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Key Takeaways Redwire's backlog hit $542.1M, up 64.5%, while 2026 revenue guidance remains $450M-$500M.Defense Tech revenue reached $61.9M as adjusted EBITDA improved to $14.1M from a $15M loss.RDW faces negative free cash flow, weak Space profitability and a 4.88X forward sales multiple. Redwire Corporation (RDW - Free Report) enters the second half of 2026 with faster Defense Tech growth, record backlog and a much stronger balance sheet. Those gains improve the growth case, but investors are still paying a premium sales multiple.

The decision depends on execution. Space profitability remains uneven and free cash flow is negative, leaving little room for disappointment if growth or margins slow.

RDW's Backlog Supports a Stronger Growth CaseContracted backlog reached $542.1 million as of June 30, 2026, up 64.5% year over year. Redwire also recorded more than $350 million of bookings during the first half, expanding funded demand for the back half.

Management reaffirmed full-year 2026 revenue guidance of $450 million to $500 million and said visibility to the midpoint had moved into the 90% range. That supports expectations for stronger second-half revenues if program timing and backlog conversion stay on track.

Redwire's Defense Tech Business Is Scaling FastDefense Tech revenues reached $61.9 million in the second quarter versus $5.1 million a year earlier. Segment adjusted EBITDA improved to $14.1 million from a $15 million loss, adding both scale and profit contribution.

Redwire received repeat Stalker orders, secured a high eight-figure multi-year Penguin Mk3 contract and delivered nearly 200 Octopus intelligence, surveillance and reconnaissance payloads year to date, up more than 15%. AeroVironment, Inc. (AVAV - Free Report) also develops autonomous and counter-uncrewed-aircraft systems, while Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) develops unmanned tactical aerial platforms. Both provide relevant context for investor interest in defense autonomy.

RDW Still Faces Uneven Profitability and Cash BurnSpace remains the weaker segment. First-half 2026 Space adjusted EBITDA was a $5.7 million loss compared with positive $8.5 million a year earlier, with higher research and development spending weighing on results.

Redwire reported negative free cash flow of $48 million for the first six months. First-half research and development expense rose to $25.1 million, and management indicated inventory would likely increase further in the third quarter to support faster uncrewed aerial system deliveries. Those investments may delay a cleaner cash-flow profile.

Redwire's Balance Sheet Improves but Dilution MattersTotal liquidity ended the second quarter at $607.8 million. Total debt fell 75% year over year to $48.9 million, reducing balance-sheet pressure and giving Redwire more flexibility to fund growth.

Common shares outstanding increased to 249.2 million as of June 30, 2026, from 191.9 million at the end of 2025, and the June at-the-market facility still had $350.4 million of unused capacity. Further equity issuance could extend the trade-off between funding flexibility and dilution.

RDW's Valuation Leaves Little Room for MisstepsRDW trades at 4.88X forward 12-month sales per share, above the Zacks sub-industry level of 2.38X and its five-year median of 1.38X. That premium raises the execution bar.

Backlog growth and Defense Tech profitability help support the valuation, but the multiple leaves less room for delays, weaker Space results or slower cash-flow improvement. Investors are paying for continued progress rather than a discounted recovery.

RDW's Neutral View Favors PatienceThe key question is whether Redwire can convert record backlog and Defense Tech momentum into more consistent consolidated profitability and free cash flow. The stronger balance sheet helps, but dilution and execution risks remain.

The stated Neutral view favors patience. Defense growth is encouraging, yet the premium sales multiple, weak Space profitability and ongoing cash burn argue for clearer evidence of sustained execution before the risk-reward improves.

RDW Stock Price MovementIn the past six months, Redwire shares have risen 11.3% against the industry’s decline of 17.3%.

Image Source: Zacks Investment Research

RDW’s Zacks RankRedwire currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Redwire (RDW +0.68%) stock was hardly in the red in the last full month of 2026's summer. In fact, it posted a solid, double-digit gain of 24% across August, helped in no small part by second-quarter earnings that easily topped analyst expectations. The company also continued to secure new contracts, including one with a very prominent name in the space industry.

Soaring sales Redwire published its earnings release near the start of the month, setting the tone for the remainder of August.

Image source: Getty Images.

The company's revenue zoomed almost 90% higher year over year to slightly over $117 million. Not surprisingly, given that kind of improvement, that figure set a new Redwire record. Also notching an all-time high was its project backlog, which was 32% higher than the end-2025 level, at over $542 million.

None of this made the still-relatively young company profitable, however. Its net loss under generally accepted accounting principles (GAAP) came in at nearly $41 million, which, on the bright side, was significantly narrower than the nearly $97 million deficit in the same quarter of last year. On a non-GAAP (adjusted), per-share basis, the loss slimmed to $0.09 from $0.31.

Both headline results convincingly topped the consensus analyst estimates. On average, the pundits tracking Redwire stock were estimating total revenue just shy of $108 million. They believed the company would post a much steeper adjusted net loss of $0.16 per share.

Much of the year-over-year improvements in the fundamentals came from increases in good, old-fashioned project work.

The quarter saw the company sign contracts to supply its Penguin drones to clients such as an unnamed North Atlantic Treaty Organization (NATO) country and the Asian island nation of Taiwan, and complete on-orbit operations for drug development activities for prominent pharmaceutical and biotech companies, among other projects.

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Double-digit growth to continue? With those tailwinds at its back, Redwire was confident enough to maintain its full-year revenue guidance of $450 million to $500 million. This would mean at least 34% growth over the 2025 result.

Looking at the company's announcements in its current (third) quarter alone, this seems eminently achievable. For example, just after earnings, it revealed that its Space Microgravity Development (SpaceMD) unit had signed a collaboration agreement with Space Exploration Technologies, or SpaceX.

The Elon Musk-led company sold its payload space on a mission of Starfall, the large payload capsule it's currently developing. SpaceMD will then resell the space to drug discovery clients.

The future for this company is exciting, although I'll feel much more confident when and if it consistently posts net profits. I'd say it is a speculative stock at the moment, suitable for investors with a healthy appetite for risk, that has considerable upside potential.

Key Takeaways RDW's Q2 revenues jumped 89.6% to a record $117.1 million as gross margin improved to 27.8%.Defense Tech revenues surged to $61.9 million, while adjusted EBITDA improved to $14.1 million.Redwire won new autonomous-systems contracts and delivered nearly 200 Octopus ISR payloads in 2026. Redwire Corporation (RDW - Free Report) is increasingly positioning itself at the intersection of two structural trends in aerospace and defense — the modernization of space infrastructure and the growing adoption of autonomous systems. Its second-quarter 2026 results indicate that this strategy is beginning to translate into significant revenue growth, higher margins and a growing backlog.

The company generated record revenues of $117.1 million in the second quarter, up 89.6% year over year, while gross margin improved to 27.8% from negative 30.9% a year earlier. Redwire also achieved a second quarter book-to-bill ratio of 1.42, indicating that new contract awards are outpacing current revenues.

The Defense Tech segment is becoming increasingly important to Redwire’s growth profile. The segment generated $61.9 million of second-quarter revenues compared with just $5.1 million a year earlier, while segment adjusted EBITDA improved to $14.1 million from a $15 million loss.

