Mercury Systems delivered a strong start to fiscal 2027, exceeding revenue and earnings estimates behind record bookings and a robust book-to-bill ratio of 1.46. Following the performance, management raised its full-year 2027 guidance, now expecting revenue growth in the double digits with total revenue approaching $1.1 billion.
Key Highlights
- Record first quarter bookings reached $370.5 million, up 48% year-over-year, which expanded the total backlog to a record $2.1 billion.
- Adjusted EBITDA grew 58.6% year-over-year to $56.4 million, reflecting significant margin expansion to 22.3% compared to 15.8% in the prior year.
- Free cash flow remained negative at $(24.4) million due to inventory investments, though net debt decreased 19% year-over-year to $232 million following a $100 million debt repayment.