Mercury Systems (MRCY) Investor presentation summary

Company overview and market position

• Generates $943M in trailing twelve-month revenue with a $1.5B backlog as of Q2 FY26, serving over 300 defense programs globally.

• Employs 2,000+ people, with about 30% holding DoD security clearances, and has over 40 years of technology leadership in aerospace and defense.

• Recognized as a top processing technology provider by 75% of prime contractors in the industry.

• Operates worldwide with DMEA-certified facilities supporting the full program lifecycle, from concept to test.

Strategic framework and operational focus

• Strategic priorities include innovation, expanding mission impact, and delivering performance excellence.

• Focused on ramping critical production, advancing product innovation, and maturing management systems.

• Targeting low to mid 20% adjusted EBITDA margins and aiming for normalized 50% free cash flow conversion.

• Emphasizes organic growth, margin expansion, and improved free cash flow conversion.

Transformation and recent performance

• Completed 15 acquisitions since FY14 to enhance growth and value creation.

• New management and a refreshed board installed to drive turnaround, with FY25 marking a return to organic growth and record free cash flow.

• Addressed supply chain and operational challenges, streamlining operations and reducing working capital.