The growth reflects demand for Redwire’s autonomous systems and defense technologies. During the quarter, the company received follow-on awards for its Stalker Block 30 systems and contracts for Penguin uncrewed aerial systems, including a multi-year contract valued in the high eight figures from an undisclosed NATO country. Redwire also delivered nearly 200 Octopus ISR payloads during the first half of 2026, up more than 15% year over year.

Redwire’s second-quarter results suggest that the company is moving toward a larger and more diversified space-and-defense platform. Rapid revenue growth, improving gross margins and the growing contribution from Defense Tech provide a stronger foundation for future expansion.

Which Other Stocks Could Benefit From the Trend?Redwire is part of a much broader aerospace and defense investment cycle, driven by rising defense budgets, geopolitical tensions, space modernization and demand for autonomous technologies.

L3Harris Technologies (LHX - Free Report) is particularly relevant to Redwire's autonomous and space theme because of its exposure to communications, sensing, space systems and electronic warfare.

Northrop Grumman (NOC - Free Report) provides another way to participate in the growth of space and defense technology, with exposure to strategic systems, space programs, autonomous platforms and advanced defense technologies.

RDW Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 58.54% and 38.6%, respectively.

Image Source: Zacks Investment Research

RDW Stock Trades at a PremiumIn terms of valuation, RDW’s forward 12-month price-to-sales (P/S) is 5.44X, a premium to the industry’s average of 2.47X.

Image Source: Zacks Investment Research

RDW Stock’s Price PerformanceIn the past six months, the company’s shares have risen 26.6% against the industry’s 12.4% decline.

Image Source: Zacks Investment Research

RDW’s Zacks RankThe company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

5 Space Stocks Face a Brutal Correction: Which Ones Are Still Buys?Redwire NYSE: RDW reported record second-quarter revenue, gross margin and contracted backlog for 2026, as growth in its defense technology business and continued demand for space systems supported results. The company reaffirmed its full-year revenue outlook and said it expects revenue to build during the second half.

Revenue for the second quarter reached $117.1 million, up 20.7% sequentially and 89.6% from the year-earlier period. The space segment generated $55.2 million in revenue, while defense technology contributed $61.9 million. Chief Financial Officer Chris Edmonds said the Edge Autonomy acquisition was the primary driver of the substantial year-over-year increase in defense technology revenue.

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MDA Space Targets US Defense Market With $620M Acquisition“With more than $350 million in bookings during the last two quarters, we continue to expect our revenue to build in the second half of the year,” Edmonds said.

Margins Improve as Defense Mix Grows Gross margin rose to a record 27.8% during the quarter, improving both sequentially and year over year. Edmonds attributed the result to a stronger defense technology contribution, which historically carries higher margins, as well as a business mix shifting from development programs into production. He also said estimated-at-completion, or EAC, changes had a net-neutral effect during the quarter.

AST SpaceMobile Announces Launch Date for Its Next 3 BlueBird SatellitesRedwire recorded a net loss of $41 million, an improvement of $56 million from the prior-year period. Adjusted EBITDA was negative $3.2 million, which management said was a significant improvement both year over year and sequentially.

While the company highlighted the margin progress, Edmonds said Redwire continues to focus on cost control and program execution. He told analysts that the company’s prior view of gross margins in the low-to-mid-20% range remains an appropriate near-term expectation, while additional expansion could occur as space backlog is replenished and defense technology grows.

Research and development spending increased to $12.5 million in the quarter from $1.7 million a year earlier. Management said the increased investment is intended to mature products and solutions to meet customer demand.

Backlog Reaches $542.1 Million Second-quarter bookings totaled $165.8 million, producing a quarterly book-to-bill ratio of 1.42. The last-12-month book-to-bill ratio was 1.52. Contracted backlog grew 8.8% from the first quarter and 64.5% from a year earlier to a record $542.1 million.

Space backlog was $322 million as of June 30. Defense technology backlog was $220.2 million. Management noted that most defense technology revenue is recognized at a point in time, while most space revenue is recognized over time. Edmonds said the company has now posted five consecutive quarters of backlog growth. He described the macro environment as supportive and said Redwire’s last-12-month book-to-bill ratio signals growth, though he cautioned that contract awards can be uneven across quarters.

For 2026, Redwire reaffirmed its revenue forecast of $450 million to $500 million. The midpoint would represent 41.6% year-over-year growth. The company reported year-to-date revenue of $214 million and said it had visibility into more than 90% of the midpoint of its annual revenue guidance.

Balance Sheet Strengthened Through Equity Raise Redwire ended the quarter with total liquidity of $607.8 million, consisting of $557.8 million in cash equivalents and restricted cash and $50 million of undrawn revolver capacity. The increase was primarily driven by $487.9 million in net proceeds raised through its at-the-market equity program during the quarter.

Management said total debt fell 75% year over year to $48.9 million, while net interest expense declined to less than $1 million from $23.8 million in the second quarter of 2025. The company also said its Series A preferred shares have fully converted into common stock and outstanding warrants were reduced 92% to 202,000, with those warrants scheduled to expire in September.

Edmonds said Redwire had 249.9 million common shares outstanding. The company increased inventory to support faster delivery times for its unmanned aircraft systems, particularly in defense markets, and expects inventory levels may rise further in the third quarter.

Production Expansions and Defense Technology Programs Chief Executive Officer Peter Cannito outlined a capital allocation framework centered on balance sheet strength, internal investment and accretive acquisitions. He said the company has completed 11 acquisitions to date and continues to assess acquisition opportunities following the integration of Edge Autonomy.

Redwire opened a 30,000-square-foot microgravity center of excellence in Georgetown, Indiana, featuring expanded laboratory space and a payload operations center linked to the International Space Station. The site will support pharmaceutical and biotechnology research, development and manufacturing in microgravity.

The company also announced a planned 164,000-square-foot expansion in Huntsville, Alabama, expected to be completed in the fourth quarter of 2027. The project is supported by approximately $8.5 million in eligible state and local economic-development incentives and is intended to expand production of Stalker aircraft, Octopus intelligence, surveillance and reconnaissance payloads, power systems and space capabilities.

Among recent contract and program updates, Redwire said it was selected as one of 15 vendors for the Space Systems Command’s $981 million NITE-STAR capability development indefinite-delivery, indefinite-quantity contract. The company also received a high eight-figure, multiyear award to supply Penguin Mk3 aircraft to an undisclosed NATO customer, along with a Taiwan Coast Guard contract and follow-on Stalker Block 30 awards from the U.S. Marine Corps and U.S. Army.

Redwire delivered nearly 200 Octopus ISR payloads year to date, up more than 15% from the prior year. Cannito said the company’s development pipeline includes the Stalker Block 40 and Penguin Mk3 platforms, as well as expanded payload and radio-frequency capabilities.

In microgravity operations, Redwire’s venture company SpaceMD signed an agreement to purchase an entire SpaceX Starfall spacecraft. The first SpaceMD Starfall mission is slated for 2028 and is expected to carry up to 32 PIL-BOX units for microgravity research and manufacturing payloads.

