Latest news with #PeterCannito
Yahoo
07-08-2025
- Business
- Yahoo
Redwire Announces Prototype Phase Award for U.S. Army Long Range Reconnaissance (LRR) Program
JACKSONVILLE, Fla., August 07, 2025--(BUSINESS WIRE)--Redwire Corporation (NYSE: RDW), a global leader in space and defense technology solutions, today announced that its wholly owned subsidiary, Edge Autonomy, has been awarded a prototype phase agreement by the U.S. Army to develop and deliver its Stalker uncrewed aerial systems (UAS) for the Long Range Reconnaissance (LRR) program. Under the terms of this contract, Edge Autonomy will deliver Stalker UAS equipped with advanced sensors, secure communications, autonomous mobility features, and modular payload configurations tailored to meet mission-specific requirements. These Stalker UAS are designed to enable extended surveillance and intelligence gathering operations in contested environments and will be evaluated by the Army during hands-on flight operations in the coming months. "Redwire is proud to develop these systems to significantly bolster the U.S. Army's ability to detect, identify, and track threats across a wide range of operational theaters," said Peter Cannito, Chairman and CEO of Redwire. "Redwire understands the criticality of the LRR program, and we are committed to supporting the U.S. Army's evolving mission needs." Designed with a Modular Open Systems Approach (MOSA), the Edge Autonomy Stalker and associated components will support Army units with real-time situational awareness, extended operational reach, and improved survivability in austere and remote locations. "Our ability to address mission needs in the field allows for reliable data that guides real-time decision making," said Steve Adlich, President of Edge Autonomy. "Our products provide soldiers with the situational awareness they need, reduces the logistics burden on the UAS operator, and delivers actionable data to brigade level personnel." Edge Autonomy, a wholly owned subsidiary of Redwire, specializes in delivering innovative autonomous systems, advanced optics, and resilient energy solutions that are being used by the DoD, U.S. Federal Civilian Agencies, and allied governments. With nearly three decades of technology heritage and manufacturing expertise, Edge Autonomy's experienced team delivers proven solutions based on real-world mission needs. About Redwire Redwire Corporation (NYSE:RDW) is an integrated space and defense tech company focused on advanced technologies. We are building the future of aerospace infrastructure, autonomous systems and multi-domain operations leveraging digital engineering and AI automation. Redwire's approximately 1,300 employees located throughout the United States and Europe are committed to delivering innovative space and airborne platforms transforming the future of multi-domain operations. For more information, please visit View source version on Contacts Media Contact: Tere Investors: investorrelations@ 904-425-1431 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
06-08-2025
- Business
- Globe and Mail
Redwire Corporation Reports Second Quarter 2025 Financial Results
Redwire Corporation (NYSE:RDW, 'Redwire' or the 'Company'), a global leader in space and defense technology solutions, today announced results for its second quarter ended June 30, 2025. Redwire will live stream a presentation with slides on August 7, 2025 at 9:00 a.m. ET. Please use the link below to follow along with the live stream: 'During the second quarter, we completed our acquisition of Edge Autonomy, establishing Redwire as an integrated global space and defense tech company specializing in multi-domain solutions,' stated Peter Cannito, Chairman and Chief Executive Officer of Redwire. 'Although we continued to see delays in the U.S. government's budget approval processes throughout 2025, we have begun to see positive indicators as well. Whether Golden Dome, U.S. drone dominance, or increased defense spending internationally by NATO allies, we are well-positioned to capitalize on high-growth trends going forward. Additionally, we are excited to announce the formation of SpaceMD, a new entity founded to commercialize on Redwire's microgravity drug development breakthroughs, and the signing of a trailblazing royalty agreement with ExesaLibero Pharma, Inc., under which we expect to receive royalties from the commercial sales of resulting pharmaceutical products.' Second Quarter 2025 Highlights Revenues for the second quarter of 2025 decreased 20.9% to $61.8 million, as compared to $78.1 million for the second quarter of 2024. Net Loss for the second quarter of 2025 increased by $78.9 million to $(97.0) million, as compared to $(18.1) million for the second quarter of 2024. Net Loss for the second quarter included in excess of $(90.0) million in expenses related to non-cash; transaction-related; EAC adjustments; and non-routine activity that included: $29.6 million related to equity-based compensation primarily from the Edge Autonomy acquisition, $16.6 million in transaction expenses, $25.2 million in net, unfavorable EAC impacts, and $20.0 million in interest expense from the repayment of a seller note associated with the Edge Autonomy transaction. Adjusted EBITDA 4 for the second quarter of 2025 decreased by $29.0 million to $(27.4) million, as compared to $1.6 million for the second quarter of 2024. During the second quarter of 2025, the Company had net unfavorable EAC changes of $25.2 million, which impacted second quarter of 2025 revenues, gross profit, and net loss, and as a result, Adjusted EBITDA. 4 The net unfavorable EAC adjustments in the second quarter of 2025 were primarily due to a single program in the Company's RF systems offerings as a result of an increase in estimates made for the programmatic and technical assumptions based on the nature and technical complexity of the work to be performed to meet customer specifications. The unfavorable adjustments were also due to production delays, additional unplanned labor and increased production costs as it relates to the development of advanced technologies required to meet customer specifications in multiple space offerings. On a quarterly basis, Book-to-Bill 5 ratio was 1.47 as of the second quarter of 2025, as compared to 1.47 as of the second quarter of 2024. Net cash used in operating activities for the second quarter of 2025 increased by $78.2 million to $(87.7) million, as compared to $(9.5) million for the second quarter of 2024. Net cash used in operating activities for the second quarter of 2025 included more than $35.0 million related to M&A activities and associated non-recurring interest. Free Cash Flow 4 for the second quarter of 2025 was $(93.5) million, as compared to $(11.2) million for the second quarter of 2024. Ended the the second quarter of 2025 with record total liquidity 6 of $113.6 million, as compared to $55.8 million for the second quarter of 2024. 2025 Forecast For the twelve months ended December 31, 2025, Redwire, including Edge Autonomy from the date of close (June 13, 2025), is forecasting full year revenues of $385 million to $445 million. For the twelve months ended December 31, 2025, Redwire, as a combined company assuming the previously completed transaction with Edge Autonomy had been consummated on January 1, 2025, is forecasting full year revenues 7 of $470 million to $530 million. Due to uncertain timing of government contracting, at this time, the Company is withdrawing its previously provided Adjusted EBITDA forecast for the twelve months ended December 31, 2025. 'With an expanding portfolio of space development programs, we experienced unfavorable EAC impacts primarily due to non-recurring engineering on a few, emerging tech programs. This positions Redwire for long-term production growth in the space tech offerings. Moving forward, the addition of Edge Autonomy lowers the proportion of our business that is exposed to EAC volatility,' said Jonathan Baliff, Chief Financial Officer of Redwire. '2025 is a transition year for government budgets and a transformative year for Redwire with the closing of our acquisition of Edge Autonomy while also ending the second quarter with record total liquidity 6 of $113.6 million.' 1 Book-to-Bill is a key business measure. Please refer to 'Key Performance Indicators' and the tables included in this press release for additional information. 2 Adjusted EBITDA is not a measure of results under generally accepted accounting principles in the United States. Please refer to 'Non-GAAP Financial Information' and the reconciliation tables included in this press release for details regarding this Non-GAAP measure. 3 Total liquidity of $113.6 million as of June 30, 2025 is comprised of $76.5 million in cash and cash equivalents, $35.0 million in available borrowings from our existing credit facilities, and $2.1 million in restricted cash. 4 Adjusted EBITDA and Free Cash Flow are not measures of results under generally accepted accounting principles in the United States. Please refer to 'Non-GAAP Financial Information' and the reconciliation tables included in this press release for details regarding these Non-GAAP measures. 5 Book-to-Bill is a key business measure. Please refer to 'Key Performance Indicators' and the tables included in this press release for additional information. 