Loading...
01/11 16:22
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A highlight several positive developments: a new partnership with i-space-U.S. for lunar missions, an acquisition enhancing autonomous technology, and strong revenue forecasts despite market uncertainties. The Q&A reveals positive analyst sentiment towards management's strategic moves, such as the Edge Autonomy acquisition and SpaceMD's venture potential. While some uncertainties remain, the overall outlook, including reaffirmed guidance and strategic partnerships, suggests a positive stock price movement.
Revenue $61.8 million, up sequentially. However, delays in U.S. government budgeting impacted revenue movement to the right on existing contracts and delay in awards.
Adjusted EBITDA Negative $27.4 million, a decrease from negative $2.3 million in Q1 2025. This was primarily impacted by net unfavorable EAC of $25.2 million related to a single program in the RF system offerings due to increased estimated costs and technical complexity.
Net Loss Negative $97.0 million, a sequential decrease. This includes EACs, noncash expenses, transaction costs, and nonroutine activity. Key drivers include a $29.6 million increase in equity-based compensation, a $20 million increase in interest expense, and a $16.4 million increase in transaction expenses.
Total Liquidity $113.6 million, a 27.4% improvement over Q1 2025 and a 103.4% year-over-year improvement. Comprised of $76.5 million in cash, $35 million in undrawn revolver capacity, and $2.1 million in restricted cash.
Backlog $329.5 million as of June 30, 2025, an improvement on a sequential basis and inclusive of the backlog from the acquisition of Edge Autonomy.
Equity and Debt Changes Shareholders' equity increased from negative $68.1 million in Q1 2025 to positive $907.6 million in Q2 2025. This was driven by the issuance of $260 million of equity, repayment of $120 million of debt, and repurchase of $61.5 million of preferred securities.
Roll-Out Solar Array (ROSA) wings: Successfully completed the first deployment test for the lunar Gateway's power and propulsion element. These ROSAs will generate 60 kilowatts of electricity, making them the most powerful ROSAs ever built.
Stalker Uncrewed Aerial System (UAS): Added to the Defense Innovation Unit's UAS Blue List, streamlining delivery to U.S. government agencies. Awarded a prototype phase agreement by the U.S. Army for the Long Range Reconnaissance program.
Mason advanced manufacturing technology: Passed Critical Design Review with NASA participation. Designed to operate on the Moon and Mars for constructing infrastructure like landing pads and roads.
Space microalgae biotechnology experiment: Selected by NASA to facilitate a biotechnology experiment in collaboration with Indian and international research organizations.
U.S. government and international defense budgets: Positive trends in U.S. and NATO defense budgets, including $24 billion for Golden Dome and $2.6 billion for NASA Gateway. NATO allies committed to 5% GDP defense spending by 2035. Canada announced a $9 billion increase in defense investments for FY 2025-2026.
European government programs: Redwire's operations in Europe position it as a local participant, providing an advantage in accessing European defense budgets.
Acquisition of Edge Autonomy: Closed acquisition of UAS manufacturer Edge Autonomy, with integration underway. Expected to achieve operational and financial integration within 12 months.
Contract awards and backlog: Achieved $90.6 million in contract awards with a book-to-bill ratio of 1.47x and a backlog of $329.5 million as of June 30, 2025.
Creation of SpaceMD: Established a new entity to commercialize drug development in space using PIL-BOX technology. Signed agreements with Aspera Biomedicines and ExesaLibero Pharma for space-based pharmaceutical research and commercialization.
Delays in U.S. government budgeting process: The delays in the U.S. government budgeting process have impacted Redwire's operations, pushing out awards previously scheduled for the second half of 2025 into early 2026. This creates uncertainty in revenue recognition and operational planning.
Net unfavorable EAC changes: The company experienced a $25.2 million unfavorable EAC change primarily related to a single program in the RF system offerings. This was due to increased estimated costs and technical complexities, negatively impacting profitability.
Revenue movement and contract delays: Revenue movement to the right on existing contracts and delays in awards across customer classes, especially in the U.S., have affected financial performance in the first half of 2025.