About Redwire (NYSE:RDW)Redwire Corporation is a space infrastructure company specializing in the design, engineering and manufacturing of mission-critical hardware and software for the spaceflight industry. The company's offerings include deployable structures, solar power systems, radio frequency antennas, advanced composites and transparent optics. Redwire serves a broad customer base that spans civil space agencies, national defense organizations and commercial satellite operators, helping enable missions ranging from communications and Earth observation to deep-space exploration.

Formed through the strategic combination of several specialized space technology firms, Redwire's portfolio encompasses both flight-proven hardware and cutting-edge in-space manufacturing capabilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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JACKSONVILLE, Fla.--(BUSINESS WIRE)--Redwire Corporation (NYSE:RDW, “Redwire” or the “Company”), a global leader in space and defense technology solutions, today announced results for its second quarter ended June 30, 2026.

“With new record highs for both revenue of $117.1 million and gross margin of 27.8%, Redwire’s second quarter of 2026 was defined by successful execution,” said Peter Cannito, Chairman, Chief Executive Officer, and President of Redwire. “With a record Backlog1 of $542.1 million and a strengthened balance sheet to enable strategic investments, Redwire is scaling to meet the strong demand we see for our mission critical space and defense tech offerings.”

Second Quarter 2026 Highlights

Announced key follow-on awards for Stalker Block 30 from both the Marine Corps Portfolio Acquisition Executive Robotic Autonomous Systems and the 1st Aviation Brigade, U.S. Army Aviation Center of Excellence. Awarded contracts to deliver Penguin uncrewed aerial systems across the globe, including a multi-year contract valued at high eight-figures from an undisclosed NATO country and a contract from Taiwan Color Optics, Inc. for the Taiwan Coast Guard. Delivered nearly 200 Octopus ISR payloads year-to-date, a more than 15% increase year-over-year, and announced two new Octopus products, the Octopus E140 MWIR and E180 HD MWIR. Completed on-orbit operations for pharmaceutical drug development investigations in partnership with researchers at Aspera Biomedicines, Bristol Myers Squibb, Rowan University, and Purdue University, marking more than 50 PIL-BOXes flown since the inaugural mission in November 2023. Subsequent to the end of the second quarter of 2026, held a grand opening in Georgetown, Indiana and announced a facility expansion in Huntsville, Alabama, bringing new capabilities and additional capacity online to support growth. Revenues increased 89.6% year-over-year to $117.1 million for the second quarter of 2026. Year-over-year improvement in gross margins to 27.8% for the second quarter of 2026 compared to (30.9)% for the second quarter of 2025. Net Loss improved by $56.0 million year-over-year to $(41.0) million for the second quarter of 2026. Adjusted EBITDA2 increased by $24.2 million year-over-year to $(3.2) million for the second quarter of 2026, inclusive of $12.5 million in Research and Development expense. Achieved Book-to-Bill3 ratio of 1.42 for the second quarter of 2026 with a meaningful year-over-year increase on a last twelve months basis to 1.52 as of the second quarter of 2026. Ended second quarter 2026 with total liquidity4 of $607.8 million, a 366.9% increase over the end of 2025. 2026 Forecast

For the full year ended December 31, 2026, Redwire reaffirms that it is forecasting revenues of $450 million to $500 million. “Consistent with our expectations, during the second quarter of 2026, Redwire expanded gross margins to 27.8%, and achieved sequential and year-over-year improvement in Adjusted EBITDA5 to $(3.2) million, while investing $12.5 million in Research and Development,” said Chris Edmunds, Chief Financial Officer of Redwire. “During the quarter we reduced the aggregate amount of our term loans from $90.0 million to $50.0 million and ended the quarter with record total liquidity4 of $607.8 million. With $214.0 million of recorded revenue during the first half of 2026 and Backlog3 providing significant visibility for the back half of the year, we are again pleased to reaffirm our 2026 revenue forecast.”

Webcast and Investor Call

Management will conduct a conference call starting at 9:00 a.m. ET on Thursday, August 6, 2026 to review financial results for the second quarter ended June 30, 2026. This release is available in the investor section of Redwire’s website at RDW.com.

Redwire will live stream a presentation with slides during the call. Please use the following link to follow along with the live stream: https://event.choruscall.com/mediaframe/webcast.html?webcastid=ITIRLOWy. The dial-in number for the live call is 877-485-3108 (toll free) or 201-689-8264 (toll), and the conference ID is 13761352.

A telephone replay of the call will be available for two weeks following the event by dialing 877-660-6853 (toll-free) or 201-612-7415 (toll) and entering the access code 13761352. The webcast replay and accompanying investor presentation will be available on August 6, 2026 in the investor section of Redwire’s website at RDW.com.

Any replay, rebroadcast, transcript or other reproduction or transmission of this conference call, other than the replay accessible by calling the number and website above, has not been authorized by Redwire and is strictly prohibited. Investors should be aware that any unauthorized reproduction of this conference call may not be an accurate reflection of its contents.

About Redwire Corporation

Redwire Corporation (NYSE:RDW) is an integrated space and defense tech company focused on advanced technologies. We are building the future of aerospace infrastructure, autonomous systems and multi-domain operations leveraging digital engineering and AI automation. Redwire’s approximately 1,400 employees located throughout North America and Europe are committed to delivering innovative space and airborne platforms transforming the future of multi-domain operations. For more information, please visit RDW.com.

Use of Projections

The financial outlook and projections, estimates and targets in this press release are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainty and contingencies, many of which are beyond Redwire’s control. Redwire’s independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the financial projections for purposes of inclusion in this press release, and, accordingly, they did not express an opinion or provide any other form of assurance with respect thereto for the purposes of this press release. While all financial projections, estimates and targets are necessarily speculative, Redwire believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results for the Company are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this press release should not be regarded as an indication that Redwire, or its representatives, considered or consider the financial projections, estimates or targets to be a reliable prediction of future events. Further, inclusion of the prospective financial information in this press release should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved.

Cautionary Statement Regarding Forward-Looking Statements

Readers are cautioned that the statements contained in this press release regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are “forward-looking statements” as defined by the “safe harbor” provisions in the Private Securities Litigation Reform Act of 1995. Such statements are made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release, including statements regarding our strategy, financial projections, including the prospective financial information provided in this press release, financial position, funding for continued operations, cash reserves, liquidity, projected costs, plans, projects, awards and contracts, and objectives of management, among others, are forward-looking statements. Words such as “expect,” “anticipate,” “should,” “believe,” “target,” “continued,” “project,” “plan,” “opportunity,” “estimate,” “potential,” “predict,” “demonstrates,” “may,” “will,” “could,” “intend,” “shall,” “possible,” “forecast,” “trends,” “contemplate,” “would,” “approximately,” “likely,” “outlook,” “schedule,” “pipeline,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are not guarantees of future performance, conditions or results. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control.

