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Mercury Expands Processing Hardware Production Agreements with European Defense Prime Contractor

1. MRCY signed agreements with a European defense contractor for radar subsystems. 2. Agreement enables higher production rates for sensor processing and electronic warfare components. 3. Mercury aims to enhance capabilities for military operations in Europe. 4. Investments will reduce development timelines for advanced processing products. 5. There are risks in defense funding and supply chain that could impact results.

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Why Bullish?

The new contracts signal growing demand for MRCY’s defense technology products, which could lead to revenue growth. Historically, similar agreements have positively influenced stock prices due to increased visibility and investor confidence.

How important is it?

The agreements with a major defense contractor could substantially boost MRCY’s market presence and financial outlook, reinforcing its position in the defense sector. Positive outcomes generally correlate with similar past contracts.

Why Long Term?

The contracts extend over multiple years, allowing MRCY to benefit from sustained revenue. Previous long-term contracts have contributed to consistent performance metrics and stability in stock valuation.

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NOCLMTRTX
July 16, 2025 07:00 ET  | Source: Mercury Systems Inc ANDOVER, Mass., July 16, 2025 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing to the edge, today announced it signed two agreements with a European defense prime contractor to expand and accelerate production of processing subsystems and components for radar and electronic warfare missions. In June, Mercury extended this decades-long customer relationship with a five-year agreement that will enable faster, higher-volume production of sensor processing subsystems powered by Mercury’s HDS6605 6U OpenVPX multiprocessing boards for airborne, land-based, and sea-based radar systems. Earlier this month, Mercury signed an expanded production agreement with the same customer to deliver Monolithic Microwave Integrated Circuit (MMIC) products that support electronic warfare sensors. Mercury’s mini-tuner modules and amplifiers deliver industry-leading price per performance, enabling the sensors to capture and convert analog RF signals. “Mercury is proud to expand our relationship with one of Europe’s leading providers of defense systems that are playing an active role in military operations in Europe and beyond,” said Paul Tanner, Vice President of Mercury International. “We are strengthening our commitment to the European defense sector by making investments to reduce development and production timelines for our unique processing products and solutions.” Mercury Systems – Innovation that matters®Mercury Systems is a technology company that delivers mission-critical processing power to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has more than 20 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY) Forward-Looking Safe Harbor StatementThis press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company's focus on enhanced execution of the Company's strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company's products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, such as the deductibility of internal research and development, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 28, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made. INVESTOR CONTACTTyler HojoVice President, Investor RelationsTyler.Hojo@mrcy.com MEDIA CONTACTTurner BrintonSenior Director, Corporate Communications Turner.Brinton@mrcy.com

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