We recently published 10 Stocks With Double-Digit Upsides. Ondas Holdings Inc. (NASDAQ:ONDS) is one of the top performers on Thursday. Ondas Holdings climbed to a fresh record high on Thursday, after ramping up its defense market segment through the purchase of 500 Wasp drones from Norway-based Rift Dynamics to support its US defense market distribution. Placed through its American Robotics subsidiary, Ondas Holdings Inc. (NASDAQ:ONDS) Chairman and CEO Eric Brock said the first 500-unit order only marks ...

ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) will now host a conference call on Wednesday, October 29, 2025 beginning at a revised time of 9:30 a.m. (ET) to discuss its third quarter 2025 results. The company plans to issue its quarterly earnings press release prior to the conference call. The live audio broadcast of Leonardo DRS's conference call with corresponding press release and supplemental information will be available on the company's investor relations website. To. ...

Financial Data and Key Metrics Changes - For the three months ending July 31, 2025, consolidated revenue was $13.8 million, a decrease from $15.1 million in the same period of the prior fiscal year [4] - Consolidated net income for the same period was approximately $634,000, or $0.07 per share, compared to approximately $2.4 million, or $0.25 per share for the same period of the prior fiscal year [5] - The company's operating income decreased to approximately $364,000 from approximately $2.4 million in the prior fiscal year due to lower revenue and gross margin [5] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. government satellite programs was approximately $6.5 million, or 47%, compared to $8.3 million, or 55%, in the same period of the prior fiscal year [4] - Revenues from non-space U.S. government and DOD customers were $6.9 million, an increase from $6.3 million in the same period of the prior fiscal year, accounting for approximately 50% of consolidated revenues compared to 42% for the prior fiscal year [4] - Other commercial and industrial revenues were approximately $439,000, down from approximately $544,000 in the prior fiscal year [4] Market Data and Key Metrics Changes - The fully funded backlog at the end of July 2025 was approximately $71 million, compared to approximately $70 million for the previous fiscal year ended April 30, 2025 [5] - The company maintains a strong working capital position of approximately $30 million at July 31, 2025, with a current ratio of approximately 2.3 to 1 [5] Company Strategy and Development Direction - The company is focused on investing in growth for the future, particularly in quantum sensing and defense technologies [2][3] - A new engineering facility was opened in Boulder, Colorado, to support ongoing programs and new technology efforts, with expectations for positive contributions to the bottom line by the third quarter of the fiscal year [3] - The company is actively bidding on new programs, anticipating meaningful new business opportunities in the near term, particularly in space and defense sectors [2][3] Management's Comments on Operating Environment and Future Outlook - Management noted that customer-driven delays in key programs affected revenue recognition in the first quarter, but these issues are now resolved, and significant progress is being made [2] - The company remains confident in its strong fundamentals and future growth potential, despite a temporary decline in revenue and earnings [3] - Management emphasized the importance of their technologies in addressing vulnerabilities in global timing systems, which are increasingly critical in the defense landscape [3] Other Important Information - The company announced a $20 million authorization for share repurchase, reflecting its commitment to returning cash to shareholders while investing in future growth [3] - The company is pursuing external government funding for research and development, particularly in quantum sensing, which is seen as a large emerging market [3] Q&A Session Summary Question: Update on various clock technologies and timelines for productization - Management confirmed that atomic clocks are available off the shelf and that prototypes for advanced technologies like the Mercury Ion atomic clock are being produced in collaboration with the Jet Propulsion Laboratory, with low-rate production expected in about a year [8][10] Question: Interest in applying quantum sensing technology outside of space applications - Management stated that while they are not directly investing in quantum computing, they are aware of its developments and are focusing on quantum sensing technologies that can be quickly applied [11][12]