These factors and circumstances include, but are not limited to (1) risks associated with economic uncertainty, including high inflation, market volatility, and the potential worsening of macro-economic conditions; (2) geopolitical and macroeconomic events; (3) tariffs impacting demand for our products; (4) the failure of financial institutions or transactional counterparties; (5) our evolving industry, limited operating history since our acquisition of Redwire Defense Tech Intermediate Holdings, LLC and its subsidiaries (f/k/a Edge Autonomy Intermediate Holdings, LLC) (“Edge Autonomy”) and history of losses makes it difficult to evaluate our future prospects and the risks and challenges we may encounter; (6) the inability to successfully integrate recently completed and future acquisitions, including the recent acquisition of Edge Autonomy, or successfully select, execute or integrate future acquisitions into the business and realize the anticipated benefits or do so within the expected timeframe; (7) the development and continued refinement of many of Redwire’s proprietary technologies, products and service offerings; (8) competition with new or existing companies; (9) a limited number of customers make up a high percentage of our revenue; (10) potential litigation arising from time to time; (11) natural disasters, geopolitical conflicts, or other natural or man-made catastrophic events; (12) adverse publicity stemming from any incident or perceived risk involving Redwire or our competitors; (13) incurring significant risks and uncertainties not covered by insurance or indemnity; (14) failure to respond to industry cycles in terms of our cost structure, manufacturing capacity, and/or personnel needs; (15) customers unwillingness to adopt our core offerings; (16) delays in the development, design, engineering and manufacturing of our core offerings; (17) unsatisfactory performance of our core offerings; (18) impacts to our cash flows caused by our mix of fixed-price, cost-plus and time-and-material type contracts; (19) incurrence of expenditures prior to final receipt of a contract; (20) failure of new offerings and technologies to materialize; (21) the inability to convert orders in backlog into revenue; (22) the inability to properly manage the use of artificial intelligence in our business; (23) reliance on third-party launch vehicles to launch our spacecraft and customer payloads; (24) risk of an accident on launch or during a journey into space; (25) Redwire’s inability to meet expected financial results; (26) unfavorable changes in the proportion of cost-plus-fee or fixed-price contracts in our total contract mix and the resulting impact on our margins and operating results; (27) shorter lives than anticipated for our systems, products, technologies, services and related equipment; (28) cyber-attacks and other security threats and disruptions; (29) risks resulting from broader geographic operations; (30) impairment of goodwill; (31) inability to use net operating loss carryforwards and certain other tax attributes; (32) requirements of the National Industrial Security Program Operating Manual for our facility security clearance, which is a prerequisite to performing on classified contracts for the U.S. government; (33) changes to the U.S. government’s budget deficit and the national debt, as well as any inability of the U.S. government to complete its budget process for any government fiscal year, and any resulting government shutdowns; (34) dependence on U.S. government contracts; (35) disputes with our subcontractors or the inability of our subcontractors to perform, or of our key suppliers to timely deliver components, parts or services, resulting in our core offerings being produced or delivered in an untimely or unsatisfactory manner; (36) the potential application of U.S. foreign investment regulations to investments in us, which may impose conditions on or limit certain investors' ability to purchase our common stock, potentially making our common stock less attractive to investors; (37) Redwire is subject to stringent U.S. economic sanctions, and trade control laws and regulations, as well as risks related to doing business in other countries; (38) the wide variety of extensive and evolving government laws and regulations to which our business is subject, and the potential material adverse effect of any failure to comply with such laws and regulations; (39) the potential impact on our reputation and ability to do business resulting from improper conduct of our employees, agents or business partners; (40) failure to comply with federal, state and foreign laws and regulations relating to privacy, data protection and consumer protection, or the expansion of current or enactment of new laws or regulations relating to privacy, data protection and consumer protection, and the resulting adverse effect on our business and financial condition; (41) changes in tax laws or regulations and the resulting increase in tax uncertainty and adverse effect on our results of operations and effective tax rate; (42) failure to adequately protect our intellectual property rights; (43) potential violations of third-party proprietary rights by our technology; (44) failure to obtain necessary additional funding; (45) the possibility of sales of a substantial amount of our common stock by our current stockholders; (46) the inability to remain in compliance with the continued listing requirements of the New York Stock Exchange; (47) the issuance of additional common stock or other equity securities and the resulting dilution of our shareholders' ownership interests; (48) volatility in the trading price of our common stock; (49) our existing material weaknesses and the identification of material weaknesses of other deficiencies or failure to maintain effective internal controls over financial reporting and (50) other risks and uncertainties described in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and those indicated from time to time in other documents filed or to be filed with the Securities and Exchange Commission by Redwire. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. If underlying assumptions to forward-looking statements prove inaccurate, or if known or unknown risks or uncertainties materialize, actual results could vary materially from those anticipated, estimated, or projected. The forward-looking statements contained in this press release are made as of the date of this press release, and Redwire disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Persons reading this press release are cautioned not to place undue reliance on forward-looking statements.

Non-GAAP Financial Information

This press release contains financial measures that have not been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). These financial measures include Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, Segment Adjusted EBITDA, Adjusted EPS and Free Cash Flow.

Non-GAAP financial measures are used to supplement the financial information presented on a U.S. GAAP basis and should not be considered in isolation or as a substitute for the relevant U.S. GAAP measures and should be read in conjunction with information presented on a U.S. GAAP basis. Because not all companies use identical calculations, our presentation of Non-GAAP measures may not be comparable to other similarly titled measures of other companies. We encourage investors and stockholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Adjusted EBITDA is defined as net income (loss) adjusted for interest expense, net, income tax expense (benefit), depreciation and amortization, impairment expense, transaction expenses, acquisition integration costs, acquisition earnout costs, purchase accounting fair value adjustment related to deferred revenue and inventory, severance costs, capital market and advisory fees, disposal of long-lived assets, litigation-related expenses, equity-based compensation, committed equity facility transaction costs, debt financing costs and extinguishment losses, gains on sale of joint ventures, net of costs incurred, and warrant liability change in fair value adjustment.

Adjusted Gross Profit is defined as revenues less cost of sales as computed in accordance with U.S. GAAP, excluding adjustments resulting from the application of purchase accounting included in cost of sales and Adjusted Gross Margin is defined as Adjusted Gross Profit as a percentage of revenue. Management believes these non-GAAP measures provide investors meaningful insight into results from ongoing operations as the calculation of these measures excludes the impact of certain non-recurring charges. Management believes that by using Adjusted Gross Margin in conjunction with GAAP Gross Margin, investors will get a more complete view of what management considers to be the Company’s core operating performance and allow for comparison of this measure when compared to those of prior periods.

Segment Adjusted EBITDA is defined as income (loss) before taxes, excluding, depreciation and amortization, impairment expense, transaction expenses, acquisition integration costs, acquisition earnout costs, purchase accounting fair value adjustment related to deferred revenue and inventory, severance costs, disposal of long-lived assets, equity-based compensation and gains on sale of joint ventures, net of costs incurred. Segment Adjusted EBITDA also excludes intra- and inter-segment sales and costs and corporate pushdown costs.

Adjusted EPS is defined as U.S. GAAP diluted earnings per share (the most directly comparable U.S. GAAP measure) before transaction expenses, acquisition integration costs, purchase accounting fair value adjustment related to deferred revenue and inventory, litigation expenses, equity-based compensation, debt financing costs and extinguishment losses and changes in fair value of private warrants, adjusted to assume the Company’s Convertible Preferred Stock does not exist. Adjusted EPS is a useful measure because it eliminates the impact of infrequent or non-recurring items that do not relate to operational performance and provides additional information to investors about certain material non-cash items that we do not expect to continue at the same level in the future.

