Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Q4 2026 Earnings Presentation
18 slides from Mercury Systems's earnings presentation, Aug 18, 2026
Slide 1: Fourth Quarter and Fiscal Year 2026 Financial Results
FOURTH QUARTER AND FISCAL YEAR 2026 FINANCIAL RESULTS Bill Ballhaus Chairman and CEO David Farnsworth Executive Vice President and CFO August 18, 2026, 5:00 pm ET WEBCAST LOGIN AT WWW.MRCY.COM/INVESTOR WEBCAST REPLAY AVAILABLE BY 7:00 P.M. ET AUGUST 18, 2026 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 priorities ▪ Performance expectations for FY27 and beyond ▪ Q&A 3 © Mercury Systems, Inc. /Mercury Propriet ary /No Tech Data/
Slide 4: Business and results
Business and results ▪ Our Q4 FY26 results reflected robust organic growth and margin expansion: • Record bookings of $660M, up 93.1% year-over-year and nearly double our previous record bookings quarter; a 2.3 book-to-bill, record backlog of over $1.9B, and record next-12-month backlog of 1.0B. • R
Slide 5: Driving performance excellence
Driving performance excellence ▪ Focused on sound execution on development programs, delivering for our customers across our portfolio, and scaling efficiently on numerous programs transitioning to higher volume production. • In Q4, we ramped up across a number of programs and generated record quart
Slide 6: Driving organic growth
Driving organic growth ▪ Record quarter with $660M of bookings resulting in record fiscal year bookings of $1.5B, up 49.8% year- over-year, and a book-to-bill of 1.57 for the year. • Record total backlog approaching $2.0B is also providing enhanced visibility as we enter FY27 and into FY28. ▪ Streng
Slide 7: Expanding margins
Expanding margins ▪ In our efforts to progress toward our targeted adjusted EBITDA margins in the low to mid 20% range, we remain focused on the following drivers: • Backlog margin expansion as we convert low-margin backlog and add new bookings aligned with our target margin profile. • Ongoing initi
Slide 8: Driving improved free cash flow conversion and release
Driving improved free cash flow conversion and release ▪ Continue to make progress on drivers of free cash flow. Net working capital at approximately $431M is down $18M year-over-year. ▪ Full year free cash flow of $68M led to net debt of $227M at the end of Q4, which we reduced by $55M year-over-ye
Slide 9: Expectations for FY27 and beyond
Expectations for FY27 and beyond* ▪ Increasing targeted organic revenue growth to low double digits, while maintaining targeted adjusted EBITDA margin in the low to mid 20s and targeted FCF conversion of 50%. ▪ For FY27, expect revenue growth approaching double digits year-over-year with total reven
Slide 10: Expectations for FY27 and beyond - continued
Expectations for FY27 and beyond* - continued ▪ In our initial view of FY28, our reference point for top-line organic growth is in the low double digits, for adjusted EBITDA margin in-line with the low end of our target margin profile, and for free cash flow a return towards conversion in line with
Slide 11: Q4 FY26 vs. Q4 FY25
Q4 FY26 vs. Q4 FY25 Notes $ millions, except percentage and per share data Q4 FY26(2) Q4 FY25(2) CHANGE (1) Non-GAAP, see reconciliation table. (2) All references in this presentation to Bookings $659.6 $341.5 93% the fourth quarter of fiscal 2026 are to the 14 week period ended July 3, Book-to-Bill
Slide 12: Fiscal Year 2026 vs. Fiscal Year 2025
Fiscal Year 2026 vs. Fiscal Year 2025 Notes $ millions, except percentage and per share data FY26(2) FY25(2) CHANGE (1) Non-GAAP, see reconciliation table. (2) All references in this presentation to Bookings $1,545.6 $1,032.1 50% fiscal 2026 are to the 53 week period ended July 3, 2026. All Book-to-
Slide 13: Balance sheet
Balance sheet As of Notes 1. Rounded amounts used. (In $ millions)(1) 6/27/25 9/26/25 12/26/25 3/27/26 7/3/26 ASSETS Cash & cash equivalents $309.1 $304.7 $335.0 $331.8 $214.3 Accounts receivable and unbilled receivables, net 388.1 367.5 379.8 365.0 355.0 Inventory, net 332.9 340.2 349.6 361.7 367.0
Slide 14: Cash flow summary
Cash flow summary For the Fiscal Quarters Ended Notes 1. Rounded amounts used. (In $ millions)(1) 6/27/25 9/26/25 12/26/25 3/27/26 7/3/26 2. Non-GAAP, see reconciliation table. Net income (loss) $16.4 ($12.5) ($15.1) ($2.9) $0.8 Depreciation and amortization 20.0 18.9 18.3 18.0 17.5 Other non-cash i
Slide 15: Appendix
APPENDIX © Mercury Systems, Inc.
Slide 16: Adjusted EPS reconciliation
Adjusted EPS reconciliation Notes (In thousands, except per share data)(2) Q4 FY25 Q4 FY26 FY25 FY26 (1) Per share information is presented on a fully diluted basis. Income (loss) per share(1) $0.27 $0.01 ($0.65) ($0.50) (2) Rounded amounts used. (3) Impact to income taxes is calculated by recast
Slide 17: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Notes (In thousands)(1)(2) Q4 FY25 Q4 FY26 FY25 FY26 (1) Rounded amounts used. (2) All references in this presentation to the fourth Net income (loss) $16,370 $798 ($37,904) ($29,673) quarter of fiscal 2026 and fiscal 2026 are to the 14 week and 53 week period ended
Slide 18: Free cash flow reconciliation
Free cash flow reconciliation Notes (In thousands)(1) Q4 FY25 Q4 FY26 FY25 FY26 1. Rounded amounts used. Cash provided by operating activities $38,075 $42,153 $138,851 $102,388 Purchases of property and equipment (4,098) (13,588) (19,803) (34,301) Free cash flow $33,977 $28,565 $119,048 $68,087 18 ©