Redwire Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue increased 5.4% year-over-year to $109.0 million for the third quarter of 2026, compared to $103.4 million in the same period in 2025.
• Gross margins improved to a record 32.3% for the third quarter of 2026, up from 16.3% in the third quarter of 2025.
• Net loss improved by $18.0 million year-over-year to $(23.2) million for the third quarter of 2026, compared to a loss of $(41.2) million in the prior year period.
• Diluted EPS improved by $0.20 per share year-over-year to $(0.09) per share for the third quarter of 2026, compared to $(0.29) per share in 2025.
• Adjusted EBITDA decreased by $2.7 million year-over-year to $(5.3) million for the third quarter of 2026, compared to $(2.6) million in 2025.
• Research and Development expense increased $6.7 million (87.1%) year-over-year to $14.4 million for the third quarter of 2026.
• Total liquidity ended the quarter at $538.9 million, a 313.9% increase over the end of 2025, comprised of $488.9 million in cash, cash equivalents, and restricted cash plus $50.0 million in available borrowings.
• Deferred revenue increased to $72.6 million as of September 30, 2026, from $60.1 million as of December 31, 2025.
• Total debt decreased to $47.0 million (short-term $4.5 million and long-term $42.5 million) as of September 30, 2026, from $85.2 million (short-term $5.2 million and long-term $80.0 million) as of December 31, 2025.

Guidance and Future Outlook:

• Redwire reaffirmed its full-year 2026 revenue forecast of $450 million to $500 million.
• The company reported $323.1 million of recorded revenue during the first nine months of 2026, supported by a record backlog of $619.7 million and $46.8 million in work in process and finished goods inventory.

Business Segments and Product Lines:

• Space Segment: Revenue was $61.3 million for the third quarter of 2026, up from $46.5 million in 2025. Segment Adjusted EBITDA was $2.8 million, compared to a loss of $(1.9) million in 2025.
• Defense Tech Segment: Revenue was $47.8 million for the third quarter of 2026, down from $56.9 million in 2025. Segment Adjusted EBITDA was $7.2 million, compared to $6.5 million in 2025.
• Awarded a $20 million contract from DARPA for testing and experimentation on a scaled version of the SabreSat spacecraft for a precursor flight test in very low-Earth orbit.
• Received a follow-on contract from Axiom Space to develop and deliver two Roll-Out Solar Array (ROSA) wings for the second space station module.
• Secured follow-on orders for the Stalker platform from key customers, including the U.S. National Guard.
• Launched key technologies to the International Space Station subsequent to the quarter end, including four microgravity investigations and the fourth and final pair of ROSA, completing a historic power modernization effort.

Market and Competitive Landscape:

• Book-to-Bill ratio increased to 1.73 for the third quarter of 2026, up from 1.25 in the same period in 2025.
• Book-to-Bill ratio was 1.63 for the last twelve months ended September 30, 2026, compared to 1.05 for the same period in 2025.
• Contracts awarded during the third quarter of 2026 totaled $188.7 million.
• Contracted backlog reached a record $619.7 million as of September 30, 2026, representing a nearly 75% increase year-over-year from $411.2 million at the end of 2025.
• Backlog by segment as of September 30, 2026: Space ($379.6 million) and Defense Tech ($240.1 million).

Risks and Challenges:

• Revenue timing continues to be uneven.
• Risks include economic uncertainty, geopolitical events, tariffs, failure of financial institutions, and the evolving industry with a limited operating history.
• Potential risks involve the inability to successfully integrate acquisitions, development delays, customer adoption issues, and reliance on a limited number of customers.
• Specific risks include launch vehicle reliance, cyber-attacks, government budget deficits, and changes in tax laws or regulations.
• The company notes material weaknesses in internal controls over financial reporting and the risk of dilution from additional equity issuances.

Management Commentary and Tone:

• Peter Cannito, Chairman, CEO, and President, stated that Redwire saw durable demand across its space and defense tech portfolio, evidenced by the record backlog and increasing Book-to-Bill.
• Cannito noted that while revenue timing remains uneven, the quality of revenue is improving as the company delivers mission-critical products.
• Chris Edmunds, CFO, highlighted that record gross margins were driven by improvements in both Space and Defense Tech segments and emphasized continued investment in innovation and manufacturing capacity.
• Management expressed confidence in the 2026 revenue forecast based on the strong backlog and inventory levels.

Other Key Points:

• The company completed a significant capital raise, with proceeds from the issuance of common stock totaling $566.7 million for the nine months ended September 30, 2026.
• The company eliminated its Convertible Preferred Stock, with liquidation preference dropping from $118.4 million in 2025 to zero in 2026.
• Warrant liabilities were reduced to zero as of September 30, 2026, from $4.2 million at the end of 2025.
• Free Cash Flow for the nine months ended September 30, 2026, was $(114.4) million.
• The company has approximately 1,400 employees located throughout North America and Europe.