=chunk) - David E. Farnsworth joined as Executive Vice President and Chief Financial Officer in July 2023[167](index=167&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq, has never paid cash dividends, and had no active share repurchase programs in fiscal 2025 - The company's common stock (MRCY) is listed on the Nasdaq Global Select Market[172](index=172&type=chunk) - The company has never paid cash dividends and does not plan to in the foreseeable future, retaining earnings for growth[174](index=174&type=chunk) - There were no active share repurchase programs during fiscal 2025[176](index=176&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2025, revenues increased 9.2% to $912.0 million, gross margin improved to 27.9%, and net loss significantly decreased to $(37.9) million Results of Operations: Fiscal 2025 vs. Fiscal 2024 (in thousands) | Line Item | Fiscal 2025 | Fiscal 2024 | | :--- | :--- | :--- | | **Net revenues** | $912,020 | $835,275 | | **Gross margin** | $254,494 (27.9%) | $195,901 (23.5%) | | **Loss from operations** | $(19,627) | $(147,754) | | **Net loss** | $(37,904) | $(137,640) | - Total revenues increased by **9.2%** in fiscal 2025, driven by a pivot to executing on production programs after prioritizing challenged programs in fiscal 2024[197](index=197&type=chunk)[198](index=198&type=chunk) - Gross margin increased by **440 basis points** to **27.9%** in fiscal 2025, primarily due to a significantly smaller negative net impact from changes in estimates on contracts[200](index=200&type=chunk)[201](index=201&type=chunk) - Research and development expenses decreased by **33.3%** to **$67.6 million** in fiscal 2025, mainly due to savings from headcount reductions[203](index=203&type=chunk) - The company executed a workforce reduction in January 2025, eliminating approximately **145 positions** and incurring **$4.9 million** in restructuring charges, with expected annualized savings of **$15 million**[187](index=187&type=chunk) Cash Flow Summary: Fiscal 2025 vs. Fiscal 2024 (in thousands) | Cash Flow Activity | Fiscal 2025 | Fiscal 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $138,851 | $60,382 | | **Net cash used in investing activities** | $(13,500) | $(34,291) | | **Net cash provided by financing activities** | $1,412 | $82,680 | [Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks include interest rates, credit concentration, and foreign currency exposure - The company is exposed to interest rate risk through its variable-rate borrowings, partially mitigated by an interest rate swap fixing the rate on **$300.0 million** of its **$591.5 million** outstanding borrowings[281](index=281&type=chunk)[130](index=130&type=chunk) - Significant credit risk concentration exists, with five customers accounting for **48%** of total receivables, unbilled receivables, and costs in excess of billings as of June 27, 2025[283](index=283&type=chunk) - The company is subject to foreign currency risk from its subsidiaries in Switzerland, the United Kingdom, and Spain, but does not currently use derivative instruments to hedge this exposure[284](index=284&type=chunk)[285](index=285&type=chunk) [Financial Statements and Supplementary Data](index=45&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal years 2025 and 2024, including balance sheets and statements of operations Consolidated Balance Sheet Highlights (in thousands) | Account | June 27, 2025 | June 28, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,058,178 | $953,784 | | **Goodwill** | $938,093 | $938,093 | | **Total Assets** | $2,434,764 | $2,378,905 | | **Total Current Liabilities** | $300,377 | $234,416 | | **Long-term Debt** | $591,500 | $591,500 | | **Total Liabilities** | $961,303 | $906,130 | | **Total Shareholders' Equity** | $1,473,461 | $1,472,775 | Consolidated Statement of Operations Highlights (in thousands) | Account | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | **Net Revenues** | $912,020 | $835,275 | $973,882 | | **Gross Margin** | $254,494 | $195,901 | $316,728 | | **Loss from Operations** | $(19,627) | $(147,754) | $(21,685) | | **Net Loss** | $(37,904) | $(137,640) | $(28,335) | | **Diluted Net Loss Per Share** | $(0.65) | $(2.38) | $(0.50) | - Revenue recognized at a point in time was **53%** of total revenues in fiscal 2025, up from **45%** in fiscal 2024, reflecting a shift from development to production contracts[253](index=253&type=chunk) - The company's goodwill of **$938.1 million** was tested for impairment in the fourth quarter of fiscal 2025 and was concluded not to be impaired[389](index=389&type=chunk)[390](index=390&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=77&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[489](index=489&type=chunk) [Controls and Procedures](index=77&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of June 27, 2025 - Management concluded that disclosure controls and procedures were effective as of June 27, 2025[490](index=490&type=chunk) - Management's assessment concluded that internal control over financial reporting was effective as of June 27, 2025, which was audited by KPMG LLP[492](index=492&type=chunk) [Other Information](index=77&type=section&id=Item%209B.%20Other%20Information) No directors or executive officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement in the fourth quarter of fiscal 2025 - No directors or executive officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement in the fourth quarter of fiscal 2025[494](index=494&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=77&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[495](index=495&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=78&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors and corporate governance is incorporated by reference from the company's 2025 Proxy Statement - Information required by this item is incorporated by reference from the company's 2025 Proxy Statement[497](index=497&type=chunk) [Executive Compensation](index=78&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's 2025 Proxy Statement - Information required by this item is incorporated by reference from the company's 2025 Proxy Statement[498](index=498&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=78&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's 2025 Proxy Statement - Information required by this item is incorporated by reference from the company's 2025 Proxy Statement[499](index=499&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=78&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the company's 2025 Proxy Statement - Information required by this item is incorporated by reference from the company's 2025 Proxy Statement[500](index=500&type=chunk) [Principal Accountant Fees and Services](index=78&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2025 Proxy Statement - Information required by this item is incorporated by reference from the company's 2025 Proxy Statement. The independent auditor is KPMG LLP[501](index=501&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=78&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits included in or incorporated by reference into the Form 10-K - This section lists all financial statements, schedules, and exhibits included in or incorporated by reference into the Form 10-K[503](index=503&type=chunk) [Form 10-K Summary](index=78&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[504](index=504&type=chunk)