Core Insights - Mercury Systems (MRCY) reported revenue of $273.11 million for the quarter ended June 2025, marking a year-over-year increase of 9.9% and exceeding the Zacks Consensus Estimate of $241.71 million by 12.99% [1] - The company achieved an EPS of $0.47, significantly higher than the $0.23 reported a year ago, resulting in an EPS surprise of 123.81% compared to the consensus estimate of $0.21 [1] Revenue Performance by Segment - Net Revenue from Sensor & Effector - Radar was $52.96 million, surpassing the two-analyst average estimate of $46.2 million, with a year-over-year change of +26.4% [4] - Net Revenue from Sensor & Effector - Electronic Warfare was $25.23 million, below the estimated $37.91 million, reflecting a year-over-year decline of -33.9% [4] - Net Revenue from Other was $38.98 million, exceeding the average estimate of $23.6 million, with a year-over-year increase of +15.8% [4] - Total Net Revenue from Sensor & Effector was $106.48 million, lower than the $117.24 million average estimate, representing a year-over-year decrease of -9.5% [4] - Net Revenue from C4I reached $127.64 million, exceeding the average estimate of $100.6 million, with a year-over-year increase of +31.2% [4] - Net Revenue from Sensor & Effector - Other Sensor & Effector was $28.3 million, below the estimated $33.14 million, showing a year-over-year decline of -24.7% [4] Stock Performance - Shares of Mercury Systems have returned +3.7% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

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]

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]

Financial Data and Key Metrics Changes - Sales for Q2 2025 reached $877 million, a 12% increase year-over-year, driven by strong organic growth of 9% [5][6] - Operating income increased by 20% year-over-year, leading to a 130 basis points expansion in overall operating margin [5][6] - Diluted earnings per share rose by 21% year-over-year, slightly exceeding expectations [6] - Free cash flow was $117 million, reflecting a 17% year-over-year improvement and nearly 100% cash conversion [6][9] - The company raised its full-year sales growth guidance to 9% to 10% and expects diluted EPS growth of 16% to 19% [9][25] Business Line Data and Key Metrics Changes - **Aerospace and Industrial**: Sales increased by 3%, with solid OEM sales growth in commercial aerospace and modest increases in defense markets [10][11] - **Defense Electronics**: Sales grew by 11%, driven by increased sales of embedded computing equipment and tactical communications revenues [12] - **Naval and Power**: Sales surged by 19%, primarily due to higher naval defense revenues, particularly from the Columbia Class submarine program [13][14] Market Data and Key Metrics Changes - The overall backlog increased by 12% year-to-date, reaching a record of over $3.8 billion [7] - Book-to-bill ratio across Aerospace and Defense markets was 1.2 times, indicating strong demand [6] - Direct foreign military sales are expected to grow by approximately 20% in 2025, reflecting increased demand from NATO and allied countries [29] Company Strategy and Development Direction - The company is focused on a "pivot to growth" strategy, emphasizing operational excellence and collaboration on R&D projects [4] - Key growth areas identified include defense and commercial nuclear sectors, with expectations for significant long-term opportunities [27][36] - The company plans to leverage advancements in AI and machine learning to enhance its defense applications [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong financial performance in 2025, supported by a robust order book and favorable market conditions [9][37] - The company anticipates continued growth in defense spending and a strategic shift towards nuclear power, driven by global energy demands [27][31] - Management highlighted the importance of maintaining a disciplined capital allocation strategy while pursuing growth opportunities [37] Other Important Information - The Board approved a $400 million increase in share repurchase authorization and a 14% increase in the quarterly dividend, marking nine consecutive years of dividend growth [8] - The company expects to generate free cash flow in the range of $520 million to $535 million, reflecting an improved conversion rate of approximately 108% [25] Q&A Session Summary Question: What is driving growth acceleration in commercial aerospace? - Management noted a conservative position entering the year, with mixed signals from customers but overall positive trends expected in the second half [40][42] Question: What applications are the new GPU chips finding use cases for? - The company highlighted applications in defensive systems and command and control, emphasizing the importance of quick decision-making in modern warfare [44][46] Question: How sustainable is the margin performance in Defense Electronics? - Management indicated ongoing restructuring and operational excellence initiatives are driving margin improvements, with further opportunities for growth [50][52] Question: What is the outlook for the M&A pipeline? - The company is actively looking for acquisition opportunities but remains disciplined in its approach, prioritizing strategic fits [64][66] Question: How much of the Defense Electronics decline in Q3 is visible based on backlog? - Management reported a book-to-bill ratio of 0.9 in Defense Electronics, with expectations for a strong finish in Q4 as backlog issues are resolved [69][72]