6 Total liquidity of $113.6 million as of June 30, 2025 is comprised of $76.5 million in cash and cash equivalents, $35.0 million in available borrowings from our existing credit facilities, and $2.1 million in restricted cash. 7 These amounts are the sum of the standalone full year forecasts for the Redwire and Edge Autonomy businesses by Redwire management. Please refer to 'Use of Projections' included in this press release for additional information. Webcast and Investor Call Management will conduct a conference call starting at 9:00 a.m. ET on Thursday, August 7, 2025 to review financial results for the second quarter ended June 30, 2025. This release and the most recent investor slide presentation are available in the investor relations area of our website at Redwire will live stream a presentation with slides during the call. Please use the following link to follow along with the live stream: The dial-in number for the live call is 877-485-3108 (toll free) or 201-689-8264 (toll), and the conference ID is 13755131. A telephone replay of the call will be available for two weeks following the event by dialing 877-660-6853 (toll-free) or 201-612-7415 (toll) and entering the access code 13755131. The accompanying investor presentation will be available on August 7, 2025 on the investor section of Redwire's website at Any replay, rebroadcast, transcript or other reproduction or transmission of this conference call, other than the replay accessible by calling the number and website above, has not been authorized by Redwire Corporation and is strictly prohibited. Investors should be aware that any unauthorized reproduction of this conference call may not be an accurate reflection of its contents. About Redwire Corporation Redwire Corporation (NYSE:RDW) is an integrated space and defense tech company focused on advanced technologies. We are building the future of space infrastructure, autonomous systems and multi-domain operations leveraging digital engineering and AI automation. Redwire's approximately 1,300 employees located throughout the United States and Europe are committed to delivering innovative space and airborne platforms, transforming the future of multi-domain operations. For more information, please visit Use of Projections The financial outlook and projections, estimates and targets in this press release are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainty and contingencies, many of which are beyond Redwire's control. Such calculation cannot be predicted with reasonable certainty and without unreasonable effort because of the timing, magnitude and variables associated with the recently completed merger with Edge Autonomy. Additionally, any such calculation, at this time, would imply a degree of precision that could be confusing or misleading to investors. Redwire's independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the financial projections for purposes of inclusion in this press release, and, accordingly, they did not express an opinion or provide any other form of assurance with respect thereto for the purposes of this press release. While all financial projections, estimates and targets are necessarily speculative, Redwire believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results for the combined company are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this press release should not be regarded as an indication that Redwire, or its representatives, considered or consider the financial projections, estimates or targets to be a reliable prediction of future events. Further, inclusion of the prospective financial information in this press release should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved. Cautionary Statement Regarding Forward-Looking Statements Readers are cautioned that the statements contained in this press release regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are 'forward-looking statements' as defined by the 'safe harbor' provisions in the Private Securities Litigation Reform Act of 1995. Such statements are made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release, including statements regarding our strategy, financial projections, including the prospective financial information provided in this press release, financial position, funding for continued operations, cash reserves, liquidity, projected costs, plans, projects, awards and contracts, objectives of management, and the expected performance of Redwire following our acquisition of Edge Autonomy, among others, are forward-looking statements. Words such as 'expect,' 'anticipate,' 'should,' 'believe,' 'target,' 'continued,' 'project,' 'plan,' 'opportunity,' 'estimate,' 'potential,' 'predict,' 'demonstrates,' 'may,' 'will,' 'could,' 'intend,' 'shall,' 'possible,' 'forecast,' 'trends,' 'contemplate,' 'would,' 'approximately,' 'likely,' 'outlook,' 'schedule,' 'pipeline,' and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are not guarantees of future performance, conditions or results. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. These factors and circumstances include, but are not limited to (1) risks associated with economic uncertainty, including high inflation, effects of trade tariffs and other trade actions, supply chain challenges, labor shortages, increased labor costs, high interest rates, foreign currency exchange volatility, concerns of economic slowdown or recession and reduced spending or suspension of investment in new or enhanced projects; (2) the failure of financial institutions or transactional counterparties; (3) Redwire's limited operating history in an evolving industry and history of losses to date as well as the limited operating history of Edge Autonomy and the relatively novel nature of the drone industry makes it difficult to evaluate our future prospects and the risks and challenges we may encounter; (4) the inability to successfully integrate recently completed and future acquisitions, including the recent acquisition of Edge Autonomy, as well as the failure to realize the anticipated benefits of our acquisition of Edge Autonomy or to realize estimated projected combined company results; (5) the development and continued refinement of many of Redwire's proprietary technologies, products and service offerings; (6) competition with new or existing companies; (7) a limited number of customers make up a high percentage of our revenue; (8) natural disasters, geopolitical conflicts, or other natural or man-made catastrophic events; (9) adverse publicity stemming from any incident or perceived risk involving Redwire or our competitors; (10) incurring significant risks and uncertainties not covered by insurance or indemnity; (11) failure to respond to industry cycles in terms of our cost structure, manufacturing capacity, and/or personnel needs; (12) delays in the development, design, engineering and manufacturing of our core offerings; (13) unsatisfactory performance of our core offerings resulting from challenges in the space environment, extreme space weather events or otherwise; (14) impacts to our cash flows caused by our mix of fixed-price, cost-plus and time-and-material type contracts; (15) incurrence of expenditures prior to final receipt of a contract; (16) failure of new offerings and technologies to materialize; (17) the inability to convert orders in backlog into revenue; (18) the inability to properly manage the use of artificial intelligence in our business; (19) reliance on third-party launch vehicles to launch our spacecraft and customer payloads; (20) risk of an accident on launch or during a journey into space; (21) customers' willingness to adopt uncrewed aircraft systems technology; (22) Redwire's inability to meet expected financial results; (23) cyber-attacks and other security threats and disruptions; (24) failure to attract and retain highly qualified personnel; (25) risks resulting from broader geographic operations; (26) impairment of goodwill; (27) changes to our pension funding and costs, which are dependent on several economic assumptions; (28) inability to use net operating loss carryforwards and certain other tax attributes; (29) changes to the U.S. government's budget deficit and the national debt; (30) dependence on U.S. government contracts; (31) changes to our facility security clearance; (32) Redwire is subject to stringent U.S. economic sanctions, and trade control laws and regulations, as well as risks related to doing business in other countries; (33) failure to adequately protect our intellectual property rights; (34) failure to obtain necessary additional funding; (35) the fact that AE Industrial Partners and Bain Capital and their affiliates have significant influence over us, which could limit your ability to influence the outcome of key transactions; (36) the fact that provisions in our Certificate of Designation with respect to our Series A Convertible Preferred Stock may delay or prevent our acquisition by a third party, which could also reduce the market price of our capital stock; (37) the fact that our Series A Convertible Preferred Stock has rights, preferences and privileges that are not held by, and are preferential to, the rights of holders of our other outstanding capital stock; (38) the possibility of sales of a substantial amount of our Common Stock by our current stockholders; (39) volatility in the trading price of our Common Stock; (40) identification of material weaknesses of other deficiencies or failure to maintain effective internal controls over financial reporting and (41) other risks and uncertainties described in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and those indicated from time to time in other documents filed or to be filed with the Securities and Exchange Commission by Redwire. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. If underlying assumptions to forward-looking statements prove inaccurate, or if known or unknown risks or uncertainties materialize, actual results could vary materially from those anticipated, estimated, or projected. The forward-looking statements contained in this press release are made as of the date of this press release, and Redwire disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Persons reading this press release are cautioned not to place undue reliance on forward-looking statements. Non-GAAP Financial Information This press release contains financial measures that have not been prepared in accordance with United States Generally Accepted Accounting Principles ('U.S. GAAP'). These financial measures include Adjusted EBITDA and Free Cash Flow. Non-GAAP financial measures are used to supplement the financial information presented on a U.S. GAAP basis and should not be considered in isolation or as a substitute for the relevant U.S. GAAP measures and should be read in conjunction with information presented on a U.S. GAAP basis. Because not all companies use identical calculations, our presentation of Non-GAAP measures may not be comparable to other similarly titled measures of other companies. We encourage investors and stockholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Adjusted EBITDA is defined as net income (loss) adjusted for interest expense, net, income tax expense (benefit), depreciation and amortization, impairment expense, transaction expenses, acquisition integration costs, acquisition earnout costs, purchase accounting fair value adjustment related to deferred revenue and inventory, severance costs, capital market and advisory fees, litigation-related expenses, write-off of long-lived assets, equity-based compensation, committed equity facility transaction costs, debt financing costs, gains on sale of joint ventures, net of costs incurred, and warrant liability change in fair value adjustments. Free Cash Flow is computed as net cash provided by (used in) operating activities less capital expenditures. We use Adjusted EBITDA to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We use Free Cash Flow as an indicator of liquidity to evaluate our period-over-period operating cash generation that will be used to service our debt, and can be used to invest in future growth through new business development activities and/or acquisitions, among other uses. Free Cash Flow does not represent the total increase or decrease in our cash balance, and it should not be inferred that the entire amount of Free Cash Flow is available for discretionary expenditures, since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from this measure. Key Performance Indicators Management uses Key Performance Indicators ('KPIs') to assess the financial performance of the Company, monitor relevant trends and support financial, operational and strategic decision-making. Management frequently monitors and evaluates KPIs against internal targets, core business objectives as well as industry peers and may, on occasion, change the mix or calculation of KPIs to better align with the business, its operating environment, standard industry metrics or other considerations. If the Company changes the method by which it calculates or presents a KPI, prior period disclosures are recast to conform to current presentation. June 30, 2025 December 31, 2024 Current assets: Cash, cash equivalents and restricted cash $ 78,559 $ 49,071 Accounts receivable, net 36,811 21,905 Contract assets 51,044 43,044 Inventory, net 58,835 2,239 Prepaid expenses and other current assets 19,273 9,666 Total current assets 244,522 125,925 Property, plant and equipment, net of accumulated depreciation of $12,615 and $9,628 47,511 17,837 Right-of-use assets 30,248 15,277 Intangible assets, net of accumulated amortization of $32,195 and $25,920 396,130 61,788 Goodwill 789,254 71,161 Other non-current assets 521 629 Total assets $ 1,508,186 $ 292,617 Liabilities, Convertible Preferred Stock and Equity (Deficit) Current liabilities: Accounts payable $ 38,885 $ 32,127 Notes payable to sellers 7,171 — Short-term debt, including current portion of long-term debt 5,280 1,266 Short-term operating lease liabilities 4,573 4,354 Short-term finance lease liabilities 540 473 Accrued expenses 33,380 24,192 Deferred revenue 65,343 67,201 Other current liabilities 12,257 19,730 Total current liabilities 167,429 149,343 Long-term debt, net 185,464 124,464 Long-term operating lease liabilities 28,320 13,444 Long-term finance lease liabilities 1,068 980 Warrant liabilities 23,014 55,285 Deferred tax liabilities 40,800 582 Other non-current liabilities 2,606 428 Total liabilities $ 448,701 $ 344,526 Convertible preferred stock, $0.0001 par value, 125,292.00 shares authorized; issued and outstanding: 2025—103,855.14 and 2024—108,649.30. Liquidation preference: 2025—$567,255 and 2024—$599,412 $ 151,893 $ 136,805 Shareholders' Equity (Deficit): Preferred stock, $0.0001 par value, 99,874,708 shares authorized; none issued and outstanding — — Common stock, $0.0001 par value, 500,000,000 shares authorized; issued and outstanding 2025—142,575,692 and 2024—67,002,370 14 7 Treasury stock, 2025—729,295 shares and 2024—728,739 shares, at cost (3,581 ) (3,573 ) Additional paid-in capital 1,392,204 161,619 Accumulated deficit (493,393 ) (348,106 ) Accumulated other comprehensive income (loss) 12,348 1,339 Total shareholders' equity (deficit) 907,592 (188,714 ) Total liabilities, convertible preferred stock and equity (deficit) $ 1,508,186 $ 292,617 REDWIRE CORPORATION Unaudited (In thousands of U.S. dollars, except share and per share data) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenues $ 61,760 $ 78,111 $ 123,155 $ 165,903 Cost of sales 80,824 65,127 133,178 138,094 Gross profit (19,064 ) 12,984 (10,023 ) 27,809 Operating expenses: Selling, general and administrative expenses 54,464 18,088 73,210 35,450 Transaction expenses 16,643 278 20,442 278 Research and development 1,720 1,748 2,533 2,788 Operating income (loss) (91,891 ) (7,130 ) (106,208 ) (10,707 ) Interest expense, net 23,755 3,009 27,349 5,927 Other (income) expense, net 13,937 7,933 (844 ) 9,425 Income (loss) before income taxes (129,583 ) (18,072 ) (132,713 ) (26,059 ) Income tax expense (benefit) (32,604 ) 15 (32,786 ) 124 Net income (loss) (96,979 ) (18,087 ) (99,927 ) (26,183 ) Net income (loss) attributable to noncontrolling interests — 5 — 4 Net income (loss) attributable to Redwire Corporation (96,979 ) (18,092 ) (99,927 ) (26,187 ) Less: dividends on Convertible Preferred Stock 29,739 9,699 33,179 12,742 Net income (loss) available to common shareholders $ (126,718 ) $ (27,791 ) $ (133,106 ) $ (38,929 ) Net income (loss) per common share: Basic and diluted $ (1.41 ) $ (0.42 ) $ (1.66 ) $ (0.59 ) Weighted-average shares outstanding: Basic and diluted 89,554,940 65,701,704 80,424,270 65,636,995 Comprehensive income (loss): Net income (loss) attributable to Redwire Corporation $ (96,979 ) $ (18,092 ) $ (99,927 ) $ (26,187 ) Foreign currency translation gain (loss), net of tax 10,174 (78 ) 11,009 (750 ) Total other comprehensive income (loss), net of tax 10,174 (78 ) 11,009 (750 ) Total comprehensive income (loss) $ (86,805 ) $ (18,170 ) $ (88,918 ) $ (26,937 ) REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (In thousands of U.S. dollars) Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net income (loss) $ (99,927 ) $ (26,183 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expense 8,106 5,678 Amortization of debt issuance costs and discount 642 349 Equity-based compensation expense 35,598 4,453 (Gain) loss on sale of joint ventures — (1,303 ) (Gain) loss on change in fair value of warrants 2,692 10,052 Deferred provision (benefit) for income taxes (32,069 ) 112 Non-cash lease (benefit) expense (266 ) 22 Other (3,411 ) 690 Changes in assets and liabilities: (Increase) decrease in accounts receivable (3,468 ) 9,987 (Increase) decrease in contract assets (5,724 ) (6,449 ) (Increase) decrease in inventory 1,449 (314 ) (Increase) decrease in prepaid expenses and other assets (3,024 ) 274 Increase (decrease) in accounts payable and accrued expenses (5,586 ) 4,838 Increase (decrease) in deferred revenue (28,433 ) (8,497 ) Increase (decrease) in operating lease liabilities (55 ) (169 ) Increase (decrease) in other liabilities 732 (282 ) Net cash provided by (used in) operating activities (132,744 ) (6,742 ) Cash flows from investing activities: Acquisition of businesses, net of cash acquired (151,791 ) — Net proceeds from sale of joint ventures — 4,598 Purchases of property, plant and equipment (4,752 ) (2,475 ) Purchase of intangible assets (5,186 ) (1,579 ) Net cash provided by (used in) investing activities (161,729 ) 544 Cash flows from financing activities: Proceeds received from debt 190,327 15,000 Repayments of debt (125,876 ) (7,988 ) Payment of debt issuance fees (105 ) (322 ) Repayment of finance leases (227 ) (235 ) Repayments of third-party advances (7,820 ) — Proceeds from issuance of common stock 328,684 530 Shares