RDW

A month has gone by since the last earnings report for Redwire Corporation (RDW). Shares have lost about 12.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Redwire Corporation due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. Redwire Q2 Loss Narrower Than Estimates, Revenues BeatRedwire reported a second-quarter 2026 adjusted loss of 9 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. The company reported an adjusted loss of 31 cents in the year-ago quarter. Revenues rose 89.6% year over year to $117.1 million and topped the $105 million consensus estimate by 11.1%. Growth was led by Defense Tech, while gross-margin recovery and record contracted backlog underscored improving execution and demand visibility. Gross profit reached $32.5 million compared to a gross loss of $19.1 million a year ago. Gross margin expanded to 27.8% from negative 30.9%. The improvement reflected a $25.2 million year-over-year reduction in unfavorable estimate-at-completion adjustments, $32.3 million of contributed gross profit from Edge Autonomy and a more favorable contract mix.Selling, general and administrative expenses declined 22.7% to $42.1 million. Research and development expense rose to $12.5 million from $1.7 million as Redwire increased spending on emerging opportunities. The adjusted EBITDA loss narrowed 88.2% to $3.2 million from $27.4 million. Defense Tech generated segment adjusted EBITDA of $14.1 million versus a loss of $15.0 million in the prior-year period. The segment also swung to operating income of $3.9 million from a $49.7 million loss, while gross margin improved to 47%.Space segment adjusted EBITDA moved to a loss of $4.2 million from income of $1.0 million. Space operating loss improved to $5.7 million from $7 million, but higher research and development spending weighed on adjusted profitability. Contracted backlog rose 31.8% from year-end 2025 to $542.1 million as of June 30, 2026. Second-quarter bookings totaled $165.8 million, up 83.1% year over year. The quarterly book-to-bill ratio was 1.42 compared with 1.47 a year earlier, while the last-12-month ratio improved to 1.52 from 0.87.Space backlog totaled $322 million, and Defense Tech backlog was $220.2 million. Cash, cash equivalents and restricted cash reached $557.7 million at quarter-end compared with $95.2 million at the end of 2025. Total liquidity was $607.8 million, a 366.9% increase over the end of 2025.For the first six months of 2026, operating cash outflow narrowed to $31.6 million from $132.7 million, and free cash flow improved to negative $48 million from negative $142.7 million. Redwire reaffirmed its full-year 2026 revenue forecast of $450-$500 million. The $475 million midpoint implies 41.6% year-over-year growth. The Zacks Consensus Estimate for revenues is pegged at $471 million, which is lower than the midpoint of the company's guided range.The company is also adding capacity to support growth. Redwire opened a 30,000-square-foot microgravity payload development facility in Georgetown, IN, and announced a 164,000-square-foot Huntsville, AL, expansion for UAS, Octopus payloads, advanced energy solutions and space capabilities, with completion expected by the fourth quarter of 2027. Since the earnings release, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 43.43% due to these changes. Currently, Redwire Corporation has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Redwire Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Redwire Corporation (RDW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

With government bond yields in many major economies rising, investors are paying closer attention to companies tied to national security and long term defense commitments. That backdrop keeps interest on businesses that build aircraft, satellites and military systems, as well as those that support them with critical services. This article walks through three stocks from the US aerospace and defense space so you can decide whether any deserve a place on your watchlist. The three aerospace and defense stocks covered below are just a starting sample. The full screen surfaced 73 more companies with equally compelling narratives that are not included in this article. If you want to go broader and identify your own high conviction ideas in the sector, head straight to the Aerospace And Defense screener. Overview: Redwire is a space infrastructure company that supplies spacecraft hardware and mission services such as star trackers, sun sensors, antennas, space situational awareness payloads and in space manufacturing facilities to government and commercial space programs. These systems support navigation, communications and intelligence missions for defense and civil space customers. Additional offerings in software, microgravity payloads and uncrewed systems broaden its reach beyond pure defense work. Operations: Redwire generates roughly US$208.9 million of revenue from its Space segment and US$217.4 million from Defense Tech, with sales spread across the U.S., Europe and other regions. Market Cap: US$2.66b Redwire provides direct exposure to demand for space hardware that underpins modern defense, from star trackers and infrared payloads to uncrewed systems and antennas used in navigation, ISR and secure communications. Recent contracts with Space Systems Command, NATO allies and the US$981 million award linked to defense space infrastructure sit alongside commercial work such as SpaceMD’s SpaceX Starfall mission, contributing to a backlog tied to long duration programs. At the same time, Redwire is still loss making, has relied on external funding and share issuance, and has taken on complex fixed price projects and acquisitions that can pressure margins. The company’s ability to convert backlog, manage cash discipline and develop higher margin offerings such as in space manufacturing remains a key consideration for investors. Redwire’s backlog and mission contracts hint at a much bigger story that many investors may be overlooking. Get the full picture on cash discipline, program risk and upside scenarios in the analysis report for Redwire. Overview: General Electric, now focused as GE Aerospace, designs and services jet engines, power systems and key aircraft components for commercial airlines, business jets and military customers, giving investors direct exposure to the engines that power much of global aviation and a wide range of defense aircraft and missiles. Its Commercial Engines & Services arm is complemented by the Defense & Propulsion Technologies segment, which supplies engines, avionics, power and mission critical hardware for government and defense programs worldwide. Operations: GE Aerospace generates about US$37.7b of revenue from Commercial Engines & Services, US$11.5b from Defense & Propulsion Technologies and US$1.4b from Corporate & Other activities. Market Cap: US$348.3b Investors looking at aerospace and defense may find GE Aerospace hard to ignore because its engines and services are tied directly to aircraft utilization, long running defense platforms and a large installed base that feeds recurring MRO and spare parts revenue. A growing backlog in Defense & Propulsion, fresh contracts like the US$2.87b Navy deal for F414 engines and work on hypersonic and missile propulsion extend that visibility, while digital tools and AI in maintenance aim to protect margins even as supply chain issues and cost inflation create pressure. The stock carries high leverage and a premium valuation, so the key question is whether that engine and defense services franchise can justify those expectations over time. GE Aerospace’s engine and defense backlog keeps growing, yet the real story may be how that premium valuation lines up with expectations. Scan the analyst forecasts for General Electric before the next key contract or margin twist reshapes the picture. Overview: Boeing is one of the largest aerospace manufacturers in the world, producing commercial jetliners such as the 737 and 787 for airlines, while also supplying military aircraft, missiles, satellites and space systems to defense customers. Its Commercial Airplanes segment is the main driver. Defense, Space & Security and Global Services provide additional exposure to long term defense programs and ongoing support for aircraft already in service. Operations: Boeing generates about US$43.4b of revenue from Commercial Airplanes, US$29.4b from Defense, Space & Security and US$21.3b from Global Services, with sales spread across the United States, Asia, Europe and the Middle East. Market Cap: US$164.2b For investors focused on aerospace and defense, Boeing offers a direct line into global aircraft production and long dated defense programs, backed by a commercial backlog reported at more than US$500b and anchored by core platforms like the 737 and 787. A major F 15 sustainment and modernization contract running through 2037 highlights the depth of its defense pipeline. The growing Global Services arm adds higher margin, recurring work tied to fleet upkeep. At the same time, the Commercial Airplanes division has reported losses, carries heavy debt of US$53.3b and continues to work through production delays and regulatory scrutiny. How Boeing balances that repair job with the potential of its order book is what could matter most for long term returns in this theme. Boeing’s sizable order book and defense pipeline may give the impression that they are obscuring something investors have not fully pieced together yet. Explore the contracts, backlog quality, and debt story with the analysis report for Boeing Fresh ideas often move first. Screen for stocks building breakout momentum or quietly dropping into value territory before the crowd notices. These picks stay under the radar for now, act now. Spot under followed value plays with quality cash flows before interest intensifies by running the 50 high quality undervalued stocks while the gap between price and fundamentals still matters. Ride the early wave in infrastructure for AI by checking the 55 AI infrastructure stocks before capital floods in and tightens up entry points. Position ahead of potential gold sector momentum swings by reviewing the curated 35 elite gold producer stocks while many investors remain distracted elsewhere. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Senior Director of Investor Relations - Alex Curatolo Chairman and Chief Executive Officer - Peter Cannito Chief Financial Officer - Chris Edmunds Operator: Greetings, and welcome to the Redwire Corporation Q2 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Alex Curatolo, Senior Director of Investor Relations. Thank you. You may begin. Alex Curatolo: Good morning, and thank you, Diego. Welcome to Redwire's Second Quarter 2026 Earnings Call. We hope that you have seen our earnings release, which we issued yesterday afternoon. It has also been posted in the Investor Relations section of our website at rbw.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on Slides two and three. Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide three and the appendix, our earnings release or the investor presentation on our website for the calculation of these measures and their reconciliation to U.S. GAAP measures. I am Alex Curatolo, Redwire's Senior Director of Investor Relations. Joining me on today's call are Peter Cannito, Redwire's Chairman and Chief Executive Officer; and Chris Edmunds, Redwire's Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Thank you, Alex. During today's call, I will outline our key accomplishments during the second quarter of 2026, after which Chris will present the financial highlights for the same period and discuss our outlook for the remainder of 2026. We will then open the call for Q&A. Please turn to Slide 6. I'm pleased to report that Redwire delivered significant value in the second quarter of 2026 with new highs in revenue, gross margin and backlog. During the quarter, Redwire achieved record quarterly revenues of $117.1 million, a 20.7% sequential increase over the previous quarter and an 89.6% increase compared to Q2 2025. Our disciplined execution drove basis. Also, Redwire achieved a strong book-to-bill ratio of 1.42 and as a result, ended the quarter with record contracted backlog of $542.1 million, providing further confidence in our forecast as we move into the second half of 2026. And finally, we strengthened our balance sheet, resulting in a strong financial foundation with a record level of $557.8 million in cash to fuel our continued growth. In summary, Redwire's second quarter was defined by successful execution to meet the growing demand for our mission-critical offerings. Please turn to Slide 7. Access to capital, combined with increasing demand for our products has created a landscape of opportunities for Redwire to continue to invest in growth. To guide our capital allocation, we are implementing an investment framework focused on three pillars: The first pillar is balance sheet strength. Over the last few quarters, we have been aggressively refinancing and delevering while building liquidity to create a strong foundation for future opportunities. This has significantly reduced our interest expense while simultaneously giving us dry powder to invest in new innovations and strategic M&A. The second pillar that logically follows is internal capacity, capability and innovation. With strong demand in both critical space and defense tech capabilities worldwide, Redwire has many attractive internal investment opportunities that can compound growth through new product advancement, expanded capacity and innovation across all our key value drivers. Lastly, the third pillar is accretive M&A. We have a proven track record of acquisitions followed by successful integration as an additional path to accelerate growth. Redwire has a strong history with 11 acquisitions completed to date. With the successful integration of Edge Autonomy over the past year and the required capital to invest, we continue to scan the M&A market for accretive opportunities at good values. We like how we are currently postured, and this framework will guide Redwire into the future as we continue to invest with discipline across all three pillars to drive value for our shareholders. Please turn to Slide 8. As example, I'd like to briefly highlight two major milestones from July that bolster our production momentum. To further strengthen Redwire's position as a worldwide leader in microgravity development, we recently opened a brand-new microgravity center of excellence in Georgetown, Indiana, with expanded lab space and a payload operations center with a direct link to the International Space Station and room for expansion to commercial space stations and other on-orbit microgravity platforms. More on that in a moment. This new 30,000 square foot state-of-the-art facility will focus on accelerating space-enabled research, development and manufacturing for pharmaceutical and biotech innovation. In Huntsville, Alabama, we recently announced a major 164,000 square foot expansion supported by approximately $8.5 million in eligible state and local economic development incentives. This facility, which is expected to be completed in the fourth quarter of 2027, will accelerate production of our combat-proven Stalker aircraft, Octopus ISR payloads, advanced power solutions and space capabilities. Huntsville is a very attractive community for advanced manufacturing with ready access to many strategically important customers. We are very excited to expand our presence in the Huntsville ecosystem. Please turn to Slide 9. Next, I would like to briefly highlight key second quarter achievements and recent developments across our five value drivers. We will start with our Space segment, which encompasses next-generation spacecraft, large space infrastructure and microgravity development and then turn to our Defense Test segment, which encompasses combat-proven UAS and sensors and payloads. Please turn to Slide 10. Starting with next-generation spacecraft. In July, Redwire was selected as 1 of 15 vendors on the Space Systems Command $981 million National Space Test and Training Complex, NITE-STAR Capability Development, Indefinite Delivery, Indefinite Quantity or IDIQ contract. The NITE-STAR IDIQ contract provides for support to space and ground-based engineering activities to enhance test, evaluation and training operations. The contract provides a pathway for Redwire to apply its capabilities such as next-gen spacecraft, digital engineering and space domain awareness, among others, to support the rapid development, testing and training of joint war fighting solutions. Much like with the Andromeda IDIQ discussed last quarter, we see this as another proof point for the success of our moving up the value chain strategy. We are well positioned to deliver critical spacecraft and digital capabilities for national security testing and training, a key growth area for our customer. Please turn to Slide 11. Turning to large space infrastructure. Redwire's Roll-Out Solar Array Technology will be supporting NASA's pioneering Space Reactor-1 Freedom mission to Mars. The two ROSA wings can generate an unprecedented 60 kilowatts of power, making them the most powerful ROSA wings ever built. They were originally developed through a contract with Intuitive Machines to support the power and propulsion element of the NASA-led Lunar Gateway. Launching in 2028, SR-1 Freedom will conduct trailblazing solar, electric, and nuclear propulsion demonstrations while delivering innovative scientific payloads to Mars. We continue to provide high-power solutions of choice targeted at space stations like the International Space Station and Axiom Station, large spacecraft like SR-1 Freedom and potential lunar infrastructure and orbital data centers. The outlook for this capability is strong. Please turn to Slide 12. Turning to our microgravity development value driver. Today, I am extremely excited to announce that in July, SpaceMD, Redwire's venture company, has signed a historic agreement to purchase an entire Starfall spacecraft, a new SpaceX vehicle that enables affordable, routine access to the microgravity environment. The unprecedented capabilities that SpaceX's Starfall offers will dramatically accelerate our ability to deliver pharmaceutical, biotech and other in-space microgravity manufacturing capabilities. SpaceMD's first Starfall mission is slated for launch in 2028 and is expected to have the capacity to carry up to an impressive 32 PIL-BOXes, each with the ability to crystallize up to four compounds or other payloads, making it the largest dedicated commercial