Redwire Corporation (RDW) Earnings
Redwire Corporation is expected to report next earnings on November 4, 2026 (in NaN days), with a consensus EPS estimate of $-0.09. RDW has beaten EPS estimates in 1 of its last 11 reported quarters (average surprise -80.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $-0.16 | $-0.19 | -21.6% | $117M | +9.3% |
| May 7, 2026 | $-0.16 | $-0.18 | -12.5% | $97M | -8.5% |
| Feb 26, 2026 | $-0.16 | $-0.50 | -213.9% | $109M | +10.1% |
| Nov 5, 2025 | $-0.12 | $-0.21 | -75.0% | $103M | +4.7% |
| Aug 6, 2025 | $-0.11 | $-0.39 | -254.5% | $62M | -23.3% |
| Mar 10, 2025 | $-0.18 | $-0.66 | -266.7% | $70M | -6.7% |
| Mar 14, 2024 | $-0.15 | $-0.25 | -66.7% | $63M | +2.4% |
| Aug 10, 2022 | $-0.13 | $0.06 | +146.2% | $37M | -0.7% |
| May 12, 2022 | $-0.09 | $-0.24 | -166.7% | $33M | -17.8% |
| Mar 31, 2022 | $-0.05 | $-0.55 | -1000.0% | $41M | +2.7% |
| Oct 4, 2021 | $-0.05 | $-0.55 | -1001.5% | $33M | — |
| Aug 13, 2021 | — | $-0.27 | — | $32M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Balance Sheet and Capital Structure Improvements * Ended Q2 2026 with record total liquidity of $607.8 million, consisting of $557.8 million in cash, cash equivalents and restricted cash, plus $50 million in undrawn revolver capacity. Cash increased more than six times year-over-year, driven by $487.9 million in net ATM proceeds raised during the quarter. * Total debt was reduced by 75% year-over-year to $48.9 million, and net interest expense fell to less than $1 million in Q2 2026 from $23.8 million in Q2 2025. * All Series A preferred shares have fully converted to common shares, and outstanding warrants were reduced by 92% to 202,000 (set to expire in September 2026), resulting in a simplified, growth-ready capital structure. - Contract and Backlog Performance * Q2 2026 bookings reached $165.8 million, a significant year-over-year increase, resulting in a quarterly book-to-bill ratio of 1.42 and a last twelve months (LTM) book-to-bill ratio of 1.52. * Total backlog grew 8.8% sequentially and 64.5% year-over-year to a record $542.1 million, marking the fifth consecutive quarter of backlog growth. * Achieved 27% gross margin in the reported quarter, a notable improvement over the trailing two years, driven by process improvements and a strong bookings replenishing backlog. - Operational Progress * Integration of Edge Autonomy is progressing well, with all key milestones (including brand integration and internal process alignment) completed after over a year post-acquisition, and the business is showing significant momentum in the first half of 2026. * The new Huntsville facility expansion is underway, supported by $8.5 million in state and local incentives, supporting future growth. * Global demand for mission-critical space and defense tech offerings remains strong across both segments.
Guidance
- Management reaffirmed the full-year 2026 revenue guidance range of $450 million to $500 million, which represents 41.6% year-over-year growth at the midpoint. Year-to-date 2026 revenue through the first half was $214 million, in line with prior expectations. - Management expects revenue growth to build through the second half of 2026, consistent with the original annual guidance framework. - Near-term gross margin is expected to stay in the low to mid-20s range, though management sees potential for gradual gross margin expansion over the medium term as backlog grows and the business scales. - Both segments are projected to deliver double-digit year-over-year growth going forward, with defense tech currently growing faster than the space segment.
Segment performance
Redwire reports two core business segments: 1) Space Segment: Ended Q2 2026 with a backlog of $322 million, accounting for 59.4% of the company's total record backlog of $542.1 million. Most space segment revenue is recognized over time. 2) Defense Tech Segment: Ended Q2 2026 with a backlog of $220.2 million, accounting for 40.6% of total company backlog. Most defense tech revenue is recognized at a point in time, and the segment achieved 40% sequential revenue growth in Q2 2026, with backlog almost doubling from the end of 2025.
Risks & headwinds
- Order flow for new contract awards can be lumpy due to varying customer timing across global commercial, civil, and national security verticals, making award timing difficult to predict accurately. * Forward-leaning new technology development carries the risk of future EAC (Estimated At Completion) adjustments that could negatively impact gross margin, though management has implemented monitoring and mitigation measures to reduce this risk. * Most of Redwire's technologies are ITAR-controlled, requiring State Department approval for export to U.S. allies, but management notes the company has longstanding, sophisticated export control processes to comply with all regulatory requirements. * Strategic inventory builds to shorten customer delivery timelines create near-term working capital drag, though management frames this as a measured, planned investment to support future growth.
Analyst Q&A
Q: Can management discuss the sustainability of the recently improved 27% gross margin, what is the current fully diluted common share count? /
A: Management notes the 27% gross margin achieved this quarter is a strong result from team initiatives, but reaffirms that near-term gross margin should be expected to hold in the low to mid-20s range, as mild EAC adjustments may occur on new technology development in future quarters. Management sees opportunity for gradual medium-term gross margin expansion as backlog is replenished. The current fully diluted common share count stands at 249.9 million.
Q: What are Redwire's appetite and strategy for M&A, and is the team positioned to pursue new deals while integrating Edge Autonomy? /
A: M&A is a core part of Redwire's growth DNA and competitive advantage, and the strengthened balance sheet post-ATM offering leaves the company well-capitalized to pursue accretive deals. Integration of Edge Autonomy is complete on key milestones, the business is already showing strong momentum, and the internal team has a proven track record of simultaneously integrating acquisitions and pursuing new opportunities, so Redwire is actively targeting the right value-accretive deals now.
Q: What drove the 23% sequential inventory build, and what are the expected working capital impacts going forward? /
A: The inventory increase is a strategic, measured response to strong demand, particularly for defense tech UAS systems, intended to reduce customer delivery turnaround times by having critical materials on hand. Management expects inventory may rise slightly further in Q3 2026 as part of this timing-related working capital investment, which will allow Redwire to deliver UAS systems to global defense customers more quickly. The team remains focused on improving overall net operational cash use despite this targeted investment.
Q: What key defense tech UAS products are in Redwire's current development pipeline? /
A: The two core next-generation UAS platforms in development are the Block 40 Stalker and Mark 3 Penguin. Block 40 Stalker is being upgraded for longer endurance, maritime capabilities, and can now serve some Group 3 UAS missions at a lower price point, while the Mark 3 Penguin is getting performance upgrades to support growing global adoption. Redwire is also growing its EOIR gimbaled payload business (which sells to both internal platforms and third parties) and exploring opportunities to leverage existing space RF capabilities for defense UAS platforms, creating synergies from the Edge Autonomy acquisition.