Track market-moving stories before they get noisy

Key Takeaways RDW is accelerating phased-array antenna development for dynamic beam steering and higher data throughput.RDW builds on existing RF capabilities, including tactical antennas and space-based Link-16 demonstrations.RDW has delivered more than 200 flight antennas while upgrading its RF flight electronics facilities. Redwire Corporation (RDW - Free Report) is expanding its focus on military communications with a strategic investment in next-generation phased-array antenna technology. In August 2026, the company announced the investment to accelerate the development and production of phased-array antenna systems designed for communications across low Earth orbit (LEO), medium Earth orbit (MEO) and geostationary orbit (GEO). The systems are expected to support dynamic beam steering, stronger link reliability and higher data throughput for warfighter communications.

The investment builds on Redwire’s existing radio frequency (RF) capabilities. The company already provides tactical connectivity antennas and RF payloads, including antennas used on the Proliferated Warfighter Space Architecture. Redwire also previously demonstrated a Link-16 signal transmission from space to ground, supporting the exchange of tactical data across military platforms.

Phased-array technology could give RDW another opportunity to participate in the expansion of distributed military satellite networks. Its ability to support multiple orbital environments could broaden the applications of its RF portfolio as defense customers seek communications systems capable of operating across increasingly complex space architectures. Redwire’s RF Systems group also supplies tactical communications and sensing payloads to major aerospace and defense companies, giving the company an established channel for deploying these technologies.

The investment could strengthen Redwire’s position in space-based communications while creating opportunities to expand its role across national security programs. With more than 200 flight antennas already delivered and a major upgrade to its RF flight electronics assembly facilities, RDW is building on an existing technology base rather than entering the market from scratch.

Companies Advancing Phased-Array Defense CommunicationsGrowing demand for resilient military communications is encouraging aerospace and defense companies to advance phased-array technologies for satellite and other contested communications applications. Viasat Inc. (VSAT - Free Report) and Northrop Grumman Corporation (NOC - Free Report) are also developing capabilities that support secure and resilient communications across defense applications.

Viasat develops active electronically scanned array technologies designed to support multi-band and multi-orbit satellite communications, aligning with the broader push toward flexible and resilient military connectivity.

Northrop Grumman works on SATCOM ground systems and phased-array antenna technologies that assist in military communications, providing another example of how advanced antenna architectures are being integrated into defense networks.

Earnings Estimates for RDW StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year growth of 57.32% and 40%, respectively.

Image Source: Zacks Investment Research

RDW Stock Is Trading at a PremiumRedwire is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 4.96X compared with the industry average of 2.36X.

Image Source: Zacks Investment Research

RDW Stock Price PerformanceOver the past six months, RDW shares have risen 9.1% against the industry’s 15.1% fall.

Image Source: Zacks Investment Research

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

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.

Key Takeaways Redwire invested in phased-array antenna technology to expand resilient communications across multiple orbits.RDW has delivered over 200 flight antennas, including tactical antennas supporting a warfighter architecture.Redwire had $607.8M liquidity, but first-half R&D hit $25.1M and free cash flow was negative $48M. Redwire Corporation (RDW - Free Report) expanded its defense technology strategy on Aug. 25, 2026, with an investment in next-generation phased-array antenna technology. The initiative targets faster, more resilient and scalable space-based data networks for global warfighter communications across multiple orbits.

The move could broaden Defense Tech beyond uncrewed aircraft systems and intelligence, surveillance and reconnaissance payloads. The opportunity is meaningful, but Redwire still has to convert technology investment into funded programs and financial returns.

Redwire Expands Into Resilient Space CommunicationsRedwire's phased-array initiative is aimed at communications across low, medium and geostationary Earth orbits. The focus on resilient, scalable data links fits the company's existing work in radio frequency payloads and multi-domain defense technology rather than representing a departure from its current strategy.

The investment also adds another route to defense growth as military customers seek communications that can operate across distributed space architectures. L3Harris Technologies, Inc. (LHX - Free Report) likewise offers electronically steered array solutions and secure space communications, illustrating the broader defense industry's focus on resilient connectivity.

RDW Builds on an Established RF Systems BaseRedwire is not starting from zero in radio frequency systems. Its RF Systems portfolio has delivered more than 200 flight antennas, giving the company an established base of space-qualified hardware and customer experience.

Its tactical connectivity antennas are already used on the Proliferated Warfighter Space Architecture. That installed presence provides a relevant platform for extending Redwire's antenna capabilities as phased-array technology matures.