repurchased for settlement of employee tax withholdings on share-based awards (8 ) (56 ) Repurchase of convertible preferred stock (61,486 ) — Net cash provided by (used in) financing activities 323,489 6,929 Effect of foreign currency rate changes on cash, cash equivalents and restricted cash 472 (177 ) Net increase (decrease) in cash, cash equivalents and restricted cash 29,488 554 Cash, cash equivalents and restricted cash at beginning of period 49,071 30,278 Cash, cash equivalents and restricted cash at end of period $ 78,559 $ 30,832 REDWIRE CORPORATION Supplemental Non-GAAP Information Unaudited Adjusted EBITDA During the third quarter of 2024, we changed the Supplemental Non-GAAP Information to present only Adjusted EBITDA, whereas prior period disclosures also presented Pro Forma Adjusted EBITDA. Management believes the presentation of Pro Forma Adjusted EBITDA no longer provides the same meaningful insights into the Company's performance as it did during the initial years of the Company's formation. Prior period disclosures were recast to conform to current presentation. There was no change in the calculation of Adjusted EBITDA. The following table presents the reconciliations of Adjusted EBITDA to net income (loss), computed in accordance with U.S. GAAP. Three Months Ended Six Months Ended (in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net income (loss) $ (96,979 ) $ (18,087 ) $ (99,927 ) $ (26,183 ) Interest expense, net 23,755 3,009 27,349 5,927 Income tax expense (benefit) (32,604 ) 15 (32,786 ) 124 Depreciation and amortization 5,060 2,925 8,106 5,678 Transaction expenses (i) 16,643 278 20,442 278 Acquisition integration costs (i) 457 — 457 — Purchase accounting fair value adjustment related to inventory (ii) 2,418 — 2,418 — Severance costs (iii) 1,999 159 2,176 167 Capital market and advisory fees (iv) 2,740 2,154 3,708 4,432 Litigation-related expenses (v) — 1,532 — 2,233 Equity-based compensation (vi) 32,686 1,918 35,598 4,453 Debt financing costs (vii) 105 — 105 — Gain on sale of joint ventures, net of costs incurred (viii) — (1,255 ) — (1,255 ) Warrant liability change in fair value adjustment (ix) 16,326 8,977 2,692 10,052 Adjusted EBITDA $ (27,394 ) $ 1,625 $ (29,662 ) $ 5,906 i. Redwire incurred acquisition costs including due diligence, integration costs and additional expenses related to pre-acquisition activity. Acquisition deal costs was reclassified as Transaction expenses to conform with current period presentation. ii. Redwire incurred adjustments to depreciate the purchase accounting fair value of inventory for Edge Autonomy. iii. Redwire incurred severance costs related to separation agreements entered into with former employees. iv. Redwire incurred capital market and advisory fees related to advisors assisting with transitional activities associated with becoming a public company, such as implementation of internal controls over financial reporting, and the internalization of corporate services, including, but not limited to, implementing enhanced enterprise resource planning systems. v. Redwire incurred expenses related to securities litigation. vi. Redwire incurred expenses related to equity-based compensation under Redwire's equity-based compensation plan and Edge Autonomy's incentive units. vii. Redwire incurred expenses related to debt financing agreements, including amendment related fees paid to third parties that are expensed in accordance with U.S. GAAP. viii. Redwire recognized a gain related to the sale of all its ownership in two joint ventures during 2024, presented net of transaction costs incurred. ix. Redwire adjusted the private warrant liability to reflect changes in fair value recognized as a gain or loss during the respective periods. Free Cash Flow The following table presents the reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, computed in accordance with U.S. GAAP. REDWIRE CORPORATION KEY PERFORMANCE INDICATORS Unaudited Book-to-Bill Our book-to-bill ratio was as follows for the periods presented: Three Months Ended Last Twelve Months (in thousands, except ratio) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Contracts awarded $ 90,563 $ 114,437 $ 227,058 $ 374,269 Revenues 61,760 78,111 261,353 292,000 Book-to-bill ratio 1.47 1.47 0.87 1.28 Book-to-bill is the ratio of total contracts awarded to revenues recorded in the same period. The contracts awarded balance includes firm contract orders, including time-and-material contracts, awarded during the period and does not include unexercised contract options or potential orders under indefinite delivery/indefinite quantity contracts. Although the contracts awarded balance reflects firm contract orders, terminations, amendments, or contract cancellations may occur which could result in a reduction to the contracts awarded balance. We view book-to-bill as an indicator of future revenue growth potential. To drive future revenue growth, our goal is for the level of contracts awarded in a given period to exceed the revenue recorded, thus yielding a book-to-bill ratio greater than 1.0. Our book-to-bill ratio was 1.47 for the three months ended June 30, 2025, as compared to 1.47 for the three months ended June 30, 2024. For the three months ended June 30, 2025, $73.7 million of the contracts awarded balance relates to the Edge Autonomy acquisition and none of the contracts awarded balance relates to acquired contract value for the three months ended June 30, 2024. Our book-to-bill ratio was 0.87 for the Last Twelve Months ('LTM') ended June 30, 2025, as compared to 1.28 for the LTM ended June 30, 2024. For the LTM ended June 30, 2025, contracts awarded includes $95.7 million of acquired contract value from Edge Autonomy and Hera Systems acquisitions, which were completed in the second quarter of 2025 and third quarter of 2024, respectively. For the LTM ended June 30, 2024, none of the contracts awarded balance relates to acquired contract value. Backlog The following table presents our contracted backlog as of June 30, 2025 and December 31, 2024, and related activity for the six months ended June 30, 2025 as compared to the year ended December 31, 2024. (in thousands) June 30, 2025 December 31, 2024 Organic backlog, beginning balance $ 280,969 $ 372,790 Organic additions during the period 71,591 207,704 Organic revenue recognized during the period (106,334 ) (297,699 ) Foreign currency translation 8,844 (1,826 ) Organic backlog, ending balance 255,070 280,969 Acquisition-related contract value, beginning balance 15,683 — Acquisition-related contract value acquired during the period 73,716 21,940 Acquisition-related additions during the period 1,500 145 Acquisition-related revenue recognized during the period (16,821 ) (6,402 ) Foreign currency translation 335 — Acquisition-related backlog, ending balance 74,413 15,683 Contracted backlog, ending balance $ 329,483 $ 296,652 We view growth in backlog as a key measure of our business growth. Contracted backlog represents the estimated dollar value of firm funded executed contracts for which work has not been performed (also known as the remaining performance obligations on a contract). Our contracted backlog includes $86.9 million and $16.7 million in remaining contract value from contracts which recognize revenue at a point in time as of June 30, 2025 and as of December 31, 2024, respectively. Organic backlog change excludes backlog activity from acquisitions for the first four full quarters since the entities' acquisition date. Contracted backlog activity for the first four full quarters since the entities' acquisition date is included in acquisition-related contracted backlog change. After the completion of four fiscal quarters, acquired entities are treated as organic for current and comparable historical periods. Organic contract value includes the remaining contract value as of January 1 not yet recognized as revenue and additional orders awarded during the period for those entities treated as organic. Acquisition-related contract value includes remaining contract value as of the acquisition date not yet recognized as revenue and additional orders awarded during the period for entities not treated as organic. Organic revenue includes revenue earned during the period presented for those entities treated as organic, while acquisition-related revenue includes the same for all other entities, excluding any pre-acquisition revenue earned during the period. The acquisition-related backlog activity presented in the table above is related to the Edge Autonomy and Hera Systems acquisitions completed during the second quarter of 2025 and third quarter of 2024, respectively. Although contracted backlog reflects business associated with contracts that are considered to be firm, terminations, amendments or contract cancellations may occur, which could result in a reduction in our total backlog. In addition, some of our multi-year contracts are subject to annual funding. Management expects all amounts reflected in contracted backlog to ultimately be fully funded. Contracted backlog from foreign operations in Luxembourg and Belgium was $117.4 million and $70.5 million as of June 30, 2025 and December 31, 2024, respectively. These amounts are subject to foreign exchange rate translations from euros to U.S. dollars that could cause the remaining backlog balance to fluctuate with the foreign exchange rate at the time of measurement.