microgravity research mission flown in history. Since Redwire launched Pil-Box on its inaugural mission in November of 2023, 54 PIL-BOXes have flown to the International Space Station, successfully crystallizing 45 unique compounds, including insulin and other critical molecules to treat diseases such as cancer, cardiovascular disease, obesity and diabetes. And with the capacity of up to 32 PIL-BOXes on a single mission, SpaceMD's Starfall mission provides a major leap forward in scaling our microgravity capabilities. It's a game changer. With a platform partner like SpaceX's Starfall, we are creating a new path to accelerate commercial microgravity manufacturing at scale. Please turn to Slide 13. Turning next to our combat-proven UAS value driver. During the quarter, Redwire was awarded a high eight-figure multiyear contract to deliver Penguin Mk3 aircraft to an undisclosed NATO customer. This contract is part of a multiyear modernization program for the country's UAS capabilities and building on years of operational combat experience, Redwire's Penguin Mk3 was chosen as it delivers a scalable, adaptable solution for the demands of modern defense environments. This is just one example from a quarter with strong defense tech bookings. During the quarter, Redwire was also awarded a Tranche 1 contract for the Taiwan Coast Guard as well as announced key follow-on awards for Stalker Block 30 from both the United States Marine Corps and U.S. Army. At the same time, we continue to invest in our next-generation platforms, Stalker Block 40 in the United States and Penguin Mk3 in Europe to increase capabilities for the warfighter around the globe. With hundreds of UAS already operational in the field, we are bringing a battle-proven approach to tactical UAS modernization. Please turn to Slide 14. Lastly, moving to our sensors and payloads value driver. Redwire has delivered nearly 200 Octopus ISR payloads year-to-date, a more than 15% increase on a year-over-year basis. During the quarter, we also announced two new Octopus products, the E140 MWIR and E180 HD MWIR. I am pleased to say that we have already made the first sale and customer delivery of both products. These new payloads, which can be used on Stalker and Penguin as well as third-party platforms, strengthen Redwire's position in the ISR market by delivering long-range detection performance, reduced size, weight and power and improved flexibility across a broad range of UAS missions. This growth demonstrates that we are accelerating deliveries of our proven solutions in support of the war fighter. Please turn to Slide 15. With that, I'd now like to turn the call over to Chris Edmunds, Redwire's Chief Financial Officer, to discuss the financial results for the second quarter of 2026. Chris Edmunds: Thank you, Pete. Before turning to Slide 16, I want to highlight the image of our International Berthing and Docking Mechanism or IBDM manufactured by our team in Belgium. This core infrastructure capability was undergoing a docking test campaign at NASA's Johnson Space Center. Redwire's IBDM capability supports both berthing and autonomous docking operations. With this critical technology, Redwire has the ability to bring the world together in space. Now let's turn to the financial results. Please turn to Slide 16. During the second quarter, in line with our expectations, we reported total revenue of $117.1 million, an 89.6% increase on a quarterly year-over-year basis and a 20.7% increase on a sequential basis. Our Space segment recorded revenue of $55.2 million, and our Defense Tech segment recorded revenue of $61.9 million. I would note that the contributions from the acquisition of Edge Autonomy were the primary driver behind the significant increase for Defense Tech on a quarterly year-over-year basis. With more than $350 million in bookings during the last two quarters, we continue to expect our revenue to build in the second half of the year. Please turn to Slide 17. As we previously mentioned, gross margin improvement is a significant focus area for Redwire, and I'm pleased to report that in line with our expectations, we achieved record gross margins of 27.8% during the quarter, representing a significant improvement on a year-over-year basis. This quarter's gross margin results were driven by factors, including a stronger contribution from Defense Tech, which has historically provided higher gross margins, a shift from development to production across our business and a net neutral impact from EAC changes. Net loss improved by $56 million on a year-over-year basis to a net loss of $41 million. Our second quarter adjusted EBITDA was negative $3.2 million, a significant increase on both a year-over-year and sequential basis. Notably, EAC changes had a net neutral impact on our results, including adjusted EBITDA during the second quarter, a marked improvement on a year-over-year basis. Although we are proud of the progress we've made, we continue to strive for improvement. Cost control and program execution remain a key focus area of our business. Finally, echoing Pete, with our strengthened balance sheet, we remain sharply focused on capital allocation. Elevated investment in internal research and development continued during the second quarter, increasing from $1.7 million to $12.5 million on a year-over-year basis. At a moment of inflection in our industry, we see this investment as accelerating the maturation of our products and solutions to meet customer demand. Please turn to Slide 18. Next, turning to a discussion of liquidity and capital structure. We ended the second quarter of 2026 with record total liquidity of $607.8 million, comprised of $557.8 million of cash, cash equivalents and restricted cash and $50 million in undrawn revolver capacity, a significant sequential and year-over-year improvement, primarily driven by the net ATM proceeds of $487.9 million raised during the quarter. To put a finer point on the balance sheet improvement, I'd like to touch on a few highlights on a year-over-year basis. Our cash has increased by over 6x to $557.8 million. We have reduced our total debt by 75% to $48.9 million and significantly reduced our net interest expense to less than $1 million in the quarter versus $23.8 million in Q2 2025. We've seen a 100% reduction in our Series A preferred shares, which have now fully converted into common shares and a 92% reduction in our warrants outstanding to 202,000, which are set to expire in September of this year. We ended the quarter with a strengthened balance sheet and simplified capital structure that is ready to support the company's future growth. Please turn to Slide 19. During the second quarter, we saw continued strength in contracts awarded with bookings of $165.8 million, a significant increase on a year-over-year basis, resulting in a book-to-bill ratio for the quarter of 1.42 and a book-to-bill ratio of 1.52 on a last 12 months basis. Turning to backlog. We once again saw growth in this metric as backlog increased by 8.8% on a sequential basis and 64.5% on a year-over-year basis to a record $542.1 million. As of June 30, 2026, space backlog was $322 million, and Defense Tech backlog was $220.2 million. As a result, the majority of Defense Tech revenue is recognized at a point in time, whereas in our Space segment, the majority of revenue is recognized over time, driving a different backlog profile. As we enter the second half of 2026, we are very proud of our fifth consecutive quarter of growth in backlog and believe demand for our mission-critical space and Defense Tech products and solutions around the globe remains strong, bolstering our confidence in continued growth during the second half of the year. Please turn to Slide 20 for a brief discussion of the outlook for the remainder of 2026. Having achieved year-to-date revenue of $214 million, in line with our expectations, plus another strong quarter of contracts awarded, confidence provided by our record backlog of $542.1 million and a supportive macro environment, we are reaffirming our full year 2026 revenue forecast in the range of $450 million to $500 million, which represents a 41.6% year-over-year growth at the midpoint. With more than $350 million in bookings during the last two quarters, we continue to expect our revenue to build in the second half of the year. With that, please turn to Slide 21, and I'll now turn the call back over to Pete. Peter Cannito: Thank you, Chris. To summarize, Redwire's second quarter was defined by delivering growth and successful execution. With record backlog and a strengthened balance sheet, Redwire is scaling to meet the strong demand we see for our mission-critical offerings. With that, I'd like to thank the entire Redwire team for their achievements during the second quarter of 2026. We will now open the floor for questions. Operator: [Operator Instructions] And your first question comes from Brian Kinstlinger with Alliance Global Partners. Brian Kinstlinger: Congrats all around on a great quarter. I guess my question will be around the gross margin. During the first half of the year, I believe this is one of your biggest accomplishments, what you achieved versus the trailing two years. Can you talk about the sustainability of the gross margin and how you think about the near-term and the medium-term opportunity to expand