Mercury Systems Inc. (NASDAQ: MRCY) shares surged 16.42% in Tuesday's after-hours trading session after the company reported strong fiscal second-quarter 2025 results that beat analysts' expectations on both the top and bottom lines. The company also raised its full-year outlook, fueling further optimism among investors.
For the quarter ended December 27, 2024, Mercury Systems delivered adjusted earnings per share of $0.07, surpassing the consensus estimate of a $0.04 loss. Revenue came in at $223.13 million, outpacing expectations of $182.41 million, driven by higher bookings, robust demand, and a record backlog of $1.4 billion, up 6% year-over-year.
The company's impressive performance was underpinned by solid execution across its production and development programs. Notably, Mercury Systems secured bookings of $242.4 million during the quarter, resulting in a book-to-bill ratio of 1.09. Additionally, the company generated record operating cash flow of $85.5 million and free cash flow of $81.9 million, reflecting its focus on improving cash generation.