Mercury Systems, Inc. reported a consolidated revenue of $912.0 million for fiscal 2025, marking a 9.2% increase from $835.3 million in fiscal 2024. The company also narrowed its net loss to $37.9 million, or $(0.65) per diluted share, compared to a net loss of $137.6 million, or $(2.38) per diluted share, in the previous fiscal year. Adjusted earnings per share improved to $0.64, while adjusted EBITDA rose significantly to $119.4 million from $9.4 million in fiscal 2024. The increase in revenue was attributed to a strategic pivot towards executing on the program base, particularly in radar and C4I applications, as well as a transition of development programs to production.
In terms of operational changes, Mercury Systems underwent a significant restructuring, which included a workforce reduction of approximately 145 positions in January 2025, resulting in restructuring charges of $4.9 million. This move is expected to yield annualized savings of about $15 million, with a portion reinvested into the business. Additionally, the company executed a strategic supply agreement with Cicor Group, which acquired its manufacturing operations in Switzerland, ensuring continued support for international operations. The company also completed an asset acquisition of Star Lab, enhancing its cybersecurity capabilities.
Mercury Systems' customer base remains concentrated, with RTX Corporation, Lockheed Martin, and the U.S. Navy each accounting for 10% or more of total revenues in fiscal 2025. The company reported a backlog of approximately $1.4 billion as of June 27, 2025, with $807.8 million expected to be recognized as revenue within the next twelve months. The company’s workforce totaled 2,162 employees, with 579 dedicated to research and development, reflecting its commitment to innovation in mission-critical processing technologies.
Looking ahead, Mercury Systems anticipates continued growth driven by increasing defense spending and modernization efforts among U.S. allies. The company is well-positioned to capitalize on trends such as the growing demand for secure processing capabilities and the shift towards open systems architectures in defense procurement. The company’s strategic focus on enhancing its processing platform and expanding its market presence is expected to support its goal of returning to above-industry-average growth rates in the coming years.
About MERCURY SYSTEMS INC
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