Redwire Reports Wider Losses Despite Revenue Beat in Q4 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
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Should l Buy RDW?
Source: Benzinga
- Quarterly Losses: Redwire reported a quarterly loss of $0.58 per share, significantly worse than the consensus estimate of a $0.19 loss, indicating substantial challenges in profitability.
- Revenue Beat: Despite the larger-than-expected loss, Redwire's quarterly revenue reached $108.79 million, surpassing Wall Street's estimate of $102.36 million and showing a notable increase from $69.56 million in the same period last year, suggesting potential for revenue growth.
- Strategic Transformation: CEO Peter Cannito highlighted that 2025 marks Redwire's evolution into an integrated, multi-domain space and defense tech company, with the new structure expected to enhance market positioning and support future growth.
- Cautious Outlook: Redwire anticipates full-year revenue in the range of $450 million to $500 million, indicating that despite the loss pressures, the company is striving to maintain its growth trajectory amidst market challenges.
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Analyst Views on RDW
Wall Street analysts forecast RDW stock price to rise
9 Analyst Rating
6 Buy
2 Hold
1 Sell
Moderate Buy
Current: 8.620
Low
6.00
Averages
12.50
High
22.00
Current: 8.620
Low
6.00
Averages
12.50
High
22.00
About RDW
Redwire Corporation is an integrated aerospace and defense company focused on advanced technologies. The Company is focused on aerospace infrastructure, autonomous systems and multi-domain operations leveraging digital engineering and AI automation. Its capabilities include avionics, sensors, power solutions, critical structures, mechanisms, radio frequency systems, platforms, missions, microgravity payloads and uncrewed airborne system (UAS) technology. It specializes in core avionics, such as scalable power distribution and on-board computing capabilities. These specialized avionics and sensors can be applied across multiple space environments, including Low Earth Orbit, Geostationary Orbit, Cis-lunar and deep space missions. It provides a range of sensors, including star trackers and sun sensors, which are critical for navigation and control of spacecraft. It offers a variety of solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Significant Revenue Growth: Redwire reported fourth-quarter revenue of $108.79 million, a 56.4% increase from $69.56 million last year, surpassing the consensus estimate of $102.36 million, indicating strong growth potential in the space and defense technology sectors.
- Earnings Miss Expectations: Despite the robust revenue performance, Redwire reported a loss of 58 cents per share, missing the market expectation of a 19-cent loss, reflecting ongoing challenges in profitability.
- Substantial Liquidity Increase: By the end of 2025, Redwire's total liquidity reached $130.2 million, representing a 103.2% increase from the end of 2024, providing ample financial support for future investments and expansions.
- Optimistic Guidance: Redwire expects full-year revenue to range between $450 million and $500 million, exceeding the market estimate of $460.91 million, demonstrating confidence in future growth and potentially driving further stock price increases.
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- Company Performance: Shares of Redwire increased by 4.8% following a revenue beat in the fourth quarter.
- Financial Highlights: The revenue surpassing expectations contributed to the positive market reaction and share price growth.
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- Significant Backlog Growth: Redwire's backlog reached $411 million by the end of 2025, driven by a 1.52x book-to-bill ratio, indicating strong contract bookings that will support revenue growth in the coming years.
- Revenue Surge: The company experienced a 10% year-over-year revenue increase in 2025, with a remarkable 56% growth in the fourth quarter, partly fueled by the acquisition of Edge Autonomy, highlighting robust demand in the space infrastructure and defense technology sectors.
- High Market Valuation: With a market cap of $1.6 billion, Redwire's valuation remains high relative to its trailing revenue of $335 million for 2025, suggesting that investors have high expectations for future growth, but this also entails significant risks.
- Lack of Profitability: In 2025, Redwire reported a meager gross profit of $17 million, indicating that the company is selling products at very low prices to secure contracts, alongside a substantial pre-tax loss of $251 million last year, revealing challenges in its current business model.
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- Significant Backlog Growth: Redwire's backlog reached $411 million at the end of 2025, driven by a 1.52x book-to-bill ratio, indicating strong contract bookings that suggest substantial future revenue growth potential.
- Robust Revenue Increase: The company reported a 10% year-over-year revenue growth in 2025, with a remarkable 56% surge in the fourth quarter, partly due to the acquisition of Edge Autonomy, showcasing its competitive position in the market.
- Profitability Challenges: Despite rising revenues, Redwire's gross profit was only $17 million in 2025, indicating a struggle with pricing power, and it faced a $251 million loss before taxes last year, making it a high-risk investment.
- Cautious Market Outlook: Redwire projects revenue between $450 million and $500 million for 2026, demonstrating growth potential; however, the lack of a profitability track record suggests that investors should approach this stock with caution.
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- Earnings Performance: Redwire reported Q4 2025 sales of $108.8 million, exceeding analyst expectations of $98.8 million, despite a loss of $0.58 per share, significantly worse than the anticipated $0.18 loss, indicating strong sales growth.
- Contract Acceleration: The company secured a $44 million DARPA 'Otter mission' contract in Q4, utilizing its SabreSat to demonstrate low-altitude air-breathing satellites, while its drone division expanded shipments of Stalker/Penguin UAVs to seven countries, driving a 56% sales increase.
- Future Growth Outlook: Redwire's book-to-bill ratio surpassed 1.3x in 2025 and exceeded 1.5x in Q4, indicating accelerating future sales growth; although the company may still incur losses in 2026, the trend in sales growth is evident.
- Market Prospects: The company anticipates 2026 sales between $450 million and $500 million, representing a 42% growth at the midpoint, and while analysts expect losses and cash burn to continue until at least 2027, the signs of accelerating sales suggest Redwire is on the right path.
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- Significant Sales Growth: Redwire reported Q4 2025 sales of $108.8 million, exceeding analyst expectations of $98.8 million, with a remarkable 56% growth rate, indicating strong performance amid rising market demand.
- Accelerated Contract Awards: The company secured a $44 million DARPA 'Otter mission' contract in Q4, utilizing SabreSat to demonstrate low-altitude air-breathing satellites, while its drones division expanded shipments of Stalker/Penguin UAVs to customers in seven countries, further driving sales growth.
- Optimistic Future Outlook: Redwire anticipates 2026 sales between $450 million and $500 million, representing a 42% growth at the midpoint, and although losses are expected to continue, the accelerating sales trend suggests the company is on the right path.
- Financial Challenges Persist: Despite strong sales growth, Redwire reported a Q4 2025 loss of $85.5 million and an annual loss of $226.6 million, with analysts predicting cash flow pressures will remain until at least 2027, necessitating cautious investment assessments.
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