Redwire Broadens Defense Tech Beyond UAS and ISRThe antenna investment arrives while Redwire's autonomous-systems portfolio is scaling. Defense Tech revenues reached $61.9 million in the second quarter of 2026, while segment adjusted EBITDA improved to $14.1 million from a $15 million loss a year earlier.

Repeat Stalker orders, a high eight-figure multi-year Penguin Mk3 contract and nearly 200 Octopus intelligence, surveillance and reconnaissance payload deliveries year to date reinforce that momentum. Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) is also expanding satellite communications capabilities, including multi-orbit ground systems, underscoring the strategic relevance of resilient communications within defense technology.

RDW's Investment Comes During a Capacity BuildoutRedwire is also expanding physical capacity. Its planned 164,000-square-foot Huntsville, AL, expansion will support uncrewed aerial systems, Octopus payloads, advanced energy solutions and space capabilities, linking manufacturing growth with several of the company's priority markets.

Liquidity of $607.8 million at the end of the second quarter gives Redwire greater flexibility to fund internal capability development. The company has described balance-sheet strength and internal innovation as key parts of its investment framework.

Redwire Still Must Convert Investment Into ResultsThe phased-array announcement did not quantify expected revenues, earnings contribution or a specific program award. Investors therefore have limited financial evidence so far for measuring how quickly the investment could contribute to results.

That matters because Redwire is already spending aggressively. First-half 2026 research and development expense rose to $25.1 million, while free cash flow was negative $48 million. Additional inventory requirements and several simultaneous growth initiatives could keep cash generation uneven during the buildout.

RDW's Neutral Signal Keeps Expectations GroundedThe phased-array initiative can expand Redwire's addressable defense opportunity, but it is still an investment case rather than a demonstrated earnings driver. Existing RF heritage, Defense Tech growth and stronger liquidity improve the strategic fit, while execution and cash-flow demands remain material.

The stated Neutral view keeps the focus on evidence: resilient space communications could become a useful extension of Defense Tech, but the investment does not by itself establish near-term earnings upside.

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.

SALT LAKE CITY--(BUSINESS WIRE)--Redwire Corporation (NYSE: RDW), a global leader in aerospace and defense technology solutions, today announced a strategic investment in next‑generation phased array antenna technology to deliver faster, more resilient, and more scalable space‑based data networks for global warfighter communications. This strategic investment positions Redwire at the forefront of a rapidly expanding market where high‑capacity, low‑latency communication is essential for national security, civil, and commercial missions.

Redwire’s investment will accelerate the development and production of highly adaptable phased array antenna systems capable of supporting emerging mission demands across low Earth orbit (LEO), medium Earth orbit (MEO), and geostationary orbit (GEO). These advanced systems will provide dynamic beam steering, improved link reliability, and increased throughput—critical capabilities for modern warfighter communications as the industry advances toward distributed architectures and proliferated constellations.

“Space data networks are evolving at an unprecedented pace, and phased arrays are a foundational technology enabling that transformation,” said Mike Sharkey, Senior Vice President, Redwire Defense Tech, RF Systems. “By investing heavily in this domain, Redwire is ensuring our customers can deploy communication solutions that are more flexible, more powerful, and more resilient than ever before.”

Redwire’s portfolio of flight-proven RF products includes the tactical connectivity antennas that are being utilized on the Proliferated Warfighter Space Architecture military satellite network—in 2023 the antennas enabled the first‑ever U.S. military Link‑16 communications from space. Additionally, Redwire’s portfolio includes highly complex RF payloads, including advanced RF payloads currently in production for a European defense contractor.

These advanced systems are flight-proven, providing a strong foundation for the company’s expanded product investment, which follows a major capital upgrade of Redwire’s RF flight electronics assembly facilities.

Redwire’s RF Systems group, based in Longmont, Colorado, is a merchant supplier of RF tactical communications and sensing payloads to Tier 1 aerospace and defense primes. These advanced RF systems are the backbone of mission-critical space communication and Redwire is a world leader in antenna production, with more than 200 flight antennas delivered.

About Redwire

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.

Redwire (RDW) faces a stark contrast between promising industry tailwinds and disappointing multi-year financial execution, with valuation concerns persisting despite recent operational progress. Backlog surged 32% year-to-date, and new initiatives in microgravity and in-space drug development offer potential, yet core legacy business growth remains anemic. Execution missteps, including the overvalued Edge Autonomy acquisition and recurring EAC cost issues, have led to missed guidance, margin erosion, and persistent investor skepticism.

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.