gross margin? And then separately, on a numbers question, where is the share count today with all the restructuring that happened on the balance sheet? Chris Edmunds: Brian, thank you. So gross margin, clearly, very proud of where the team was able to deliver this quarter and quite frankly, the first half of this year. Earlier this year, we talked about guiding around the low to mid-20s is where we thought we would be in the first half of the year, appreciating some of the EAC adjustments we had last year that we are still working through. Obviously, the bookings profile has been very helpful as we replenish that backlog. But as we go forward, I think that initial guidance that we said, Brian, in the kind of that low to mid-20s is the place to think about in the near term. But as we continue to replenish our space backlog and we're seeing solid growth in our Defense Tech, there's the opportunity that we continue to grow the gross margin over time. But again, we had a very mild EAC adjustment quarter this quarter. Very proud of what the team was able to do, a lot of initiatives that we put in place, but we're doing a lot of really forward-leaning technology here that could have the EAC adjustments in the future. Again, we put measures in place to mitigate and monitor those. But very proud of where we ended up here at 27%, but I'll stay with the guide in the kind of that low to mid-20s as we move forward. Peter Cannito: And then on your share count question. Sorry, Brian, interrupted one more time. Brian Kinstlinger: Yes. No, just the 10-Q didn't come out. Normally, the first page shows the share count where it's at. So I'm just curious where it's at today. Peter Cannito: Yes. So we're 249.9 million common shares. Operator: Your next question comes from Suji Desilva with ROTH Capital Partners. Sujeeva De Silva: I'll echo my congrats on the strong progress here. As we approach the second half of '26, and we're anniversarying the full company from the prior second half, any thoughts on the year-over-year growth opportunity relative across space versus defense? Just trying to get some understanding of how we should think about growth for the two segments. Peter Cannito: Yes, I mean, we see great opportunities in both segments, right? So we continue to see double-digit growth for both segments going forward. Defense Tech is growing faster than space, but there's a lot of space opportunities that are still working their way through the system that we think we're really well positioned on. So we're bullish on both. and are excited about the fact that we continue to get really strong signals from the market with these follow-on awards, whether they be IDIQs or straight-up aircraft orders. So bullish on both. Defense Tech seems to be growing a little bit faster at this point, but that's not to say that space doesn't have the opportunity to catch up. Operator: Your next question comes from Alexandra Mandery with Truist. Alexandra Eleni Mandery: Great results. We've seen backlog and orders continue to hit record levels. How would you describe the award tempo during the quarter? And what are your expectations for the back half of 2026? Peter Cannito: So one of the measures that we focus on a lot is the LTM book-to-bill. And so we've seen over the history that our order flow can be lumpy. And obviously, we would endeavor to have as smooth an order flow as possible. But market forces, again, we've got reach across the globe and different vertical stacks between our national security, our commercial and our civil customers. The timing of awards are always tough to predict. We're coming off of really a couple of great quarters in a row for both segments. Obviously, space pulled back just a touch this quarter, but appreciate that they were over 2x book-to-bill in both Q1 and Q4. As we look in the back half of the year, as we kind of said in our prepared remarks, we do consider it to be a very supportive macro environment. But at a book-to-bill ratio of an LTM basis at 1.5, that is a growth signal book-to-bill. And we're a couple of points in front of where we thought we'd be this time. But again, the market has been very supportive thus far this year. Operator: Your next question comes from Adam Samuelson with Jefferies. Unknown Analyst: So I guess the question is just on the outlook. You kept the revenue range of $50 million for the year. Half the year is complete. Second half, that implies a pretty wide range of growth, like 11% to 35% year-on-year, actually also pretty similar half-on-half. Can you just help us frame kind of what's occurring to get you to the high end versus the low end of the year at this point? Peter Cannito: Yes. I mean, fundamentally, which we tried to articulate in our comments is we're scaling, right? So the way the year has been set up is to show that growth over time. We have a number of indicators to include our growing backlog that we believe support and demonstrate the fact that we're on a scaling curve right now. So I think that's what makes us feel comfortable about the second half. Chris, anything you want to add there? Chris Edmunds: I'd just say as we exited the first quarter, we had about 75% visibility into the guidance at the midpoint. That's come up with the bookings profile that we had in Q2. So we're up in the 90% range right now from a visibility standpoint, which is a good place to be halfway through the year. Operator: Your next question comes from Colin Canfield with Cantor. Colin Canfield: Maybe if the team could talk about their appetite for M&A and essentially kind of what are the key areas that you want to add over time? And how does the team think about autonomy scaling milestones relative to the team's capacity to do deals? Peter Cannito: Yes. Thanks for that question. So we've been doing M&A for a long time. It's really fundamental to our DNA. You can see based on the way we've managed the balance sheet that we are postured to do M&A. So the critical point now is finding the right deal at the right accretive value. And that's what we're focused on. So as I said on other calls, Redwire considers M&A to be a competitive advantage, our experience there and especially the fact that I think we've demonstrated numerous times our ability to walk and chew gum when it comes to integration and staying active in acquisition. I like where we are a lot with the Edge Autonomy integration. As you can see from the first half of the year, they have significant momentum. So we haven't slowed down. And we've already hit on a number of critical milestones, not the least of which being brand integration and now have moved to the nitty-gritty of aligning our internal processes, so we're in a good position. It's been over a year. Edge autonomy is performing, and we're capitalized to go out there and do accretive M&A. So it's a big part of our investment framework, as I articulated at the beginning of the call. Operator: Your next question comes from Michael Leshock with KeyBanc Capital Markets. Michael Leshock: I wanted to ask on the inventory buildup 23% sequentially. Obviously, that was a drag on cash, but what was the biggest driver of that step-up? Is it a function of programs shifting into production? And is there any way to kind of bifurcate that between Space and Defense Tech as to what was the biggest contributor? And then if you could talk to the working capital impacts there and what that means for cash going forward? Peter Cannito: Yes. So this is us being responsive to the market signals that we're seeing, specifically in our UAS space. We have brought inventory up. We are looking to cut down turnaround times. Obviously, the team has got a very lean manufacturing process, but we want to make sure we have the right materials on hand to be very responsive with our customer base. And so this was a very measured investment into our inventory. I would expect that actually inventory levels will probably come up a little bit more as we move into Q3. And that just becomes a timing of working capital, but opens up the aperture with our customers to be able to deliver more quickly and put these world-class UAS systems in the hands of the war fighters around the globe. The thing about working capital, just overall, our working capital has moved around a little bit just over the years, but I'm particularly focused right now that we have improved our cash use through operations on a net balance sheet basis. So we're going to keep focusing on that. as we go forward, making investments in inventory. This is a strategic investment so that we can continue to deliver more quickly for our customers. Operator: And your next question comes from Austin Moeller with Canaccord Genuity. Austin Moeller: Can we talk about how many NATO countries are in your discussion pipeline for Penguin and Stalker versus how many are currently in the sales channel for you today? And are there any U.S. allies that need to be approved by the State Department first before you can sell to them? Peter Cannito: Sure. So we do not disclose the number of allies that we've sold to explicitly. Obviously, what NATO allies are interested in that Redwire is extremely well positioned for is twofold. One is a battlefield proven platform that is widely fielded. They tend not to go after science experiments or early-stage prototypes. They tend to buy