Latest news with #PeterCannito
Yahoo
6 days ago
- Business
- Yahoo
RDW Q1 Earnings Call: Revenue Misses Expectations, Management Focuses on Platform Expansion and M&A Integration
Aerospace and defense company Redwire (NYSE:RDW) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 30.1% year on year to $61.4 million. Its GAAP loss of $0.09 per share increased from -$0.17 in the same quarter last year. Is now the time to buy RDW? Find out in our full research report (it's free). Revenue: $61.4 million (30.1% year-on-year decline) EBITDA guidance for the full year is $87.5 million at the midpoint, above analyst estimates of $36.82 million Adjusted EBITDA Margin: -3.7% Backlog: $291.2 million at quarter end Market Capitalization: $1.14 billion Redwire's first quarter results were shaped by delays in U.S. government contract awards and shifting project timelines, which management attributed to administrative transitions at NASA and other agencies. CEO Peter Cannito cited a 'dynamic environment' in federal spending priorities, particularly for space and defense programs, and highlighted that some revenue shifted into later quarters. Recent wins in Europe partially offset lower U.S. activity, including a contract for the International Berthing and Docking Mechanism. Management acknowledged operational challenges, notably increased production costs and labor tied to new technology development for major contracts like I-Hab, which contributed to short-term margin pressure. Looking ahead, Redwire's guidance for the remainder of the year is underpinned by anticipated benefits from its acquisition of Edge Autonomy and a growing pipeline of larger bids. CFO Jonathan Baliff reaffirmed the company's combined forecast despite acknowledging 'volatility' in commercial and defense markets, stating that Redwire remains on track with its previously provided ranges. Management emphasized opportunities in autonomous systems and lunar exploration, noting expanding strategic partnerships and continued investment in in-space manufacturing. Cannito highlighted, 'Drones are here to stay,' pointing to increased defense spending in both the U.S. and Europe as a driver for new contract pursuits, although he cautioned that the market remains highly dynamic and subject to budgetary shifts. Management pointed to delayed U.S. contract awards, European market wins, and transition costs on new technologies as major factors impacting the latest quarter, while highlighting progress in platform expansion and M&A integration. European contract momentum: Redwire secured significant contracts in Europe, including providing docking systems for the European Space Agency's I-Hab module and a study contract for the ARRAKIHS dark matter mission, signaling deeper market penetration and organic capability development in the region. Lunar and space exploration partnerships: The company advanced its role in lunar missions by partnering with ispace-U.S., leveraging its prime contractor status on NASA's CLPS initiative. Management cited this as a move to pursue larger, end-to-end mission contracts beyond its historical subsystems focus. In-space manufacturing expansion: Redwire launched new drug development and cancer detection technologies to the International Space Station, expanding its PIL-BOX pharmaceutical platform. A new agreement with Espero Biomedicines aims to commercialize in-space drug crystallization, reflecting a diversification of revenue sources. Edge Autonomy acquisition progress: The acquisition of Edge Autonomy, which expands Redwire's footprint into autonomous airborne platforms, has received regulatory approvals and is expected to close in the next quarter. Management positioned this as transformational for the company's defense and multi-domain strategy. Tariff and supply chain resilience: Redwire's geographically distributed supply chain is designed to mitigate tariff risks, with U.S. and European manufacturing serving their respective markets. Management reported no material financial impact from current trade dynamics, and cited potential long-term benefits from increased investment in domestic manufacturing. Redwire's outlook is driven by integration of new capabilities, pursuit of larger contracts, and evolving defense and space spending priorities in both the U.S. and Europe. Edge Autonomy integration: Management expects the acquisition to broaden Redwire's offerings into autonomous systems, particularly drones, which are seeing increased defense spending. The company anticipates that Edge Autonomy's established manufacturing and higher gross margins will be accretive to Redwire's overall profitability as integration progresses. Pipeline of larger bids: Redwire is moving up the value chain by bidding as a prime contractor on entire mission platforms, not just subsystems. Management indicated that this strategy is enabling access to higher-value opportunities, especially in Europe, and could drive substantial backlog increases if successful. Market uncertainty and margin dynamics: While management described the current environment as 'highly dynamic' due to government budget transitions and program reprioritization, they see strong longer-term demand in space infrastructure and defense. However, near-term cost variability is expected as emerging technology contracts transition from development to production phases, with margin improvement anticipated as scale is achieved. In coming quarters, our analysts will monitor (1) the successful integration of Edge Autonomy and realization of expected margin improvements, (2) the timing and scale of new contract awards—especially in Europe and for lunar exploration, and (3) progress on commercializing in-space manufacturing capabilities. Developments in U.S. and European defense budgets and any shifts in space program funding will also be critical to Redwire's outlook. Redwire currently trades at a forward EV-to-EBITDA ratio of 18.5×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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
Yahoo
13-05-2025
- Business
- Yahoo
Redwire Corporation Reports First Quarter 2025 Financial Results
In January 2025, announced agreement to acquire Edge Autonomy; subsequently announced receipt of all regulatory approvals for the transaction Awarded contract from Thales Alenia Space to provide International Berthing and Docking Mechanism for Lunar I-Hab module Awarded NASA contract to launch four additional pharmaceutical drug investigations to the International Space Station using PIL-BOX Significant year-over-year and sequential increase in Book-to-Bill1 ratio to 0.92 as of the first quarter of 2025 Revenues for the first quarter of 2025 were $61.4 million, Net Loss was $(2.9) million and Adjusted EBITDA2 was $(2.3) million, with record total liquidity3 of $89.2 million JACKSONVILLE, Fla., May 12, 2025--(BUSINESS WIRE)--Redwire Corporation (NYSE: RDW, "Redwire" or the "Company"), a leader in space infrastructure for the next generation space economy, today announced results for its first quarter ended March 31, 2025. Redwire will live stream a presentation with slides on May 12, 2025 at 9:00 a.m. ET. Please use the link below to follow along with the live stream: "Bookings increased significantly compared to Q4 2024, with key wins coming from the European market; however, there were notable delays in awards in the U.S. government market due to transition of key decision makers in NASA, SDA and other agencies, as well as budget uncertainty associated with new administration priorities. However, we are confident that Redwire's geographic, product and customer diversity across Civil, Commercial, and National Security markets continues to provide resiliency in our business model," stated Peter Cannito, Chairman and Chief Executive Officer of Redwire. "At a time when European defense and space budgets are increasing, Redwire is expanding its presence in Europe with a new office in Poland to support ongoing international wins including a contract from Thales Alenia Space for the IBDM I-Hab as well as ESA study contracts for the Mars LightShip initiative and ARRAKIHS dark matter mission." ____________________ 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 $89.2 million as of March 31, 2025 is comprised of $54.2 million in cash and cash equivalents and $35.0 million in available borrowings from our existing credit facilities. First Quarter 2025 Highlights Revenues for the first quarter of 2025 decreased 30.1% to $61.4 million, as compared to $87.8 million for the first quarter of 2024. Net Loss for the first quarter of 2025 decreased by $5.1 million to $(2.9) million, as compared to $(8.1) million for the first quarter of 2024. Adjusted EBITDA4 for the first quarter of 2025 decreased by $6.5 million to $(2.3) million, as compared to $4.3 million for the first quarter of 2024. During the first quarter of 2025, the Company had net unfavorable EAC changes of $3.1 million, which impacted first quarter of 2025 revenues, gross profit, and net loss, and as a result, Adjusted EBITDA.4 These net unfavorable EAC changes were primarily due to additional unplanned labor and increased production costs as it relates to the development of new technologies required to meet customer specifications in the Company's structures and mechanisms and avionics, sensors and payloads infrastructure offerings. On a quarterly basis, Book-to-Bill5 ratio was 0.92 as of the first quarter of 2025, as compared to 0.40 as of the first quarter of 2024. Net cash used in operating activities for the first quarter of 2025 increased by $47.8 million to $(45.1) million, as compared to net cash provided by operating activities of $2.8 million for the first quarter of 2024. Net cash used in operating activities for the first quarter of 2025 included one-time payments of $8.0 million related to litigation settlements and $3.4 million related to M&A activities. Free Cash Flow4 for the first quarter of 2025 was $(49.1) million, as compared to $0.4 million for the first quarter of 2024. 2025 Forecast For the twelve months ended December 31, 2025, Redwire, as a combined company assuming the previously announced transaction with Edge Autonomy had been consummated on January 1, 2025, is forecasting full year revenues6 of $535 million to $605 million and Adjusted EBITDA4,6 of $70 million to $105 million with positive Free Cash Flow.4.6 "Redwire drove significant sequential and year-over-year improvements in Book-to-Bill5 ratio to 0.92 during the first quarter of 2025," said Jonathan Baliff, Chief Financial Officer of Redwire. "Additionally, we achieved record levels of cash and total liquidity7 of $54.2 million and $89.2 million, respectively, primarily driven by the redemption of $82.9 million of the public warrants associated with our going public," Baliff added. "We recorded revenues of $61.4 million and Adjusted EBITDA4 of $(2.3) million with significant sequential and year-over-year improvement in Net Loss to $(2.9) million. Despite facing very dynamic macro-economic conditions, Redwire enters the second quarter ready to close on our acquisition of Edge Autonomy and to capitalize on market trends in space and defense tech." ____________________ 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 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. 7 Total liquidity of $89.2 million as of March 31, 2025 is comprised of $54.2 million in cash and cash equivalents and $35.0 million in available borrowings from our existing credit facilities. Webcast and Investor Call Management will conduct a conference call starting at 9:00 a.m. ET on Monday, May 12, 2025 to review financial results for the first quarter ended March 31, 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 13753501. 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 13753501. The accompanying investor presentation will be available on May 12, 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 a global space infrastructure and innovation company enabling civil, commercial, and national security programs. Redwire's proven and reliable capabilities include avionics, sensors, power solutions, critical structures, mechanisms, radio frequency systems, platforms, missions, and microgravity payloads. Redwire combines decades of flight heritage and proven experience with an agile and innovative culture. Redwire's approximately 750 employees working from 17 facilities located throughout the United States and Europe are committed to building a bold future in space for humanity, pushing the envelope of discovery and science while creating a better world on Earth. For more information, please visit No Solicitation This press release is not intended to and does not constitute the solicitation of a vote with respect to any matter subject to the vote of Redwire's stockholders, which solicitation is made solely pursuant to a definitive proxy statement, nor does it constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities in any jurisdiction. Use of Data Industry and market data used in this press release have been obtained from third-party industry publications and sources, as well as from research reports prepared for other purposes. Neither Redwire nor Edge Autonomy have independently verified the data obtained from these sources and cannot assure you of the data's accuracy or completeness. This data is subject to change. Statements other than historical facts, including, but not limited to, those concerning market conditions or trends, consumer or customer preferences or other similar concepts with respect to Redwire, Edge Autonomy and the expected combined company, are based on current expectations, estimates, projections, targets, opinions and/or beliefs of Redwire or, when applicable, of one or more third-party sources. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. In addition, no representation or warranty is made with respect to the reasonableness of any estimates, forecasts, illustrations, prospects or returns, which should be regarded as illustrative only, or that any profits will be realized. The metrics regarding select aspects of Redwire's, Edge Autonomy's and the expected combined company's operations were selected by Redwire or its subsidiaries on a subjective basis. Such metrics are provided solely for illustrative purposes to demonstrate elements of Redwire's businesses, are incomplete, and are not necessarily indicative of Redwire's, Edge Autonomy's or their subsidiaries' performance or overall operations. There can be no assurance that historical trends will continue. 