Mercury Systems (MRCY) Q4 2026 Earnings Call Transcript

Mercury Systems, Inc. (MRCY) recently held its quarterly earnings call for the fourth fiscal quarter of 2026. The call was conducted by Tyler Hojo, Vice President of Investor Relations, who introduced the company's Chairman and CEO, William L. Ballhaus, and the Executive Vice President and CFO, David Farnsworth. The presentation included forward-looking statements about Mercury's financial outlook, future plans, and performance.

During the call, Ballhaus highlighted that Mercury Systems had exceeded expectations with record bookings, record backlog, record revenue, the highest EBITDA margin of the year, and robust free cash flow. He mentioned that the company entered the fiscal year 2027 with enhanced visibility and was increasing its outlook for organic growth. The company's Chairman and CEO praised its customers, teams, and the work they do in supporting critical programs for the warfighter.

In terms of financial results, Mercury Systems reported record bookings of $660 million, a 93.1% increase year over year, and nearly double the previous record bookings quarter. The company also achieved a 2.3 book-to-bill ratio, record backlog of over $1.9 billion, and record next 12-month backlog of $1 billion. Adjusted EBITDA for the quarter was $49 million, with a 16.7% EBITDA margin, and free cash flow amounted to $29 million. As of Q4, Mercury had $227 million in net debt, down 19.5% year over year.