Redwire remains a "Buy" as it transitions into a scaled, backlog-driven space infrastructure platform with improving margins and operating leverage. RDW's Q2 revenue surged 90% YoY to $117.1 million, gross margins reached 27.8%, and backlog hit a record $542 million with a book-to-bill of 1.42. Policy tailwinds, notably the push for 1,000+ annual U.S. launches by 2030, structurally expand demand for in-space infrastructure, directly benefiting RDW's business model.

A downtrend has been apparent in Redwire Corporation (RDW - Free Report) lately. While the stock has lost 8.1% over the past week, it could witness a trend reversal as a hammer chart pattern was formed in its last trading session. This could mean that the bulls have been able to counteract the bears to help the stock find support.

The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case for the stock. On the fundamental side, strong agreement among Wall Street analysts in raising earnings estimates for this company enhances its prospects of a trend reversal.

What is a Hammer Chart and How to Trade It?This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'

In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.

When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.

Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.

Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.

Here's What Makes the Trend Reversal More Likely for RDWThere has been an upward trend in earnings estimate revisions for RDW lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term.

Over the last 30 days, the consensus EPS estimate for the current year has increased 16.1%. What it means is that the sell-side analysts covering RDW are majorly in agreement that the company will report better earnings than they predicted earlier.

If this is not enough, you should note that RDW currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Moreover, a Zacks Rank of 2 for Redwire Corporation is a more conclusive indication of a potential trend reversal, as the Zacks Rank has proven to be an excellent timing indicator that helps investors identify precisely when a company's prospects are beginning to improve.

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Shares of Ondas Holdings (NASDAQ:ONDS) are down 8% at midday Thursday after the drone and counter-UAS company reported second quarter results before the open. The stock opened at $10 and has traded as low as $9 intraday. The move breaks a stretch of momentum that had carried ONDS up 40% over the past month.

Raised Guide, Falling Stock
The unusual part of today’s reaction is that Ondas actually lifted its outlook. The Stocktwits headline from August 13, 2026 asks “Why Is ONDS Stock Falling Even After Ondas Raised Its 2026 Revenue Outlook?” That framing matters. The disappointment lies elsewhere.

Coming into earnings, Ondas had already raised its FY2026 revenue target to at least $390M in May, and the Q2 8-K filed this morning did not derail that trajectory. What appears to be weighing on the stock is the setup around it. ONDS carries an EV/Revenue of 40. Even looking forward to 2027, Ondas still traded for a forward P/S that was above 10 headed into earnings.

Layer on the acquisition complexity. Our prior reporting flagged that Ondas had acquired six companies during 2026, which raises legitimate questions on integration, organic versus acquired revenue mix, and share issuance. And the stock came into earnings trading richly. History supports the sensitivity: across the last seven prints, ONDS averaged a 1-week post-earnings change of -8%. Today’s drop fits that pattern more than it breaks it.

Ondas’ guidance calls for revenue between $525 million and $550 million. At the midpoint, that’s comfortably above Wall Street’s expectations of $525.6 million. So, once again, this points to losses after the stock had run up recently and expectations drifted above current sell-side expectations.

Scaling is expected to continue next year, with Wall Street forecasting $990 million in 2027 revenue. Data from Capital IQ points to Wall Street expectations for 2030 currently sitting at $.55 in normalized EPS and revenues of $2 billion. After today’s sell-off, Ondas trades for about 16X that 2030 figure.

Is the Drone Group Following?
Short answer: not really. The peer tape is soft, but nothing like ONDS.

Ticker
Today
1-Month
YTD

ONDS
-7.52%
+40.37%
+0.10%

RCAT
-0.73%
+23.15%
+30.14%

AVAV
-3.46%
+36.68%
-19.88%

RDW
-1.11%
+40.67%
+77.50%

UMAC
-1.29%
+56.97%
+112.17%

It appears Ondas may be having an impact across the borader drones space, with other stocks all ranging from slightly down to down 3.5%. Larger defense companies in the industrial sector are also under pressure as investors rotate to AI stocks.

Peer Setup at a Glance
Red Cat (NASDAQ:RCAT): Reported Q2 FY2026 on August 6, 2026, with revenue of $20.19 million missing consensus by 10.6% and a GAAP EPS of -$0.26. Management reaffirmed the $150M-$180M FY revenue target. It’s holding up today.

AeroVironment (NASDAQ:AVAV | AVAV Price Prediction): Q4 FY2026 filed June 29, 2026, with revenue of $641.62 million beating estimates by 14.76% and adjusted EPS of $1.84 beating by 25%. FY2027 guide is $2.13B-$2.23B. Analyst target: $226.