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 or Edge Autonomy's control. Such calculation cannot be predicted with reasonable certainty and without unreasonable effort because of the timing, magnitude and variables associated with the completion of the proposed 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. Neither Redwire nor Edge Autonomy's independent auditors have 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 Redwire, Edge Autonomy and 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 or the combined company's 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 or the combined company's 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, and objectives of management, the entry into the potential business combination with Edge Autonomy (the "Transaction"), the expected benefits from the proposed business combination, the expected performance of the combined company, the expectations regarding financing the proposed business combination, 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 the continued 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 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; (4) the inability to successfully integrate recently completed and future acquisitions, including the proposed business combination with Edge Autonomy, as well as the failure to realize the anticipated benefits of the Transaction or to realize estimated projected combined company results; (5) the development and continued refinement of many of Redwire's and the combined company's proprietary technologies, products and service offerings; (6) competition with new or existing companies; (7) the possibility that Redwire's expectations and assumptions relating to future results and projections with respect to Redwire or Edge Autonomy may prove incorrect; (8) adverse publicity stemming from any incident or perceived risk involving Redwire, Edge Autonomy, the combined company, or their competitors; (9) unsatisfactory performance of our and the combined company's products resulting from challenges in the space environment, extreme space weather events, the environments in which drones operate, including in combat or other areas where hostilities may occur, or otherwise; (10) the emerging nature of the market for in-space infrastructure services and the market for drones and related services; (11) inability to realize benefits from new offerings or the application of our or the combined company's technologies; (12) the inability to convert orders in backlog into revenue; (13) our and the combined company's dependence on U.S. and foreign government contracts, which are only partially funded and subject to immediate termination, which may be affected by changes in government program requirements, spending priorities or budgetary constraints, including government shutdowns, or which may be influenced by the level of military activities and related spending, such as in or with respect to ongoing or future conflicts, including the war in Ukraine, or as a result of changes in international support for military assistance to Ukraine; (14) the fact that Redwire is and the combined company will be subject to stringent U.S. economic sanctions, and trade control laws and regulations, as well as risks related to doing business in other countries, including those related to tariffs, trade restrictions and government actions; (15) the need for substantial additional funding to finance our and the combined company's operations, which may not be available when needed, on acceptable terms or at all; (16) the dilution of existing holders of Redwire's common stock that will result from the issuance of additional shares of Redwire Common Stock as consideration for the acquisition of Edge Autonomy, as well as the issuance of Redwire Common Stock in any offering that may be undertaken in connection with such acquisition; (17) the fact that the issuance and sale of shares of Redwire Preferred Stock has reduced the relative voting power of holders of Redwire Common Stock and diluted the ownership of holders of our capital stock; (18) the ability to achieve the conditions to cause, or timing of, any mandatory conversion of the Redwire Preferred Stock into Redwire Common Stock; (19) the fact that AE Industrial Partners ("AE") and Bain Capital and their affiliates have significant influence over us, which could limit your ability to influence the outcome of key transactions, as well as AE's increased voting power resulting from its receipt of the equity consideration from the Transaction; (20) the fact that provisions in our Certificate of Designation with respect to our Redwire Preferred Stock may delay or prevent our acquisition by a third party, which could also reduce the market price of our capital stock; (21) the fact that our Redwire 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; (22) the possibility of sales of a substantial amount of Redwire Common Stock by our current stockholders, as well as the equity owners of Edge Autonomy following consummation of the Transaction, which sales could cause the price of Redwire Common Stock to fall; (23) the impact of the issuance of additional shares of Redwire Preferred Stock as paid-in-kind dividends on the price and market for Redwire Common Stock; (24) the volatility of the trading price of Redwire Common Stock; (25) risks related to short sellers of Redwire Common Stock; (26) Redwire's or the combined company's inability to report its financial condition or results of operations accurately or timely as a result of identified material weaknesses in internal control over financial reporting, as well as the possible need to expand or improve Edge Autonomy's financial reporting systems and controls; (27) the possibility that the closing conditions under the merger agreement governing the Transaction necessary to consummate the mergers will not be satisfied; (28) the effect of any announcement or pendency of the proposed business combination on Redwire's or Edge Autonomy's business relationships, operating results and business generally; (29) risks that the proposed business combination disrupts current plans and operations of Redwire or Edge Autonomy; (30) the ability of Redwire or the combined company to raise financing in connection with the proposed business combination or to finance its operations in the future; (31) the impact of any increase in the combined company's indebtedness incurred to fund working capital or other corporate needs, including the repayment of Edge Autonomy's outstanding indebtedness and transaction expenses incurred to acquire Edge Autonomy, as well as debt covenants that may limit the combined company's activities, flexibility or ability to take advantage of business opportunities, and the effect of debt service on the availability of cash to fund investment in the business; (32) the ability to implement business plans, forecasts and other expectations after the completion of the proposed Transaction, and identify and realize additional opportunities; (33) costs related to the Transaction; (34) a significant portion of Edge Autonomy's revenues result from sales to customers in Ukraine, which sales have been declining and may continue to decline in the event that the war and hostilities in Ukraine end, decline or change, or as a result of changes in international support for military assistance to Ukraine; and (35) 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 forecasted Adjusted EBITDA and Free Cash Flow for Redwire assuming completion of the acquisition of Edge Autonomy. Certain financial metrics for the Redwire and Edge Autonomy businesses by Redwire management have not been calculated pursuant to Article 11 of Regulation S-X. Such calculation cannot be predicted with reasonable certainty and without unreasonable effort because of the timing, magnitude and variables associated with the completion of the proposed 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. Further, we are unable to provide reconciliations to forward-looking Adjusted EBITDA and Free Cash Flow because we are unable to provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. This is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Thus, we are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to the most closely comparable forward-looking U.S. GAAP financial measure because such information is not available 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, 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, 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 a useful 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. REDWIRE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (In thousands of U.S. dollars, except share data) March 31, 2025 December 31, 2024 Current assets: Cash, cash equivalents and restricted cash $ 54,221 $ 49,071 Accounts receivable, net 15,247 21,905 Contract assets 60,757 43,044 Inventory 2,192 2,239 Prepaid expenses and other current assets 9,718 9,666 Total current assets 142,135 125,925 Property, plant and equipment, net of accumulated depreciation of $10,891 and $9,628 18,759 17,837 Right-of-use assets 16,070 15,277 Intangible assets, net of accumulated amortization of $28,050 and $25,920 62,070 61,788 Goodwill 71,996 71,161 Other non-current assets 3,069 629 Total assets $ 314,099 $ 292,617 Liabilities, Convertible Preferred Stock and Equity (Deficit) Current liabilities: Accounts payable $ 28,179 $ 32,127 Short-term debt, including current portion of long-term debt 780 1,266 Short-term operating lease liabilities 4,481 4,354 Short-term finance lease liabilities 496 473 Accrued expenses 19,825 24,192 Deferred revenue 59,748 67,201 Other current liabilities 5,033 19,730 Total current liabilities 118,542 149,343 Long-term debt, net 104,375 124,464 Long-term operating lease liabilities 14,267 13,444 Long-term finance lease liabilities 1,006 980 Warrant liabilities 6,688 55,285 Deferred tax liabilities 615 582 Other non-current liabilities 1,936 428 Total liabilities $ 247,429 $ 344,526 Convertible preferred stock, $0.0001 par value, 125,292.00 shares authorized; issued and outstanding: 2025—106,982.68 and 2024—108,649.30. Liquidation preference: 2025—$306,712 and 2024—$599,412 $ 134,734 $ 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—77,082,332 and 2024—67,002,370 8 7 Treasury stock, 2025 and 2024—728,739 shares, at cost (3,573 ) (3,573 ) Additional paid-in capital 284,381 161,619 Accumulated deficit (351,054 ) (348,106 ) Accumulated other comprehensive income (loss) 2,174 1,339 Total shareholders' equity (deficit) (68,064 ) (188,714 ) Total liabilities, convertible preferred stock and equity (deficit) $ 314,099 $ 292,617 REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Unaudited (In thousands of U.S. dollars, except share and per share data) Three Months Ended March 31, 2025 March 31, 2024 Revenues $ 61,395 $ 87,792 Cost of sales 52,354 72,967 Gross profit 9,041 14,825 Operating expenses: Selling, general and administrative expenses 18,746 17,362 Transaction expenses 3,799 — Research and development 813 1,040 Operating income (loss) (14,317 ) (3,577 ) Interest expense, net 3,594 2,918 Other (income) expense, net (14,781 ) 1,492 Income (loss) before income taxes (3,130 ) (7,987 ) Income tax expense (benefit) (182 ) 109 Net income (loss) (2,948 ) (8,096 ) Net income (loss) attributable to noncontrolling interests — (1 ) Net income (loss) attributable to Redwire Corporation (2,948 ) (8,095 ) Less: dividends on Convertible Preferred Stock 3,531 3,043 Net income (loss) available to common shareholders $ (6,479 ) $ (11,138 ) Net income (loss) per common share: Basic and diluted $ (0.09 ) $ (0.17 ) Weighted-average shares outstanding: Basic and diluted 71,192,148 65,572,286 Comprehensive income (loss): Net income (loss) attributable to Redwire Corporation $ (2,948 ) $ (8,095 ) Foreign currency translation gain (loss), net of tax 835 (672 ) Total other comprehensive income (loss), net of tax 835 (672 ) Total comprehensive income (loss) $ (2,113 ) $ (8,767 ) REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (In thousands of U.S. dollars) Three Months Ended March 31, 2025 March 31, 2024 Cash flows from operating activities: Net income (loss) $ (2,948 ) $ (8,096 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expense 3,046 2,753 Amortization of debt issuance costs and discount 273 170 Equity-based compensation expense 2,912 2,535 (Gain) loss on change in fair value of warrants (13,634 ) 1,075 Deferred provision (benefit) for income taxes 80 98 Non-cash lease expense 73 12 Other (1,016 ) 397 Changes in assets and liabilities: (Increase) decrease in accounts receivable 6,853 13,174 (Increase) decrease in contract assets (16,845 ) (2,981 ) (Increase) decrease in inventory 55 (100 ) (Increase) decrease in prepaid expenses and other assets (2,658 ) 823 Increase (decrease) in accounts payable and accrued expenses (8,192 ) 7,929 Increase (decrease) in deferred revenue (7,590 ) (15,413 ) Increase (decrease) in operating lease liabilities (10 ) (84 ) Increase (decrease) in other liabilities (5,480 ) 472 Net cash provided by (used in) operating activities (45,081 ) 2,764 Cash flows from investing activities: Purchases of property, plant and equipment (1,790 ) (1,561 ) Purchase of intangible assets (2,265 ) (806 ) Net cash provided by (used in) investing activities (4,055 ) (2,367 ) Cash flows from financing activities: Proceeds received from debt 5,000 5,000 Repayments of debt (25,681 ) (2,793 ) Repayment of finance leases (126 ) (119 ) Repayments of third-party advances (7,820 ) — Proceeds from issuance of common stock for warrants exercised 82,862 — Payment of equity issuance costs (45 ) — Shares repurchased for settlement of employee tax withholdings on share-based awards — (56 ) Net cash provided by (used in) financing activities 54,190 2,032 Effect of foreign currency rate changes on cash, cash equivalents and restricted cash 96 (138 ) Net increase (decrease) in cash, cash equivalents and restricted cash 5,150 2,291 Cash, cash equivalents and restricted cash at beginning of period 49,071 30,278 Cash, cash equivalents and restricted cash at end of period $ 54,221 $ 32,569 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 (in thousands) March 31, 2025 March 31, 2024 Net income (loss) $ (2,948 ) $ (8,096 ) Interest expense, net 3,594 2,918 Income tax expense (benefit) (182 ) 109 Depreciation and amortization 3,046 2,753 Transaction expenses (i) 3,799 — Severance costs (ii) 177 8 Capital market and advisory fees (iii) 968 2,278 Litigation-related expenses (iv) — 701 Equity-based compensation (v) 2,912 2,535 Warrant liability change in fair value adjustment (vi) (13,634 ) 1,075 Adjusted EBITDA $ (2,268 ) $ 4,281 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 severance costs related to separation agreements entered into with former employees. iii. 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. iv. Redwire incurred expenses related to securities litigation. v. Redwire incurred expenses related to equity-based compensation under Redwire's equity-based compensation plan. vi. Redwire adjusted the private warrant liability to reflect changes in fair value recognized as a gain or loss during the respective periods. 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. Three Months Ended (in thousands) March 31, 2025 March 31, 2024 Net cash provided by (used in) operating activities $ (45,081 ) $ 2,764 Less: Capital expenditures (4,055 ) (2,367 ) Free Cash Flow $ (49,136 ) $ 397 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) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Contracts awarded $ 56,244 $ 35,101 $ 250,932 $ 305,478 Revenues 61,395 87,792 277,704 273,987 Book-to-bill ratio 0.92 0.40 0.90 1.11 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 ("T&M") 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 0.92 for the three months ended March 31, 2025, as compared to 0.40 for the three months ended March 31, 2024. For the three months ended March 31, 2025 and 2024, none of the contracts awarded balance relates to acquired contract value. Our book-to-bill ratio was 0.90 for the Last Twelve Months ("LTM") ended March 31, 2025, as compared to 1.11 for the LTM ended March 31, 2024. For the LTM ended March 31, 2025, contracts awarded includes $21.9 million of acquired contract value from the Hera Systems acquisition, which was completed in the third quarter of 2024. For the LTM ended March 31, 2024, none of the contracts awarded balance relates to acquired contract value. Backlog The following table presents our contracted backlog as of March 31, 2025 and December 31, 2024, and related activity for the three months ended March 31, 2025 as compared to the year ended December 31, 2024. (in thousands) March 31, 2025 December 31, 2024 Organic backlog, beginning balance $ 280,969 $ 372,790 Organic additions during the period 56,244 207,704 Organic revenue recognized during the period (57,568 ) (297,699 ) Foreign currency translation (282 ) (1,826 ) Organic backlog, ending balance 279,363 280,969 Acquisition-related contract value, beginning balance 15,683 — Acquisition-related contract value acquired during the period — 21,940 Acquisition-related additions during the period — 145 Acquisition-related revenue recognized during the period (3,827 ) (6,402 ) Acquisition-related backlog, ending balance 11,856 15,683 Contracted backlog, ending balance $ 291,219 $ 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 $15.5 million and $16.7 million in remaining contract value from time and materials contracts as of March 31, 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 Hera Systems acquisition completed during third quarter of 2024. 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 $107.2 million and $70.5 million as of March 31, 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. View source version on Contacts Investor Relations Contact:investorrelations@ 8226 Philips Highway, Suite 101Jacksonville, FL 32256 USA 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
