Mercury Systems Posts Record Q4 Bookings of $660M and Backlog Above $1.9B; Raises FY27 Outlook

summarizeSummary

Mercury Systems reported record Q4 FY26 bookings of $660M, record backlog over $1.9B, and raised FY27 guidance to ~$1.1B revenue and ~$200M adjusted EBITDA.

check_boxKey Events · Earnings and Guidance · MRCY

• Record Q4 Bookings and Backlog

  Q4 FY26 bookings of $660 million grew 93.1% year-over-year, yielding a 2.28 book-to-bill. Total backlog reached over $1.9 billion, up 38.4% year-over-year, with $1.0 billion expected to convert to revenue within 12 months.

• Record Revenue and Margin Expansion

  Q4 FY26 revenue of $289.8 million grew 6.1% year-over-year. Adjusted EBITDA was $48.5 million with a 16.7% margin, up 217 basis points for the full year to 15.3%.

• FY27 Guidance Raised

  Management expects FY27 revenue approaching $1.1 billion (high single-digit to low double-digit growth) and adjusted EBITDA approaching $200 million, reflecting nearly 30% year-over-year growth. Adjusted EBITDA margin is expected in the high-teens.

• Free Cash Flow Investment Phase

  FY27 free cash flow conversion is expected to approach 35%, below the 50% target, due to planned inventory, automation, and factory optimization investments. Q1 FY27 is expected to be a larger outflow than normal.

auto_awesomeAnalysis · MRCY · Manufacturing

A blowout fourth quarter saw Mercury Systems deliver record bookings of $660 million, nearly double its previous high, driving a 2.28 book-to-bill and pushing backlog past $1.9 billion. Revenue reached a record $290 million, and adjusted EBITDA margin expanded to 16.7%. Management raised its FY27 outlook to revenue approaching $1.1 billion and adjusted EBITDA approaching $200 million, citing strong defense demand and multi-year customer commitments. The results validate the company's turnaround and position it for accelerating organic growth, though free cash flow conversion is expected to dip to 35% in FY27 due to inventory investments.