Redwire (NYSE:RDW): Q2 FY2026 filed August 5, 2026, revenue $117.07 million beat by 8.74%, record backlog of $542.13 million, book-to-bill 1.42.

Unusual Machines (NYSE:UMAC): Q2 FY2026 filed August 6, 2026, revenue $16.72 million up 687% year over year, beating estimates by 81.87%, though Q3 growth will pause for capacity build.

What to Watch
Analyst target on ONDS sits at $19 with 8 Buy or Strong Buy ratings and zero Holds or Sells, so sell-side reaction into tomorrow will matter. I’d keep an eye on whether ONDS defends the 50-day moving average near $9 into the close.

Contact [email protected] for any questions or corrections.

When SpaceX (SPCX -5.18%) went public on June 12, it made history as the largest IPO ever and sucked the oxygen out of the space sector. Many smaller space stocks, which had rallied in the months ahead of SpaceX's IPO, quickly lost their luster.

One of those stocks was Redwire (RDW +2.13%), a producer of critical space mission components, which went public through a merger with a special purpose acquisition company (SPAC) on Sept. 3, 2021. Its stock opened at $11.07 per share, set a record high of $25.90 on May 28, 2026, but now trades at about $13. Let's see if this mid-cap stock is worth buying after its recent pullback -- and if it could potentially evolve into the next SpaceX.

Image source: Getty Images.

What does Redwire do? Redwire produces navigation, power, and 3D-printing components for satellites, space stations, and other spacecraft. It also sells military drones and custom components for missile defense and military communications systems. Its major customers include NASA, DARPA, the U.S. Space Force, international defense allies, and large commercial space contractors.

Today's Change

(

-5.18

%) $

-7.19

Current Price

$

131.55

Before Redwire went public, it predicted its revenue would rise from $163 million in 2021 to $1.41 billion in 2025. It also claimed its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) would surge from $20 million in 2021 to $250 million in 2025.

But like many other SPAC-backed start-ups, Redwire overpromised and underdelivered. Here's what actually happened from 2021 to 2025.

Metric (Millions)

2021

2022

2023

2024

2025

Revenue

$137.6

$160.5

$243.8

$304.1

$335.4

Adjusted EBITDA

$3.3

($11.0)

$15.4

($0.81)

($50.3)

Data source: Redwire.

Redwire's slower-than-expected growth can be attributed to negative cost revisions on its fixed-price contracts, delayed government deals, and aggressive acquisitions that compressed its margins rather than boosting near-term revenue. To raise more cash, Redwire has more than quadrupled its share count since its market debut. That dilution, which was exacerbated by a $500 million at-the-market (ATM) equity offering this June, will persist for the foreseeable future. To make matters worse, its insiders have sold more than four times as many shares as they bought over the past 12 months.

From 2025 to 2028, analysts expect Redwire's revenue to grow at a 27% CAGR to $683.8 million. They also expect its adjusted EBITDA to turn positive in 2027 and increase more than five times to $51.7 million in 2028. That growth could be driven by the construction of orbital data centers, an acceleration in launches for low Earth orbit (LEO) satellites, NASA's new lunar missions, and the production of more sophisticated drones for the U.S. military.

With an enterprise value of $3.3 billion, Redwire doesn't seem pricey at 7 times this year's sales. SpaceX, with its enterprise value of $1.77 trillion, trades at 40 times this year's sales.

However, SpaceX trades at that premium because it owns three massive businesses: its Starlink satellite internet services, its namesake rocket launch services, and its AI business -- which houses xAI, X, Cursor, and its other related assets. SpaceX's investors believe the company can dominate and consolidate all three markets to become an end-to-end provider of rocket launch, satellite data, and space-based AI infrastructure services.

As SpaceX expands, it could eventually hurt smaller supply chain players like Redwire by manufacturing more of its components in-house and selling them to third-party customers. At the same time, Redwire still relies on SpaceX's rockets to carry its products into orbit.

While Redwire has been expanding its portfolio with more acquisitions, it's doubtful it will ever evolve into a vertically integrated space company like SpaceX. It will benefit from the same tailwinds for the space industry as SpaceX and face many of the same challenges. Still, it will likely follow a very different growth trajectory as the nascent market expands.

