Redwire Q1 Earnings Call Highlights
Redwire (NYSE:RDW) reported sharply higher first-quarter 2026 revenue and record backlog, while management said the company is increasing internal research and development spending to pursue larger opportunities across space and defense markets.
Chairman and CEO Peter Cannito said Redwire saw “strong demand across our differentiated products” during the quarter and ended the period with contracted backlog of $498.1 million. Chief Financial Officer Chris Edmunds said first-quarter revenue was $97 million, up 57.9% from the prior-year quarter.
Revenue in Redwire’s space segment was $52.7 million, while its defense tech segment generated $44.3 million. Edmunds said the defense tech increase was primarily driven by contributions from the acquisition of Edge Autonomy, which the company has now fully branded as Redwire.
Margins Improve as Backlog Reaches Record Level
Management emphasized gross margin improvement as a key theme for the quarter. Redwire reported gross margin of 26.6%, up from 14.7% in the first quarter of 2025 and 9.6% in the fourth quarter of 2025. Edmunds said the improvement reflected stronger bookings with higher-margin profiles, progress moving capabilities from development into production, and tighter management of estimated-at-completion adjustments.
Redwire posted a net loss of $76.5 million in the quarter. Edmunds said the loss was impacted by more than $44 million in non-recurring activity, including $42.5 million tied to the non-cash, non-dilutive impact from accelerated vesting of equity incentive units assumed through the Edge Autonomy acquisition.
Adjusted EBITDA was negative $9.2 million. Cannito said that excluding discretionary internal research and development spending, Redwire would have generated positive adjusted EBITDA in the quarter. He described the company as being in “quality growth mode,” saying Redwire is seeking to fund investment rather than operating losses.
Bookings totaled $186.5 million, resulting in a book-to-bill ratio of 1.92 for the quarter, according to Edmunds. Space bookings were $114.6 million, and defense tech bookings were $72 million. The company’s backlog rose 21.1% sequentially and 71.1% year over year to $498.1 million, including $359.7 million in space backlog and $138.4 million in defense tech backlog.
Company Reaffirms 2026 Revenue Forecast
Redwire reaffirmed its full-year 2026 revenue forecast of $450 million to $500 million. Edmunds said the midpoint represents 41.6% year-over-year growth and added that management expects revenue to build through the year following more than $350 million in bookings over the last two quarters.
The company ended the quarter with total liquidity of $175.2 million, including $145.2 million of cash, equivalents and restricted cash, plus $30 million in undrawn revolver capacity. Net cash used in operating activities was $6.7 million, which Edmunds said represented a meaningful reduction both sequentially and year over year.
Redwire also amended its credit agreement during the quarter, extending maturity to May 2029 and reducing the interest spread. Edmunds said the move is expected to generate about $3 million in annualized interest savings and contribute to more than $17 million in total estimated annual interest savings from deleveraging and refinancing actions completed in 2025 and early 2026.
Space Programs Drive Investment Focus
Cannito highlighted Redwire’s selection as one of 14 vendors for Space Systems Command’s Andromeda indefinite-delivery/indefinite-quantity contract, originally described as a $1.8 billion, 10-year vehicle focused on space domain awareness capabilities in geosynchronous orbit. He said Space Systems Command has provided notice of its intent to raise the shared ceiling to more than $6 billion.
Cannito said the Andromeda selection validates Redwire’s strategy of moving up the value chain and positioning itself as a prime contractor for next-generation spacecraft. In response to an analyst question, he said the company plans to invest in highly maneuverable, refuelable geosynchronous spacecraft for the program.
Other space-related awards and opportunities discussed on the call included:
- A contract to continue development of a quantum-secure satellite under the European Space Agency’s QKDSat program.
- A prime contract for the Belgian Ministry of Defence to build and deliver Belgium’s first national security satellite.
- A $12.8 million contract to deliver ELSA solar arrays to Moog for use with Moog’s Meteor satellite buses.
- An additional $4 million from NASA to support drug development investigations on the International Space Station using Redwire’s PIL-BOX pharmaceutical manufacturing platform.
Cannito said Redwire is increasing internal R investment across six areas: very low Earth orbit spacecraft, QKDSat, maneuverable and refuelable geosynchronous spacecraft, lunar infrastructure, space biotechnology and next-generation Stalker and Penguin aircraft.
Defense Tech Momentum Includes Stalker and Penguin Aircraft
In defense technology, Cannito said Redwire received more than $20 million in follow-on purchase orders for standard and advanced navigation Stalker systems supporting the U.S. Navy and Marine Corps Small UAS Program Management Office. He said the award includes the Marine Corps’ first acquisition of the advanced navigation version of Stalker Block 30 and builds on approximately 250 Stalker aircraft already fielded by the Marine Corps.
Redwire also said Stalker participated in U.S. Army Next Generation Command and Control integration efforts during the Ivy Sting exercises. Cannito said Stalker was the only fixed-wing vertical takeoff and landing system supporting the exercise.
Asked about the Edge Autonomy acquisition, Cannito said the acquired business has been integrated under the Redwire brand and that management is pleased with its progress. Edmunds said defense tech bookings improved to $72 million in the quarter and that the product line continues to hold “good gross margin,” while increased investment in the acquired product groups has reduced net EBITDA margin.
Management Points to Lunar and Golden Dome Opportunities
During the question-and-answer session, Cannito said Redwire sees potential roles in a multi-orbit Golden Dome architecture, particularly in very low Earth orbit and geosynchronous orbit. He described Redwire’s positioning as a prime lead in VLEO and highly maneuverable, refuelable GEO spacecraft, and as a merchant supplier for large proliferated constellations in low Earth orbit.
On lunar opportunities, Cannito said Redwire is focused on two major areas: serving as a prime contractor for a lunar power grid and leveraging its position as a Commercial Lunar Payload Services prime. He said Redwire’s Roll-Out Solar Arrays could underpin lunar grid infrastructure and that renewed NASA focus on CLPS may create a more attractive investment profile for the company.
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.
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