those spacecraft that already have momentum in the field. The other thing that I think is unique about Redwire is we have both a world-class offering from a U.S. manufactured platform as well as an organic European manufactured platform. And that is important to some NATO allies. So if you only have a single platform you're manufacturing in the United States, that may limit you as Europe seems to be trending more towards building their organic industrial base. So having the Penguin being organically both conceived of designed and now manufactured at scale in Latvia is a huge opportunity for us. And we saw a big purchase from a NATO ally of that platform in the quarter. And these things tend to gain momentum over time as different ministries of defense look at what others are doing in their peer group. I also want to emphasize that, again, we have global interest, whether it be the Stalker platform or the Latvian-based Mk3 Penguin platform, we're selling to Taiwan. So our capabilities are available to worldwide beyond just the U.S. and Europe, and we have proven demonstrated sales going on there. In terms of the state department, ITAR restrictions, of course, we adhere to all the regulations out there. Many of our technologies are ITAR controlled. Redwire has been a global operator for many years. So unlike maybe a start-up or companies that are just starting to dip their toe into global operations, we have a really sophisticated capability around export control. So we monitor that closely and have the ability to continue to make sales while adhering to all those regulatory policies. Operator: Your next question comes from Griffin Boss with B. Riley Securities. Griffin Boss: I guess I just want to focus on where or what programs are most of your R&D dollars going towards? How are you thinking about that while you're also balancing kind of looking at M&A? And then sort of related on the investment side, regarding the new Huntsville expansion, are we going to see any associated step-up in CapEx in the back half of the year and into '27 to support that? Or how much does those $8.5 million state and local incentives cover? Peter Cannito: Yes. Well, so great question. If you go back to our framework, focusing on the balance sheet, doing M&A, you're highlighting our internal investments, which is great because it's key. I would say that the vast majority of our investments are focused on our platforms, our high-value platforms, whether that be in space or maturing our UAS platforms. But we're also investing a lot in payloads. And of course, nobody has asked about Starfall yet. I know inventory and working capital is super exciting to talk about, too. But Starfall and our microgravity capability is a real game-changing opportunity. So we're investing there as one would expect also. So whenever somebody asked me this question, I always point to the five key value drivers. I haven't hit orbital data centers or the lunar surface, but these are key growth areas as well. So we evaluate each proposal that bubbles up from our segments based on the size of the market, the ability to capture great gross margins because of some sort of competitive advantage, whether it be intellectual property or proven performance and that's how we make those decisions. So we're spreading it around, but we got five key value drivers with lots of opportunities, and each one is evaluated based on the merits using the criteria I just articulated. Operator: And your next question comes from Andrew Steinhart with Bank of America. Unknown Analyst: Chris, this is Andrew on for Ron. So it looks like you guys are starting to see some momentum on the Defense Tech side of the business, 40% sequential growth in Q2, backlog almost double what it was at the end of 2025. We're also seeing higher R&D already ahead of 2025 through the first half of the year. So with all that, I'm wondering, could you guys talk about any of the Defense Tech products currently in the pipeline, particularly within UAS? Peter Cannito: Yes. So the two primary UAS products in the pipeline are the Block 40 for Stalker and the Mk3 for Penguin. So those are key defense tech capabilities, next-generation platforms. We've talked about in the past how our industry-leading ability to power a UAS across longer ranges and longer duration using our solid oxide fuel cell that we now believe our Group 2 UAS has the ability, particularly out of the Block 40 Stalker to start taking on more Group 3 missions at a better price point, right? So we're investing heavily in that. We're investing in maritime capability for the Block 40 as well to expand its reach into naval forces as well as U.S. Army ground forces. Of course, the Mk3 continues to expand on its performance capabilities as it proliferates across Europe and other countries as well. I do want to draw attention to our growth in payloads as well, which is not insignificant, a 15% year-over-year growth in the Octopus EO/IR gimbled payload is really exciting for us. It shows that we're differentiated. As I noted in my comments, it's not just about payloads for Stalker and Penguin. This is a capability that's being procured by third-party platforms as well. So bringing out the E140 and E180 MWIR capability certainly advances our payloads and the fact that, that has gotten early traction is super exciting for us as well. Now those of you who have been following Redwire for a while also know that we have a lot of capability in RF and that things like providing the Link 16 antenna for the York transport layer satellites that have gone up and demonstrated their capabilities on orbit. Well, the beauty of expanding with the acquisition of Edge Autonomy from singularly focused on space to defense tech is now we have the ability to take our RF capabilities into Defense Tech as well. And so we're looking at a number of opportunities for RF payloads that would be differentiated on UAS platforms as well. We already got the EO/IR phenomenology from a sensing perspective. We have the capability for RF. And I got a lot of questions about the synergies when we did the Edge Autonomy acquisition, and RF is one of those areas where we're seeing a lot of potential. Operator: And ladies and gentlemen, that was our last question. I'll now hand the floor over to Peter Cannito for closing remarks. Peter Cannito: All right. Well, thank you all for the questions and your engagement this morning. With that, we appreciate everyone taking the time to listen today and go Redwire. Operator: Thank you. This concludes today's conference. All parties may disconnect. Have a good day. Before you buy stock in Redwire, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Redwire wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Redwire (RDW) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

ONDS dropped 8% post-earnings despite raising its FY2026 revenue outlook, burdened by a forward P/E of 64 and heavy share dilution. RCAT and AVAV fell less than 4% today, confirming the selloff is company-specific and not spreading across the drone sector. Eight analysts rate ONDS a Buy with a $19 target, but defending the 50-day moving average near $9 is the immediate test. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Shares of Ondas Holdings (NASDAQ:ONDS) are down 8% at midday Thursday after the drone and counter-UAS company reported second quarter results before the open. The stock opened at $10 and has traded as low as $9 intraday. The move breaks a stretch of momentum that had carried ONDS up 40% over the past month. The unusual part of today's reaction is that Ondas actually lifted its outlook. The Stocktwits headline from August 13, 2026 asks "Why Is ONDS Stock Falling Even After Ondas Raised Its 2026 Revenue Outlook?" That framing matters. The disappointment lies elsewhere. Coming into earnings, Ondas had already raised its FY2026 revenue target to at least $390M in May, and the Q2 8-K filed this morning did not derail that trajectory. What appears to be weighing on the stock is the setup around it. ONDS carries an EV/Revenue of 40. Even looking forward to 2027, Ondas still traded for a forward P/S that was above 10 headed into earnings. Layer on the acquisition complexity. Our prior reporting flagged that Ondas had acquired six companies during 2026, which raises legitimate questions on integration, organic versus acquired revenue mix, and share issuance. And the stock came into earnings trading richly. History supports the sensitivity: across the last seven prints, ONDS averaged a 1-week post-earnings change of -8%. Today's drop fits that pattern more than it breaks it. