Mercury Systems, Inc. Q1 2027 Earnings Recap

Mercury’s shares rose 5.7% after the company reported record Q1 bookings and revenue and raised its FY27 outlook. The transcript also points to improving production execution and defense-program demand, though free cash flow remained negative.

Key Takeaways

• Bookings were a record $370 million, up 48% year over year, with a 1.46 book-to-bill; total backlog reached a record $2.1 billion.
• Revenue was a record $253 million, up 12.4% organically year over year. Adjusted EBITDA was $56 million, up 58.6%, with a 22.3% margin.
• The company raised its FY27 outlook after Q1 organic growth came in above its prior expectation; the transcript excerpt does not provide the revised outlook figures.
• Free cash outflow was $24 million, which management described as better than expected. Net debt ended the quarter at $232 million, down 19.2% year over year.
• Bookings strength spanned effectors, radar and electronic warfare, including a significant advanced-weapons production award and a competitive F-35 program win.