Redwire Corp Q3 FY2024 earnings call

• Growth principles: Focused on protecting core, scaling production, moving up value chain, and venture optionality. - Acquisitions: Completed tenth acquisition with Harith Systems, which complements national security space solutions and adds Mako and Thresher spacecraft platforms. - Spacecraft platforms: Added Mako (GEO/MEO) and Thresher (LEO) via Harith acquisition, enhancing full platform portfolio; VLEO platforms SABR Saturn Phantom and Phantom; LEO platform Hammerhead; ROSA wings shipped to Boeing with 25 contracted. - Pillbox progress: Launched 12 new Pillboxes to ISS, achieving 28 total launches, and milestones in crystal growth/replication.

In the third quarter, Redwire's revenues grew 9.6% year over year to $68.6 million. Adjusted EBITDA was $2.4 million, a sequential increase from the second quarter. Revenue drivers included growth in bids submitted, with $1 billion in total bids submitted during Q3 2024 alone, an $800 million increase from Q3 2023. Product segments: Avionics and sensors core offering includes spacecraft subsystems/components like onboard computers; power generation core offering includes roll-out solar arrays with 25 iROSA wings contracted, a 170% increase y/y; the Pillbox space pharmaceutical platform had 28 systems launched, achieving milestones in crystal growth and replication.

Affirmed full-year revenue guidance of $310 million, a 27% year-over-year growth rate. YTD, 76% of the $310 million annual revenue target was achieved. Focus on improving program management to reduce EAC volatility and create operating leverage for profitability.

Q: Thoughts on impact of elections on space spend and government national security initiatives?

A: Peter Cannito stated space infrastructure is critical and regardless of administration, there's likely continued investment, referencing past Trump administration's heavy space investment.

Q: Larger bid sizes, competitive process, and win rate?

A: Peter said competition varies by area, focus on differentiation and go-to-market strategy; win rate on hundred million plus contracts has small sample size for meaningful data.

Q: Microgravity Pillbox area, in-house assets for molecule selection?

A: Peter said Redwire has in-house scientists and partnerships to identify high-value molecules for experimentation.

Q: Impact of elections on space spend and government national security launch?

A: Peter noted space infrastructure is critical and there's likely continued investment, referencing past Trump admin's space investment.

Q: Harith acquisition details, price, and M&A going forward?

A: Jonathan Baliff said it's an efficient use of capital, with revenue from Harith contributing to guidance increase; Peter Cannito mentioned valuations have come down and M&A is a core competency, looking for complementary tech with selective, value-focused acquisitions.