Key Takeaways Redwire reaffirmed 2026 revenue guidance of $450M-$500M as contracted backlog reached $542.1M.RDW kept near-term gross margin expectations in the low-to-mid-20% range despite a 27.8% Q2 margin.Redwire had $607.8M of liquidity as total debt fell 75% year over year to $48.9M. Redwire Corporation (RDW - Free Report) used its Q2 2026 earnings call to emphasize scaling, backlog visibility and balance sheet flexibility, while keeping a restrained near-term view on margins after a record quarter.

Adjusted loss was 9 cents per share versus the Zacks Consensus Estimate of an 18-cent loss, while revenue of $117.07 million topped the $105 million estimate. Management focused more heavily on second-half conversion, defense demand and investment priorities.

RDW Sees Greater Guidance VisibilityChief financial officer Chris Edmunds reaffirmed 2026 revenue guidance of $450 million to $500 million after first-half revenue reached $214 million. The midpoint represents 41.6% year-over-year growth.

A Jefferies analyst pressed management on the wide second-half range. Edmunds said visibility to the midpoint had risen to roughly 90% from about 75% after the first quarter, helped by the Q2 bookings profile.

Chairman, CEO and President Peter Cannito told a Truist analyst that award timing remains lumpy. Still, Q2 book-to-bill was 1.42, last-12-month book-to-bill was 1.52 and contracted backlog reached $542.1 million.

Redwire Tempers Near-Term Margin ExpectationsEdmunds said the 27.8% Q2 gross margin benefited from a stronger Defense Tech contribution, a broader shift from development to production and a net-neutral impact from estimate-at-completion changes.

An Alliance Global Partners analyst asked whether that margin level was sustainable. Edmunds kept the near-term framework in the low-to-mid-20% range, while noting room for expansion over time as backlog is replenished.

Adjusted EBITDA improved to negative $3.2 million from negative $27.4 million a year earlier. Edmunds said cost control and program execution remain key priorities despite the progress.

RDW Pushes Defense Tech Capacity and InventoryCannito said both segments can deliver double-digit growth, with Defense Tech currently growing faster than Space. He pointed to follow-on awards and aircraft orders as demand signals across the portfolio.

Defense activity included a high eight-figure, multiyear Penguin Mk3 award from an undisclosed NATO customer, a Taiwan Coast Guard contract and Stalker Block 30 follow-on awards. Redwire also delivered nearly 200 Octopus ISR payloads year to date.

A KeyBanc analyst questioned the inventory build. Cannito said the increase was a measured UAS investment to shorten customer turnaround times and added that inventory could rise somewhat again in Q3, affecting working-capital timing.

Redwire Balances R&D With M&ACannito outlined three capital-allocation pillars: balance sheet strength, internal capacity and innovation, and accretive M&A. Edmunds said $607.8 million of liquidity was primarily driven by $487.9 million of net ATM proceeds, while total debt fell 75% year over year to $48.9 million.

R&D expense rose to $12.5 million from $1.7 million a year earlier. In response to a B. Riley Securities analyst, Cannito said spending is concentrated on higher-value platforms, payloads and microgravity opportunities.

A Cantor Fitzgerald analyst asked about acquisition appetite. Cannito said Redwire remains positioned for M&A, with the focus on finding accretive deals at appropriate values while continuing the Edge Autonomy integration.

RDW Expands Space and Microgravity PlatformsCannito highlighted Redwire's selection as one of 15 vendors on the $981 million NITE-STAR IDIQ contract, which provides a pathway for spacecraft, digital engineering and space-domain capabilities.

He also pointed to Roll-Out Solar Array technology supporting the SR-1 Freedom Mars mission, with two wings designed to generate 60 kilowatts of power.

SpaceMD, Redwire's venture company, signed an agreement to purchase a SpaceX Starfall spacecraft for a 2028 mission. Cannito said the mission is expected to carry up to 32 PIL-BOXes, expanding microgravity research capacity.

Redwire Keeps Execution at the CenterCannito's closing message centered on scaling against strong demand while converting backlog into revenue. His Q&A comments also acknowledged uneven award timing and the need to stay responsive to customers.

Edmunds kept the emphasis on program execution, cost control and disciplined capital deployment. Those priorities frame the second half as Redwire invests in capacity and R&D while working toward its reaffirmed revenue range.

RDW's Zacks Signals are MixedRDW carries a Zacks Rank #2 (Buy), placing it among the higher-rated stocks in the Zacks framework for near-term performance potential. However, its Value Score is F, Growth Score is C, Momentum Score is F and VGM Score is F. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores therefore do not provide the A- or B-level reinforcement that Zacks identifies as most favorable alongside a #1 or #2 Rank. The Zacks Rank can change as earnings estimates are revised following the just-reported results.