Yahoo
13-05-2025
- Business
- Yahoo
Q1 2025 Redwire Corp Earnings Call
Alex Curatolo; Senior Director of Investor Relations; Redwire Corp Peter Cannito; Chairman, Chief Executive Officer and President; Redwire Corp Jonathan Baliff; Chief Financial Officer, Director; Redwire Corp Greg Konrad; Analyst; Jefferies Suji Desilva; Analyst; Roth Capital Partners Mike Crawford; Analyst; B. Riley Securities Colin Canfield; Analyst; Cantor Fitzgerald Brian Kinstlinger; Analyst; Alliance Global Partners Scott Buck; Analyst; H.C. Wainwright & Co., LLC Operator Greetings. Welcome to the Redwire Corporation first-quarter 2025 earnings conference call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Alex Curatolo, Senior Director of Investor Relations. Thank you, you may begin. Alex Curatolo Good morning, and thank you, Darryl. Welcome to Redwire's first-quarter 2025 earnings call. We hope that you have seen our earnings release, which we issued earlier this morning. It has also been posted in the Investor Relations section of our website at 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 risk and uncertainties that are described in more detail on slide 3. Additionally, to the extent we discuss non-GAAP measures during the call, please see slide 4, our earnings release, or the investor presentation on our website for the calculation of these measures and their reconciliation to US GAAP measures. I'm Alex Curatolo, Redwire's Senior Director of Investor Relations. Joining me on today's caller, Peter Cannito, Redwir's Chairman and Chief Executive Officer; and Jonathan Baliff, 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 first quarter of 2025, and Jonathan will then present the financial highlights for the same period. We will then discuss our 2025 outlook, after which we will open the call for Q&A. Please turn to slide 7. On our last earnings call, I introduced our 2025 growth strategy, which is centered around five key principles, providing picks and shovels, which means delivering on our strong foundation of proven products with demonstrated flight heritage that form the building blocks of space missions for our customers. The delivering multi-domain platforms, which means executing our platform strategy by delivering highly differentiated space and airborne platforms for critical missions to include multi-domain missions. Exploring the Moon, Mars, and beyond, which means capitalizing on our decades of experience in providing systems for space exploration and delivering on ambitious missions to the lunar surface, to Mars and beyond. Unlocking venture optionality, which means continuing to pursue breakthrough developments on advanced technologies that could unlock new markets with game changing potentials. And finally, executing accretive M&A, which means continuing our proven track record of effectively creating enterprise value by acquiring technologically differentiated companies at a creative values, a key competitive advantage of Redwire which enables us to continue to rapidly scale as a public platform. Over the next few slides, I will discuss a recent key success for each growth area to demonstrate how we are executing against these focus areas. Please turn to slide 8. Starting with picks, providing picks and shovels during the quarter, Redwire was awarded a contract from Thales Alenia Space to provide four docking systems for the European Space Agency's I-Hab habitation module. The Redwire system is branded as the International Berthing and Docking Mechanism or IBDM. The IBDM will enable safe transfers of crew and cargo from the visiting spacecraft to I-Hab, supporting continuous operations and missions within the Lunar Space Station. This is a mission critical element of infrastructure that has applicability to space habitats and both crude and uncrude space capsules. Please turn to slide 9. Turning next to delivering multi-domain platforms, in February, Redwire announced the award of a study contract from ESA to develop the preliminary spacecraft design for the upcoming ARRAKIHS dark matter mission that will image faint galaxies in the nearby universe and provide insight into the nature of dark matter. Redwire's solution is built around an adapted version of our flight proven small satellite platform Hammerhead showed on the right shown on the right of this slide. If selected for the implementation phase of the ARRAKIHS mission, Redwire would integrate the full satellite in our state of the art clean room facilities in Belgium, underscoring the maturity of our full mission systems capability in the European market. These first quarter successes illustrate that Redwire is proudly building on decades of flight heritage, and we continue to play a critical role in developing organic capabilities for the European market as it pivots toward increased independence in space and defense. Please turn to slide 10. Moving next to exploring the moon, Mars, and beyond, in early April, Redwire and ispace US signed a memorandum of understanding to jointly pursue commercial lunar exploration and science missions for the NASA CLPS initiatives, as well as additional private sector customers. Redwire is a prime contractor on the CLPS IDIQ contract, which has a cumulative amount, maximum contract value of $2.6 billion through 2028. Redwire is proud to combine our advanced digital engineering, integration and testing, and lunar subsystems and payloads with ispace's proven lunar landing platform and mission operations to create a world class team to support future lunar missions. This partnership furthers our already robust set of capabilities for commercial lunar exploration. Please turn to slide 11. Turning to unlocking venture optionality, in April, Redwire launched both a new drug development technology and a cancer detection experiment to the International Space Station, as we scale our in-space pharmaceutical drug development. Based upon our highly successful PIL-BOX platform, the high volume industrial crystallizer is capable of processing samples that are up to 200 times the volume of what could be processed in the original technology. To validate the new hardware, Redwire launched its Golden Ball's nanotechnology manufacturing demonstration, which I discussed on our last earnings call. The goal of the new industrial crystallizer technology is to further optimize large scale production of PIL-BOX pharmaceutical development in space to achieve economies of scale that significantly advance the business model potential. In addition, today Redwire is proud to announce that we have signed an agreement with a new commercial partner, Espero Biomedicines , to fly two additional PIL-BOX's to the ISS. Redwire will crystallize a new cancer treatment that Espero Biomedicines is working on. Redwire and Espero Biomedicines see this as the start of a long and fruitful partnership, and are excited to have -- we are excited to have a new commercial customer funding advanced biopharma development in space for the benefit of people on Earth. Please turn to slide 12. Finally, when it comes to executing accretive M&A, as many of you know, in January 2025, Redwire announced that it has signed an agreement to acquire Edge Autonomy. In March 2025, we announced that we had received all regulatory approvals needed to complete the transaction, and just this past Friday, May 9, 2025, we filed our definitive proxy with the SEC. With these critical milestones behind us, we expect to close during the second quarter of 2025 with the special meeting scheduled for June 9, 2025. This transaction is expected to transform Redwire into a global leader in multi-domain autonomous technology, broadening our portfolio of mission critical space platforms to include combat proven autonomous airborne platforms. Please turn to slide 13. Next, I would like to discuss tariffs in the context of Redwire's supply chain. Redwire's supply chain provides resiliency in the current environment with a US-based supply chain for our US customer base, particularly on federally funded contracts, and with a European-based supply chain for our international customers. Our global manufacturing footprint serving local markets is a natural tariff mitigant. As such, we have yet to see notable widespread price increases or shocks due to tariffs. We are addressing one-off cases with suppliers. However, we currently do not expect any material financial impact. Redwire will continue to monitor potential impacts closely as we manage our business through this dynamic environment. In some instances, we believe that the current trade environment may lead to both increasing investment in US manufacturing and in European space and defense budgets that could benefit Redwire's significant manufacturing presence in both regions. Please turn to slide 14. As many of you likely saw, the recent Presidential budget request includes funding for key space and defense programs like Golden Dome, and Redwire is exploring multiple solutions throughout the Golden Dome layered defense architecture to help defeat threats targeted at the US homeland. I'd like to highlight just a few examples of how Redwire solutions could be leveraged in support of these efforts. First, Redwire spacecraft to include our VLEO, LEO, GEO capabilities can be leveraged in a multi-orbit architecture to identify, detect, and potentially mitigate threats. In addition, Redwire's space-based optical sensor capabilities that use the same develop that use the same technologies as developed in the cameras for Firefly's Blue Ghost and Intuitive Machines IM-2 lunar landers can be leveraged to develop timely threat detection and custody. And finally, Redwire's digitally engineered mission systems and integration or DEMSI agent-based digital engineering environment, enables end-to-end architecture assessment for threat mitigation. We are particularly well positioned because we have secure facilities and clearances to operate in this domain. Redwire is aggressively pursuing multiple Golden Dome opportunities and looks forward to the opportunity to leverage our extensive national security heritage in defense of the United States, and is in discussions with relevant stakeholders. Please turn to slide 15. Turning to our contract awards and backlog, our contract awards during the first quarter of 2025 were $56.2 million with a book-to-bill ratio of 0.92 times, a significant improvement on both a sequential and year-over-year basis. In addition, backlog remained relatively flat at $291.2 million as of March 31, 2025. 37% or $107.2 million of this contracted backlog is from our international operations in Europe. As we have continuously reinforced, we often see lumpy contract awards from quarter-to-quarter. Although we saw key wins for the first quarter coming out of the European market, including the contract for the IBDM I-Hab and ESA study contract for the ARRAKIHS mission mentioned previously, we also saw notable delays in awards in the US government market due to the transition of key decision makers in NASA, SDA, and other agencies, as well as budget uncertainty associated with new administration priorities. We believe these delays are temporary, and based on analysis of the Presidential budget request that includes funding for key space and defense programs like Golden Dome, we remain optimistic about the future of US national security space and defense budgets. In the meantime, we continue to see a strong pipeline with an estimated $6 billion of identified opportunities, including approximately a $0.5 billion in proposals submitted during the first quarter of 2025. We continue our efforts to increase the average size of the individual opportunities we are pursuing, and as a result, we continue to have a pipeline of bids that could result in a substantial increase in backlog if we land some of these larger opportunities. Because of the success of our transformational investments building the Redwire platform in 2024, we are now positioned to continuously pursue larger opportunities in 2025 and beyond. Please turn to slide 16. With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer, to discuss the financial results for the first quarter of 2025. Jonathan? Jonathan Baliff Thank you, Pete. Before turning to slide 17, I would like to highlight the rendering on this page, which is ESA's PROBA-3 spacecraft using a version of Redwire's Hammerhead platform. During the first quarter, the PROBA-3 spacecraft, which launched in late 2024, demonstrated key on orbit milestones by autonomously acquiring and maintaining spacecraft formation flying over the course of two Earth orbits. This is the world's first on orbit precision flying mission with two spacecraft maintaining their relative positions down to less than 1 millimeter while flying 150 meter apart in space. This is not only a significant technological achievement but also a critical step in achieving the mission objectives of studying the Sun's Corona forces. Kudos to our Redwire Space Europe team for making this possible. Please turn to slide 17. So let's review the results for the first quarter of 2025, starting with revenue. Redwire recorded revenues of $61.4 million a decrease both on a sequential and year-over-year basis. As Pete mentioned, although we saw key wins coming out of our European market, we also saw movement of revenue to the right on existing contracts and delays in awards across our customer classes, but especially in the US during this quarter. Turning to profitability, during the quarter, we saw a significant sequential improvement in our adjusted EBITDA from a negative $9.2 million in the fourth quarter of 2024 to a negative $2.3 million in the first quarter of 2025. Our adjusted EBITDA included a net unfavorable impact from EACs of $3.1 million. These net EAC changes were primarily due to additional unplanned labor and increased production costs related to the development of new technologies required to meet customer specifications, especially in our structures and mechanisms core offering as we transitioned to the new I-Hab contract he talked about. Turning to net loss, we also saw a significant sequential improvement of more than $60 million achieving a net loss of $2.9 million as we continue on our path to profitability. Looking at our cash and total liquidity, we ended the quarter with a record level of available liquidity, $89.2 million. This is a 39.2% improvement over the $64.1 million of total liquidity at the end of last year. We had an expected increase in year-over-year and sequential use of free cash in the first quarter, and this was inclusive of a $33.9 million shift in working capital. This shift included one-time payments of $8 million related to litigation settlements and $3.4 million related to M&A activities. Even with this overall liquidity was enhanced by the $82.9 million exercise of our outstanding warrants. This represents an 82.3% exercise rate for these public warrants, and the cleaning up of this takes us a step closer to maturing our capitalization as we complete the edge autonomy acquisition. Please turn to slide 18 for a brief discussion of the outlook for 2025. As part of the announcement of our combination with Edge Autonomy, we provided a financial forecast for fiscal year 2025 as if the transaction closed on December 31, 2024. In 2025, there has been significant commercial market uncertainty, especially in the US defense and government services sector with the incoming new administration, and both Redwire and Edge Autonomy have seen some of our projected winds slip to the right. We acknowledge that there is volatility with the rest of 2025. However, our previous combined forecast was meant to be conservative, and as of today, we believe that we are still on track to end 2025 within our previously provided ranges. Therefore, we are reaffirming the combined forecast at this time. For revenue, as if the transaction had closed on December 31 2024, Redwire is forecasting full year 2025 combined revenue to be in the range of $535 million to $605 million which represents a 52.9% compound annual