Financial Performance - Q4 revenue increased by 9.9% year-over-year to $273 million[5] - Full-year revenue increased by 9.2% year-over-year to $912 million[5] - Q4 Adjusted EBITDA increased to $51 million with a margin of 18.8%[5] - Full-year Adjusted EBITDA increased to $119 million with a margin of 13.1%[5] - Full-year free cash flow reached a record of $119 million[5] Bookings and Backlog - Record quarterly bookings of $342 million, resulting in a book-to-bill ratio of 1.25[5] - Record backlog of $1.4 billion[7] - Full-year book-to-bill ratio of 1.13[7] Margin Expansion - Q4 gross margin increased by 160 basis points year-over-year to 31%[8] - Expect fiscal year 2026 full-year adjusted EBITDA margin approaching mid-teens[10] Cash Flow and Debt - Net working capital is down $90 million year-over-year[5] - Net working capital is down $211 million from peak net working capital levels in Q1 of FY24[9] - Net debt decreased to $282 million, the lowest level since Q1 of FY22[9] FY26 Expectations - Expect full year fiscal 2026 revenue growth of low single-digits[10] - Expect to be free cash flow positive in fiscal 2026[10]

Core Viewpoint - Mercury Systems, Inc. reported strong financial results for the fourth quarter and fiscal year 2025, with significant year-over-year growth in key metrics such as backlog, revenue, net income, adjusted EBITDA, and free cash flow [1][2]. Financial Performance - Fourth quarter fiscal 2025 revenues reached $273.1 million, a 9.9% increase from $248.6 million in the same quarter of fiscal 2024 [3]. - Full year fiscal 2025 revenues totaled $912.0 million, up 9.2% from $835.3 million in fiscal 2024 [7]. - The company achieved record quarterly bookings of $341.5 million, resulting in a book-to-bill ratio of 1.25 and a record backlog of $1.40 billion, which is a 6% increase year-over-year [2][11][12]. Profitability Metrics - GAAP net income for the fourth quarter of fiscal 2025 was $16.4 million, translating to diluted earnings per share of $0.27, compared to a net loss of $10.8 million and a loss per share of $0.19 in the fourth quarter of fiscal 2024 [4][22]. - Adjusted earnings per share for the fourth quarter were $0.47, up from $0.23 in the same period last year [4][46]. - Adjusted EBITDA for the fourth quarter was $51.3 million, with an adjusted EBITDA margin of 18.8%, compared to $31.2 million in the fourth quarter of fiscal 2024 [5][22]. Cash Flow and Backlog - Free cash flow for the fourth quarter was $34.0 million, contributing to a record full year free cash flow of $119.0 million, compared to $26.1 million in fiscal 2024 [6][9]. - Cash flows from operating activities in the fourth quarter were $38.1 million, down from $71.8 million in the same quarter of fiscal 2024 [6][9]. Year-End Summary - For fiscal year 2025, the company reported a GAAP net loss of $37.9 million, or $0.65 per share, a significant improvement from a net loss of $137.6 million, or $2.38 per share, in fiscal 2024 [8][49]. - Adjusted EBITDA for the full year was $119.4 million, a substantial increase from $9.4 million in fiscal 2024 [8][37].

