Mercury Systems, Inc. (NASDAQ: MRCY) shares had a significant boost today, rising 16.01% to $48.83 as of the last check. This increase in MRCY stock price comes after strong second-quarter fiscal year 2025 financial results, showing strong growth and operational success.
Outstanding Financial Data and Steady Growth
Mercury Systems’ financial success strengthened confidence in its long-term strategic goals by continuously meeting or surpassing market expectations. Mercury Systems reported a trailing-twelve-month book-to-bill ratio of 1.12 with a total booking value of $242.4 million.
Revenue also rose sharply to $223.1 million with a year over year increase of 13%. Furthermore, adjusted EBITDA showed a noteworthy rise from the previous year, coming in at $22.0 million with a 9.9% margin. The record free cash flow of $81.9 million represented an increase of $44.4 million over the previous year.
Strategic Advancements and Operational Success
The company’s performance is attributed to its strong execution across its diverse portfolio of production and development programs. A key highlight was the achievement of a record backlog of $1.4 billion.
In addition, Mercury Systems successfully reduced operating expenses, thus increasing its positive operating leverage. Notably, MRCY made strides in improving free cash flow drivers, reducing net working capital by $114.9 million year-over-year.
New Defense Contract Solidifies Future Growth
The announcement of a $24.5 million contract to provide a data processing and storage subsystem for a U.S. Department of military satellite program further cemented Mercury Systems’ strategic position in the military industry. This contract underscores MRCY’s expertise in data processing, subsystem integration, and commercial product innovation.
MRCY’s use of cutting-edge technologies, such as its SCFE6933 processing board and the RH304T solid-state data recorder, positions it as a key player in critical defense applications. This contract success is a result of Mercury Systems’ more integrated organizational structure, which has driven significant innovation and positions the company for long-term growth.