Redwire Posts Q1 Revenue of $61.4M, Reaffirms 2025 Guidance Amid Lunar, Defense and Pharma Space Growth

Redwire Corporation (RDW) reported first quarter 2025 results reflecting both operational progress and market headwinds, posting revenue of $61.4 million, down 30% year-over-year due to delays in U.S. government contract awards and program execution timing. Despite the revenue decline, Redwire improved its net loss to $(2.9) million, and adjusted EBITDA loss narrowed significantly to $(2.3) million from $(9.2) million in the prior quarter.

A key focus for Redwire this quarter was execution across its five strategic pillars: core space infrastructure, multi-domain platforms, space exploration, advanced in-space manufacturing, and accretive M&A. Highlights included a contract win to provide docking mechanisms for the European Space Agency's I-Hab lunar module, progress on ESA's ARRAKIHS dark matter mission, and a new partnership with ispace U.S. to jointly pursue NASA CLPS and private lunar missions. Redwire is the prime contractor on a NASA CLPS Early Opportunity contract with a potential value of $2.6 billion through 2028.

The company also advanced its in-space manufacturing strategy with the launch of its next-gen pharmaceutical crystallizer to the International Space Station and signed a new commercial partnership with Aspira Biomedicines to develop a cancer treatment in microgravity. Redwire's drug development platform, PIL-BOX, is designed to capitalize on space-based research for Earth-based therapeutic innovation.

Redwire reaffirmed its full-year 2025 forecast, provided on a pro forma basis assuming the closing of its pending Edge Autonomy acquisition. The company projects combined revenue between $535 million and $605 million, with adjusted EBITDA expected to range between $70 million and $105 million. The deal, expected to close in Q2 2025, is anticipated to expand Redwire's capabilities in defense and autonomous systems, particularly drones and AI-enabled platforms.

Backlog remained stable at $291 million, and the book-to-bill ratio improved to 0.92, reflecting strengthening order momentum. The company also cited a $6 billion opportunity pipeline and $530 million in submitted bids during the quarter, with increased traction in Europe amid rising space and defense budgets. European operations now make up over a third of Redwire's contracted backlog.

Liquidity reached a record $89.2 million, supported by an $82.9 million warrant redemption. However, free cash flow was negative $(49.1) million, impacted by one-time items including litigation settlements and M&A costs.

Redwire also noted that it is pursuing opportunities related to the U.S. government's "Golden Dome" homeland defense architecture and expects its integrated platforms--including satellites, optical sensors, and simulation tools--to play a key role in multi-orbit national defense solutions.

The company expects to provide updated full-year guidance post-closing of the Edge Autonomy transaction.

The post Redwire Posts Q1 Revenue of $61.4M, Reaffirms 2025 Guidance Amid Lunar, Defense and Pharma Space Growth appeared first on PRISM MarketView.

COMTEX_465447997/2927/2025-05-12T14:21:19