Free Cash Flow is computed as net cash provided by (used in) operating activities less capital expenditures.

We use Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, Segment Adjusted EBITDA, and Adjusted EPS to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We use Free Cash Flow as an indicator of liquidity to evaluate our period-over-period operating cash generation that will be used to service our debt, and can be used to invest in future growth through new business development activities and/or acquisitions, among other uses. Free Cash Flow does not represent the total increase or decrease in our cash balance, and it should not be inferred that the entire amount of Free Cash Flow is available for discretionary expenditures, since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from this measure.

Key Performance Indicators

Management uses Key Performance Indicators (“KPIs”) to assess the financial performance of the Company, monitor relevant trends and support financial, operational and strategic decision-making. Management frequently monitors and evaluates KPIs against internal targets, core business objectives as well as industry peers and may, on occasion, change the mix or calculation of KPIs to better align with the business, its operating environment, standard industry metrics or other considerations. If the Company changes the method by which it calculates or presents a KPI, prior period disclosures are recast to conform to current presentation.

REDWIRE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(In thousands of U.S. dollars, except share data)

  June 30, 2026

December 31, 2025

Current assets:

Cash, cash equivalents and restricted cash

$

557,718

$

95,183

Accounts receivable, net

27,495

37,251

Contract assets

72,045

44,019

Inventory, net

85,364

55,847

Prepaid expenses and other current assets

18,538

20,512

Total current assets

761,160

252,812

Property, plant and equipment, net of accumulated depreciation of $20,013 and $14,558

56,092

49,199

Right-of-use assets

34,390

31,741

Intangible assets, net of accumulated amortization of $62,817 and $46,192

319,104

336,153

Goodwill

772,170

779,114

Other non-current assets

428

118

Total assets

$

1,943,344

$

1,449,137

Liabilities, Convertible Preferred Stock and Equity (Deficit)

Current liabilities:

Accounts payable

$

54,158

$

32,295

Notes payable to sellers

3,171

2,171

Short-term debt, including current portion of long-term debt

4,500

5,162

Short-term operating lease liabilities

4,545

4,088

Short-term finance lease liabilities

611

595

Accrued expenses

29,715

32,034

Deferred revenue

84,970

60,119

Other current liabilities

12,568

19,150

Total current liabilities

194,238

155,614

Long-term debt, net

43,561

80,036

Long-term operating lease liabilities

32,698

30,471

Long-term finance lease liabilities

1,189

1,276

Warrant liabilities

692

4,213

Deferred tax liabilities

39,885

38,358

Other non-current liabilities

1,224

2,119

Total liabilities

$

313,487

$

312,087

Convertible preferred stock, $0.0001 par value, 125,292.00 shares authorized; issued and outstanding: 2026—none and 2025—46,505.13. Liquidation preference: 2026—none and 2025—$118,434

$

—

$

77,034

Shareholders’ Equity (Deficit):

Preferred stock, $0.0001 par value, 99,874,708 shares authorized; none issued and outstanding

—

—

Common stock, $0.0001 par value, 500,000,000 shares authorized; issued and outstanding 2026—249,221,102 and 2025—191,915,804

25

19

Treasury stock, at cost: 2026—1,036,294 shares and 2025—1,036,294 shares

(7,342

)

(7,342

)

Additional paid-in capital

2,377,689

1,678,799

Accumulated deficit

(739,235

)

(621,762

)

Accumulated other comprehensive income (loss)

(1,280

)

10,302

Total shareholders’ equity (deficit)

1,629,857

1,060,016

Total liabilities, convertible preferred stock and equity (deficit)

$

1,943,344

$

1,449,137

REDWIRE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

Unaudited

(In thousands of U.S. dollars, except share and per share data)

Three Months Ended

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Revenues

$

117,074

$

61,760

$

214,046

$

123,155

Cost of sales

84,530

80,824

155,694

133,178

Gross profit

32,544

(19,064

)

58,352

(10,023

)

Operating expenses:

Selling, general and administrative expenses

42,076

54,464

124,963

73,210

Transaction expenses

11

16,643

51

20,442

Research and development

12,547

1,720

25,129

2,533

Operating income (loss)

(22,090

)

(91,891

)

(91,791

)

(106,208

)

Interest expense, net

796

23,755

3,263

27,349

Loss on extinguishment of debt

1,186

—

3,731

—

Other (income) expense, net

15,037

13,937

16,185

(844

)

Income (loss) before income taxes

(39,109

)

(129,583

)

(114,970

)

(132,713

)

Income tax expense (benefit)

1,862

(32,604

)

2,503

(32,786

)

Net income (loss)

(40,971

)

(96,979

)

(117,473

)

(99,927

)

Less: dividends on Convertible Preferred Stock

504

29,739

2,016

33,179

Net income (loss) available to common shareholders

$

(41,475

)

$

(126,718

)

$

(119,489

)

$

(133,106

)

Net income (loss) per common share:

Basic and diluted

$

(0.19

)

$

(1.41

)

$

(0.58

)

$

(1.66

)

Weighted-average shares outstanding:

Basic and diluted

220,466,669

89,554,940

207,143,490

80,424,270

Comprehensive income (loss):

Net income (loss)

$

(40,971

)

$

(96,979

)

$

(117,473

)

$

(99,927

)

Foreign currency translation gain (loss), net of tax

(5,157

)

10,174

(11,582

)

11,009

Total other comprehensive income (loss), net of tax

(5,157

)

10,174

(11,582

)

11,009

Total comprehensive income (loss)

$

(46,128

)

$

(86,805

)

$

(129,055

)

$

(88,918

)

REDWIRE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited

(In thousands of U.S. dollars)

  Six Months Ended

June 30, 2026

June 30, 2025

Cash flows from operating activities:

Net income (loss)

$

(117,473

)

$

(99,927

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization expense

22,710

8,106

Amortization of debt issuance costs and discount

657

642

Equity-based compensation expense

50,635

35,598

Loss on extinguishment of debt

3,731

—

(Gain) loss on change in fair value of warrants

14,787

2,692

Deferred provision (benefit) for income taxes

2,485

(32,069

)

Other

1,961

(3,677

)

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

9,553

(3,468

)

(Increase) decrease in contract assets

(28,388

)

(5,724

)

(Increase) decrease in inventory

(30,170

)

1,449

(Increase) decrease in prepaid expenses and other assets

68

(3,024

)

Increase (decrease) in accounts payable and accrued expenses

19,358

(5,586

)

Increase (decrease) in deferred revenue

25,344

(28,433

)

Increase (decrease) in operating lease liabilities

(427

)

(55

)

Increase (decrease) in other liabilities

(7,433

)

732

Increase (decrease) in notes payable to sellers

1,000

—

Net cash provided by (used in) operating activities

(31,602

)

(132,744

)

Cash flows from investing activities:

Acquisition of businesses, net of cash acquired

—

(151,791

)