growth rate from fiscal year '23 to fiscal year 2025 at midpoint. And for adjusted EBITDA to be between $70 million and $105 million which represents 138.8% compound annual growth rate from fiscal year '23 to year '25 at midpoint. Post closing, we expect to provide guidance for the remainder of 2025. Please turn to slide 19, and I'll now turn the call back over to Pete. Peter Cannito Thank you, Jonathan. I want to thank the entire Redwire team for their contribution to our results during the first quarter of 2025, a truly global effort. We will now open the floor for questions. Operator Thank you. We will now be conducting a question-and-answer session. (Operator Instructions) Greg Konrad, Jefferies. Greg Konrad Good morning. Peter Cannito Morning, Greg. Greg Konrad In the prepared remarks, I mean, one of the things you highlighted was Europe's increased independence in space and defense. Can you maybe talk about some of the risk given -- I think there's potential for some of the programs that the US and Europe partner on to potentially be pushed out versus maybe the opportunities on that independence and maybe what you're seeing, given some of the award flow out of Europe. Peter Cannito Yeah, thanks, Greg. That's an excellent question. So let's break it up first of all into two sides. One on the space side and then one on the defense side, right? So, and of course, we recognize that there's some overlap between the two, but on the space side, you really see kind of a wake-up call over in Europe. On the fact that they've started to fall behind the US and China in terms of having an independent national program for space, and this is resulting in a real interest in additional investment in that area. Now we recognize that because the partnership between the US and Europe has been so close on some joint programs, that where those dollars flow to, which programs will be dynamic in the short term, but there's been a number of both in the press and quite frankly in some of the other companies that work on an international level in their earnings call, a discussion about if you take something like Gateway, for instance, Europe may not stop their development just because the US changes their strategy. They may just repurpose or redirect or look for new partners internationally to continue that development. So, I think -- we see both a positive trend in the fact that there's additional interest in just space spending overall in Europe as well as -- so that if the dollars move, they'll still be there, but it'll just be creating new opportunities, as well as some interest in continuing to fund programs that are already underway. So I think it's too early to say. Quite frankly, that some of the current development that Europe is working on is going to go away, but like I said, if it does, it'll just move to something else, which when you look at the way Redwire is positioned with things like ARRAKIHS and Mars, which is somewhere where European dollars could pivot more too. We think that we'll be participating strongly regardless as long as the overall trend. A defense is even more interesting because Europe is going to continue to be a close ally of the US, but they're under a tremendous amount of pressure from their closest allies to actually increase their budgets in defense spending. So a Redwire obviously on the space side is well positioned to capitalize on that increase in defense spending, and of course, with the addition of Edge Autonomy, which has a very large manufacturing presence over in Latvia supporting European defense spending, will be even better positioned there as well. So, recognizing and I think this is a scheme you'll hear throughout, that the market is dynamic, so it's difficult to pinpoint exactly what programs dollars are going to go to. The key point is that in the overall macro environment, both space and defense are growth areas. Greg Konrad And then maybe just for a follow-up, I mean, I think the lumpiness on the US side is fairly well appreciated. You had a fairly robust submitted bids last year and it seemed like Q1 was pretty strong in aggregate. Any kind of change as we sit here today in terms of what you see coming out of the US just given we have the skinny budget, the CR in place for 2025, have you seen any change or is it still relatively constrained as we sit here today? Peter Cannito Yeah, I think again, I would say the same basic theme applies in the near term because we don't have an asset administrator fully in place yet. There's dollar shifting around in defense where some things are being deprioritized while other things like Golden Dome are being highly prioritized. It's a pretty dynamic environment. But we feel pretty confident that once the prioritizations are set that both the space budget for the United States, if you include national security and civil space, as well as the defense budget focused on space and particularly on drones, our strong growth trends. So we think we're really well positioned in the right areas where when the budget shakes out, you're going to see a lot of continuous opportunity. So for us, some of this is just near term dynamics associated with new decision makers getting into their positions and making decisions. For example, people have talked about changes to The Gateway program in the US. It's important to emphasize that it's just a change in strategy which will ultimately end up with a change in focus. Where there any changes to the budgets for Gateway will likely be offset with increased funding for direct to lunar infrastructure or potential future Mars missions. So again, although one of the really resilient and exciting things we believe about Redwire is that when you're focused on space infrastructure, even when the programs change, there's a really strong role for us to play. As a matter of fact, a reset may give us opportunity to get in on some programs on the ground floor. So highly dynamic environment, but not without great opportunities. Greg Konrad Thank you. Operator Suji DeSilva, Roth Capital Partners. Suji Desilva Hi Pete. Hi, Jonathan. Congrats on keeping the guidance in a tough environment here. In a tough environment here. So, yeah, so maybe you could talk about the prioritization of the US Government programs. Can you talk about where drones is fitting in there anecdotally in terms of international domestic spend given the Edge Autonomy acquisition coming near close? Peter Cannito Yeah, well, I think two points that I'll make about that is number one is drones have proven themselves at this point, I think it's safe to say, as a force multiplier in combat via the conflict in Ukraine, you can open up almost any news source and you're going to read about the effectiveness of that capability. So, drones are here to stay. And I would say it's an area for growth in terms of defense spending. AUSA, the Army's big conference was recently held and there was a lot of talk how critical drones are, particularly at the tactical level, where Edge plays are to the future of US army war fighting and how additional investments are required in that area. There's a lot out there in the press about that. So we're really excited about those developments. And quite frankly, that's why we started looking at Edge Autonomy, is because we saw those trends and wanted to engage in that as well as the idea that these drones are going to be closely integrated into a multi domain mission environment that will include space as well. So I think like I said, it's safe to say that drones are going to be a big part of defense spending, not only in the US but in the European market as well. Suji Desilva Great, thanks, Pete. And my other question, you guys made a MOU announcement with ispace at Space Symposium. Curious what milestones we should watch there and how you think your combined approach to lunar missions may be differentiated in the marketplace. Thanks. Peter Cannito Yeah, good question. I think it's often or I know it hasn't been really emphasized that Redwire is a prime on the CLPS contract that has been funding missions from Firefly's Blue Ghost and Intuitive Machines. Heretofore, we've been a critical subsystem and component provider for those missions. And proudly so opportunity presented itself because ispace US is not a prime contractor to take a much larger role. So, it's a natural progression for us as we take on bigger and bigger opportunities to lead a full mission underpinned by their lunar lander. And there's a lot of technologies that Redwire brings to bear specifically around digital engineering subsystems and payloads and just the ability to run a really strong prime lead on CLPS that we're going to be unlocking here with this new partnership. So we're really excited about that and look forward to seeing the direction it heads. I'd say the next big milestone would be watching the team start to bid and win CLPS task orders and missions. Suji Desilva Got it. Alright, great, thanks Pete. Thanks everybody. Peter Cannito Thank you. Operator Mike Crawford, B. Riley Securities. Mike Crawford Thank you. And regarding the retained pro forma annual guidance for 2025, can you just fill us in on some details on what's going on with Edge today? Approximately what revenue and EBITDA did the company attain, Q1 and how's the pipeline looking, et cetera? Peter Cannito Jonathan? Jonathan Baliff Sure. So Mike, thanks for the question. And again, we are not disclosing their first quarter of the time because when we will receive that information in a US GAAP format, we will disclose it and there is an ability to do that later. But I will say we have provided in the proxy that was final on Friday a lot of historic information about their revenues and adjusted EBITDA. And I would point you in that direction. I would also point you in direction that the company did increase its backlog. From what we disclosed when we announced the transaction in mid-January to today, their current backlog has grown to $99.4 million from low 70s. So, we're as part of the and it is a combined forecast, not guidance. Once we close the transaction, we know the exact date of the closing. We will then provide the street guidance for 2025 when the transaction closes. But again, take a look at the historical information concerning their revenues and their profitability and cash generation. And again, this is a company that's been able to grow pretty significantly and achieve a level of Operating leverage that has gross margins that will be accretive to Redwire. And so we're excited to get the transaction closed. Mike Crawford Okay, thank you. And then follow-up is just on your own pipeline. Can't talk about Edge's pipeline, so do you characterize any? Can you give us any additional color on the what was like $0.5 billion bids submitted so far this year and any other big opportunities we should be tracking? Peter Cannito Yeah, without getting into the specific contracts that we don't share for competitive reasons. I think the notable thing is if you look at our strategy in 2024 of moving up the value chain and the moves that we've made to go from being a primarily subsystems and components merchant supplier to having still that strong foundation of picks and shovels, but adding to it these spacecraft platforms in VLEO, LEO, GEO and even obviously highly sought after for Mars and deep space missions like Lightship and ARRAKIHS. That strategy is allowing us to bid as prime on larger full mission spacecraft programs. And an example of this, as Suji pointed out, is priming Eclipse mission, for instance. So without getting into the specific opportunities you can see, or what I would point to is the execution of that moving up the value chain leading to larger and larger bids. Mike Crawford Great, thanks, Pete. Peter Cannito Thank you. Operator Colin Canfield, Cantor Fitzgerald. Colin Canfield Hey, thanks. Just looking through the forecast numbers on Edge Autonomy with respect to cash flow. Like they're kind of on course to do maybe $60 million in free cash flow this year. So if you could maybe talk us through how we should think about organic Redwire and the moving pieces on free cash flow, specifically how we think about kind of 2Q indicators through the rest of the year. Thank you. Jonathan Baliff Sure, I'll take that one. Colin, thanks for your question. For us, there was always an expectation when you looked at the book-to-bill in the full year 2024 that as we said, we expected to have a use of cash in this quarter. You can see there was builds on the balance sheet both on the asset and the liability side, somewhat unusually. And so for us, we expect for one, revenues to some of the revenues that are moving into the second and third and fourth quarter to come about. We obviously have a certain level of bidding that we're doing that provides once you win some cash flow, you also see milestone payments start to come in where that provides cash flow. So you start to see some of the contract assets that you saw build in the first quarter start to come down. So we do expect cash flow to improve. We don't give guidance for free or operating cash flow, but we do expected on the Redwire side to improve as we go through the year. Colin Canfield Got it. Peter Cannito And then just by the way you mentioned free cash flow. Sorry, I did want to. Because I want to answer your question completely. CapEx again will remain fairly low compared to other industrial companies. Our CapEx position, although we've made pretty significant investments in the first quarter, four point, almost $4.1 million, we expect it to continue to be moderate and we don't have very high levels of maintenance CapEx. And so again, we've always said we'd be less than 2%, 2.5% of revenue generally. Colin Canfield Got it. Appreciate that. And then for the EAC dynamics, maybe talking us through the mechanics of the recovery, what are the big moving pieces? How do we think about that? And then how do we think about that in 2025 versus 2026 in terms of getting that back via pricing? Jonathan Baliff Sure. I mean again, I think we've been very explicit that, we want and are working quite hard both project management working with our clients to bring these EACs down from there, from last year's levels. That being said, the EACs that we took the net unfavorable in first quarter really was due to a transition of the I-Hab contract from a PATT to a full contract. Not talking about that specific contract in the future, but all the contracts, we always look forward to working with our clients on that. Pete, I don't know if there's something you want to say. Peter Cannito No, I was just going to add that one of the things we emphasize on almost every call it feels like is this idea of balancing growth and profitability. Redwire really tries to focus on balance and some of the EACs are fundamentally a part of growing pains. When you're growing at double digit CAGR growth rates. If you think about, or I will articulate to you how we think about the evolution of some of the technologies that we're developing. Space is still a relatively new from an emerging technology perspective. So in many cases we're bidding on things that have never been done before that are going through a development phase which is a little less predictable, that will ultimately move into a production phase that will be highly predictable. An example of that is if you look at the early stages years ago of ROSA when it was an emerging tech, there was a lot of programs that had more variability associated with developing out the ROSA baseline. Now that ROSA is moving more into a production capability, you see more stable profitability and execution on the program. So I'd just like to note some of these EACs are a result of leaning forward and bidding programs that are emerging tech programs that will result in some variability in cost in the near term. But once they move into production and scale, we'll recuperate some of those costs in future orders. Does that help? Colin Canfield Got it. Thank you. Appreciate it. Operator Brian Kinstlinger, Alliance Global Partners. Brian Kinstlinger Great. Thanks so much. During 2024, Redwire submitted just over $4 billion of proposals. Can