Financial Data and Key Metrics Changes - Teledyne reported record quarterly sales with a 10.2% increase, driven by organic growth and acquisitions, marking the highest organic sales growth in nearly three years [4][5] - Non-GAAP earnings per share rose 13.5% year-over-year, also setting a record for any second quarter [5] - Cash flow from operating activities was $226.6 million, down from $318.7 million in 2024, primarily due to higher income tax payments [14] Business Segment Data and Key Metrics Changes - Digital Imaging segment sales increased 4.3%, the highest growth in three years, largely due to strong performance in defense and industrial businesses [8] - Instrumentation segment sales rose 10.2%, with marine instruments up 16% and environmental instruments up 5.6% [10] - Aerospace and Defense Electronics segment saw a 36.2% increase in sales, driven by acquisitions and organic growth [11] - Engineered Systems segment revenue increased 3.3%, with operating profit also rising [11] Market Data and Key Metrics Changes - U.S. government defense sales improved by 12.5% year-over-year, primarily organic, while foreign government sales increased over 15% [49] - The company noted a healthy book-to-bill ratio of 1.1 across its portfolio, marking the seventh consecutive quarter of orders exceeding sales [5][24] Company Strategy and Development Direction - Teledyne is focusing on smaller acquisitions and stock repurchases, increasing its stock repurchase authorization from $896 million to $2 billion [7] - The company remains optimistic about long-term growth, particularly in long-cycle businesses, while expressing caution regarding short-cycle businesses due to potential demand pull-ins [12][6] Management's Comments on Operating Environment and Future Outlook - Management expressed caution about the sustainability of short-cycle business strength, attributing it to potential accelerated demand ahead of U.S. trade policy announcements [6][12] - The outlook for Q3 is expected to remain flat compared to Q2, with a conservative estimate of total sales [6][42] Other Important Information - Teledyne's debt-to-EBITDA ratio stands at 1.6, with $1.17 billion available in its credit facility [6] - The company is actively managing costs and improving margins in acquired businesses, with a focus on integrating new acquisitions effectively [36][38] Q&A Session Summary Question: Guidance for Q3 and caution on pull-forward - Management indicated that the caution primarily relates to short-cycle businesses, with a potential $15 million to $20 million pull-in observed [21][22] Question: Digital Imaging sales growth despite strong bookings - Management explained that while FLIR is performing well, other short-cycle businesses are stabilizing, leading to cautious sales growth expectations [29][30] Question: Aerospace and Defense margin strength - Margins were impacted by acquisitions, but legacy businesses continue to show strong performance, with ongoing efforts to improve margins in newly acquired companies [34][35] Question: Full-year EPS guidance and margin improvement - Management confirmed expectations for operating margin improvement of 55 to 60 basis points for the year, with a focus on stabilizing short-cycle businesses [81][82] Question: Drone exposure and opportunities - The company highlighted its strong position in the drone market, focusing on both its own products and sensor sales to other manufacturers [95][96] Question: Impact of tariffs on sales and costs - Management noted that 82% of revenue is from U.S.-based businesses, minimizing tariff impacts, while also addressing potential cost increases due to imported materials [121][124]

Financial Data and Key Metrics Changes - For the fiscal year ended April 30, 2025, consolidated revenue was $69.8 million, up from $55.3 million in the prior fiscal year, representing a significant increase [8][10] - Gross profit increased due to higher revenue and improved gross margin, with operating income rising to $11.7 million from $5 million in the previous fiscal year [13][14] - Consolidated net income for the year was $23.7 million or $2.46 per share, compared to $5.6 million or $0.59 per share in the previous fiscal year [14] - The company's balance sheet reflects a strong working capital position of approximately $30 million and a current ratio of about 2.3:1, with no debt [15] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. Government satellite programs was approximately $40.9 million, accounting for 59% of total revenue, compared to $23.2 million or 42% in the prior fiscal year [9] - Revenue from non-space U.S. Government and DoD customers decreased to $26.5 million from $29 million, representing 38% of consolidated revenue compared to 52% previously [9] Market Data and Key Metrics Changes - The company is expanding its customer base beyond traditional prime contractors and is actively submitting bids alongside next-generation defense companies [5] - The company anticipates meaningful growth with traditional primes and is well-positioned to benefit from industry trends over the next five to ten years [5] Company Strategy and Development Direction - The company is focusing on several growth opportunities, including quantum sensing and alternative navigation technologies, which are expected to drive future growth [6][10] - The company is committed to maintaining technical excellence through increased R&D spending, which rose to $6.1 million from $3.4 million [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth driven by new legislation supporting space and defense programs, although they cautioned about variability in contract timing due to changes in administration [4][30] - The company expects to see additional revenue from contract awards flowing in over the coming quarters and years [4] Other Important Information - The company recorded a decrease in valuation allowance of approximately $13.9 million, primarily related to deferred tax assets [14] - Cash decreased by approximately $13.6 million, with dividends accounting for about $9.6 million of this decrease [15] Q&A Session Summary Question: Allocation of resources to growth opportunities - Management is actively pursuing proposals in various growth areas, with quantum sensors appearing particularly promising due to the vulnerability of GPS [21][22] Question: Adequacy of cash for increased R&D spending - Management is confident in their ability to fund increased R&D through internal funds and is exploring external funding options [24][25] Question: Short-term uncertainty and backlog variability - Management clarified that while there may be variability in future contracts, the current backlog of $70 million is solid [33][34] Question: Gross margin outlook - Management aims to maintain gross margins in the low to mid-40% range for the upcoming fiscal year [68] Question: Revenue opportunities from quantum sensing - Quantum sensing is expected to contribute less than 1% of overall revenue in the next fiscal year, with product revenue anticipated in about five years [70] Question: SG&A and R&D targets for 2026 - SG&A is expected to remain around 18% of revenue, while R&D is projected to be in the 6% to 9% range [79]