Purchases of property, plant and equipment

(13,287

)

(4,752

)

Purchase of intangible assets

(3,154

)

(5,186

)

Net cash provided by (used in) investing activities

(16,441

)

(161,729

)

Cash flows from financing activities:

Proceeds received from debt

89,728

190,327

Repayments of debt

(129,537

)

(125,876

)

Payment of debt issuance fees

(1,914

)

(105

)

Repayment of finance leases

(294

)

(227

)

Proceeds from (repayment of) third-party advances

—

(7,820

)

Proceeds from issuance of common stock

566,243

328,684

Payment of equity issuance costs

(13,881

)

—

Proceeds from common stock issued for options exercise

4,155

—

Shares repurchased for settlement of employee tax withholdings on share-based awards

—

(8

)

Convertible preferred stock dividend

(3,039

)

—

Repurchase of convertible preferred stock

—

(61,486

)

Net cash provided by (used in) financing activities

511,461

323,489

Effect of foreign currency rate changes on cash, cash equivalents and restricted cash

(883

)

472

Net increase (decrease) in cash, cash equivalents and restricted cash

462,535

29,488

Cash, cash equivalents and restricted cash at beginning of period

95,183

49,071

Cash, cash equivalents and restricted cash at end of period

$

557,718

$

78,559

REDWIRE CORPORATION

Reportable Segment Results

Unaudited

(In thousands of U.S. dollars)

  Three Months Ended

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Revenues

Space

$

55,192

$

56,682

$

107,859

$

108,815

Defense Tech

61,882

5,078

106,187

14,340

Total revenues

$

117,074

$

61,760

$

214,046

$

123,155

Segment Adjusted EBITDA

Space

$

(4,203

)

$

1,040

$

(5,732

)

$

8,484

Defense Tech

14,083

(15,041

)

19,481

(12,614

)

Total Segment Adjusted EBITDA

$

9,880

$

(14,001

)

$

13,749

$

(4,130

)

Reconciliation of Segment Adjusted EBITDA to consolidated net income (loss):

Interest expense, net

(796

)

(23,755

)

(3,263

)

(27,349

)

Depreciation and amortization expense

(11,460

)

(5,060

)

(22,710

)

(8,106

)

Severance costs

(294

)

(1,999

)

(556

)

(2,176

)

Equity-based compensation expense

(3,900

)

(32,686

)

(50,635

)

(35,598

)

Transaction expenses

(11

)

(16,643

)

(51

)

(20,442

)

All other corporate charges(1)

(30,800

)

(32,459

)

(46,626

)

(31,932

)

Debt financing costs and extinguishment losses

(1,260

)

(105

)

(4,185

)

(105

)

Purchase accounting fair value adjustment related to inventory

—

(2,418

)

—

(2,418

)

Acquisition integration cost

(259

)

(457

)

(484

)

(457

)

Disposal of long-lived assets

(209

)

—

(209

)

—

Income (loss) before income taxes

$

(39,109

)

$

(129,583

)

$

(114,970

)

$

(132,713

)

(1) All other corporate charges mainly consists of corporate overhead costs maintained at the corporate level, including gains and losses related to financial instruments measured at fair value. These expenses include costs relating to treasury, accounting, consulting, advisory, legal, tax and audit, insurance, financial reporting services and various administrative expenses related to the corporate headquarters.

REDWIRE CORPORATION

Supplemental Non-GAAP Information

Unaudited

Adjusted EBITDA

The following table presents the reconciliations of Adjusted EBITDA to net income (loss), computed in accordance with U.S. GAAP.

  Three Months Ended

Six Months Ended

(in thousands)

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Net income (loss)

$

(40,971

)

$

(96,979

)

$

(117,473

)

$

(99,927

)

Interest expense, net

796

23,755

3,263

27,349

Income tax expense (benefit)

1,862

(32,604

)

2,503

(32,786

)

Depreciation and amortization

11,460

5,060

22,710

8,106

Transaction expenses (i)

11

16,643

51

20,442

Acquisition integration costs (i)

259

457

484

457

Purchase accounting fair value adjustment related to inventory (ii)

—

2,418

—

2,418

Severance costs (iii)

294

1,999

556

2,176

Capital market and advisory fees (iv)

2,742

2,740

4,757

3,708

Disposal of long-lived assets (v)

209

—

209

—

Litigation-related expenses (vi)

477

—

903

—

Equity-based compensation (vii)

3,900

32,686

50,635

35,598

Debt financing costs and extinguishment loss (viii)

1,260

105

4,185

105

Warrant liability change in fair value adjustment (ix)

14,469

16,326

14,787

2,692

Adjusted EBITDA

$

(3,232

)

$

(27,394

)

$

(12,430

)

$

(29,662

)

i.

Redwire incurred acquisition costs including due diligence, integration costs and additional expenses related to pre-acquisition activity.

ii.

Redwire adjusted inventory related to the application of purchase accounting for the Edge Autonomy acquisition and recognized expense for the amount of the fair value adjustment included in cost of sales for the inventory sold after the acquisition date.

iii.

Redwire incurred severance costs related to separation agreements entered into with former employees.

iv.

Redwire incurred capital market and advisory fees related to advisors assisting with the implementation of internal controls over financial reporting, including material weakness remediation efforts, and the internalization of corporate services, including, but not limited to, implementing enhanced enterprise resource planning systems across U.S. and foreign operations.

v.

Redwire incurred a loss on the disposal of long-lived assets.

vi.

Redwire incurred expenses related to settlements of legal matters.

vii.

Redwire incurred expenses related to equity-based compensation under Redwire’s equity-based compensation plan and Edge Autonomy’s incentive units.

viii.

Redwire incurred expenses related to debt financing agreements, including amendment related fees paid to third parties that are expensed in accordance with U.S. GAAP and losses on debt extinguishments.

ix.

Redwire adjusted the private warrant liability to reflect changes in fair value recognized as a gain or loss during the respective periods.

REDWIRE CORPORATION

Supplemental Non-GAAP Information

Unaudited

Adjusted Gross Profit and Margin

The following table presents the reconciliation of Adjusted Gross Profit to Gross Profit, computed in accordance with U.S. GAAP, and the calculation of Adjusted Gross Margin.

  Three Months Ended

Six Months Ended

(in thousands)

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Gross Profit

$

32,544

$

(19,064

)

$

58,352

$

(10,023

)

Purchase accounting adjustments(1)

—

2,418

—

2,418

Adjusted Gross Profit

$

32,544

$

(16,646

)

$

58,352

$

(7,605

)

Adjusted Gross Margin

27.8

%

(27.0

)%

27.3

%

(6.2

)%

  (1) Relates to the application of purchase accounting for the Edge Autonomy acquisition and represents the amount of the fair value adjustment recognized in cost of sales for the inventory sold after the acquisition date.

Free Cash Flow

The following table presents the reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, computed in accordance with U.S. GAAP.

