Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Q4 FY2025 Earnings Presentation
17 slides from Mercury Systems's earnings presentation, Aug 11, 2025
Slide 1: Fourth Quarter and Fiscal Year 2025 Financial Results
FOURTH QUARTER AND FISCAL YEAR 2025 FINANCIAL RESULTS Bill Ballhaus Chairman and CEO David Farnsworth Executive Vice President and CFO August 11, 2025, 5:00 pm ET WEBCAST LOGIN AT WWW.MRCY.COM/INVESTOR WEBCAST REPLAY AVAILABLE BY 7:00 P.M. ET AUGUST 11, 2025 1 © Mercury Systems, Inc.
Slide 2: Forward-looking safe harbor statement
Forward-looking safe harbor statement This presentation 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 identif
Slide 3: Today's call
Today’s call Opening remarks on business and results Update on our four focus areas Performance expectations for FY26 and beyond Q&A 3 © Mercury Systems, Inc. /Mercury Proprietary/No Tech Data/
Slide 4: Business and results
Business and results Results reflect our expectation to deliver robust organic growth, expanding margins, and positive free cash flow. Record quarterly bookings of $342M and a 1.25 book-to-bill. Q4 revenue of $273M, up 9.9% year-over-year; and full-year revenue of $912M up 9.2% year-over- year
Slide 5: Delivering predictable performance
Delivering predictable performance Our focus on performance excellence positively impacted our results primarily in two areas: • Net adverse EAC change impacts were in line with recent quarters, reflects maturing capabilities in program management, engineering, and operations, and progress in comp
Slide 6: Driving organic growth
Driving organic growth Q4 record bookings of $342M resulted in a record backlog of 1.4B and a full-year book-to-bill of 1.13. Key contract awards received in the quarter included: • Awards totaling $36.9 million for ground-based radar programs that leverage our Common Processing Architecture and
Slide 7: Expanding margins
Expanding margins Remain focused on the following levers in our efforts to achieve targeted adjusted EBITDA margins in the low to mid 20% range: ‒ Backlog margin expansion as we burn down lower margin backlog and replace with new bookings aligned with our target margin profile. ‒ Ongoing initiativ
Slide 8: Driving improved free cash flow conversion and release
Driving improved free cash flow conversion and release Progress on drivers of free cash flow. Net working capital is down $211M from peak net working capital levels in Q1 of FY24. Full year FCF is $119M, and net debt is down to $282M the lowest level since Q1 of FY22. Focused on continued redu
Slide 9: Expectations for FY26 and beyond
Expectations for FY26 and beyond Optimistic on achieving our target profile over time of above market top-line growth, adjusted EBITDA margins in the low to mid 20% range, and FCF conversion of 50%. Expect full year fiscal 2026 revenue growth of low single-digits; first half relatively flat year
Slide 10: Q4 FY25 vs. Q4 FY24
Q4 FY25 vs. Q4 FY24 Notes $ millions, except percentage and per share data Q4 FY25(2) Q4 FY24(2) CHANGE 1. Non-GAAP, see reconciliation table. 2. All references in this presentation to Bookings $341.5 $284.4 the fourth quarter of fiscal 2025 are 20% to the quarter ended June 27, 2025. Book-to-Bill 1
Slide 11: Fiscal Year 2025 vs. Fiscal Year 2024
Fiscal Year 2025 vs. Fiscal Year 2024 Notes $ millions, except percentage and per share data FY25(2) FY24(2) CHANGE 1. Non-GAAP, see reconciliation table. 2. All references in this presentation to Bookings $1,032.1 $1,021.2 the fourth quarter of fiscal 2025 are 1% to the quarter ended June 27, 2025.
Slide 12: Balance sheet
Balance sheet As of Notes 1. Rounded amounts used. (In $ millions)(1) 6/28/24 9/27/24 12/27/24 3/28/25 6/27/25 ASSETS Cash & cash equivalents $180.5 $158.1 $242.6 $269.8 $309.1 Accounts receivable and unbilled receivables, net 415.5 422.8 383.1 374.7 388.1 Inventory, net 335.3 351.1 344.4 352.7 332.
Slide 13: Cash flow summary
Cash flow summary For the Fiscal Quarters Ended Notes 1. Rounded amounts used. (In $ millions)(1) 6/28/24 9/27/24 12/27/24 3/28/25 6/27/25 2. Non-GAAP, see reconciliation table. Net (loss) income ($10.8) ($17.5) ($17.6) ($19.2) $16.4 Depreciation and amortization 21.4 21.2 20.9 19.9 20.0 Other non-c
Slide 14: Appendix
APPENDIX © Mercury Systems, Inc.
Slide 15: Adjusted EPS reconciliation
Adjusted EPS reconciliation Notes (In thousands, except per share data)(2) Q4 FY24 Q4 FY25 FY24 FY25 1. Per share information is presented on a fully diluted basis. (Loss) income per share(1) ($0.19) $0.27 ($2.38) ($0.65) 2. Rounded amounts used. 3. Impact to income taxes is calculated by recasting
Slide 16: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Notes (In thousands)(1)(2) Q4 FY24 Q4 FY25 FY24 FY25 1. Rounded amounts used. 2. All references in this presentation to the fourth Net (loss) income ($10,777) $16,370 ($137,640) ($37,904) quarter of fiscal 2025 and LTM Q4 FY25 are to the quarter ended June 27, 2025, an
Slide 17: Free cash flow reconciliation
Free cash flow reconciliation Notes (In thousands)(1) Q4 FY24 Q4 FY25 FY24 FY25 1. Rounded amounts used. Cash provided by operating activities $71,761 $38,075 $60,382 $138,851 Purchases of property and equipment (10,348) (4,098) (34,291) (19,803) Free cash flow $61,413 $33,977 $26,091 $119,048 17 ©