Financial Data and Key Metrics Changes - For the fiscal year ended April 30, 2025, consolidated revenue was $69.8 million, up from $55.3 million in the prior fiscal year, representing a significant increase [8] - Gross profit increased due to higher revenue and improved gross margin, with operating income rising to $11.7 million from $5 million in the previous year [13][14] - Consolidated net income for the year was $23.7 million or $2.46 per share, compared to $5.6 million or $0.59 per share in the previous fiscal year [14] - The company's fully funded backlog at April 2025 was approximately $70 million, down from $78 million in the previous fiscal year [14] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. Government satellite programs was approximately $40.9 million, accounting for 59% of total revenue, compared to $23.2 million or 42% in the prior fiscal year [8] - Revenue from non-space U.S. Government and DoD customers decreased to $26.5 million from $29 million, representing 38% of consolidated revenue compared to 52% in the prior year [9] Market Data and Key Metrics Changes - The company is expanding its customer base beyond traditional prime contractors and is actively submitting bids alongside next-generation defense companies [5] - The company anticipates meaningful growth with traditional prime contractors and is well-positioned to benefit from industry trends over the next five to ten years [5] Company Strategy and Development Direction - The company is focusing on several growth opportunities, including quantum sensing and alternative navigation technologies, which are expected to drive future growth [6][24] - The company is committed to maintaining technical excellence through increased R&D spending, which rose to $6.1 million from $3.4 million [12] - The company aims to maintain a gross margin of 40% or more in the upcoming fiscal year [72] Management's Comments on Operating Environment and Future Outlook - Management noted that while the recent quarter was strong, future quarters may not replicate this performance due to the lumpiness of contract awards [4] - There is variability in the timing of contracts due to changes in administration priorities, but the overall spending outlook remains positive [30][31] - Management expressed confidence in the company's ability to fund increased R&D spending through internal funds and external funding opportunities [25][26] Other Important Information - The company is debt-free and maintains a strong working capital position of approximately $30 million [15] - Cash decreased by approximately $13.6 million since the prior fiscal year end, primarily due to dividend payments and timing of billing [15][16] Q&A Session Summary Question: Allocation of resources to growth opportunities - Management is actively pursuing proposals in various growth areas and is in discussions with prime customers about capabilities [22][24] Question: Potential for growth in specific areas - Quantum sensor technology appears promising, with significant market potential, while Golden Dome also shows potential but with uncertain funding [24] Question: Adequacy of cash for increased R&D spending - Management is confident in having adequate cash to fund increased R&D, with a cautious approach to resource allocation [25] Question: Short-term uncertainty and backlog variability - Management clarified that the $70 million backlog is solid, with variability mainly concerning future contracts [34][35] Question: Revenue opportunities from quantum sensing - Quantum sensing is expected to contribute less than 1% of overall revenue in the next fiscal year, with product revenue anticipated five years out [73] Question: SG&A and R&D targets for future years - SG&A is expected to remain around 18% of revenue, while R&D is projected to be in the 6% to 9% range [83] Question: SDA bids and investment expenses - The SDA process is currently being rethought by the new administration, with potential developments expected within the next 9 to 12 months [86][87]