Business Wire
06-08-2025
- Business
- Business Wire
Redwire Corporation Reports Second Quarter 2025 Financial Results
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Redwire Corporation (NYSE:RDW, 'Redwire' or the 'Company'), a global leader in space and defense technology solutions, today announced results for its second quarter ended June 30, 2025. Redwire will live stream a presentation with slides on August 7, 2025 at 9:00 a.m. ET. Please use the link below to follow along with the live stream: 'During the second quarter, we completed our acquisition of Edge Autonomy, establishing Redwire as an integrated global space and defense tech company specializing in multi-domain solutions,' stated Peter Cannito, Chairman and Chief Executive Officer of Redwire. 'Although we continued to see delays in the U.S. government's budget approval processes throughout 2025, we have begun to see positive indicators as well. Whether Golden Dome, U.S. drone dominance, or increased defense spending internationally by NATO allies, we are well-positioned to capitalize on high-growth trends going forward. Additionally, we are excited to announce the formation of SpaceMD, a new entity founded to commercialize on Redwire's microgravity drug development breakthroughs, and the signing of a trailblazing royalty agreement with ExesaLibero Pharma, Inc., under which we expect to receive royalties from the commercial sales of resulting pharmaceutical products.' Second Quarter 2025 Highlights Revenues for the second quarter of 2025 decreased 20.9% to $61.8 million, as compared to $78.1 million for the second quarter of 2024. Net Loss for the second quarter of 2025 increased by $78.9 million to $(97.0) million, as compared to $(18.1) million for the second quarter of 2024. Net Loss for the second quarter included in excess of $(90.0) million in expenses related to non-cash; transaction-related; EAC adjustments; and non-routine activity that included: $29.6 million related to equity-based compensation primarily from the Edge Autonomy acquisition, $16.6 million in transaction expenses, $25.2 million in net, unfavorable EAC impacts, and $20.0 million in interest expense from the repayment of a seller note associated with the Edge Autonomy transaction. Adjusted EBITDA 4 for the second quarter of 2025 decreased by $29.0 million to $(27.4) million, as compared to $1.6 million for the second quarter of 2024. During the second quarter of 2025, the Company had net unfavorable EAC changes of $25.2 million, which impacted second quarter of 2025 revenues, gross profit, and net loss, and as a result, Adjusted EBITDA. 4 The net unfavorable EAC adjustments in the second quarter of 2025 were primarily due to a single program in the Company's RF systems offerings as a result of an increase in estimates made for the programmatic and technical assumptions based on the nature and technical complexity of the work to be performed to meet customer specifications. The unfavorable adjustments were also due to production delays, additional unplanned labor and increased production costs as it relates to the development of advanced technologies required to meet customer specifications in multiple space offerings. On a quarterly basis, Book-to-Bill 5 ratio was 1.47 as of the second quarter of 2025, as compared to 1.47 as of the second quarter of 2024. Net cash used in operating activities for the second quarter of 2025 increased by $78.2 million to $(87.7) million, as compared to $(9.5) million for the second quarter of 2024. Net cash used in operating activities for the second quarter of 2025 included more than $35.0 million related to M&A activities and associated non-recurring interest. Free Cash Flow 4 for the second quarter of 2025 was $(93.5) million, as compared to $(11.2) million for the second quarter of 2024. Ended the the second quarter of 2025 with record total liquidity 6 of $113.6 million, as compared to $55.8 million for the second quarter of 2024. 2025 Forecast For the twelve months ended December 31, 2025, Redwire, including Edge Autonomy from the date of close (June 13, 2025), is forecasting full year revenues of $385 million to $445 million. For the twelve months ended December 31, 2025, Redwire, as a combined company assuming the previously completed transaction with Edge Autonomy had been consummated on January 1, 2025, is forecasting full year revenues 7 of $470 million to $530 million. Due to uncertain timing of government contracting, at this time, the Company is withdrawing its previously provided Adjusted EBITDA forecast for the twelve months ended December 31, 2025. 'With an expanding portfolio of space development programs, we experienced unfavorable EAC impacts primarily due to non-recurring engineering on a few, emerging tech programs. This positions Redwire for long-term production growth in the space tech offerings. Moving forward, the addition of Edge Autonomy lowers the proportion of our business that is exposed to EAC volatility,' said Jonathan Baliff, Chief Financial Officer of Redwire. '2025 is a transition year for government budgets and a transformative year for Redwire with the closing of our acquisition of Edge Autonomy while also ending the second quarter with record total liquidity 6 of $113.6 million.' 1 Book-to-Bill is a key business measure. Please refer to 'Key Performance Indicators' and the tables included in this press release for additional information. 2 Adjusted EBITDA is not a measure of results under generally accepted accounting principles in the United States. Please refer to 'Non-GAAP Financial Information' and the reconciliation tables included in this press release for details regarding this Non-GAAP measure. 3 Total liquidity of $113.6 million as of June 30, 2025 is comprised of $76.5 million in cash and cash equivalents, $35.0 million in available borrowings from our existing credit facilities, and $2.1 million in restricted cash. 4 Adjusted EBITDA and Free Cash Flow are not measures of results under generally accepted accounting principles in the United States. Please refer to 'Non-GAAP Financial Information' and the reconciliation tables included in this press release for details regarding these Non-GAAP measures. 5 Book-to-Bill is a key business measure. Please refer to 'Key Performance Indicators' and the tables included in this press release for additional information. 6 Total liquidity of $113.6 million as of June 30, 2025 is comprised of $76.5 million in cash and cash equivalents, $35.0 million in available borrowings from our existing credit facilities, and $2.1 million in restricted cash. 7 These amounts are the sum of the standalone full year forecasts for the Redwire and Edge Autonomy businesses by Redwire management. Please refer to 'Use of Projections' included in this press release for additional information. Expand Webcast and Investor Call Management will conduct a conference call starting at 9:00 a.m. ET on Thursday, August 7, 2025 to review financial results for the second quarter ended June 30, 2025. This release and the most recent investor slide presentation are available in the investor relations area of our website at Redwire will live stream a presentation with slides during the call. Please use the following link to follow along with the live stream: The dial-in number for the live call is 877-485-3108 (toll free) or 201-689-8264 (toll), and the conference ID is 13755131. A telephone replay of the call will be available for two weeks following the event by dialing 877-660-6853 (toll-free) or 201-612-7415 (toll) and entering the access code 13755131. The accompanying investor presentation will be available on August 7, 2025 on the investor section of Redwire's website at Any replay, rebroadcast, transcript or other reproduction or transmission of this conference call, other than the replay accessible by calling the number and website above, has not been authorized by Redwire Corporation and is strictly prohibited. Investors should be aware that any unauthorized reproduction of this conference call may not be an accurate reflection of its contents. About Redwire Corporation Redwire Corporation (NYSE:RDW) is an integrated space and defense tech company focused on advanced technologies. We are building the future of space infrastructure, autonomous systems and multi-domain operations leveraging digital engineering and AI automation. Redwire's approximately 1,300 employees located throughout the United States and Europe are committed to delivering innovative space and airborne platforms, transforming the future of multi-domain operations. For more information, please visit Use of Projections The financial outlook and projections, estimates and targets in this press release are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainty and contingencies, many of which are beyond Redwire's control. Such calculation cannot be predicted with reasonable certainty and without unreasonable effort because of the timing, magnitude and variables associated with the recently completed merger with Edge Autonomy. Additionally, any such calculation, at this time, would imply a degree of precision that could be confusing or misleading to investors. Redwire's independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the financial projections for purposes of inclusion in this press release, and, accordingly, they did not express an opinion or provide any other form of assurance with respect thereto for the purposes of this press release. While all financial projections, estimates and targets are necessarily speculative, Redwire believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results for the combined company are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this press release should not be regarded as an indication that Redwire, or its representatives, considered or consider the financial projections, estimates or targets to be a reliable prediction of future events. Further, inclusion of the prospective financial information in this press release should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved. Cautionary Statement Regarding Forward-Looking Statements Readers are cautioned that the statements contained in this press release regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are 'forward-looking statements' as defined by the 'safe harbor' provisions in the Private Securities Litigation Reform Act of 1995. Such statements are made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release, including statements regarding our strategy, financial projections, including the prospective financial information provided in this press release, financial position, funding for continued operations, cash reserves, liquidity, projected costs, plans, projects, awards and contracts, objectives of management, and the expected performance of Redwire following our acquisition of Edge Autonomy, among others, are forward-looking statements. Words such as 'expect,' 'anticipate,' 'should,' 'believe,' 'target,' 'continued,' 'project,' 'plan,' 'opportunity,' 'estimate,' 'potential,' 'predict,' 'demonstrates,' 'may,' 'will,' 'could,' 'intend,' 'shall,' 'possible,' 'forecast,' 'trends,' 'contemplate,' 'would,' 'approximately,' 'likely,' 'outlook,' 'schedule,' 'pipeline,' and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are not guarantees of future performance, conditions or results. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. These factors and circumstances include, but are not limited to (1) risks associated with economic uncertainty, including high inflation, effects of trade tariffs and other trade actions, supply chain challenges, labor shortages, increased labor costs, high interest rates, foreign currency exchange volatility, concerns of economic slowdown or recession and reduced spending or suspension of investment in new or enhanced projects; (2) the failure of financial institutions or transactional counterparties; (3) Redwire's limited operating history in an evolving industry and history of losses to date as well as the limited operating history of Edge Autonomy and the relatively novel nature of the drone industry makes it difficult to evaluate our future prospects and the risks and challenges we may encounter; (4) the inability to successfully integrate recently completed and future acquisitions, including the recent acquisition of Edge Autonomy, as well as the failure to realize the anticipated benefits of our acquisition of Edge Autonomy or to realize estimated projected combined company results; (5) the development and continued refinement of many of Redwire's proprietary technologies, products and service offerings; (6) competition with new or existing companies; (7) a limited number of customers make up a high percentage of our revenue; (8) natural disasters, geopolitical conflicts, or other natural or man-made catastrophic events; (9) adverse publicity stemming from any incident or perceived risk involving Redwire or our competitors; (10) incurring significant risks and uncertainties not covered by insurance or indemnity; (11) failure to respond to industry cycles in terms of our cost structure, manufacturing capacity, and/or personnel needs; (12) delays in the development, design, engineering and manufacturing of our core offerings; (13) unsatisfactory performance of our core offerings resulting from challenges in the space environment, extreme space weather events or otherwise; (14) impacts to our cash flows caused by our mix of fixed-price, cost-plus and time-and-material type contracts; (15) incurrence of expenditures prior to final receipt of a contract; (16) failure of new offerings and technologies to materialize; (17) the inability to convert orders in backlog into revenue; (18) the inability to properly manage the use of artificial intelligence in our business; (19) reliance on third-party launch vehicles to launch our spacecraft and customer payloads; (20) risk of an accident on launch or during a journey into space; (21) customers' willingness to adopt uncrewed aircraft systems technology; (22) Redwire's inability to meet expected financial results; (23) cyber-attacks and other security threats and disruptions; (24) failure to attract and retain highly qualified personnel; (25) risks resulting from broader geographic operations; (26) impairment of goodwill; (27) changes to our pension funding and costs, which are dependent on several economic assumptions; (28) inability to use net operating loss carryforwards and certain other tax attributes; (29) changes to the U.S. government's budget deficit and the national debt; (30) dependence on U.S. government contracts; (31) changes to our facility security clearance; (32) Redwire is subject to stringent U.S. economic sanctions, and trade control laws and regulations, as well as risks related to doing business in other countries; (33) failure to adequately protect our intellectual property rights; (34) failure to obtain necessary additional funding; (35) the fact that AE Industrial Partners and Bain Capital and their affiliates have significant influence over us, which could limit your ability to influence the outcome of key transactions; (36) the fact that provisions in our Certificate of Designation with respect to our Series A Convertible Preferred Stock may delay or prevent our acquisition by a third party, which could also reduce the market price of our capital stock; (37) the fact that our Series A Convertible Preferred Stock has rights, preferences and privileges that are not held by, and are preferential to, the rights of holders of our other outstanding capital stock; (38) the possibility of sales of a substantial amount of our Common Stock by our current stockholders; (39) volatility in the trading price of our Common Stock; (40) identification of material weaknesses of other deficiencies or failure to maintain effective internal controls over financial reporting and (41) other risks and uncertainties described in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and those indicated from time to time in other documents filed or to be filed with the Securities and Exchange Commission by Redwire. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. If underlying assumptions to forward-looking statements prove inaccurate, or if known or unknown risks or uncertainties materialize, actual results could vary materially from those anticipated, estimated, or projected. The forward-looking statements contained in this press release are made as of the date of this press release, and Redwire disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Persons reading this press release are cautioned not to place undue reliance on forward-looking statements. Non-GAAP Financial Information This press release contains financial measures that have not been prepared in accordance with United States Generally Accepted Accounting Principles ('U.S. GAAP'). These financial measures include Adjusted EBITDA and Free Cash Flow. Non-GAAP financial measures are used to supplement the financial information presented on a U.S. GAAP basis and should not be considered in isolation or as a substitute for the relevant U.S. GAAP measures and should be read in conjunction with information presented on a U.S. GAAP basis. Because not all companies use identical calculations, our presentation of Non-GAAP measures may not be comparable to other similarly titled measures of other companies. We encourage investors and stockholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Adjusted EBITDA is defined as net income (loss) adjusted for interest expense, net, income tax expense (benefit), depreciation and amortization, impairment expense, transaction expenses, acquisition integration costs, acquisition earnout costs, purchase accounting fair value adjustment related to deferred revenue and inventory, severance costs, capital market and advisory fees, litigation-related expenses, write-off of long-lived assets, equity-based compensation, committed equity facility transaction costs, debt financing costs, gains on sale of joint ventures, net of costs incurred, and warrant liability change in fair value adjustments. Free Cash Flow is computed as net cash provided by (used in) operating activities less capital expenditures. We use Adjusted EBITDA to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We use Free Cash Flow as an indicator of liquidity to evaluate our period-over-period operating cash generation that will be used to service our debt, and can be used to invest in future growth through new business development activities and/or acquisitions, among other uses. Free Cash Flow does not represent the total increase or decrease in our cash balance, and it should not be inferred that the entire amount of Free Cash Flow is available for discretionary expenditures, since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from this measure. Key Performance Indicators Management uses Key Performance Indicators ('KPIs') to assess the financial performance of the Company, monitor relevant trends and support financial, operational and strategic decision-making. Management frequently monitors and evaluates KPIs against internal targets, core business objectives as well as industry peers and may, on occasion, change the mix or calculation of KPIs to better align with the business, its operating environment, standard industry metrics or other considerations. If the Company changes the method by which it calculates or presents a KPI, prior period disclosures are recast to conform to current presentation. December 31, 2024 Current assets: Cash, cash equivalents and restricted cash $ 78,559 $ 49,071 Accounts receivable, net 36,811 21,905 Contract assets 51,044 43,044 Inventory, net 58,835 2,239 Prepaid expenses and other current assets 19,273 9,666 Total current assets 244,522 125,925 Property, plant and equipment, net of accumulated depreciation of $12,615 and $9,628 47,511 17,837 Right-of-use assets 30,248 15,277 Intangible assets, net of accumulated amortization of $32,195 and $25,920 396,130 61,788 Goodwill 789,254 71,161 Other non-current assets 521 629 