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Ondas' guidance calls for revenue between $525 million and $550 million. At the midpoint, that's comfortably above Wall Street's expectations of $525.6 million. So, once again, this points to losses after the stock had run up recently and expectations drifted above current sell-side expectations. Scaling is expected to continue next year, with Wall Street forecasting $990 million in 2027 revenue. Data from Capital IQ points to Wall Street expectations for 2030 currently sitting at $.55 in normalized EPS and revenues of $2 billion. After today's sell-off, Ondas trades for about 16X that 2030 figure. Short answer: not really. The peer tape is soft, but nothing like ONDS. It appears Ondas may be having an impact across the borader drones space, with other stocks all ranging from slightly down to down 3.5%. Larger defense companies in the industrial sector are also under pressure as investors rotate to AI stocks. Red Cat (NASDAQ:RCAT): Reported Q2 FY2026 on August 6, 2026, with revenue of $20.19 million missing consensus by 10.6% and a GAAP EPS of -$0.26. Management reaffirmed the $150M-$180M FY revenue target. It's holding up today. AeroVironment (NASDAQ:AVAV): Q4 FY2026 filed June 29, 2026, with revenue of $641.62 million beating estimates by 14.76% and adjusted EPS of $1.84 beating by 25%. FY2027 guide is $2.13B-$2.23B. Analyst target: $226. Redwire (NYSE:RDW): Q2 FY2026 filed August 5, 2026, revenue $117.07 million beat by 8.74%, record backlog of $542.13 million, book-to-bill 1.42. Unusual Machines (NYSE:UMAC): Q2 FY2026 filed August 6, 2026, revenue $16.72 million up 687% year over year, beating estimates by 81.87%, though Q3 growth will pause for capacity build. Analyst target on ONDS sits at $19 with 8 Buy or Strong Buy ratings and zero Holds or Sells, so sell-side reaction into tomorrow will matter. I'd keep an eye on whether ONDS defends the 50-day moving average near $9 into the close. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Redwire Corporation RDW used its Q2 2026 earnings call to emphasize scaling, backlog visibility and balance sheet flexibility, while keeping a restrained near-term view on margins after a record quarter. Adjusted loss was 9 cents per share versus the Zacks Consensus Estimate of an 18-cent loss, while revenue of $117.07 million topped the $105 million estimate. Management focused more heavily on second-half conversion, defense demand and investment priorities. Redwire Corporation price-consensus-eps-surprise-chart | Redwire Corporation Quote Chief financial officer Chris Edmunds reaffirmed 2026 revenue guidance of $450 million to $500 million after first-half revenue reached $214 million. The midpoint represents 41.6% year-over-year growth. A Jefferies analyst pressed management on the wide second-half range. Edmunds said visibility to the midpoint had risen to roughly 90% from about 75% after the first quarter, helped by the Q2 bookings profile. Chairman, CEO and President Peter Cannito told a Truist analyst that award timing remains lumpy. Still, Q2 book-to-bill was 1.42, last-12-month book-to-bill was 1.52 and contracted backlog reached $542.1 million. Edmunds said the 27.8% Q2 gross margin benefited from a stronger Defense Tech contribution, a broader shift from development to production and a net-neutral impact from estimate-at-completion changes. An Alliance Global Partners analyst asked whether that margin level was sustainable. Edmunds kept the near-term framework in the low-to-mid-20% range, while noting room for expansion over time as backlog is replenished. Adjusted EBITDA improved to negative $3.2 million from negative $27.4 million a year earlier. Edmunds said cost control and program execution remain key priorities despite the progress. Cannito said both segments can deliver double-digit growth, with Defense Tech currently growing faster than Space. He pointed to follow-on awards and aircraft orders as demand signals across the portfolio. Defense activity included a high eight-figure, multiyear Penguin Mk3 award from an undisclosed NATO customer, a Taiwan Coast Guard contract and Stalker Block 30 follow-on awards. Redwire also delivered nearly 200 Octopus ISR payloads year to date. A KeyBanc analyst questioned the inventory build. Cannito said the increase was a measured UAS investment to shorten customer turnaround times and added that inventory could rise somewhat again in Q3, affecting working-capital timing. Cannito outlined three capital-allocation pillars: balance sheet strength, internal capacity and innovation, and accretive M&A. Edmunds said $607.8 million of liquidity was primarily driven by $487.9 million of net ATM proceeds, while total debt fell 75% year over year to $48.9 million. R&D expense rose to $12.5 million from $1.7 million a year earlier. In response to a B. Riley Securities analyst, Cannito said spending is concentrated on higher-value platforms, payloads and microgravity opportunities. A Cantor Fitzgerald analyst asked about acquisition appetite. Cannito said Redwire remains positioned for M&A, with the focus on finding accretive deals at appropriate values while continuing the Edge Autonomy integration. Cannito highlighted Redwire's selection as one of 15 vendors on the $981 million NITE-STAR IDIQ contract, which provides a pathway for spacecraft, digital engineering and space-domain capabilities. He also pointed to Roll-Out Solar Array technology supporting the SR-1 Freedom Mars mission, with two wings designed to generate 60 kilowatts of power. SpaceMD, Redwire's venture company, signed an agreement to purchase a SpaceX Starfall spacecraft for a 2028 mission. Cannito said the mission is expected to carry up to 32 PIL-BOXes, expanding microgravity research capacity. Cannito's closing message centered on scaling against strong demand while converting backlog into revenue. His Q&A comments also acknowledged uneven award timing and the need to stay responsive to customers. Edmunds kept the emphasis on program execution, cost control and disciplined capital deployment. Those priorities frame the second half as Redwire invests in capacity and R&D while working toward its reaffirmed revenue range. RDW carries a Zacks Rank #2 (Buy), placing it among the higher-rated stocks in the Zacks framework for near-term performance potential. However, its Value Score is F, Growth Score is C, Momentum Score is F and VGM Score is F. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Style Scores therefore do not provide the A- or B-level reinforcement that Zacks identifies as most favorable alongside a #1 or #2 Rank. The Zacks Rank can change as earnings estimates are revised following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Redwire Corporation (RDW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Shares of space company Redwire (RDW) ended Friday's trading close to 15% higher after it reported Q2 2026 results that exceeded Street expectations while reaffirming its revenue guidance for the year. Redwire has been in the news recently due to some notable contract wins and the wider enthusiasm among space stocks, thanks to SpaceX (SPCX). Yet, attributing Redwire's rally to just this would be a disservice and would not present the true picture of the company. Don’t Assume Micron Will Share SanDisk’s Fate. Here's Why. The Nvidia-SpaceX Deal Is Sending a Clear Signal on AI Dominance Rocket Lab Investors Have Plenty to Cheer Ahead of Q2 Earnings Today Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Founded fairly recently in 2020 by private equity firm AE Industrial Partners through the combination of two of its aerospace portfolio companies (Adcole Space and Deep Space Systems), Redwire primarily operates in the space and defense tech sectors. On the space front, it is more of an infrastructure company that supplies the components that are inside, around, and on the spacecraft; its defense tech division received a fillip after its acquisition of Edge Autonomy in 2025, with the company now supplying drones, optical sensors, and autonomous systems, among others. Valued at a market cap of $3.2 billion, RDW stock has catapulted by 76% this year. Now, with the latest set of robust Q2 numbers, will the rally continue? Let's find out. Redwire reported record revenues, a jump in backlog, and a positive gross margin in Q2 2026. The quarter saw the company report record revenues of $117.1 million, which denoted a growth of 89.6% from the previous year. Interestingly, revenue for the space segment at $55.2 million was down from $56.7 million in the prior year, while defense tech revenues jumped to $61.9 million from just $5.1 million in the year-ago period. Accompanied by that, gross margins improved to +27.8% in Q2 2026 from -30.9% in Q2 2025. Further, losses for the quarter narrowed to $0.09 per share from $0.31 per share in the year-ago period. It also came in narrower than the consensus estimate of a loss of $0.13 per share. Backlog, a key indicator of demand and revenue visibility, soared by 64.5% on a year-over-year (YoY) basis to $542.1 million. Yet, the book-to-bill ratio dropped slightly to 1.42 from 1.47 in the same period. This means that orders are growing more slowly, relative to the current revenue of the company. However, noteworthy order wins from the U.S. Army and the Taiwan Coast Guard show the company is a trustworthy partner. Meanwhile, revenues for FY 2026 were reaffirmed at $450 million to $500 million. Net cash outflow from operating activities for the six months ended June 30, 2026, slowed down to $31.6 million from $132.7 million in the previous year. Overall, Redwire ended the June 2026 quarter with a cash balance of $557.7 million, much higher than its short-term debt levels of $9.7 million. Yet to be a profitable company, most of the traditional valuation metrics do not apply to Redwire. However, its forward P/S of 7.16 is considerably above the sector median of 1.91. The opportunity in the space-defense tech space is huge. Currently valued at about $653 billion, the same is expected to reach $1.14 