you share what the total value of bids outstanding are at this time and what TCV of the awards you referenced that were delayed? And then as you look at the bids, how do you think about the gross margin mix versus what your gross margin looks like maybe in the trailing 12 months? Peter Cannito You want to take that one? Jonathan Baliff I'll take that one. Thanks, Brian. So when you look at the bid submitted, the one question you're asking, we do not submit. We don't publicly disclose that information specifically about the margins. Again, the only thing I would say is we are bidding on larger projects and it's a mix. It's a mix. But there is a definitive desire as we bid these, that they would be higher margin than what we've been getting over the last 12 months. As far as the bids today, the $529.6 million that we bid, if you look at the last 12 months of those bids, which I think you brought about, many of those are still being adjudicated. You saw the, the actual amount of bidding stay flat kind of year-over-year on a quarterly basis. You've seen our pipeline come down a little bit, but that's really due to the lumpiness and probably delays as the US Government executive transition is happening. But for the most part, we're still seeing pretty large projects, as Pete said, continuing to bid, especially in Europe. Right. If you look at the large win that we had in the first quarter with I-Hab, we're continuing to see Europe start to catch up. And so a large amount of our pipeline is global and continues to either be with commercial customers. If you look at our revenue mix, it was pretty interesting in the first quarter on just the quarterly revenue mix, which is kind of pointing in the direction of our trending. We saw National Security on a year-over-year basis go from 16% of total revenue on a quarterly basis to 32%. You saw commercial revenue stay, roughly, kind of in and around our largest at around 40%. And then obviously our civil business continued to be, less than a third of our business. So the bottom-line is that's kind of the direction of our bidding also. And again, we're trying to get higher margins as we bid some of these larger projects. Peter Cannito And I'll add to that about kind of the portfolio effect of what we're, how we're managing margins inside some of these bids. Like I said, we're constantly bidding or we're constantly balancing revenue, steep revenue growth with profitability. So there are some bids that we put in that are things that we've done for a long time in the portfolio that have really great gross margins. And then there's other large bids that may have substantial materials associated with it that may bring down gross margin percentage, but increase gross profit in an absolute value perspective. And so that's why it can be challenging to make a definitive statement across the whole portfolio because we're managing it to optimize for both long-term revenue growth and profitability. But you do have instances where a really large win could reduce your gross margin percentage, but add to your gross margin absolute value, which that scaling effect enhances your EBITDA because the G&A doesn't grow at the same slope of the curve as your revenue does. So even though they might be a slightly lower gross margin on a percentage basis, overall, you're creating value, if that makes sense. Brian Kinstlinger Great. And then my follow-up, maybe you could share what percentage in the trailing 12 months of revenue is funded by NASA? And then a ballpark. What percentage of your $6 billion pipeline is NASA related? Jonathan Baliff Let me take the first one. I kind of answered the first one. The civil business mix was roughly 29% of overall quarterly revenue. If you look at it on a LTM basis, it's slightly lower than that. A pretty nice percentage of that. We don't give publicly what that is, is NASA. Obviously, we have ESA as part of it, and there's some other small space administrations, but at least gives you directionally what we're talking about as far as the pipeline is concerned. We don't, for competitive reasons, give the specifics of whether it be civil or just specifically to NASA. I will say again, our commercial business, which has both national security and also some level of commercial business associated with satellites, like for example, the Thales ROSAs that we're building out, are also a meaningful part of our revenue growth today. And in the future. Brian Kinstlinger Okay, thank you. Operator Scott Buck, H.C. Wainwright. Scott Buck Hey, good morning guys. Thanks for taking my questions. I guess, I just have one this morning. Curious with the entrance of the UAV space with Edge, is that complete with just Edge or is there interest in expanding the capabilities similar to what you've done with legacy Redwire? Peter Cannito Yeah, I think it's fair to say that we're not going to change our strategy in that regard. We're making a transformation into being a pure play space company to both space and defense tech, particularly targeting those multi domain missions that utilize space and autonomous systems. So I won't comment on any specifics for our strategy in autonomous systems in general, especially enabled by AI. But I think it's fair to say if you look at the history of Redwire, where we often have a land and expand strategy to any of the markets we enter, that is how we think about markets in the long-term. Scott Buck Okay. Peter, is there preference between future deals being on the space side or unmanned, or is it just simply being opportunistic? Looking across the spectrum? Peter Cannito Yeah, I think it's more the latter. We have a very distinct formula for what we go after to include it being accretive. So valuation matters very much to us. We don't just buy into high growth trends at any cost. So some of it is driven by opportunistic. But I would say it's fair that when you look at the public platform that we've established here and the difficulty that many companies are now having into getting into the public markets, especially subscale companies, there's an opportunity in both segments of the business here to expand through M&A. Scott Buck Great. Well, I appreciate the added color guys. That's it from me. Peter Cannito Thank you. Scott Buck Thanks, Scott. Operator Thank you. We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Jonathan Baliff for closing comments. Jonathan Baliff Thank you for the questions. Before we conclude today's Q&A, we'd like to continue the initiative we introduced on our fourth quarter call where Redwire asked a select question drawn from our retail investor community. Here's today's question, which once again comes from Reddit. Can you elaborate on how your space infrastructure technologies like in-space manufacturing or advanced deployables are positioning Redwire to win future contracts Pete? Peter Cannito Thanks, Jonathan. And yeah, I'm very excited to continue to incorporate the voice of the retail investor in our earnings call. We got a lot of really positive feedback the last time we did this. So thank you all for the continued support. We value our retail investors and thank you for this great question. The first thing that I'll say, when you talk about breaking down this question is can you elaborate on how your space infrastructure technology will position Redwire to win future contracts? And I think it's important to really understand the answer to this question, to understand of the different total addressable markets associated with space. If you look at a pie chart of the TAMs in space, you'll quickly realize that in space infrastructure is one of the largest, if not largest TAM. Now admittedly the rocket guys get the best headlines because that's super exciting and we love them all because they're essentially our ride to space. But over the long-term, the future contracts are associated with building out infrastructure in LEO, VLEO as Redwire is starting to unlock that new orbit. GEO cislunar on the lunar surface, missions to Mars, ultimately on the Mars surface, deep space, there's just this tremendous growth in the future of space infrastructure. So that's really exciting from a Redwire perspective when you talk about winning future contracts because there's a lot of opportunity and one of the number one core lessons and anyone who's out there is going to start a business or get into the business is focus on the big TAM opportunities. And we certainly are. You mentioned though, how are we going to be competitive in things like through our technologies like in-space manufacturing and advanced deployables. And the important thing to note there is those are fundamental building blocks of space. So these are not obscure parts of this massive future growth that we massive future expansion that we anticipate in space infrastructure. We're focusing on things like deployables that have are applicable to LEO, GEO, cislunar, on the lunar surface, Mars, deep space, all these things. And we're not a startup in these places either. So it's the virtuous cycle that is created by having demonstrated technologies that work that are going to position us for this expansion in future space infrastructure. Whether it's through NASA, ESA, international customers, national security customers, these fundamental building blocks and the fact that we're a proven player is what I think is going to position us to for those future contracts. So thank you for that question. I think it was a great question that gets fundamentally to our heritage plus innovation strategy, being a proven provider that knows how to operate in space and has many successes, but continuing to be that innovator as that space infrastructure expands into the future. So with that, I'd like to thank everyone for their questions and appreciate taking the time to listen today and go Redwire. Operator Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time. Have a wonderful day. Sign in to access your portfolio
Yahoo
12-05-2025
- Business
- Yahoo
Redwire Corporation Reports First Quarter 2025 Financial Results
In January 2025, announced agreement to acquire Edge Autonomy; subsequently announced receipt of all regulatory approvals for the transaction Awarded contract from Thales Alenia Space to provide International Berthing and Docking Mechanism for Lunar I-Hab module Awarded NASA contract to launch four additional pharmaceutical drug investigations to the International Space Station using PIL-BOX Significant year-over-year and sequential increase in Book-to-Bill1 ratio to 0.92 as of the first quarter of 2025 Revenues for the first quarter of 2025 were $61.4 million, Net Loss was $(2.9) million and Adjusted EBITDA2 was $(2.3) million, with record total liquidity3 of $89.2 million JACKSONVILLE, Fla., May 12, 2025--(BUSINESS WIRE)--Redwire Corporation (NYSE: RDW, "Redwire" or the "Company"), a leader in space infrastructure for the next generation space economy, today announced results for its first quarter ended March 31, 2025. Redwire will live stream a presentation with slides on May 12, 2025 at 9:00 a.m. ET. Please use the link below to follow along with the live stream: "Bookings increased significantly compared to Q4 2024, with key wins coming from the European market; however, there were notable delays in awards in the U.S. government market due to transition of key decision makers in NASA, SDA and other agencies, as well as budget uncertainty associated with new administration priorities. However, we are confident that Redwire's geographic, product and customer diversity across Civil, Commercial, and National Security markets continues to provide resiliency in our business model," stated Peter Cannito, Chairman and Chief Executive Officer of Redwire. "At a time when European defense and space budgets are increasing, Redwire is expanding its presence in Europe with a new office in Poland to support ongoing international wins including a contract from Thales Alenia Space for the IBDM I-Hab as well as ESA study contracts for the Mars LightShip initiative and ARRAKIHS dark matter mission." ____________________ 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 $89.2 million as of March 31, 2025 is comprised of $54.2 million in cash and cash equivalents and $35.0 million in available borrowings from our existing credit facilities. First Quarter 2025 Highlights Revenues for the first quarter of 2025 decreased 30.1% to $61.4 million, as compared to $87.8 million for the first quarter of 2024. Net Loss for the first quarter of 2025 decreased by $5.1 million to $(2.9) million, as compared to $(8.1) million for the first quarter of 2024. Adjusted EBITDA4 for the first quarter of 2025 decreased by $6.5 million to $(2.3) million, as compared to $4.3 million for the first quarter of 2024. During the first quarter of 2025, the Company had net unfavorable EAC changes of $3.1 million, which impacted first quarter of 2025 revenues, gross profit, and net loss, and as a result, Adjusted EBITDA.4 These net unfavorable EAC changes were primarily due to additional unplanned labor and increased production costs as it relates to the development of new technologies required to meet customer specifications in the Company's structures and mechanisms and avionics, sensors and payloads infrastructure offerings. On a quarterly basis, Book-to-Bill5 ratio was 0.92 as of the first quarter of 2025, as compared to 0.40 as of the first quarter of 2024. Net cash used in operating activities for the first quarter of 2025 increased by $47.8 million to $(45.1) million, as compared to net cash provided by operating activities of $2.8 million for the first quarter of 2024. Net cash used in operating activities for the first quarter of 2025 included one-time payments of $8.0 million related to litigation settlements and $3.4 million related to M&A activities. Free Cash Flow4 for the first quarter of 2025 was $(49.1) million, as compared to $0.4 million for the first quarter of 2024. 2025 Forecast For the twelve months ended December 31, 2025, Redwire, as a combined company assuming the previously announced transaction with Edge Autonomy had been consummated on January 1, 2025, is forecasting full year revenues6 of $535 million to $605 million and Adjusted EBITDA4,6 of $70 million to $105 million with positive Free Cash Flow.4.6 "Redwire drove significant sequential and year-over-year improvements in Book-to-Bill5 ratio to 0.92 during the first quarter of 2025," said Jonathan Baliff, Chief Financial Officer of Redwire. "Additionally, we achieved record levels of cash and total liquidity7 of $54.2 million and $89.2 million, respectively, primarily driven by the redemption of $82.9 million of the public warrants associated with our going public," Baliff added. "We recorded revenues of $61.4 million and Adjusted EBITDA4 of $(2.3) million with significant sequential and year-over-year improvement in Net Loss to $(2.9) million. Despite facing very dynamic macro-economic conditions, Redwire enters the second quarter ready to close on our acquisition of Edge Autonomy and to capitalize on market trends in space and defense tech." ____________________ 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 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. 7 Total liquidity of $89.2 million as of March 31, 2025 is comprised of $54.2 million in cash and cash equivalents and $35.0 million in available borrowings from our existing credit facilities. Webcast and Investor Call Management will conduct a conference call starting at 9:00 a.m. ET on Monday, May 12, 2025 to review financial results for the first quarter ended March 31, 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 13753501. 