Total assets $ 1,508,186 $ 292,617 Liabilities, Convertible Preferred Stock and Equity (Deficit) Current liabilities: Accounts payable $ 38,885 $ 32,127 Notes payable to sellers 7,171 — Short-term debt, including current portion of long-term debt 5,280 1,266 Short-term operating lease liabilities 4,573 4,354 Short-term finance lease liabilities 540 473 Accrued expenses 33,380 24,192 Deferred revenue 65,343 67,201 Other current liabilities 12,257 19,730 Total current liabilities 167,429 149,343 Long-term debt, net 185,464 124,464 Long-term operating lease liabilities 28,320 13,444 Long-term finance lease liabilities 1,068 980 Warrant liabilities 23,014 55,285 Deferred tax liabilities 40,800 582 Other non-current liabilities 2,606 428 Total liabilities $ 448,701 $ 344,526 Convertible preferred stock, $0.0001 par value, 125,292.00 shares authorized; issued and outstanding: 2025—103,855.14 and 2024—108,649.30. Liquidation preference: 2025—$567,255 and 2024—$599,412 $ 151,893 $ 136,805 Shareholders' Equity (Deficit): Preferred stock, $0.0001 par value, 99,874,708 shares authorized; none issued and outstanding — — Common stock, $0.0001 par value, 500,000,000 shares authorized; issued and outstanding 2025—142,575,692 and 2024—67,002,370 14 7 Treasury stock, 2025—729,295 shares and 2024—728,739 shares, at cost (3,581 ) (3,573 ) Additional paid-in capital 1,392,204 161,619 Accumulated deficit (493,393 ) (348,106 ) Accumulated other comprehensive income (loss) 12,348 1,339 Total shareholders' equity (deficit) 907,592 (188,714 ) Total liabilities, convertible preferred stock and equity (deficit) $ 1,508,186 $ 292,617 Expand Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenues $ 61,760 $ 78,111 $ 123,155 $ 165,903 Cost of sales 80,824 65,127 133,178 138,094 Gross profit (19,064 ) 12,984 (10,023 ) 27,809 Operating expenses: Selling, general and administrative expenses 54,464 18,088 73,210 35,450 Transaction expenses 16,643 278 20,442 278 Research and development 1,720 1,748 2,533 2,788 Operating income (loss) (91,891 ) (7,130 ) (106,208 ) (10,707 ) Interest expense, net 23,755 3,009 27,349 5,927 Other (income) expense, net 13,937 7,933 (844 ) 9,425 Income (loss) before income taxes (129,583 ) (18,072 ) (132,713 ) (26,059 ) Income tax expense (benefit) (32,604 ) 15 (32,786 ) 124 Net income (loss) (96,979 ) (18,087 ) (99,927 ) (26,183 ) Net income (loss) attributable to noncontrolling interests — 5 — 4 Net income (loss) attributable to Redwire Corporation (96,979 ) (18,092 ) (99,927 ) (26,187 ) Less: dividends on Convertible Preferred Stock 29,739 9,699 33,179 12,742 Net income (loss) available to common shareholders $ (126,718 ) $ (27,791 ) $ (133,106 ) $ (38,929 ) Net income (loss) per common share: Basic and diluted $ (1.41 ) $ (0.42 ) $ (1.66 ) $ (0.59 ) Weighted-average shares outstanding: Comprehensive income (loss): Net income (loss) attributable to Redwire Corporation $ (96,979 ) $ (18,092 ) $ (99,927 ) $ (26,187 ) Foreign currency translation gain (loss), net of tax 10,174 (78 ) 11,009 (750 ) Total other comprehensive income (loss), net of tax 10,174 (78 ) 11,009 (750 ) Total comprehensive income (loss) $ (86,805 ) $ (18,170 ) $ (88,918 ) $ (26,937 ) Expand REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (In thousands of U.S. dollars) Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net income (loss) $ (99,927 ) $ (26,183 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expense 8,106 5,678 Amortization of debt issuance costs and discount 642 349 Equity-based compensation expense 35,598 4,453 (Gain) loss on sale of joint ventures — (1,303 ) (Gain) loss on change in fair value of warrants 2,692 10,052 Deferred provision (benefit) for income taxes (32,069 ) 112 Non-cash lease (benefit) expense (266 ) 22 Other (3,411 ) 690 Changes in assets and liabilities: (Increase) decrease in accounts receivable (3,468 ) 9,987 (Increase) decrease in contract assets (5,724 ) (6,449 ) (Increase) decrease in inventory 1,449 (314 ) (Increase) decrease in prepaid expenses and other assets (3,024 ) 274 Increase (decrease) in accounts payable and accrued expenses (5,586 ) 4,838 Increase (decrease) in deferred revenue (28,433 ) (8,497 ) Increase (decrease) in operating lease liabilities (55 ) (169 ) Increase (decrease) in other liabilities 732 (282 ) Net cash provided by (used in) operating activities (132,744 ) (6,742 ) Cash flows from investing activities: Acquisition of businesses, net of cash acquired (151,791 ) — Net proceeds from sale of joint ventures — 4,598 Purchases of property, plant and equipment (4,752 ) (2,475 ) Purchase of intangible assets (5,186 ) (1,579 ) Net cash provided by (used in) investing activities (161,729 ) 544 Cash flows from financing activities: Proceeds received from debt 190,327 15,000 Repayments of debt (125,876 ) (7,988 ) Payment of debt issuance fees (105 ) (322 ) Repayment of finance leases (227 ) (235 ) Repayments of third-party advances (7,820 ) — Proceeds from issuance of common stock 328,684 530 Shares repurchased for settlement of employee tax withholdings on share-based awards (8 ) (56 ) Repurchase of convertible preferred stock (61,486 ) — Net cash provided by (used in) financing activities 323,489 6,929 Effect of foreign currency rate changes on cash, cash equivalents and restricted cash 472 (177 ) Net increase (decrease) in cash, cash equivalents and restricted cash 29,488 554 Cash, cash equivalents and restricted cash at beginning of period 49,071 30,278 Cash, cash equivalents and restricted cash at end of period $ 78,559 $ 30,832 Expand REDWIRE CORPORATION Supplemental Non-GAAP Information Unaudited Adjusted EBITDA During the third quarter of 2024, we changed the Supplemental Non-GAAP Information to present only Adjusted EBITDA, whereas prior period disclosures also presented Pro Forma Adjusted EBITDA. Management believes the presentation of Pro Forma Adjusted EBITDA no longer provides the same meaningful insights into the Company's performance as it did during the initial years of the Company's formation. Prior period disclosures were recast to conform to current presentation. There was no change in the calculation of Adjusted EBITDA. The following table presents the reconciliations of Adjusted EBITDA to net income (loss), computed in accordance with U.S. GAAP. Three Months Ended Six Months Ended (in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net income (loss) $ (96,979 ) $ (18,087 ) $ (99,927 ) $ (26,183 ) Interest expense, net 23,755 3,009 27,349 5,927 Income tax expense (benefit) (32,604 ) 15 (32,786 ) 124 Depreciation and amortization 5,060 2,925 8,106 5,678 Transaction expenses (i) 16,643 278 20,442 278 Acquisition integration costs (i) 457 — 457 — Purchase accounting fair value adjustment related to inventory (ii) 2,418 — 2,418 — Severance costs (iii) 1,999 159 2,176 167 Capital market and advisory fees (iv) 2,740 2,154 3,708 4,432 Litigation-related expenses (v) — 1,532 — 2,233 Equity-based compensation (vi) 32,686 1,918 35,598 4,453 Debt financing costs (vii) 105 — 105 — Gain on sale of joint ventures, net of costs incurred (viii) — (1,255 ) — (1,255 ) Warrant liability change in fair value adjustment (ix) 16,326 8,977 2,692 10,052 Adjusted EBITDA $ (27,394 ) $ 1,625 $ (29,662 ) $ 5,906 Expand i. Redwire incurred acquisition costs including due diligence, integration costs and additional expenses related to pre-acquisition activity. Acquisition deal costs was reclassified as Transaction expenses to conform with current period presentation. ii. Redwire incurred adjustments to depreciate the purchase accounting fair value of inventory for Edge Autonomy. iii. Redwire incurred severance costs related to separation agreements entered into with former employees. iv. Redwire incurred capital market and advisory fees related to advisors assisting with transitional activities associated with becoming a public company, such as implementation of internal controls over financial reporting, and the internalization of corporate services, including, but not limited to, implementing enhanced enterprise resource planning systems. v. Redwire incurred expenses related to securities litigation. vi. Redwire incurred expenses related to equity-based compensation under Redwire's equity-based compensation plan and Edge Autonomy's incentive units. vii. Redwire incurred expenses related to debt financing agreements, including amendment related fees paid to third parties that are expensed in accordance with U.S. GAAP. viii. Redwire recognized a gain related to the sale of all its ownership in two joint ventures during 2024, presented net of transaction costs incurred. ix. Redwire adjusted the private warrant liability to reflect changes in fair value recognized as a gain or loss during the respective periods. Expand REDWIRE CORPORATION Supplemental Non-GAAP Information Unaudited Free Cash Flow The following table presents the reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, computed in accordance with U.S. GAAP. REDWIRE CORPORATION KEY PERFORMANCE INDICATORS Unaudited Book-to-Bill Our book-to-bill ratio was as follows for the periods presented: Three Months Ended Last Twelve Months (in thousands, except ratio) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Contracts awarded $ 90,563 $ 114,437 $ 227,058 $ 374,269 Revenues 61,760 78,111 261,353 292,000 Book-to-bill ratio 1.47 1.47 0.87 1.28 Expand Book-to-bill is the ratio of total contracts awarded to revenues recorded in the same period. The contracts awarded balance includes firm contract orders, including time-and-material contracts, awarded during the period and does not include unexercised contract options or potential orders under indefinite delivery/indefinite quantity contracts. Although the contracts awarded balance reflects firm contract orders, terminations, amendments, or contract cancellations may occur which could result in a reduction to the contracts awarded balance. We view book-to-bill as an indicator of future revenue growth potential. To drive future revenue growth, our goal is for the level of contracts awarded