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