Company Overview - Mercury Systems (MRCY) is expected to report a year-over-year decline in earnings due to lower revenues for the quarter ended June 2025, with a consensus EPS estimate of $0.21, reflecting an 8.7% decrease from the previous year [1][3] - Revenues are anticipated to be $241.71 million, down 2.8% from the same quarter last year [3] Earnings Expectations - The upcoming earnings report is scheduled for August 11, and the stock may rise if the actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Most Accurate Estimate for Mercury Systems is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +8.05%, suggesting a more optimistic outlook from analysts [11] - However, the company currently holds a Zacks Rank of 5, which complicates the prediction of an earnings beat [11] Historical Performance - In the last reported quarter, Mercury Systems met the expected EPS of $0.06, resulting in no surprise [12] - Over the past four quarters, the company has beaten consensus EPS estimates three times [13] Industry Comparison - Curtiss-Wright (CW), a peer in the Aerospace - Defense Equipment industry, is expected to report an EPS of $3.13 for the same quarter, indicating a year-over-year increase of 17.2% [17] - Revenues for Curtiss-Wright are projected to be $850.49 million, up 8.4% from the previous year, with a positive Earnings ESP of +0.67% and a Zacks Rank of 2, suggesting a likely earnings beat [18][19]

Core Insights - Mercury Systems Inc. will release its fourth quarter and full year fiscal year 2025 financial results on August 11, 2025, after market close [1] - A conference call and webcast will be held at 5:00 p.m. ET on the same day to discuss the financial results and business outlook [2] - The company specializes in mission-critical processing technologies for aerospace and defense, with products deployed in over 300 programs across 35 countries [4] Financial Results Announcement - The financial results for the fourth quarter and full year fiscal year 2025 will be disclosed after market close on August 11, 2025 [1] - The conference call will provide insights into quarterly financial results, business highlights, and future outlook [2] Conference Call Details - Participants can register for the conference call and webcast online, with a recommendation to register at least 15 minutes before the start [3] - A replay of the webcast will be available two hours after the call and archived for six months [3] Company Overview - Mercury Systems is headquartered in Andover, Massachusetts, and operates over 20 locations globally [4] - The company focuses on making advanced technologies accessible for challenging aerospace and defense missions [4] - Its Mercury Processing Platform enables customers to utilize innovative capabilities for mission computing, sensor processing, command and control, and communications [4]

Core Insights - Mercury Systems, Inc. has signed two agreements with a European defense prime contractor to enhance production of processing subsystems and components for radar and electronic warfare missions [1] - The agreements include a five-year contract for higher-volume production of sensor processing subsystems and an expanded production agreement for Monolithic Microwave Integrated Circuit (MMIC) products [2][3] Group 1: Agreements and Production Enhancements - The five-year agreement allows for faster production of sensor processing subsystems using Mercury's HDS6605 6U OpenVPX multiprocessing boards for various radar systems [2] - The expanded production agreement focuses on delivering MMIC products that support electronic warfare sensors, enhancing the performance of these sensors [3] Group 2: Commitment to Defense Sector - Mercury Systems is committed to strengthening its relationship with European defense systems providers, investing to reduce development and production timelines for its processing products [4] - The company emphasizes its role in making advanced technologies more accessible for aerospace and defense missions, with products deployed in over 300 programs across 35 countries [4]

Core Insights - Mercury Systems, Inc. announced two new production awards in June totaling $36.9 million for ground-based radar programs, utilizing its Common Processing Architecture and cybersecurity software from the recently acquired Star Lab [1][2] Company Overview - Mercury Systems is a technology company focused on delivering mission-critical processing power to the edge, enhancing accessibility for aerospace and defense missions [2] - The Mercury Processing Platform enables customers to leverage innovative capabilities from silicon to system scale, facilitating timely data-driven decisions [2] - The company's products and solutions are deployed in over 300 programs across 35 countries, covering applications in mission computing, sensor processing, command and control, and communications [2] Market Demand - There is strong demand for secure, high-performance processing solutions at the edge, as indicated by follow-on programs with two U.S. defense primes [2]

Core Viewpoint - Mercury Systems, Inc. has been awarded an $8.5 million contract by the U.S. Department of Defense to develop a next-generation RF signal conditioning multi-chip package, enhancing the performance and cost-effectiveness of X-band AESA radars [1][2]. Group 1: Contract and Funding - The contract is part of the DoD's Industrial Base Analysis and Sustainment (IBAS) Program, which aims to improve the defense industrial base's readiness and competitiveness through investments in domestic technologies [1]. - The two-year contract involves collaboration with Systems Innovation Engineering to develop a solution that reduces the size, weight, and power requirements of radar systems by over 80% compared to existing hardware [2]. Group 2: Technological Advancements - The new signal conditioning module will leverage Mercury's expertise in microwave and mixed signal technologies, making it more producible and affordable while enabling high-volume missions [2]. - The initiative is expected to enhance RF sensor performance and readiness, supporting faster and more reliable threat detection for military applications [3]. Group 3: Company Overview - Mercury Systems is a technology company focused on mission-critical processing for aerospace and defense, with products deployed in over 300 programs across 35 countries [4]. - The company is headquartered in Andover, Massachusetts, and operates more than 20 locations worldwide, providing solutions in mission computing, sensor processing, command and control, and communications [4].