in a given period to exceed the revenue recorded, thus yielding a book-to-bill ratio greater than 1.0. Our book-to-bill ratio was 1.47 for the three months ended June 30, 2025, as compared to 1.47 for the three months ended June 30, 2024. For the three months ended June 30, 2025, $73.7 million of the contracts awarded balance relates to the Edge Autonomy acquisition and none of the contracts awarded balance relates to acquired contract value for the three months ended June 30, 2024. Our book-to-bill ratio was 0.87 for the Last Twelve Months ('LTM') ended June 30, 2025, as compared to 1.28 for the LTM ended June 30, 2024. For the LTM ended June 30, 2025, contracts awarded includes $95.7 million of acquired contract value from Edge Autonomy and Hera Systems acquisitions, which were completed in the second quarter of 2025 and third quarter of 2024, respectively. For the LTM ended June 30, 2024, none of the contracts awarded balance relates to acquired contract value. Backlog The following table presents our contracted backlog as of June 30, 2025 and December 31, 2024, and related activity for the six months ended June 30, 2025 as compared to the year ended December 31, 2024. We view growth in backlog as a key measure of our business growth. Contracted backlog represents the estimated dollar value of firm funded executed contracts for which work has not been performed (also known as the remaining performance obligations on a contract). Our contracted backlog includes $86.9 million and $16.7 million in remaining contract value from contracts which recognize revenue at a point in time as of June 30, 2025 and as of December 31, 2024, respectively. Organic backlog change excludes backlog activity from acquisitions for the first four full quarters since the entities' acquisition date. Contracted backlog activity for the first four full quarters since the entities' acquisition date is included in acquisition-related contracted backlog change. After the completion of four fiscal quarters, acquired entities are treated as organic for current and comparable historical periods. Organic contract value includes the remaining contract value as of January 1 not yet recognized as revenue and additional orders awarded during the period for those entities treated as organic. Acquisition-related contract value includes remaining contract value as of the acquisition date not yet recognized as revenue and additional orders awarded during the period for entities not treated as organic. Organic revenue includes revenue earned during the period presented for those entities treated as organic, while acquisition-related revenue includes the same for all other entities, excluding any pre-acquisition revenue earned during the period. The acquisition-related backlog activity presented in the table above is related to the Edge Autonomy and Hera Systems acquisitions completed during the second quarter of 2025 and third quarter of 2024, respectively. Although contracted backlog reflects business associated with contracts that are considered to be firm, terminations, amendments or contract cancellations may occur, which could result in a reduction in our total backlog. In addition, some of our multi-year contracts are subject to annual funding. Management expects all amounts reflected in contracted backlog to ultimately be fully funded. Contracted backlog from foreign operations in Luxembourg and Belgium was $117.4 million and $70.5 million as of June 30, 2025 and December 31, 2024, respectively. These amounts are subject to foreign exchange rate translations from euros to U.S. dollars that could cause the remaining backlog balance to fluctuate with the foreign exchange rate at the time of measurement.
Business Wire
04-08-2025
- Business
- Business Wire
Redwire Launches New Venture Company, SpaceMD, to Commercialize Pharmaceutical Development in Space; Signs Trailblazing Royalty Agreement with ExesaLibero Pharma
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Redwire Corporation (NYSE: RDW), a global leader in space and defense technology solutions, today announced that it has formed a new entity, SpaceMD, which will focus on growing seed crystals in orbit that will be used on Earth to create new and reformulated pharmaceuticals. SpaceMD will take advantage of the unique microgravity environment in space through the use of Redwire's innovative and flight-proven Pharmaceutical In-Space Laboratory (PIL-BOX) technology to grow the seed crystals. 28 PIL-BOX systems have already flown in space and have successfully crystalized 17 compounds on the ISS, including insulin and other critical molecules. SpaceMD will sell or license these seed crystals to companies that can use them to create reformulated versions of existing drugs or entirely new therapeutics. As part of this launch, SpaceMD announced a trailblazing licensing agreement with ExesaLibero Pharma, Inc., an innovative pharmaceutical company developing new small molecule drugs to treat bone disease. Under the terms of the agreement, ExesaLibero Pharma will work with SpaceMD to advance and enhance its groundbreaking small-molecule drug ELP-004 and other relevant compounds via the PIL-BOX system. This drug could hold the key to controlling the insidious bone erosion that numerous debilitating diseases cause, such as rheumatoid arthritis, multiple myeloma, diabetes, periodontal disease, and tuberculosis. The results of these microgravity investigations will inform ExesaLibero Pharma's Investigative New Drug (IND) application to the Food and Drug Agency (FDA). Following the approval of the IND by the FDA, ExesaLibero Pharma expects to initiate clinical trials that will lead to full approval of the drug for clinical use. Through this first-of-its-kind agreement, SpaceMD will receive royalties from any commercial sales of resulting pharmaceutical products. 'Redwire is excited to announce the formation of SpaceMD. This new entity represents the evolution of our PIL-BOXstrategy, moving from experimentation to full commercialization with significant upstream revenue potential,' said Peter Cannito, Chairman and CEO of Redwire. 'This agreement with ExesaLibero Pharma signals a revolutionary paradigm shift for commercial utilization of microgravity. Redwire and now SpaceMD are translating the benefits of microgravity research into product value for pharmaceutical companies with the goal of transforming the future of therapeutics and creating value for our stakeholders.' 'We have seen firsthand how the microgravity environment can be a game-changer for drug development, and we look forward to expanding our work with SpaceMD through this exciting collaboration,' said John Barnett, Ph.D., President and Chief Scientific Officer at ExesaLibero. 'This collaboration will help us continue to advance our drug development and discovery process and lead to better outcomes for patients and future astronauts.' Redwire is a global leader in microgravity research and development technologies, having flown hundreds of experiments on both the Space Shuttle and the ISS. Redwire currently has eleven research and manufacturing facilities on the ISS, more than any other company in the world. Redwire's microgravity technology enables space biotechnology and pharmaceutical development, helping customers reach a commercial market and paving the way for microgravity research on future commercial space stations. Previous investigations conducted by Redwire have been with partners such as Bristol Myers Squibb, Eli Lilly and Company, and Butler University. These efforts focused on unlocking insights to improve treatments for cardiovascular disease, obesity, and diabetes. About Redwire Redwire Corporation (NYSE:RDW) is an integrated space and defense tech company focused on advanced technologies. We are building the future of aerospace infrastructure, autonomous systems and multi-domain operations leveraging digital engineering and AI automation. Redwire's approximately 1,300 employees located throughout the United States and Europe are committed to delivering innovative space and airborne platforms transforming the future of multi-domain operations. For more information, please visit About SpaceMD SpaceMD is a subsidiary of Redwire Corporation focused on leveraging the microgravity environment of space to create new advances in pharmaceuticals, biotech, and other fields. SpaceMD utilizes innovative, flight-proven Redwire hardware to conduct this potentially life-enhancing work. SpaceMD uses the unique nature of space to benefit life on Earth.
Yahoo
24-07-2025
- Business
- Yahoo
Redwire (RDW) Falls 10.5% on Profit-Taking Ahead of Q2
We recently published . Redwire Corporation (NYSE:RDW) is one of the biggest losers on Monday. Redwire Corporation ended three consecutive days of gains on Monday, dropping 10.51 percent to close at $17.37 apiece as investors resorted to profit-taking while repositioning portfolios ahead of its second quarter earnings results. Based on its historical reporting dates, Redwire Corporation (NYSE:RDW) is set to announce its financial and operating highlights in the first week of August 2025. Redwire Corporation (NYSE:RDW) announced that its Stalker uncrewed aerial system, developed by its wholly owned subsidiary Edge Autonomy, officially secured the Authority to Operate and is now on the Defense Innovation Unit Blue UAS List. The Blue List selection was an important milestone as it meant meeting stringent cybersecurity, NDAA-compliance, and operational requirements. A close-up of an antenna, its intricate designs a testament to the company's expertise in space infrastructure. 'As the White House looks to advance the domestic commercialization of UAS technologies at scale and ramp up domestic production, Redwire is positioned at the forefront of strengthening our nation's drone industrial base and delivering unmatched capabilities to the US warfighter,' Redwire Corporation (NYSE:RDW) Chairman and CEO Peter Cannito said. While we acknowledge the potential of RDW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