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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Redwire Corporation (RDW) Q2 2026 Earnings Call August 6, 2026 9:00 AM EDT

Company Participants

Alex Curatolo - Senior Director of Investor Relations
Peter Cannito - President, CEO & Chairman
Chris Edmunds - Chief Financial Officer

Conference Call Participants

Brian Kinstlinger - Alliance Global Partners, Research Division
Sujeeva De Silva - ROTH Capital Partners, LLC, Research Division
Alexandra Eleni Mandery - Truist Securities, Inc., Research Division
Colin Canfield - Cantor Fitzgerald & Co., Research Division
Michael Leshock - KeyBanc Capital Markets Inc., Research Division
Austin Moeller - Canaccord Genuity Corp., Research Division
Griffin Boss - B. Riley Securities, Inc., Research Division

Presentation

Operator

Greetings, and welcome to the Redwire Corporation Q2 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Alex Curatolo, Senior Director of Investor Relations. Thank you. You may begin.

Alex Curatolo
Senior Director of Investor Relations

Good morning, and thank you, Diego. Welcome to Redwire's Second Quarter 2026 Earnings Call. We hope that you have seen our earnings release, which we issued yesterday afternoon. It has also been posted in the Investor Relations section of our website at rbw.com.

Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on Slides two and three.

Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide three and the appendix, our earnings release or the investor presentation on our website for the calculation of these measures and their reconciliation to U.S. GAAP measures. I am Alex Curatolo, Redwire's Senior Director of Investor Relations.

Joining me on today's call are Peter Cannito, Redwire's Chairman and Chief Executive Officer; and Chris Edmunds, Redwire's Chief Financial

On August 06, 2026, Redwire Corp (RDW) shares rose 10.3% to $11.83, continuing a strong upward trend that has seen the stock increase by 39.7% in the past week.

Space Microgravity Development LLC (SpaceMD), a wholly owned subsidiary of Redwire Corporation (NYSE: RDW) and venture company focused on leveraging the microgra

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.

Shares of Redwire Corporation (RDW - Free Report) have gained 4.1% over the past four weeks to close the last trading session at $10.63, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $14.88 indicates a potential upside of 40%.

The average comprises eight short-term price targets ranging from a low of $7.00 to a high of $24.00, with a standard deviation of $5.44. While the lowest estimate indicates a decline of 34.2% from the current price level, the most optimistic estimate points to a 125.8% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for RDW, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why RDW Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 4.6% over the past month, as one estimate has gone higher compared to no negative revision.

Moreover, RDW currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much RDW could gain, the direction of price movement it implies does appear to be a good guide.

RDW heads into Q2 earnings with 70.6% projected sales growth and record backlog, but R&D spending may pressure near-term profits.

Redwire Corp. (NYSE:RDW) shares are benefiting from Monday’s surge across drone-related equities as investors reevaluate defense technology in light of shifting geopolitical dynamics and federal funding moves.

Here’s what investors need to know.

Redwire stock is showing exceptional strength. What’s behind RDW gains? Defense Funding Boosts Confidence in Autonomous TechAs easing tensions in the Middle East reduce immediate geopolitical risk, market focus is shifting toward long-term structural modernization.

Positioned at the intersection of space infrastructure and uncrewed aerial systems, including combat-proven platforms like its Stalker and Penguin series, Redwire remains directly aligned with high-priority military supply chains.

Simultaneously, the U.S. Department of War’s Office of Strategic Capital granting a conditional loan commitment to PDW Holdings serves as a major bullish signal for the broader sector. This direct government support highlights a commitment to scaling domestic manufacturing for defense technology and autonomous hardware.

For Redwire, federal capital deployment into peer defense firms reinforces investor confidence that institutional backing and future procurement pipelines could extend across domestic drone suppliers.

Critical Levels To Watch for RDW StockFrom a trend perspective, the stock is still trying to repair longer-term damage: it’s down 34.5% over the past 12 months and remains trading 27.6% below its 50-day SMA ($13.37) and 17.5% below its 100-day SMA ($11.74). At the same time, Monday’s strength has RDW trading 5.3% above its 20-day SMA ($9.20), a sign the near-term bounce is gaining traction.

Momentum is best framed through RSI, which sits at 48.28—neutral, suggesting the rally isn’t yet "stretched" into overbought territory. RSI is a quick way to gauge whether buying or selling pressure is getting overheated; here, it reads more like stabilization than a runaway trend.