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 13753501. The accompanying investor presentation will be available on May 12, 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 a global space infrastructure and innovation company enabling civil, commercial, and national security programs. Redwire's proven and reliable capabilities include avionics, sensors, power solutions, critical structures, mechanisms, radio frequency systems, platforms, missions, and microgravity payloads. Redwire combines decades of flight heritage and proven experience with an agile and innovative culture. Redwire's approximately 750 employees working from 17 facilities located throughout the United States and Europe are committed to building a bold future in space for humanity, pushing the envelope of discovery and science while creating a better world on Earth. For more information, please visit No Solicitation This press release is not intended to and does not constitute the solicitation of a vote with respect to any matter subject to the vote of Redwire's stockholders, which solicitation is made solely pursuant to a definitive proxy statement, nor does it constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities in any jurisdiction. Use of Data Industry and market data used in this press release have been obtained from third-party industry publications and sources, as well as from research reports prepared for other purposes. Neither Redwire nor Edge Autonomy have independently verified the data obtained from these sources and cannot assure you of the data's accuracy or completeness. This data is subject to change. Statements other than historical facts, including, but not limited to, those concerning market conditions or trends, consumer or customer preferences or other similar concepts with respect to Redwire, Edge Autonomy and the expected combined company, are based on current expectations, estimates, projections, targets, opinions and/or beliefs of Redwire or, when applicable, of one or more third-party sources. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. In addition, no representation or warranty is made with respect to the reasonableness of any estimates, forecasts, illustrations, prospects or returns, which should be regarded as illustrative only, or that any profits will be realized. The metrics regarding select aspects of Redwire's, Edge Autonomy's and the expected combined company's operations were selected by Redwire or its subsidiaries on a subjective basis. Such metrics are provided solely for illustrative purposes to demonstrate elements of Redwire's businesses, are incomplete, and are not necessarily indicative of Redwire's, Edge Autonomy's or their subsidiaries' performance or overall operations. There can be no assurance that historical trends will continue. 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 or Edge Autonomy's control. Such calculation cannot be predicted with reasonable certainty and without unreasonable effort because of the timing, magnitude and variables associated with the completion of the proposed 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. Neither Redwire nor Edge Autonomy's independent auditors have 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 Redwire, Edge Autonomy and 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 or the combined company's 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 or the combined company's 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, and objectives of management, the entry into the potential business combination with Edge Autonomy (the "Transaction"), the expected benefits from the proposed business combination, the expected performance of the combined company, the expectations regarding financing the proposed business combination, 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 the continued 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 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; (4) the inability to successfully integrate recently completed and future acquisitions, including the proposed business combination with Edge Autonomy, as well as the failure to realize the anticipated benefits of the Transaction or to realize estimated projected combined company results; (5) the development and continued refinement of many of Redwire's and the combined company's proprietary technologies, products and service offerings; (6) competition with new or existing companies; (7) the possibility that Redwire's expectations and assumptions relating to future results and projections with respect to Redwire or Edge Autonomy may prove incorrect; (8) adverse publicity stemming from any incident or perceived risk involving Redwire, Edge Autonomy, the combined company, or their competitors; (9) unsatisfactory performance of our and the combined company's products resulting from challenges in the space environment, extreme space weather events, the environments in which drones operate, including in combat or other areas where hostilities may occur, or otherwise; (10) the emerging nature of the market for in-space infrastructure services and the market for drones and related services; (11) inability to realize benefits from new offerings or the application of our or the combined company's technologies; (12) the inability to convert orders in backlog into revenue; (13) our and the combined company's dependence on U.S. and foreign government contracts, which are only partially funded and subject to immediate termination, which may be affected by changes in government program requirements, spending priorities or budgetary constraints, including government shutdowns, or which may be influenced by the level of military activities and related spending, such as in or with respect to ongoing or future conflicts, including the war in Ukraine, or as a result of changes in international support for military assistance to Ukraine; (14) the fact that Redwire is and the combined company will be subject to stringent U.S. economic sanctions, and trade control laws and regulations, as well as risks related to doing business in other countries, including those related to tariffs, trade restrictions and government actions; (15) the need for substantial additional funding to finance our and the combined company's operations, which may not be available when needed, on acceptable terms or at all; (16) the dilution of existing holders of Redwire's common stock that will result from the issuance of additional shares of Redwire Common Stock as consideration for the acquisition of Edge Autonomy, as well as the issuance of Redwire Common Stock in any offering that may be undertaken in connection with such acquisition; (17) the fact that the issuance and sale of shares of Redwire Preferred Stock has reduced the relative voting power of holders of Redwire Common Stock and diluted the ownership of holders of our capital stock; (18) the ability to achieve the conditions to cause, or timing of, any mandatory conversion of the Redwire Preferred Stock into Redwire Common Stock; (19) the fact that AE Industrial Partners ("AE") and Bain Capital and their affiliates have significant influence over us, which could limit your ability to influence the outcome of key transactions, as well as AE's increased voting power resulting from its receipt of the equity consideration from the Transaction; (20) the fact that provisions in our Certificate of Designation with respect to our Redwire Preferred Stock may delay or prevent our acquisition by a third party, which could also reduce the market price of our capital stock; (21) the fact that our Redwire 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; (22) the possibility of sales of a substantial amount of Redwire Common Stock by our current stockholders, as well as the equity owners of Edge Autonomy following consummation of the Transaction, which sales could cause the price of Redwire Common Stock to fall; (23) the impact of the issuance of additional shares of Redwire Preferred Stock as paid-in-kind dividends on the price and market for Redwire Common Stock; (24) the volatility of the trading price of Redwire Common Stock; (25) risks related to short sellers of Redwire Common Stock; (26) Redwire's or the combined company's inability to report its financial condition or results of operations accurately or timely as a result of identified material weaknesses in internal control over financial reporting, as well as the possible need to expand or improve Edge Autonomy's financial reporting systems and controls; (27) the possibility that the closing conditions under the merger agreement governing the Transaction necessary to consummate the mergers will not be satisfied; (28) the effect of any announcement or pendency of the proposed business combination on Redwire's or Edge Autonomy's business relationships, operating results and business generally; (29) risks that the proposed business combination disrupts current plans and operations of Redwire or Edge Autonomy; (30) the ability of Redwire or the combined company to raise financing in connection with the proposed business combination or to finance its operations in the future; (31) the impact of any increase in the combined company's indebtedness incurred to fund working capital or other corporate needs, including the repayment of Edge Autonomy's outstanding indebtedness and transaction expenses incurred to acquire Edge Autonomy, as well as debt covenants that may limit the combined company's activities, flexibility or ability to take advantage of business opportunities, and the effect of debt service on the availability of cash to fund investment in the business; (32) the ability to implement business plans, forecasts and other expectations after the completion of the proposed Transaction, and identify and realize additional opportunities; (33) costs related to the Transaction; (34) a significant portion of Edge Autonomy's revenues result from sales to customers in Ukraine, which sales have been declining and may continue to decline in the event that the war and hostilities in Ukraine end, decline or change, or as a result of changes in international support for military assistance to Ukraine; and (35) 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 forecasted Adjusted EBITDA and Free Cash Flow for Redwire assuming completion of the acquisition of Edge Autonomy. Certain financial metrics for the Redwire and Edge Autonomy businesses by Redwire management have not been calculated pursuant to Article 11 of Regulation S-X. Such calculation cannot be predicted with reasonable certainty and without unreasonable effort because of the timing, magnitude and variables associated with the completion of the proposed 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. Further, we are unable to provide reconciliations to forward-looking Adjusted EBITDA and Free Cash Flow because we are unable to provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. This is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Thus, we are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to the most closely comparable forward-looking U.S. GAAP financial measure because such information is not available 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, 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, 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 a useful 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. REDWIRE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (In thousands of U.S. dollars, except share data) March 31, 2025 December 31, 2024 Current assets: Cash, cash equivalents and restricted cash $ 54,221 $ 49,071 Accounts receivable, net 15,247 21,905 Contract assets 60,757 43,044 Inventory 2,192 2,239 Prepaid expenses and other current assets 9,718 9,666 Total current assets 142,135 125,925 Property, plant and equipment, net of accumulated depreciation of $10,891 and $9,628 18,759 17,837 Right-of-use assets 16,070 15,277 Intangible assets, net of accumulated amortization of $28,050 and $25,920 62,070 61,788 Goodwill 71,996 71,161 Other non-current assets 3,069 629 Total assets $ 314,099 $ 292,617 Liabilities, Convertible Preferred Stock and Equity (Deficit) Current liabilities: Accounts payable $ 28,179 $ 32,127 Short-term debt, including current portion of long-term debt 780 1,266 Short-term operating lease liabilities 4,481 4,354 Short-term finance lease liabilities 496 473 Accrued expenses 19,825 24,192 Deferred revenue 59,748 67,201 Other current liabilities 5,033 19,730 Total current liabilities 118,542 149,343 Long-term debt, net 104,375 124,464 Long-term operating lease liabilities 14,267 13,444 Long-term finance lease liabilities 1,006 980 Warrant liabilities 6,688 55,285 Deferred tax liabilities 615 582 Other non-current liabilities 1,936 428 Total liabilities $ 247,429 $ 344,526 Convertible preferred stock, $0.0001 par value, 125,292.00 shares authorized; issued and outstanding: 2025—106,982.68 and 2024—108,649.30. Liquidation preference: 2025—$306,712 and 2024—$599,412 $ 134,734 $ 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—77,082,332 and 2024—67,002,370 8 7 Treasury stock, 2025 and 2024—728,739 shares, at cost (3,573 ) (3,573 ) Additional paid-in capital 284,381 161,619 Accumulated deficit (351,054 ) (348,106 ) Accumulated other comprehensive income (loss) 2,174 1,339 Total shareholders' equity (deficit) (68,064 ) (188,714 ) Total liabilities, convertible preferred stock and equity (deficit) $ 314,099 $ 292,617 REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Unaudited (In thousands of U.S. dollars, except share and per share data) Three Months Ended March 31, 2025 March 31, 2024 Revenues $ 61,395 $ 87,792 Cost of sales 52,354 72,967 Gross profit 9,041 14,825 Operating expenses: Selling, general and administrative expenses 18,746 17,362 Transaction expenses 3,799 — Research and development 813 1,040 Operating income (loss) (14,317 ) (3,577 ) Interest expense, net 3,594 2,918 Other (income) expense, net (14,781 ) 1,492 Income (loss) before income taxes (3,130 ) (7,987 ) Income tax expense (benefit) (182 ) 109 Net income (loss) (2,948 ) (8,096 ) Net income (loss) attributable to noncontrolling interests — (1 ) Net income (loss) attributable to Redwire Corporation (2,948 ) (8,095 ) Less: dividends on Convertible Preferred Stock 3,531 3,043 Net income (loss) available to common shareholders $ (6,479 ) $ (11,138 ) Net income (loss) per common share: Basic and diluted $ (0.09 ) $ (0.17 ) Weighted-average shares outstanding: Basic and diluted 71,192,148 65,572,286 Comprehensive income (loss): Net income (loss) attributable to Redwire Corporation $ (2,948 ) $ (8,095 ) Foreign currency translation gain (loss), net of tax 835 (672 ) Total other comprehensive income (loss), net of tax 835 (672 ) Total comprehensive income (loss) $ (2,113 ) $ (8,767 ) REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (In thousands of U.S. dollars) Three Months Ended March 31, 2025 March 31, 2024 Cash flows from operating activities: Net income (loss) $ (2,948 ) $ (8,096 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expense 3,046 2,753 Amortization of debt issuance costs and discount 273 170 Equity-based compensation expense 2,912 2,535 (Gain) loss on change in fair value of warrants (13,634 ) 1,075 Deferred provision (benefit) for income taxes 80 98 Non-cash lease expense 73 12 Other (1,016 ) 397 Changes in assets and liabilities: (Increase) decrease in accounts receivable 6,853 13,174 (Increase) decrease in contract assets (16,845 ) (2,981 ) (Increase) decrease in inventory 55 (100 ) (Increase) decrease in prepaid expenses and other assets (2,658 ) 823 Increase (decrease) in accounts payable and accrued expenses (8,192 ) 7,929 Increase (decrease) in deferred revenue (7,590 ) (15,413 ) Increase (decrease) in operating lease liabilities (10 ) (84 ) Increase (decrease) in other liabilities (5,480 ) 472 Net cash provided by (used in) operating activities (45,081 ) 2,764 Cash flows from investing activities: Purchases of property, plant and equipment (1,790 ) (1,561 ) Purchase of intangible assets (2,265 ) (806 ) Net cash provided by (used in) investing activities (4,055 ) (2,367 ) Cash flows from financing activities: Proceeds received from debt 5,000 5,000 Repayments of debt (25,681 ) (2,793 ) Repayment of finance leases (126 ) (119 ) Repayments of third-party advances (7,820 ) — Proceeds from issuance of common stock for warrants exercised 82,862 — Payment of equity issuance costs (45 ) — Shares repurchased for settlement of employee tax withholdings on share-based awards — (56 ) Net cash provided by (used in) financing activities 54,190 2,032 Effect of foreign currency rate changes on cash, cash equivalents and restricted cash 96 (138 ) Net increase (decrease) in cash, cash equivalents and restricted cash 5,150 2,291 Cash, cash equivalents and restricted cash at beginning of period 49,071 30,278 Cash, cash equivalents and restricted cash at end of period $ 54,221 $ 32,569 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 (in thousands) March 31, 2025 March 31, 2024 Net income (loss) $ (2,948 ) $ (8,096 ) Interest expense, net 3,594 2,918 Income tax expense (benefit) (182 ) 109 Depreciation and amortization 3,046 2,753 Transaction expenses (i) 3,799 — Severance costs (ii) 177 8 Capital market and advisory fees (iii) 968 2,278 Litigation-related expenses (iv) — 701 Equity-based compensation (v) 2,912 2,535 Warrant liability change in fair value adjustment (vi) (13,634 ) 1,075 Adjusted EBITDA $ (2,268 ) $ 4,281 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 severance costs related to separation agreements entered into with former employees. iii. 