Mercury Systems announced a new contract with L3Harris Technologies to supply solid‑state data recorders (SSDRs) for the U.S. Space Development Agency’s (SDA) Tranche 3 Tracking Layer satellite constellation. The award covers 18 infrared satellites that will enhance the SDA Proliferated Warfighter Space Architecture’s missile‑tracking capability.
The contract follows L3Harris’s December 2025 award to build the 18 satellites, which are scheduled for launch in fiscal year 2029. Mercury’s SSDRs are its highest‑capacity units to date, built in a 3U VPX form factor and designed to withstand the radiation environment of space. Mercury has already supplied SSDRs for Tranche 2 and earlier constellations, demonstrating its proven reliability in classified programs.
While the contract value was not disclosed, the win adds a multi‑year revenue stream for Mercury. The company’s Q2 FY26 results showed revenue of $233 million, a 7.1% year‑over‑year increase, and adjusted EBITDA of $30 million, reflecting a 12.9% margin that improved from the prior year. Bookings rose 18.6% to $288 million and the backlog climbed 8.8% to $1.5 billion, underscoring growing demand for Mercury’s mission‑critical solutions.
Mercury’s senior vice president of processing technologies, Ken Hermanny, said, “As the United States accelerates hardware production across all battlefield domains, Mercury is taking proactive measures to increase manufacturing capacity and efficiency in our operations.” The comment highlights the company’s focus on scaling production to meet the growing needs of space‑based defense programs.
The contract win reinforces Mercury’s position as a trusted supplier for high‑security, high‑performance processing solutions in the defense electronics sector. It also signals continued demand for radiation‑tolerant, high‑capacity data storage in the expanding space‑based defense market, positioning Mercury to capture additional opportunities as the SDA program progresses.
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