Key levels are tight enough to matter for swing traders: a push through nearby resistance could force more short-term trend followers back in, while a failure would keep the stock range-bound under heavier moving-average supply. The bigger picture is mixed, with the golden cross in April still on the chart, but price currently sitting below the 200-day SMA ($10.02), which can act like overhead friction.

Key Resistance: $10.50 — a nearby round-number area where rebounds can stall Key Support: $8.00 — a nearby level where buyers previously stepped in RDW Stock Price Activity Update on MondayRDW Stock Price Activity: Redwire shares were up 11.72% at $9.63 at the time of publication on Monday, according to Benzinga Pro data.

Image: Shutterstock

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JACKSONVILLE, Fla.--(BUSINESS WIRE)---- $RDW--Redwire Corporation (NYSE: RDW; “Redwire” or “the Company”) today announced that it will report financial results for the second quarter ended June 30, 2026, after market close on Wednesday, August 5, 2026. Management will also conduct a conference call starting at 9 a.m. ET on Thursday, August 6, 2026, to review financial results for the second quarter 2026. The earnings conference call can be accessed by calling 877-485-3108 (toll free) or 201-689-8264 (to.

Space Exploration Technologies brought excitement to the space sector ahead of its initial public offering (IPO). But when the hype wore off, some space stocks fell back down to Earth.

Since SpaceX began trading to the public on June 12, the stock price of space and defense tech company Redwire (RDW -4.83%) plummeted 43% from July 12 to July 20. It's still up more than 20% in 2026, but over the last year, shares have dropped over 42%.

There's a bullish case that any significant pullbacks, like the one we've seen since June, could be a buying opportunity. Still, there are a few issues to factor in before making an investment decision.

Image source: Getty Images.

The upside of Redwire Redwire helps make space missions possible through its antennas, power generation, trackers, and camera systems. That helps give its products an essential nature in the space industry. But its most unique operations are in providing space-based research and manufacturing capabilities for endeavors ranging from regenerative medicine to crop production.

Its revenue in its space division is flat, but it's making up for that by capturing increasing sales through its defense segment.

Q1 2025 Revenue

Q1 2026 Revenue

Defense: $9.3 million

Defense: $44.3 million

Space: $52.1 million

Space: $52.7 million

Data source: Redwire Q1 2026 Investor Presentation

In the first quarter of 2026, Redwire also reported a record backlog of nearly $500 million, indicating increasing demand for its products and services. That appears to be reflected in Redwire's 2026 full-year revenue forecast; it reported around $335 million in revenue in 2025 and expects 2026's total to fall in a range of $450 million to $500 million.

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What keeps weighing on the stock Redwire experienced a sell-off after SpaceX went public, but issues had been brewing before then. One was shareholders worried about dilution when Redwire announced in June that it was selling up to $500 million in common stock.

Another concern is growing losses. For 2025, Redwire reported net losses increased by $112.2 million to $226.6 million, and it already reported a net loss of $76.5 million in the first quarter of 2026.

In addition, while its backlog is a proof point of growing demand, Redwire still needs to convert that backlog into actual revenue. If it can't start chipping away at the backlog, it would likely have to keep issuing new stock if it finds itself in a tight financial position. At the end of the first quarter of 2026, Redwire reported total liquidity of $175.2 million.

Redwire shows some long-term promise, but I'd still be comfortable sitting on the sidelines until it cuts down on its losses and starts turning more of that backlog into revenue.

Booming space stocks have started to bust after a multiyear run. This timed up perfectly after the Space Exploration Technologies IPO last month, which has sent many stocks down in an elevator-like fashion in the ensuing weeks. AST SpaceMobile (ASTS -0.13%) is down 52% from its highs, while Redwire (RDW -2.12%) has fallen 64%, taking investors on a roller coaster of volatility.

The two space economy stocks are now trading at massive discounts compared to just a few weeks ago. But which is the better buy for your portfolio today? If you look at the numbers, the answer is clear.

Image source: Getty Images.

AST SpaceMobile operates in a competitive satellite internet sector AST SpaceMobile has seen significant appreciation in its share price, pushing its market capitalization to $22 billion despite generating close to zero revenue. Investors are excited about this stock because it aims to build a satellite internet business with direct-to-device capabilities. This means that it will beam the internet directly to a smartphone without the need to carry around a terminal everywhere, as is necessary today with SpaceX's Starlink service.

Its technology has proven effective, giving it an addressable market of billions, if not tens of billions, in the fast-growing satellite internet market. However, AST SpaceMobile has just launched its 10th satellite into orbit, and will need many more to build a truly global service that reaches millions of customers simultaneously. Management's goal is to deploy 45 satellites by the end of 2026, but it is well behind schedule so far.