  Three Months Ended

Six Months Ended

(in thousands)

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Net cash provided by (used in) operating activities

$

(24,936

)

$

(87,663

)

$

(31,602

)

$

(132,744

)

Less: Capital expenditures

(10,405

)

(5,883

)

(16,441

)

(9,938

)

Free Cash Flow

$

(35,341

)

$

(93,546

)

$

(48,043

)

$

(142,682

)

Adjusted EPS

The table below presents a reconciliation of Adjusted EPS to diluted EPS, computed in accordance with U.S. GAAP for the following periods:

  Three Months Ended

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Diluted EPS

$

(0.19

)

$

(1.41

)

$

(0.58

)

$

(1.66

)

Dividends on convertible preferred stock

—

0.33

0.01

0.41

Transaction expenses (i)

—

0.19

—

0.25

Acquisition integration costs (i)

—

0.01

—

0.01

Purchase accounting fair value adjustment (ii)

—

0.03

—

0.03

Litigation-related expenses (iii)

—

—

—

—

Equity-based compensation (iv)

0.02

0.36

0.24

0.44

Debt financing costs and extinguishment losses (v)

0.01

—

0.02

—

Warrant liability change in fair value adjustment (vi)

0.07

0.18

0.07

0.03

Adjusted EPS

$

(0.09

)

$

(0.31

)

$

(0.24

)

$

(0.49

)

i.

Redwire incurred acquisition costs including due diligence, integration costs and additional expenses related to pre-acquisition activity.

ii.

Redwire adjusted inventory related to the application of purchase accounting for the Edge Autonomy acquisition and recognized expense for the amount of the fair value adjustment included in cost of sales for the inventory sold after the acquisition date.

iii.

Redwire incurred expenses related to settlements of legal matters.

iv.

Redwire incurred expenses related to equity-based compensation under Redwire’s equity-based compensation plan and Edge Autonomy’s incentive units.

v.

Redwire incurred expenses related to debt financing agreements, including amendment related fees paid to third parties that are expensed in accordance with U.S. GAAP, and losses on debt extinguishments.

vi.

Redwire adjusted the private warrant liability to reflect changes in fair value recognized as a gain or loss during the respective periods.

REDWIRE CORPORATION

KEY PERFORMANCE INDICATORS

Unaudited

Book-to-Bill

Our book-to-bill ratio was as follows for the periods presented:

  Three Months Ended

Last Twelve Months Ended

(in thousands, except ratio)

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Contracts awarded

Space

$

20,648

$

9,537

$

309,733

$

138,789

Defense Tech

145,139

81,026

337,255

88,269

Total contracts awarded

$

165,787

$

90,563

$

646,988

$

227,058

Revenues

Space

$

55,192

$

56,682

$

208,871

$

220,304

Defense Tech

61,882

5,078

217,401

41,049

Total revenues

$

117,074

$

61,760

$

426,272

$

261,353

Book-to-bill ratio

Space

0.37

0.17

1.48

0.63

Defense Tech

2.35

15.96

1.55

2.15

Total book-to-bill ratio

1.42

1.47

1.52

0.87

Book-to-bill is the ratio of total contracts awarded to revenues recorded in the same period. The contracts awarded balance includes firm contract orders, including time-and-material contracts, awarded during the period and does not include unexercised contract options or potential orders under indefinite delivery/indefinite quantity contracts. Although the contracts awarded balance reflects firm contract orders, terminations, amendments, or contract cancellations may occur which could result in a reduction to the contracts awarded balance.

We view book-to-bill as an indicator of future revenue growth potential. To drive future revenue growth, our goal is for the level of contracts awarded in a given period to exceed the revenue recorded, thus yielding a book-to-bill ratio greater than 1.0.

Our book-to-bill ratio was 1.42 for the three months ended June 30, 2026, as compared to 1.47 for the three months ended June 30, 2025. For the three months ended June 30, 2026 none of the contracts awarded balance relates to acquired contract value. For the three months ended June 30, 2025, the contracts awarded includes $73.7 million of acquired contract value from the Edge Autonomy acquisition.

Our book-to-bill ratio was 1.52 for the Last Twelve Months (“LTM”) ended June 30, 2026, as compared to 0.87 for the LTM ended June 30, 2025. For the LTM ended June 30, 2026 none of the contracts awarded balance relates to acquired contract value. For the LTM ended June 30, 2025, contracts awarded includes $73.7 million of acquired contract value from the Edge Autonomy acquisition, which was completed in the second quarter of 2025 and included in the Defense Tech segment, and $21.9 million of acquired contract value from the Hera Systems acquisition, which was completed in the third quarter of 2024, and included in the Space segment.

Backlog

The following table presents our contracted backlog as of June 30, 2026 and December 31, 2025, and related activity for the six months ended June 30, 2026 as compared to the year ended December 31, 2025.

  (in thousands)

June 30, 2026

December 31, 2025

Organic backlog, beginning balance

$

411,246

$

296,652

Organic additions during the period

352,316

441,478

Organic revenue recognized during the period

(214,046

)

(335,381

)

Foreign currency translation

(7,389

)

8,497

Organic backlog, ending balance

542,127

411,246

Acquisition-related contract value, beginning balance

—

—

Acquisition-related backlog, ending balance

—

—

Contracted backlog, ending balance

$

542,127

$

411,246

Contracted backlog by segment:

Space

$

321,950

$

299,804

Defense Tech

220,177

111,442

We view growth in backlog as a key measure of our business growth. Contracted backlog represents the estimated dollar value of firm funded executed contracts for which work has not been performed (also known as the remaining performance obligations on a contract). Our contracted backlog includes $186.2 million and $81.0 million in remaining contract value from contracts which recognize revenue at a point in time as of June 30, 2026 and as of December 31, 2025, respectively.

Organic backlog change excludes backlog activity from acquisitions for the first four full quarters since the entities’ acquisition date. Contracted backlog activity for the first four full quarters since the entities’ acquisition date is included in acquisition-related contracted backlog change. After the completion of four fiscal quarters, acquired entities are treated as organic for current and comparable historical periods.

Organic contract value includes the remaining contract value as of January 1 not yet recognized as revenue and additional orders awarded during the period for those entities treated as organic. Acquisition-related contract value includes remaining contract value as of the acquisition date not yet recognized as revenue and additional orders awarded during the period for entities not treated as organic. Organic revenue includes revenue earned during the period presented for those entities treated as organic, while acquisition-related revenue includes the same for all other entities, excluding any pre-acquisition revenue earned during the period. There is no acquisition-related backlog activity presented in the table above as all acquired entities have completed four fiscal quarters post-acquisition.

Although contracted backlog reflects business associated with contracts that are considered to be firm, terminations, amendments or contract cancellations may occur, which could result in a reduction in our total backlog. In addition, some of our multi-year contracts are subject to annual funding. Management expects all amounts reflected in contracted backlog to ultimately be fully funded. Contracted backlog from foreign operations was $229.0 million and $193.1 million as of June 30, 2026 and December 31, 2025, respectively. These amounts are primarily subject to foreign exchange rate translations from their respective local currencies to U.S. dollars that could cause the remaining backlog balance to fluctuate with the foreign exchange rate at the time of measurement.

Redwire Corporation (NYSE:RDW) is trending Tuesday after a busy start to the week, with the company opening a new research facility in Indiana and announcing a major manufacturing expansion in Huntsville, Alabama.

