Mercury Systems Reports Fourth Quarter and Fiscal 2025 Results

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].