trillion by 2034. Here, Redwire's $925 million purchase of Edge Autonomy has been transformational for the company. Not only has this improved Redwire's financial position, but it has also led to an evolution into a company that operates in both space and defense tech. The biggest addition to the company with this buyout was Edge Autonomy's uncrewed aerial systems (UAS), particularly Stalker/VXE30 and Penguin. While Stalker is a smaller, more tactical, highly portable ISR drone, Penguin is the more substantial long-endurance platform. Both are being used by the U.S. military along with international players such as NATO and Ukraine. Now coming back to space, Redwire designs and supplies spacecraft platforms, avionics, structures, mechanisms, and other subsystems used in satellites and spacecraft. Redwire's ROSA, or Roll-Out Solar Array, can be the most crucial component here. Spacecraft are eternally energy-starved, and ROSA comes to the rescue by providing large deployable solar arrays that can be compactly packaged for launch and then deployed in orbit. Notably, Redwire's solar technology has flown on the International Space Station and other missions. Not stopping here, Redwire also develops sensors and payloads that allow spacecraft to actually perform missions. Additionally, Redwire has the unique capability to manufacture in microgravity. For example, Redwire has operated 3D-printing and manufacturing experiments on the ISS. Finally, building on the capability of being able to manufacture in microgravity, Redwire's PIL-BOX platform enables pharmaceutical and biological experiments in microgravity. The company has already flown more than 50 PIL-BOX experiments since the first mission in November 2023, involving customers including Bristol Myers Squibb (BMY) and universities. This could open up another paradigm for the company in drug development and advanced materials. Thus, analysts remain cautiously optimistic about RDW stock. With a consensus rating of “Moderate Buy,” analysts have earmarked a mean price target of $15.56. This denotes a potential upside of 15% from current levels. Out of nine analysts covering the stock, five have a “Strong Buy” rating, three have a “Hold” rating, and one has a “Moderate Sell” rating. On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Interested in Redwire Corporation? Here are five stocks we like better. Record quarterly performance: Redwire’s Q2 revenue rose 89.6% year over year to $117.1 million, while gross margin reached a record 27.8%, helped by growth in its higher-margin defense technology business. Backlog and outlook strengthened: Contracted backlog increased 64.5% year over year to a record $542.1 million, supported by a 1.42 quarterly book-to-bill ratio. The company reaffirmed its 2026 revenue guidance of $450 million to $500 million and expects revenue to build in the second half. Balance sheet improved: Redwire ended the quarter with $607.8 million in liquidity after raising $487.9 million through an equity offering, while total debt fell 75% year over year to $48.9 million. 5 Space Stocks Face a Brutal Correction: Which Ones Are Still Buys? Redwire (NYSE:RDW) reported record second-quarter revenue, gross margin and contracted backlog for 2026, as growth in its defense technology business and continued demand for space systems supported results. The company reaffirmed its full-year revenue outlook and said it expects revenue to build during the second half. Revenue for the second quarter reached $117.1 million, up 20.7% sequentially and 89.6% from the year-earlier period. The space segment generated $55.2 million in revenue, while defense technology contributed $61.9 million. Chief Financial Officer Chris Edmonds said the Edge Autonomy acquisition was the primary driver of the substantial year-over-year increase in defense technology revenue. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling MDA Space Targets US Defense Market With $620M Acquisition “With more than $350 million in bookings during the last two quarters, we continue to expect our revenue to build in the second half of the year,” Edmonds said. Gross margin rose to a record 27.8% during the quarter, improving both sequentially and year over year. Edmonds attributed the result to a stronger defense technology contribution, which historically carries higher margins, as well as a business mix shifting from development programs into production. He also said estimated-at-completion, or EAC, changes had a net-neutral effect during the quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High AST SpaceMobile Announces Launch Date for Its Next 3 BlueBird Satellites Redwire recorded a net loss of $41 million, an improvement of $56 million from the prior-year period. Adjusted EBITDA was negative $3.2 million, which management said was a significant improvement both year over year and sequentially. While the company highlighted the margin progress, Edmonds said Redwire continues to focus on cost control and program execution. He told analysts that the company’s prior view of gross margins in the low-to-mid-20% range remains an appropriate near-term expectation, while additional expansion could occur as space backlog is replenished and defense technology grows. → No Hangover: Revisiting Microsoft One Week After Earnings Research and development spending increased to $12.5 million in the quarter from $1.7 million a year earlier. Management said the increased investment is intended to mature products and solutions to meet customer demand. Second-quarter bookings totaled $165.8 million, producing a quarterly book-to-bill ratio of 1.42. The last-12-month book-to-bill ratio was 1.52. Contracted backlog grew 8.8% from the first quarter and 64.5% from a year earlier to a record $542.1 million. Space backlog was $322 million as of June 30. Defense technology backlog was $220.2 million. Management noted that most defense technology revenue is recognized at a point in time, while most space revenue is recognized over time. Edmonds said the company has now posted five consecutive quarters of backlog growth. He described the macro environment as supportive and said Redwire’s last-12-month book-to-bill ratio signals growth, though he cautioned that contract awards can be uneven across quarters. For 2026, Redwire reaffirmed its revenue forecast of $450 million to $500 million. The midpoint would represent 41.6% year-over-year growth. The company reported year-to-date revenue of $214 million and said it had visibility into more than 90% of the midpoint of its annual revenue guidance. Redwire ended the quarter with total liquidity of $607.8 million, consisting of $557.8 million in cash equivalents and restricted cash and $50 million of undrawn revolver capacity. The increase was primarily driven by $487.9 million in net proceeds raised through its at-the-market equity program during the quarter. Management said total debt fell 75% year over year to $48.9 million, while net interest expense declined to less than $1 million from $23.8 million in the second quarter of 2025. The company also said its Series A preferred shares have fully converted into common stock and outstanding warrants were reduced 92% to 202,000, with those warrants scheduled to expire in September. Edmonds said Redwire had 249.9 million common shares outstanding. The company increased inventory to support faster delivery times for its unmanned aircraft systems, particularly in defense markets, and expects inventory levels may rise further in the third quarter. Chief Executive Officer Peter Cannito outlined a capital allocation framework centered on balance sheet strength, internal investment and accretive acquisitions. He said the company has completed 11 acquisitions to date and continues to assess acquisition opportunities following the integration of Edge Autonomy. Redwire opened a 30,000-square-foot microgravity center of excellence in Georgetown, Indiana, featuring expanded laboratory space and a payload operations center linked to the International Space Station. The site will support pharmaceutical and biotechnology research, development and manufacturing in microgravity. The company also announced a planned 164,000-square-foot expansion in Huntsville, Alabama, expected to be completed in the fourth quarter of 2027. The project is supported by approximately $8.5 million in eligible state and local economic-development incentives and is intended to expand production of Stalker aircraft, Octopus intelligence, surveillance and reconnaissance payloads, power systems and space capabilities. Among recent contract and program updates, Redwire said it was selected as one of 15 vendors for the Space Systems Command’s $981 million NITE-STAR capability development indefinite-delivery, indefinite-quantity contract. The company also received a high eight-figure, multiyear award to supply Penguin Mk3 aircraft to an undisclosed NATO customer, along with a Taiwan Coast Guard contract and follow-on Stalker Block 30 awards from the U.S. Marine Corps and U.S. Army. Redwire delivered nearly 200 Octopus ISR payloads year to date, up more than 15% from the prior year. Cannito said the company’s development pipeline includes the Stalker Block 40 and Penguin Mk3 platforms, as well as expanded payload and radio-frequency capabilities. In microgravity operations, Redwire’s venture company SpaceMD signed an agreement to purchase an entire SpaceX Starfall spacecraft. The first SpaceMD Starfall mission is slated for 2028 and is expected to carry up to 32 PIL-BOX units for microgravity research and manufacturing payloads. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Redwire Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Redwire (RDW) has drawn fresh attention after Q2 results showed revenue growth of almost 90%, a record gross margin, a smaller adjusted loss, and reaffirmed full year revenue guidance supported by a record backlog. See our latest analysis for Redwire. The Q2 update and reaffirmed revenue guidance have pulled Redwire back into the spotlight, with the stock’s 7 day share price return of 37.79% pointing to building momentum after a year to date share price return of 18.72% and a 1 year total shareholder return that is still down 21.75%. If Redwire’s recent move has your attention, this can be a good moment to widen your watchlist and uncover 56 AI infrastructure stocks Redwire now has faster growth, a record backlog and a smaller loss, plus a share price that has risen sharply in a week yet remains lower over the past year. Is this a strong business priced reasonably today or not? Based on the most followed narrative, Redwire’s fair value of $12.82 sits above the last close of $10.72, which puts a spotlight on the assumptions behind that gap. Read the complete narrative. Curious how this pipeline, margin profile and discount rate combine to reach that fair value for Redwire. The narrative focuses on revenue compounding, operating leverage and a future earnings profile that is expected to look different from today. Result: Fair Value of $12.82 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Redwire still faces key risks, including ongoing adjusted EBITDA losses and potential equity dilution from the up to US$250 million at-the-market program. Find out about the key risks to this Redwire narrative. The most followed narrative points to Redwire trading 16.4% below a $12.82 fair value. However, the current P/S ratio of 6.9x is higher than both the US Aerospace & Defense industry average of 4.8x and the peer average of 6.4x, and also sits above a fair ratio of 2.1x. That gap implies investors are already paying a premium multiple, so the question is whether the growth story justifies staying above where the market could eventually re-rate the stock. See what the numbers say about this price — find out in our valuation breakdown. With a combination of both potential opportunities and challenges now visible for Redwire, this may be a useful time to act promptly and review the full picture for yourself with 1 key reward and 3 important warning signs If Redwire has sharpened your focus, do not stop here. Use the screener tools to quickly surface other opportunities that could suit your portfolio. Spot potential mispricings early and compare them with Redwire by reviewing companies identified in the screener containing 17 high quality undiscovered gems. Strengthen the defensive side of your portfolio and stress test ideas alongside Redwire using the 79 resilient stocks with low risk scores. Target quality businesses with solid finances and see how they stack up against Redwire through the solid balance sheet and fundamentals stocks screener (50 results). This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RDW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Redwire’s Q2 revenue surged nearly 90%, while adjusted losses narrowed and gross margin reached a record 27.8%. In Q2, Redwire won new U.S. military and international defense contracts, including awards for its Stalker and Penguin platforms. Stocktwits sentiment remained "extremely bullish," with retail traders calling for a higher valuation. Redwire (RDW) stock surged overnight after the space and defense technology company posted record second-quarter (Q2) revenue, improved margins and reaffirmed its 2026 outlook. Retail traders now want a valuation rebalance, arguing the stronger backlog, healthier balance sheet and increasing defense demand could justify a higher price for the stock. Redwire’s Q2 revenue shot up 89.6% year-on-year to $117.1 million during the quarter, with adjusted losses narrowing to $0.09 per share from a loss of $0.31 per share last year. Both metrics surpassed analysts’ consensus estimates of $107.66 million and a loss of $0.15, respectively. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Gross margin reached a record 27.8%, marking a sharp turnaround from a negative margin of 27% last year. Adjusted EBITDA improved to a loss of $3.2 million despite the company investing $12.5 million in research and development during the period. The company also maintained its full-year revenue guidance of $450 million to $500 million, pointing to a healthy order pipeline and increased investment capacity. “During the quarter we reduced the aggregate amount of our term loans from $90.0 million to $50.0 million and ended the quarter with record total liquidity of $607.8 million,” said Chris Edmunds, CFO, Redwire. Redwire stock traded over 7% overnight and is on track for its best week since May. During Q2, Redwire secured additional contracts tied to its Stalker Block 30 platform from the U.S. Marine Corps and the U.S. Army Aviation Center of Excellence. It also won new Penguin uncrewed aerial systems awards. The company delivered nearly 200 Octopus ISR payloads during the first half of the year, exceeding last year's pace by more than 15%. It also introduced the Octopus E140 MWIR and Octopus E180 HD MWIR payloads. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory with a 162% increase in message volume over the past 24 hours. A user said, “Now can we please rebalance the valuation among all the space names!!” Another user said, “I don't still get the current valuation? Company ripped the earnings, revenue is here, backlog is here , they are expanding big time, they acquired also big talents and oohh ooh they also has the cash:) So why all the wallstreet folks still pricing this company as a staples company, even worse than that?” A third sounded optimistic saying, “With a strong, better than expected Q2 report, Redwire is uniquely positioned to stand on its own, decoupling away from the hypnotic snare of SpaceX and its IPO. With a share price hike to about $11.60 overnight, and a whopping 42.9M shares short, expect shorts to frantically cover during pre-market and especially at market open today, creating conditions for a very big boost to the stock price in the coming days and weeks.” RDW stock has gained 41% year-to-date. Also See: Paramount Skydance’s $110B Warner Bros Gamble Hits March Courtroom Showdown: David Ellison Says ‘We’ll Win At Trial’ For updates and corrections, email newsroom[at]stocktwits[dot]com. Shivani Kumaresan has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: CRM, NOW, INTU, ADBE: Software Stocks Slide After Figma Flags Surging AI Costs RKLB Stock Slips Overnight: Rocket Lab Prepares To Retry 92nd Launch After Last-Minute Electron Abort US Stock Futures Inch Higher Following S&P 500, Nasdaq Drop As Investors Brace For SpaceX Share Unlock — GOOGL, UBER, META, FLUT, AMZN In Focus

Space stock-turned-drones stock Redwire Corporation (NYSE: RDW) closed up 11% on Thursday after beating analyst targets in its Q2 report last night. Heading into the report, Wall Street expected Redwire to lose $0.16 per share on sales of $107.9 million, and while the company did lose money, it lost less than expected -- only $0.09 per share. Sales solidly beat expectations at $117 million. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » CEO Peter Cannito boasted that quarterly revenue set a new record for Redwire, as did the company's gross profit margin earned on that revenue -- 27.8%, up from negative margins a year ago -- as did the company's backlog for work to be done: $542.1 million. In reaching this level, Redwire booked 42% more new contracts than it billed for work performed -- a book-to-bill ratio of 1.42. The company inked contracts in the quarter to supply drones to NATO allies, the U.S. Marine Corps, and the U.S. Army, and partnered with multiple pharmaceutical companies and educational institutions on "on-orbit operations for pharmaceutical drug development." Revenue continues to grow strongly, with Redwire anticipating $450 million to $500 million in sales through the end of this year -- as much as 49% annual growth over last year's $335 million. That probably still won't be enough to turn the company profitable, however. Management didn't promise anything of the sort, and analysts who follow Redwire forecast a $0.58 per share loss this year... and another loss next year... and another loss the year after that. The good news is that, with $558 million in the bank and a cash burn rate below $100 million, Redwire still has a few years to find its footing and become a viable business. The bad news is: It's not quite there yet. Before you buy stock in Redwire, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Redwire wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,502!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 6, 2026. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Redwire Stock Soared After Earnings was originally published by The Motley Fool