Lyntris Revenue Up 90% to $194 Million as Backlog Tops $1 Billion

By Tom Whitfield

Lyntris (NYSE:LYNX) grew fiscal third-quarter revenue 90% to $194 million, with 89% of that organic, as air and missile defense demand pushed its backlog above $1 billion for the first time. The company reported the results alongside a caveat executives did not disguise: a heavier share of early-stage engineering work will slow the pace of margin expansion.

Adjusted EBITDA rose 91% to $28.5 million, a 14.7% margin. The net loss widened to $5 million, or $0.04 per share, from $3.5 million, or $0.03 per share, a year earlier. Adjusted net income climbed to $17 million, or $0.15 per share, from $1.7 million, or $0.02 per share. Chief Executive Officer Brian Morrison said the results exceeded the company's expectations.

What drove the growth?

Three segments carried the quarter:

• Air and missile defense revenue rose 154% to $83 million, helped by accelerated work on a major radar program supporting initial fielding and low-rate production.
• Space intelligence, surveillance and reconnaissance, plus resilient communications, grew 108% to $57 million.
• Maritime domain awareness revenue increased 29% to $54 million.

Orders exceeded revenue. The backlog reached just over $1 billion, up about $100 million from the prior quarter and up 113% from the end of fiscal 2025. The book-to-bill ratio stood at 1.5.

Morrison said growth spread across programs, but he identified rising activity on the Lower Tier Air and Missile Defense Sensor, or LTAMDS, and a separate air and missile defense radar program now in initial fielding. International customers accounted for nearly a quarter of backlog, against a historical share of about 15% of revenue. President Matt Alty cited demand from European nations for sovereign space communications that can operate in contested environments.

Two contract developments anchor the pipeline. In September, Lyntris announced production orders under a long-term purchase agreement with Raytheon for LTAMDS, supporting demand through 2028; Lyntris supplies thermal management assemblies for the radar's electronics. Alty also highlighted Lyntris' selection as prime payload integrator for the U.S. Space Force's Protected Tactical Satellite Communications–Global program, PTS-G, a step up from integrated antenna solutions to integrated satellite payloads.

Why will margins take longer?

Lyntris guided to fiscal 2026 revenue of $623 million to $630 million, roughly 61% growth at the midpoint, and adjusted EBITDA of $95.5 million to $97 million, about 54% growth. What the guidance did not contain: a faster margin trajectory.

Morrison said more design and initial deployment work than anticipated means adjusted EBITDA margin expansion will take somewhat longer than initially expected, even as that work adds revenue and EBITDA dollars. Chief Financial Officer Tim Paulin said early-stage design and development programs represented an outsized proportion of activity in the quarter. That is the trade — dollars now, percentage points later.

Executives pointed to recovery levers: programs advancing into production, reuse of technology from earlier work, international business, a greater share of firm fixed-price contracts, operating leverage and broader integrated solutions. Morrison said he still believes Lyntris can reach an adjusted EBITDA margin in the 20% range over the medium to long term, and that annual improvement of 100 basis points remains achievable — though the company now starts from a different point than previously expected. He declined to give detailed 2027 guidance but said management was "completely comfortable" with growth of 30% or more from 2026 to 2027.

What does the balance sheet say?

Operating activities generated about $84 million in the quarter. After $5 million of capital spending, free cash flow came to $79 million, excluding IPO proceeds. Paulin credited earnings and favorable customer payments, while noting cash flow will vary with the timing of receipts and program spending.

Lyntris ended the quarter with $88 million in cash and $198 million in debt. Net leverage fell to 1.2 times from 4.2 times at the start of the fiscal year, helped by about $60 million of August IPO proceeds used to repay debt. Nothing remains outstanding on the revolving credit facility.

On capital allocation, Morrison named acquisitions and internal research and development as potential uses, with opportunistic share repurchases possible. He does not anticipate a dividend or further debt reduction, arguing that growth itself is reducing leverage.

Lyntris, based in Washington, describes itself as a defense technology company delivering sense-to-act connectivity for the connected battlespace. Growth is plentiful; the margin story remains a promise, not yet a print.