Redwire Corporation

What they do

Redwire operates in two reporting segments, Space and Defense Tech, following a segment change effective December 1, 2025. The Space segment supplies spacecraft platforms (SabreSat, Phantom, Hammerhead, Thresher, Mako), large space infrastructure, microgravity payloads, avionics, sensors, power generation, structures and mechanisms, and RF systems for civil, national security, and commercial customers including NASA, ESA, and the Space Force. The Defense Tech segment produces uncrewed aerial systems such as Stalker and Penguin, optical sensors, advanced optics, resilient energy solutions, and RF payloads with more than 400,000 flight hours for the U.S. Department of War and allied governments. The company operates from 28 locations in North America and Europe.

Revenue drivers

• Space segment — Delivers spacecraft platforms and missions, space infrastructure, and microgravity payloads; the segment covers flagship platforms (SabreSat, Phantom, Hammerhead, Thresher, Mako), DARPA's Otter program, ESA's Skimsat VLEO and PROBA missions, and PIL-BOX pharmaceutical investigations, with more than 50 PIL-BOXes flown since November 2023.
• Defense Tech segment — Supplies combat-proven autonomous systems including Stalker Block 30 UAS, Penguin UAS, and Octopus ISR payloads, plus optical sensors, advanced optics, resilient energy, and RF payloads. Second-quarter awards included follow-on Stalker Block 30 orders from Marine Corps and U.S. Army organizations, a multi-year Penguin contract valued at high eight-figures from an undisclosed NATO country, and a Taiwan Coast Guard contract via Taiwan Color Optics.
• Octopus ISR payloads — A product line within Defense Tech; the company delivered nearly 200 Octopus ISR payloads year-to-date, a more than 15% year-over-year increase, and announced the Octopus E140 MWIR and E180 HD MWIR products in the second quarter of 2026.
• Backlog-based mission work — Backlog grew to $542.1 million as of June 30, 2026 from $411.2 million at December 31, 2025, with a book-to-bill ratio of 1.42 for the quarter and 1.52 on a last-twelve-months basis.

Recent performance

Second-quarter 2026 revenue was a record $117.1 million, up 89.6% year-over-year, and gross margin was a record 27.8% versus (30.9)% a year earlier. Net loss improved by $56.0 million year-over-year to $(41.0) million, and Adjusted EBITDA improved by $24.2 million to $(3.2) million, including $12.5 million of R&D expense. Backlog rose to $542.1 million from $411.2 million at year-end 2025, and book-to-bill was 1.42 for the quarter. Full-year 2025 revenue was $335.4 million with a net loss of $226.6 million and operating cash flow of $(177.3) million; first-half 2026 revenue was $214.0 million.

Strategy

Management's stated strategy is bundled sales and greater integration of systems, payloads, platforms, and full mission solutions, supplemented by strategic acquisitions such as Edge Autonomy. The company is investing in capacity and capabilities, including a Georgetown, Indiana grand opening and a Huntsville, Alabama facility expansion announced after the second quarter of 2026. It reduced aggregate term loans from $90.0 million to $50.0 million during the quarter and ended with total liquidity of $607.8 million, which it cites as enabling strategic investments. It also continues product expansion in Defense Tech, such as the new Octopus E140 MWIR and E180 HD MWIR payloads.

Risks

• History of losses — Redwire has a history of losses, including a $226.6 million net loss in 2025 and a $(41.0) million net loss in the second quarter of 2026, and has a limited operating history since the Edge Autonomy acquisition.
• Acquisition integration — The company cites risk that it may fail to successfully integrate recently completed or future acquisitions, including Edge Autonomy, or to realize anticipated synergies and benefits within the expected timeframe.
• Macroeconomic and tariff pressure — The 10-K risk factors state that economic uncertainty, high inflation, market volatility, geopolitical events, and tariffs could reduce demand and increase manufacturing costs.
• Technology and competition — Risk factors identify dependence on successful development and continued refinement of proprietary technologies and products, and note that competition could pressure prices, orders, and margins.

Outlook

Management reaffirmed a full-year 2026 revenue forecast of $450 million to $500 million. The company cited $214.0 million of first-half 2026 revenue and backlog of $542.1 million as providing visibility for the second half of the year. It reported total liquidity of $607.8 million at June 30, 2026, up 366.9% from the end of 2025.