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. iv. Redwire incurred expenses related to securities litigation. v. Redwire incurred expenses related to equity-based compensation under Redwire's equity-based compensation plan. vi. Redwire adjusted the private warrant liability to reflect changes in fair value recognized as a gain or loss during the respective periods. 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. Three Months Ended (in thousands) March 31, 2025 March 31, 2024 Net cash provided by (used in) operating activities $ (45,081 ) $ 2,764 Less: Capital expenditures (4,055 ) (2,367 ) Free Cash Flow $ (49,136 ) $ 397 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) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Contracts awarded $ 56,244 $ 35,101 $ 250,932 $ 305,478 Revenues 61,395 87,792 277,704 273,987 Book-to-bill ratio 0.92 0.40 0.90 1.11 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 ("T&M") 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 0.92 for the three months ended March 31, 2025, as compared to 0.40 for the three months ended March 31, 2024. For the three months ended March 31, 2025 and 2024, none of the contracts awarded balance relates to acquired contract value. Our book-to-bill ratio was 0.90 for the Last Twelve Months ("LTM") ended March 31, 2025, as compared to 1.11 for the LTM ended March 31, 2024. For the LTM ended March 31, 2025, contracts awarded includes $21.9 million of acquired contract value from the Hera Systems acquisition, which was completed in the third quarter of 2024. For the LTM ended March 31, 2024, none of the contracts awarded balance relates to acquired contract value. Backlog The following table presents our contracted backlog as of March 31, 2025 and December 31, 2024, and related activity for the three months ended March 31, 2025 as compared to the year ended December 31, 2024. (in thousands) March 31, 2025 December 31, 2024 Organic backlog, beginning balance $ 280,969 $ 372,790 Organic additions during the period 56,244 207,704 Organic revenue recognized during the period (57,568 ) (297,699 ) Foreign currency translation (282 ) (1,826 ) Organic backlog, ending balance 279,363 280,969 Acquisition-related contract value, beginning balance 15,683 — Acquisition-related contract value acquired during the period — 21,940 Acquisition-related additions during the period — 145 Acquisition-related revenue recognized during the period (3,827 ) (6,402 ) Acquisition-related backlog, ending balance 11,856 15,683 Contracted backlog, ending balance $ 291,219 $ 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 $15.5 million and $16.7 million in remaining contract value from time and materials contracts as of March 31, 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 Hera Systems acquisition completed during third quarter of 2024. 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 $107.2 million and $70.5 million as of March 31, 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. View source version on Contacts Investor Relations Contact:investorrelations@ 8226 Philips Highway, Suite 101Jacksonville, FL 32256 USA
Business Wire
12-05-2025
- Business
- Business Wire
Redwire Corporation Reports First Quarter 2025 Financial Results
- In January 2025, announced agreement to acquire Edge Autonomy; subsequently announced receipt of all regulatory approvals for the transaction Awarded contract from Thales Alenia Space to provide International Berthing and Docking Mechanism for Lunar I-Hab module Awarded NASA contract to launch four additional pharmaceutical drug investigations to the International Space Station using PIL-BOX Significant year-over-year and sequential increase in Book-to-Bill 1 ratio to 0.92 as of the first quarter of 2025 Revenues for the first quarter of 2025 were $61.4 million, Net Loss was $(2.9) million and Adjusted EBITDA 2 was $(2.3) million, with record total liquidity 3 of $89.2 million JACKSONVILLE, Fla.--(BUSINESS WIRE)--Redwire Corporation (NYSE: RDW, 'Redwire' or the 'Company'), a leader in space infrastructure for the next generation space economy, today announced results for its first quarter ended March 31, 2025. Redwire will live stream a presentation with slides on May 12, 2025 at 9:00 a.m. ET. Please use the link below to follow along with the live stream: 'Bookings increased significantly compared to Q4 2024, with key wins coming from the European market; however, there were notable delays in awards in the U.S. government market due to transition of key decision makers in NASA, SDA and other agencies, as well as budget uncertainty associated with new administration priorities. However, we are confident that Redwire's geographic, product and customer diversity across Civil, Commercial, and National Security markets continues to provide resiliency in our business model,' stated Peter Cannito, Chairman and Chief Executive Officer of Redwire. 'At a time when European defense and space budgets are increasing, Redwire is expanding its presence in Europe with a new office in Poland to support ongoing international wins including a contract from Thales Alenia Space for the IBDM I-Hab as well as ESA study contracts for the Mars LightShip initiative and ARRAKIHS dark matter mission.' First Quarter 2025 Highlights Revenues for the first quarter of 2025 decreased 30.1% to $61.4 million, as compared to $87.8 million for the first quarter of 2024. Net Loss for the first quarter of 2025 decreased by $5.1 million to $(2.9) million, as compared to $(8.1) million for the first quarter of 2024. Adjusted EBITDA 4 for the first quarter of 2025 decreased by $6.5 million to $(2.3) million, as compared to $4.3 million for the first quarter of 2024. During the first quarter of 2025, the Company had net unfavorable EAC changes of $3.1 million, which impacted first quarter of 2025 revenues, gross profit, and net loss, and as a result, Adjusted EBITDA. 4 These net unfavorable EAC changes were primarily due to additional unplanned labor and increased production costs as it relates to the development of new technologies required to meet customer specifications in the Company's structures and mechanisms and avionics, sensors and payloads infrastructure offerings. On a quarterly basis, Book-to-Bill 5 ratio was 0.92 as of the first quarter of 2025, as compared to 0.40 as of the first quarter of 2024. Net cash used in operating activities for the first quarter of 2025 increased by $47.8 million to $(45.1) million, as compared to net cash provided by operating activities of $2.8 million for the first quarter of 2024. Net cash used in operating activities for the first quarter of 2025 included one-time payments of $8.0 million related to litigation settlements and $3.4 million related to M&A activities. Free Cash Flow 4 for the first quarter of 2025 was $(49.1) million, as compared to $0.4 million for the first quarter of 2024. 2025 Forecast For the twelve months ended December 31, 2025, Redwire, as a combined company assuming the previously announced transaction with Edge Autonomy had been consummated on January 1, 2025, is forecasting full year revenues 6 of $535 million to $605 million and Adjusted EBITDA 4,6 of $70 million to $105 million with positive Free Cash Flow. 4.6 'Redwire drove significant sequential and year-over-year improvements in Book-to-Bill 5 ratio to 0.92 during the first quarter of 2025,' said Jonathan Baliff, Chief Financial Officer of Redwire. 'Additionally, we achieved record levels of cash and total liquidity 7 of $54.2 million and $89.2 million, respectively, primarily driven by the redemption of $82.9 million of the public warrants associated with our going public,' Baliff added. 'We recorded revenues of $61.4 million and Adjusted EBITDA 4 of $(2.3) million with significant sequential and year-over-year improvement in Net Loss to $(2.9) million. Despite facing very dynamic macro-economic conditions, Redwire enters the second quarter ready to close on our acquisition of Edge Autonomy and to capitalize on market trends in space and defense tech.' ____________________ 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 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. 7 Total liquidity of $89.2 million as of March 31, 2025 is comprised of $54.2 million in cash and cash equivalents and $35.0 million in available borrowings from our existing credit facilities. Expand Webcast and Investor Call Management will conduct a conference call starting at 9:00 a.m. ET on Monday, May 12, 2025 to review financial results for the first quarter ended March 31, 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 13753501. 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 13753501. The accompanying investor presentation will be available on May 12, 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 a global space infrastructure and innovation company enabling civil, commercial, and national security programs. Redwire's proven and reliable capabilities include avionics, sensors, power solutions, critical structures, mechanisms, radio frequency systems, platforms, missions, and microgravity payloads. Redwire combines decades of flight heritage and proven experience with an agile and innovative culture. Redwire's approximately 750 employees working from 17 facilities located throughout the United States and Europe are committed to building a bold future in space for humanity, pushing the envelope of discovery and science while creating a better world on Earth. For more information, please visit No Solicitation This press release is not intended to and does not constitute the solicitation of a vote with respect to any matter subject to the vote of Redwire's stockholders, which solicitation is made solely pursuant to a definitive proxy statement, nor does it constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities in any jurisdiction. Use of Data Industry and market data used in this press release have been obtained from third-party industry publications and sources, as well as from research reports prepared for other purposes. Neither Redwire nor Edge Autonomy have independently verified the data obtained from these sources and cannot assure you of the data's accuracy or completeness. This data is subject to change. Statements other than historical facts, including, but not limited to, those concerning market conditions or trends, consumer or customer preferences or other similar concepts with respect to Redwire, Edge Autonomy and the expected combined company, are based on current expectations, estimates, projections, targets, opinions and/or beliefs of Redwire or, when applicable, of one or more third-party sources. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. In addition, no representation or warranty is made with respect to the reasonableness of any estimates, forecasts, illustrations, prospects or returns, which should be regarded as illustrative only, or that any profits will be realized. The metrics regarding select aspects of Redwire's, Edge Autonomy's and the expected combined company's operations were selected by Redwire or its subsidiaries on a subjective basis. Such metrics are provided solely for illustrative purposes to demonstrate elements of Redwire's businesses, are incomplete, and are not necessarily indicative of Redwire's, Edge Autonomy's or their subsidiaries' performance or overall operations. There can be no assurance that historical trends will continue. 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 or Edge Autonomy's control. Such calculation cannot be predicted with reasonable certainty and without unreasonable effort because of the timing, magnitude and variables associated with the completion of the proposed 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. Neither Redwire nor Edge Autonomy's independent auditors have 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 Redwire, Edge Autonomy and 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 or the combined company's 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 or the combined company's 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, and objectives of management, the entry into the potential business combination with Edge Autonomy (the 'Transaction'), the expected benefits from the proposed business combination, the expected performance of the combined company, the expectations regarding financing the proposed business combination, 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 the continued 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 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; (4) the inability to successfully integrate recently completed and future acquisitions, including the proposed business combination with Edge Autonomy, as well as the failure to realize the anticipated benefits of the Transaction or to realize estimated projected combined company results; (5) the development and continued refinement of many of Redwire's and the combined company's proprietary technologies, products and service offerings; (6) competition with new or existing companies; (7) the possibility that Redwire's expectations and assumptions relating to future results and projections with respect to Redwire or Edge Autonomy may prove incorrect; (8) adverse publicity stemming from any incident or perceived risk involving Redwire, Edge Autonomy, the combined company, or their competitors; (9) unsatisfactory performance of our and the combined company's products resulting from challenges in the space environment, extreme space weather events, the environments in which drones operate, including in combat or other areas where hostilities may occur, or otherwise; (10) the emerging nature of the market for in-space infrastructure services and the market for drones and related services; (11) inability to realize benefits from new offerings or the application of our or the combined company's technologies; (12) the inability to convert orders in backlog into revenue; (13) our and the combined company's dependence on U.S. and foreign government contracts, which are only partially funded and subject to immediate termination, which may be affected by changes in government program requirements, spending priorities or budgetary constraints, including government shutdowns, or which may be influenced by the level of military activities and related spending, such as in or with respect to ongoing or future conflicts, including the war in Ukraine, or as a result of changes in international support for military assistance to Ukraine; (14) the fact that Redwire is and the combined company will be subject to stringent U.S. economic sanctions, and trade control laws and regulations, as well as risks related to doing business in other countries, including those related to tariffs, trade restrictions and government actions; (15) the need for substantial additional funding to finance our and the combined company's operations, which may not be available when needed, on acceptable terms or at all; (16) the dilution of existing holders of Redwire's common stock that will result from the issuance of additional shares of Redwire Common Stock as consideration for the acquisition of Edge Autonomy, as well as the issuance of Redwire Common Stock in any offering that may be undertaken in connection with such acquisition; (17) the