Integration challenges from Edge Autonomy acquisition: The acquisition of Edge Autonomy has led to significant transaction-related expenses, including a $29.6 million increase in equity-based compensation and a $20 million increase in interest expenses, impacting net loss and cash flow.
Dependence on nonrecurring engineering (NRE) programs: The company faces risks associated with NRE programs, which have short-term negative impacts on profitability due to development costs and technical challenges, although they aim to secure long-term production opportunities.
Exposure to EAC volatility: A significant portion of the business is exposed to EAC volatility, which can lead to unpredictable financial outcomes and challenges in managing profitability.
Budgetary uncertainties in international markets: While there are positive trends in international defense budgets, uncertainties in timing and allocation of these budgets could impact Redwire's ability to capitalize on these opportunities.
Operational execution challenges: The company faced operational challenges in executing a specific project, leading to adverse EAC changes and impacting revenue and profitability.
Revenue Guidance for 2025: Redwire provided full-year 2025 revenue guidance, including the Edge Autonomy acquisition, in the range of $380 million to $445 million, representing a 30.5% compound annual growth rate from fiscal year 2023 to 2025 at the midpoint.
Revised Combined Revenue Forecast: The company revised its full-year combined revenue forecast to a range of $470 million to $530 million, representing a 43.2% compound annual growth rate from 2023 to 2025 at the midpoint. This is a reduction of less than 13% from the previously provided combined forecast.
Impact of Government Budget Delays: Delays in the U.S. government budgeting process have pushed some projected awards to later in 2025 or into 2026, impacting revenue expectations for the year.
Future Growth Potential: Redwire highlighted significant growth potential due to positive trends in U.S. and international defense and space budgets, including NATO's commitment to increased defense spending and Canada's accelerated defense investments.
SpaceMD Commercialization: Redwire announced the creation of SpaceMD to commercialize drug development in space, leveraging its PIL-BOX technology. This initiative aims to generate new revenue streams through partnerships and royalty agreements with pharmaceutical companies.
Pipeline and Backlog: The company reported a backlog of $329.5 million as of June 30, 2025, with an estimated $11 billion in identified opportunities across its space and airborne solutions, including $2.5 billion in proposals submitted year-to-date.
The selected topic was not discussed during the call.
The earnings call presented a mixed outlook. Strong revenue growth and improved margins are positive, but revised guidance and dependency on government contracts pose risks. The Q&A highlighted uncertainties due to government delays, impacting short-term revenue. However, optimistic guidance for 2026 and strategic initiatives like SpaceMD and cost-cutting measures provide future growth potential. These factors balance each other out, resulting in a neutral sentiment.
The earnings call summary and Q&A highlight several positive developments: a new partnership with i-space-U.S. for lunar missions, an acquisition enhancing autonomous technology, and strong revenue forecasts despite market uncertainties. The Q&A reveals positive analyst sentiment towards management's strategic moves, such as the Edge Autonomy acquisition and SpaceMD's venture potential. While some uncertainties remain, the overall outlook, including reaffirmed guidance and strategic partnerships, suggests a positive stock price movement.
Redwire's earnings call shows strong revenue growth, record revenue, and a solid 2025 forecast. The acquisition of Edge Autonomy and a robust pipeline indicate strategic expansion. Despite unchanged EPS, the optimistic guidance, focus on multi-domain platforms, and potential in space exploration are positive indicators. Risks related to M&A and regulatory issues exist, but the company's market position and strategic initiatives suggest a positive outlook. The Q&A section highlighted growth opportunities in Europe and U.S. government programs, reinforcing confidence in future performance.
The earnings call presents a mixed picture: record revenue and improved liquidity are offset by revenue decline and contract delays. The Q&A reveals positive sentiment towards European defense opportunities but highlights uncertainties in U.S. budgets. The lack of shareholder return programs and incomplete guidance on Edge Autonomy's impact further tempers optimism. Given these factors, the stock is likely to remain stable.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
