RDW · Redwire Corporation

Redwire’s Q1 2026 results reflect accelerating top-line growth and improving operational efficiency, with revenue up 57.9% year-over-year to $97.0 million — driven by new contract awards including the $12.8 million ELSA solar array order, Marine Corps Stalker UAS procurement, and NASA and ESA space technology contracts. Gross margin expanded to 26.6%, marking sequential and year-over-year improvement, which management attributed to portfolio management and operational performance. However, net loss widened significantly to $(76.5) million, largely due to $44.0 million in non-recurring equity-based compensation tied to accelerated vesting of incentive units from the Edge Autonomy acquisition — a one-time accounting impact not reflective of ongoing operations. Adjusted EBITDA declined to $(9.2) million, indicating persistent pre-profitability pressures despite margin gains. Book-to-Bill of 1.92 generated record backlog of $498.1 million, underscoring strong demand visibility across defense and space segments. Liquidity rose 21.0% to $175.2 million, comprised of $144.5 million cash, $30.0 million in available credit, and $0.7 million restricted cash — providing near-term financial flexibility. Management reaffirmed full-year 2026 revenue guidance of $450–$500 million, citing confidence in execution and pipeline strength, though no updated EPS or profitability guidance was provided. The absence of forward-looking EPS targets — against a backdrop of widening losses and negative analyst sentiment reflected in prior earnings misses — suggests continued investor focus on path-to-profitability execution and conversion of record backlog into sustained margin expansion.