fact that the issuance and sale of shares of Redwire Preferred Stock has reduced the relative voting power of holders of Redwire Common Stock and diluted the ownership of holders of our capital stock; (18) the ability to achieve the conditions to cause, or timing of, any mandatory conversion of the Redwire Preferred Stock into Redwire Common Stock; (19) the fact that AE Industrial Partners ('AE') and Bain Capital and their affiliates have significant influence over us, which could limit your ability to influence the outcome of key transactions, as well as AE's increased voting power resulting from its receipt of the equity consideration from the Transaction; (20) the fact that provisions in our Certificate of Designation with respect to our Redwire Preferred Stock may delay or prevent our acquisition by a third party, which could also reduce the market price of our capital stock; (21) the fact that our Redwire 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; (22) the possibility of sales of a substantial amount of Redwire Common Stock by our current stockholders, as well as the equity owners of Edge Autonomy following consummation of the Transaction, which sales could cause the price of Redwire Common Stock to fall; (23) the impact of the issuance of additional shares of Redwire Preferred Stock as paid-in-kind dividends on the price and market for Redwire Common Stock; (24) the volatility of the trading price of Redwire Common Stock; (25) risks related to short sellers of Redwire Common Stock; (26) Redwire's or the combined company's inability to report its financial condition or results of operations accurately or timely as a result of identified material weaknesses in internal control over financial reporting, as well as the possible need to expand or improve Edge Autonomy's financial reporting systems and controls; (27) the possibility that the closing conditions under the merger agreement governing the Transaction necessary to consummate the mergers will not be satisfied; (28) the effect of any announcement or pendency of the proposed business combination on Redwire's or Edge Autonomy's business relationships, operating results and business generally; (29) risks that the proposed business combination disrupts current plans and operations of Redwire or Edge Autonomy; (30) the ability of Redwire or the combined company to raise financing in connection with the proposed business combination or to finance its operations in the future; (31) the impact of any increase in the combined company's indebtedness incurred to fund working capital or other corporate needs, including the repayment of Edge Autonomy's outstanding indebtedness and transaction expenses incurred to acquire Edge Autonomy, as well as debt covenants that may limit the combined company's activities, flexibility or ability to take advantage of business opportunities, and the effect of debt service on the availability of cash to fund investment in the business; (32) the ability to implement business plans, forecasts and other expectations after the completion of the proposed Transaction, and identify and realize additional opportunities; (33) costs related to the Transaction; (34) a significant portion of Edge Autonomy's revenues result from sales to customers in Ukraine, which sales have been declining and may continue to decline in the event that the war and hostilities in Ukraine end, decline or change, or as a result of changes in international support for military assistance to Ukraine; and (35) 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 forecasted Adjusted EBITDA and Free Cash Flow for Redwire assuming completion of the acquisition of Edge Autonomy. Certain financial metrics for the Redwire and Edge Autonomy businesses by Redwire management have not been calculated pursuant to Article 11 of Regulation S-X. Such calculation cannot be predicted with reasonable certainty and without unreasonable effort because of the timing, magnitude and variables associated with the completion of the proposed 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. Further, we are unable to provide reconciliations to forward-looking Adjusted EBITDA and Free Cash Flow because we are unable to provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. This is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Thus, we are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to the most closely comparable forward-looking U.S. GAAP financial measure because such information is not available 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, 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, 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 a useful 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 $ 54,221 $ 49,071 Accounts receivable, net 15,247 21,905 Contract assets 60,757 43,044 Inventory 2,192 2,239 Prepaid expenses and other current assets 9,718 9,666 Total current assets 142,135 125,925 Property, plant and equipment, net of accumulated depreciation of $10,891 and $9,628 18,759 17,837 Right-of-use assets 16,070 15,277 Intangible assets, net of accumulated amortization of $28,050 and $25,920 62,070 61,788 Goodwill 71,996 71,161 Other non-current assets 3,069 629 Total assets $ 314,099 $ 292,617 Liabilities, Convertible Preferred Stock and Equity (Deficit) Current liabilities: Accounts payable $ 28,179 $ 32,127 Short-term debt, including current portion of long-term debt 780 1,266 Short-term operating lease liabilities 4,481 4,354 Short-term finance lease liabilities 496 473 Accrued expenses 19,825 24,192 Deferred revenue 59,748 67,201 Other current liabilities 5,033 19,730 Total current liabilities 118,542 149,343 Long-term debt, net 104,375 124,464 Long-term operating lease liabilities 14,267 13,444 Long-term finance lease liabilities 1,006 980 Warrant liabilities 6,688 55,285 Deferred tax liabilities 615 582 Other non-current liabilities 1,936 428 Total liabilities $ 247,429 $ 344,526 Convertible preferred stock, $0.0001 par value, 125,292.00 shares authorized; issued and outstanding: 2025—106,982.68 and 2024—108,649.30. Liquidation preference: 2025—$306,712 and 2024—$599,412 $ 134,734 $ 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—77,082,332 and 2024—67,002,370 8 7 Treasury stock, 2025 and 2024—728,739 shares, at cost (3,573 ) (3,573 ) Additional paid-in capital 284,381 161,619 Accumulated deficit (351,054 ) (348,106 ) Accumulated other comprehensive income (loss) 2,174 1,339 Total shareholders' equity (deficit) (68,064 ) (188,714 ) Total liabilities, convertible preferred stock and equity (deficit) $ 314,099 $ 292,617 Expand REDWIRE CORPORATION Unaudited (In thousands of U.S. dollars, except share and per share data) Three Months Ended March 31, 2025 March 31, 2024 Revenues $ 61,395 $ 87,792 Cost of sales 52,354 72,967 Gross profit 9,041 14,825 Operating expenses: Selling, general and administrative expenses 18,746 17,362 Transaction expenses 3,799 — Research and development 813 1,040 Operating income (loss) (14,317 ) (3,577 ) Interest expense, net 3,594 2,918 Other (income) expense, net (14,781 ) 1,492 Income (loss) before income taxes (3,130 ) (7,987 ) Income tax expense (benefit) (182 ) 109 Net income (loss) (2,948 ) (8,096 ) Net income (loss) attributable to noncontrolling interests — (1 ) Net income (loss) attributable to Redwire Corporation (2,948 ) (8,095 ) Less: dividends on Convertible Preferred Stock 3,531 3,043 Net income (loss) available to common shareholders $ (6,479 ) $ (11,138 ) Net income (loss) per common share: Basic and diluted $ (0.09 ) $ (0.17 ) Weighted-average shares outstanding: Basic and diluted 71,192,148 65,572,286 Comprehensive income (loss): Net income (loss) attributable to Redwire Corporation $ (2,948 ) $ (8,095 ) Foreign currency translation gain (loss), net of tax 835 (672 ) Total other comprehensive income (loss), net of tax 835 (672 ) Total comprehensive income (loss) $ (2,113 ) $ (8,767 ) Expand REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (In thousands of U.S. dollars) Three Months Ended March 31, 2025 March 31, 2024 Cash flows from operating activities: Net income (loss) $ (2,948 ) $ (8,096 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expense 3,046 2,753 Amortization of debt issuance costs and discount 273 170 Equity-based compensation expense 2,912 2,535 (Gain) loss on change in fair value of warrants (13,634 ) 1,075 Deferred provision (benefit) for income taxes 80 98 Non-cash lease expense 73 12 Other (1,016 ) 397 Changes in assets and liabilities: (Increase) decrease in accounts receivable 6,853 13,174 (Increase) decrease in contract assets (16,845 ) (2,981 ) (Increase) decrease in inventory 55 (100 ) (Increase) decrease in prepaid expenses and other assets (2,658 ) 823 Increase (decrease) in accounts payable and accrued expenses (8,192 ) 7,929 Increase (decrease) in deferred revenue (7,590 ) (15,413 ) Increase (decrease) in operating lease liabilities (10 ) (84 ) Increase (decrease) in other liabilities (5,480 ) 472 Net cash provided by (used in) operating activities (45,081 ) 2,764 Cash flows from investing activities: Purchases of property, plant and equipment (1,790 ) (1,561 ) Purchase of intangible assets (2,265 ) (806 ) Net cash provided by (used in) investing activities (4,055 ) (2,367 ) Cash flows from financing activities: Proceeds received from debt 5,000 5,000 Repayments of debt (25,681 ) (2,793 ) Repayment of finance leases (126 ) (119 ) Repayments of third-party advances (7,820 ) — Proceeds from issuance of common stock for warrants exercised 82,862 — Payment of equity issuance costs (45 ) — Shares repurchased for settlement of employee tax withholdings on share-based awards — (56 ) Net cash provided by (used in) financing activities 54,190 2,032 Effect of foreign currency rate changes on cash, cash equivalents and restricted cash 96 (138 ) Net increase (decrease) in cash, cash equivalents and restricted cash 5,150 2,291 Cash, cash equivalents and restricted cash at beginning of period 49,071 30,278 Cash, cash equivalents and restricted cash at end of period $ 54,221 $ 32,569 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. (in thousands) March 31, 2025 March 31, 2024 Net income (loss) $ (2,948 ) $ (8,096 ) Interest expense, net 3,594 2,918 Income tax expense (benefit) (182 ) 109 Depreciation and amortization 3,046 2,753 Transaction expenses (i) 3,799 — Severance costs (ii) 177 8 Capital market and advisory fees (iii) 968 2,278 Litigation-related expenses (iv) — 701 Equity-based compensation (v) 2,912 2,535 Warrant liability change in fair value adjustment (vi) (13,634 ) 1,075 Adjusted EBITDA $ (2,268 ) $ 4,281 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 severance costs related to separation agreements entered into with former employees. iii. 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. iv. Redwire incurred expenses related to securities litigation. v. Redwire incurred expenses related to equity-based compensation under Redwire's equity-based compensation plan. vi. Redwire adjusted the private warrant liability to reflect changes in fair value recognized as a gain or loss during the respective periods. Expand 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. Three Months Ended (in thousands) March 31, 2025 March 31, 2024 Net cash provided by (used in) operating activities $ (45,081 ) $ 2,764 Less: Capital expenditures (4,055 ) (2,367 ) Free Cash Flow $ (49,136 ) $ 397 Expand 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) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Contracts awarded $ 56,244 $ 35,101 $ 250,932 $ 305,478 Revenues 61,395 87,792 277,704 273,987 Book-to-bill ratio 0.92 0.40 0.90 1.11 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 ('T&M') 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 0.92 for the three months ended March 31, 2025, as compared to 0.40 for the three months ended March 31, 2024. For the three months ended March 31, 2025 and 2024, none of the contracts awarded balance relates to acquired contract value. Our book-to-bill ratio was 0.90 for the Last Twelve Months ('LTM') ended March 31, 2025, as compared to 1.11 for the LTM ended March 31, 2024. For the LTM ended March 31, 2025, contracts awarded includes $21.9 million of acquired contract value from the Hera Systems acquisition, which was completed in the third quarter of 2024. For the LTM ended March 31, 2024, none of the contracts awarded balance relates to acquired contract value. Expand Backlog The following table presents our contracted backlog as of March 31, 2025 and December 31, 2024, and related activity for the three months ended March 31, 2025 as compared to the year ended December 31, 2024. (in thousands) March 31, 2025 December 31, 2024 Organic backlog, beginning balance $ 280,969 $ 372,790 Organic additions during the period 56,244 207,704 Organic revenue recognized during the period (57,568 ) (297,699 ) Foreign currency translation (282 ) (1,826 ) Organic backlog, ending balance 279,363 280,969 Acquisition-related contract value, beginning balance 15,683 — Acquisition-related contract value acquired during the period — 21,940 Acquisition-related additions during the period — 145 Acquisition-related revenue recognized during the period (3,827 ) (6,402 ) Acquisition-related backlog, ending balance 11,856 15,683 Contracted backlog, ending balance $ 291,219 $ 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 $15.5 million and $16.7 million in remaining contract value from time and materials contracts as of March 31, 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 Hera Systems acquisition completed during third quarter of 2024. 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 $107.2 million and $70.5 million as of March 31, 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. Expand Contacts Investor Relations Contact: investorrelations@ 8226 Philips Highway, Suite 101 Jacksonville, FL 32256 USA Industry: Electronic Design Automation Engineering Defense Technology Aerospace Manufacturing Mobile/Wireless Security Satellite Photography Audio/Video Military Government Technology Science Other Technology Telecommunications Other Science Software Other Manufacturing Research Drones Other Defense Get RSS Feed Redwire Chief Scientist Dr. Kenneth Savin Named to TIME's 2025 TIME100 Health List of the 100 Most Influential People in Global Health JACKSONVILLE, Fla.--(BUSINESS WIRE)--Redwire Corporation (NYSE:RDW), a leader in space infrastructure for the next generation space economy, announced today that Dr. Kenneth Savin, Redwire Chief Scientist, has been named to this year's TIME100 Health, a list of the 100 most influential people in global health. The prestigious recognition honors individuals making groundbreaking contributions to the future of health and medicine. Dr. Savin was selected for his deep expertise in the pharmaceutica... Redwire Corporation to Report First Quarter 2025 Results on May 12, 2025 JACKSONVILLE, Fla.--(BUSINESS WIRE)--Redwire Corporation (NYSE: RDW; 'Redwire' or 'the Company') today announced that it will report financial results for the first quarter ended March 31, 2025, before market open on Monday, May 12, 2025. Management will also conduct a conference call starting at 9 a.m. EDT on Monday, May 12, 2025, to review financial results for the first quarter 2025. The earnings conference call can be accessed by calling 877-485-3108 (toll free) or 201-689-8264 (toll), and... Redwire Expands In-Space Drug Development Program, Launches New PIL-BOX Technology and Cancer-Detection Experiment JACKSONVILLE, Fla.--(BUSINESS WIRE)--Redwire Corporation (NYSE: RDW), a leader in space infrastructure for the next-generation space economy, announced today that it has launched a new drug development technology and a cancer-detection experiment to the International Space Station (ISS) as the company scales its in-space pharmaceutical drug development program based on the success of its PIL-BOX platform. To complement the existing PIL-BOX platform, Redwire is launching a high-volume Industrial... Redwire Corporation NYSE:RDW Release Versions English $Cashtags $RDW Contacts Investor Relations Contact: investorrelations@ 8226 Philips Highway, Suite 101 Jacksonville, FL 32256 USA