Redwire stock is showing exceptional strength. Why are RDW shares rallying? Redwire Expands Microgravity Innovation in IndianaThe company marked the opening with a ribbon-cutting ceremony on July 20, attended by Indiana Governor Mike Braun, Redwire Chairman and CEO Peter Cannito, and several former NASA astronauts.

“The new Georgetown facility serves as the cornerstone of Redwire’s ability to scale, support major programs around the world, and help shape the expanding orbital economy that will drive the future of space development while benefiting millions here on Earth,” said Mike Gold, President of Redwire Space.

Redwire Expands Huntsville Campus, Adds150 Jobs“Huntsville is one of the fastest growing technology hubs in the United States, uniquely positioned at the intersection of America’s space and defense industries, which makes it the ideal location to expand our capabilities and strengthen America’s industrial base,” said Cannito.

Redwire Shares RiseRDW Price Action: At the time of publication, Redwire shares are trading 2.68% higher at $8.83, according to data from Benzinga Pro.

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Key Takeaways Redwire faces profit pressure from higher costs, strategic investments and execution challenges.RDW won a Taiwan Coast Guard drone contract and advanced ISS life sciences research in June 2026.RDW's 2026 sales estimate signals growth, but earnings estimates were cut and valuation stays elevated. Redwire Corporation (RDW - Free Report) stock has lost 28.8% in the past month, underperforming both the Zacks Aerospace-Defense industry’s growth of 4.3% and the broader Zacks Aerospace sector’s gain of 3.8%. It also came above the S&P 500’s return of 2.8% in the same time frame.

Image Source: Zacks Investment Research

Other industry players, such as General Dynamics (GD - Free Report) and RTX Corporation (RTX - Free Report) , have delivered a similar stellar performance in the past month. Shares of GD and RTX have risen 9.7% and 9.9%, respectively, in the said period.

RDW’s recent weak price performance may raise concerns among investors. It is important to evaluate whether the company’s underlying fundamentals can support long-term growth or if near-term pressures could continue to weigh on the stock. Assessing its growth prospects and risks can help investors make a more informed decision.

Headwinds for RDWRedwire's profitability remains under pressure due to higher operating expenses and continued investments in growth initiatives. In the first quarter of 2026, total operating expenses jumped 308.9% year over year to $95.5 million. While these investments are essential for expanding the company's capabilities and strengthening its market position, they are likely to keep profitability under pressure in the short term.

The company also operates in a highly competitive and capital-intensive industry, where rising development and manufacturing costs can weigh on margins and cash flow. RDW's continued investments to expand its space infrastructure and mission-focused businesses require significant capital, which may continue to affect its financial performance over the near term.
In addition, supply-chain disruptions and labor shortages across the aerospace and space industries remain key challenges. These factors could lead to production delays and higher operating costs for RDW.

Larger aerospace and defense companies such as General Dynamics and RTX also face similar supply-chain and workforce constraints, reflecting broader industry-wide challenges. RDW is also exposed to risks related to government funding, evolving budget priorities and potential delays in mission execution, which could affect its growth prospects and profitability.

Tailwinds for RDWRedwire is benefiting from rising demand for advanced space and defense technologies, supported by growing investments in space exploration, maritime security and defense modernization. The company's expanding portfolio of uncrewed systems and space infrastructure continues to create new growth opportunities.

In June 2026, Redwire secured a contract to supply its Penguin Mk2.5 VTOL uncrewed aerial system to the Taiwan Coast Guard for maritime surveillance missions. The award strengthens the company's position in the growing intelligence, surveillance and reconnaissance (ISR) market.

During the same month, Redwire also completed multiple pharmaceutical and biotechnology research missions aboard the International Space Station. These investigations supported drug development and heart disease research, highlighting the company's growing role in space-based life sciences.

With continued progress across its defense and space businesses, Redwire remains well-positioned to benefit from long-term growth opportunities in these expanding markets.

Estimates for RDW’s Sales and EarningsThe Zacks Consensus Estimate for RDW’s 2026 sales implies year-over-year growth of 40.6%. The consensus estimate for its 2026 loss indicates a year-over-year improvement of 50.6%.

Image Source: Zacks Investment Research

The downward revision in its 2026 and 2027 earnings over the past 60 days suggests investors’ decreasing confidence in this stock’s earnings generation capabilities.

Image Source: Zacks Investment Research

RDW’s ValuationIn terms of valuation, RDW’s forward 12-month price-to-sales (P/S) is 4.80X, a premium to the industry average of 2.56X. This suggests that investors will be paying a higher price than the company's expected earnings growth compared with its industry average.

Image Source: Zacks Investment Research

General Dynamics and RTX are trading at a discount in comparison with RDW. GD’s forward 12-month P/S is 1.80X, while RTX’s forward 12-month P/S is 2.70X.

What Should an Investor do Now?RDW is benefiting from strong demand across the space and defense markets, supported by expanding opportunities in uncrewed systems, space infrastructure and life sciences research. However, higher operating expenses and execution-related challenges continue to pose risks to its growth outlook. The stock’s valuation also remains higher than the industry average, which may limit its near-term upside potential.

Furthermore, analysts have lowered their earnings estimates for 2026 and 2027 over the past two months, indicating a more cautious outlook for the company’s future profitability. Given these challenges, it is advisable to avoid the stock at present.

RDW currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Redwire Corporation (NYSE: RDW), a global leader in aerospace and defense technology solutions, today announced that it has been awarded a contract by Taiwan Color Optics, Inc. (TCO), a subsidiary of SemiLux International Ltd., to deliver its Penguin Mk2.5 VTOL Uncrewed Aerial System (UAS) to the Taiwan Coast Guard to support Taiwan’s broader maritime security and defense resilience planning.

Tranche 1 of the program represents a key milestone in Taiwan’s deployment of long-endurance uncrewed systems for maritime surveillance and law enforcement missions. Redwire’s Penguin Mk2.5 VTOL UAS was selected for the program based on its proven long-endurance performance, vertical takeoff and landing capability, and integrated EO/IR payloads for persistent maritime ISR missions.

"Our Penguin Mk2.5 VTOL aircraft is field proven for successful execution of all-weather monitoring and advanced intelligence, surveillance, and reconnaissance operations," said Josh Stinson, Co-President and Chief Growth Officer of Redwire Defense Tech. "Tracking coastline and maritime activities can present unique challenges, and the Penguin is the ideal framework to enhance Taiwan’s coastal defense.”

With the ability to take off and land vertically, the Penguin Mk2.5 VTOL can be rapidly deployed, even in harsh or contested environments. Easily adaptable to meet variety of operations, the platform is well equipped to conduct day and night ISR missions, with the ability to track and target small moving objects.

About Redwire

Redwire Corporation (NYSE:RDW) is an integrated aerospace and defense company focused on advanced technologies. We are building the future of aerospace infrastructure, autonomous systems and multi-domain operations leveraging digital engineering and AI automation. Redwire’s approximately 1,400 employees located throughout North American and Europe are committed to delivering innovative space and airborne platforms transforming the future of multi-domain operations. For more information, please visit RDW.com.