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Where AST SpaceMobile runs into issues is the need to rely on launch partners to get its payloads into orbit, including SpaceX, its competitor. SpaceX prioritizes its own satellites over AST SpaceMobile's, which may delay AST SpaceMobile's satellites from reaching orbit in a timely manner.

AST SpaceMobile is currently generating little in revenue and is burning a lot of cash, with negative free cash flow of $1.37 billion over the past 12 months. This cash burn is likely to continue for the next few years, which is why management just added more debt to its balance sheet. At the same time, SpaceX is working on its own direct-to-device technology that could render moot any burgeoning competitive advantage from AST SpaceMobile.

Redwire is a diversified defense and space technologies provider Redwire is a defense and space economy player, but it's not centered on one bet in satellite internet like AST SpaceMobile. The company operates in many different subsectors, including drones, communication systems, energy, and spacecraft, and also caters to the defense market. With the rising budget for the Space Force and the increasing priority of space systems in the United States' defense, Redwire has a potentially massive tailwind for its business over the next decade.

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Investors are seeing that play out in its financial performance. Last quarter, the company's book-to-bill ratio -- which measures the amount of new contracts it won versus how much it billed in the period -- was 1.92x, helping its backlog increase to $498 million.

For the full year, Redwire expects revenue of $450 million to $500 million, up from $371 million in the last 12 months. It is not yet profitable, but is seeing a rapid improvement in gross margins, from 14.7% in the first quarter of 2025 to 26.6% in Q1 2026. It is burning less in free cash flow than AST SpaceMobile, at negative $165 million over the last 12 months, making any liquidity issues less of a concern for shareholders.

Data by YCharts.

Which is the better buy? AST SpaceMobile has massive growth potential. But that also comes with far more risks than the more established revenue drivers of a company like Redwire. Plus, AST SpaceMobile is on a steep cash burn trajectory that could deplete its cash balance within a few years.

Redwire also trades at a much more reasonable multiple of its trailing sales, with a price-to-sales ratio (P/S) of 3.5 compared to AST SpaceMobile's 187. Redwire has a smaller market cap of $2 billion compared to AST SpaceMobile's $22 billion.

Add it all up, and Redwire looks like a more promising space stock than AST SpaceMobile today.

Redwire Corporation (RDW +9.48%) stock investors had an amazing day Tuesday, with their stock closing up 9.4% on a couple of announcements suggesting Redwire has momentum:

Yesterday, Redwire announced a "major expansion" of its Huntsville, Ala., factory for building Stalker UAS armed surveillance drones.

And today, Redwire opened a second factory in Georgetown, Ind., to produce "microgravity payloads" for operation in space.

Image source: Getty Images.

Redwire's a space stock -- and a defense stock, too Redwire started off life as a space company, specializing in developing space "infrastructure" -- not rockets or satellites per se, but primarily equipment for use in space, on board satellites and space stations.

Early last year, Redwire pivoted hard into the defense sphere, spending $925 million to acquire drone company Edge Autonomy and its portfolio of artificial intelligence-enhanced military drones.

This week's twin announcements confirm Redwire's interest in keeping both these businesses -- and indeed expanding them. The Huntsville factory will add 164,000 square feet for both space and defense production. Redwire plans to complete construction by Q4 2027.

Meanwhile, in Indiana, Redwire just opened an additional 30,000 square feet of space to develop microgravity payloads for conducting experiments and manufacturing goods in Low-Earth Orbit and on the moon. Redwire noted in its announcement that the focus of the Georgetown facility will be "pharmaceutical/biotech innovation."

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Redwire's biggest risk Unmentioned in either announcement, I fear, is the cost of expanding and building the facilities -- but that's definitely a number investors should watch out for. Redwire reported losses of $300 million over the last 12 months and is burning cash at the rate of about $155 million per year.

Building new factories may be necessary as Redwire scales up. It's not doing the company's bank account statement any favors, though.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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.

Image via Shutterstock

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JACKSONVILLE, Fla.--(BUSINESS WIRE)---- $RDW--Redwire Corporation (NYSE: RDW), a global leader in space and defense technology solutions, has opened its new 30,000 square foot state-of-the-art, vertically-integrated research and microgravity payload development facility in Georgetown, Indiana. The facility will serve as a global hub supporting accelerated demand as the company continues to expand its leadership in space-enabled research, development, and manufacturing with a focus on pharmaceutical/biot.