Mercury Systems' stock just catapulted 19% after they dropped a powerhouse Q1 FY25 earnings report that's got investors buzzing. With revenue hitting $204.4 million—a solid 13% jump from last year—Mercury is proving it's here to make waves in aerospace and defense. And it's not just about revenue; bookings are through the roof at $247.7 million, giving them a book-to-bill ratio of 1.21, signaling demand that's anything but slowing down.
CEO Bill Ballhaus didn't hold back on the optimism, noting that Mercury's growth is looking steady and predictable, with expanding margins and strong free cash flow to boot. Adjusted EBITDA clocked in at $21.5 million, a staggering leap from last year's $2 million in Q1. This jump highlights just how efficiently Mercury is running its operations and keeping costs in check.
The kicker? Mercury's backlog has hit a record $1.3 billion, up 16% from a year ago, with $777 million expected to convert to revenue in the next 12 months. This huge backlog is proof that their tech is in high demand, especially as the need for real-time, mission-critical processing skyrockets. Investors are clearly taking notice, with a solid vote of confidence that Mercury's strategic focus is setting it up for serious long-term gains.
