Strong Revenue Growth
Total revenue of $97.0M in Q1 2026, a 57.9% year‑over‑year increase; Space revenue $52.7M and Defense Tech revenue $44.3M.
Redwire
· RDW
May 6th, 2026
Summary
- Earnings Call Date:
- 2026-05-06
- Change Since:
- +18.05%
- Next Earnings Date:
- 2026-08-12
Earnings Call Sentiment
PositiveThe call conveyed strong operational and commercial momentum: high revenue growth (+57.9% YoY), a large increase in backlog ($498.1M, +71.1% YoY), materially improved gross margins (26.6%, +11.9 pts YoY), solid bookings and several strategic contract wins (Andromeda IDIQ, QKDSat, ELSA sale, Stalker orders). Liquidity and refinancing actions also improved the balance sheet. Offsetting these positives were a sizable reported net loss driven largely by non‑recurring acquisition‑related charges, negative adjusted EBITDA in the quarter, and elevated IRAD/investment spend compressing near‑term profitability as the company invests in growth. Overall, the highlights — strong top‑line growth, backlog, margin recovery, liquidity and meaningful contract awards — meaningfully outweigh the near‑term profitability and acquisition‑related headwinds, supporting a constructive outlook while noting execution and funding risks.
Company Guidance
Redwire reaffirmed full‑year 2026 revenue guidance of $450–$500 million (midpoint ≈ 41.6% YoY growth) and expects revenue to build through the year supported by more than $350 million in bookings over the last two quarters, Q1 bookings of $186.5 million (Q1 book‑to‑bill 1.92; LTM 1.54) and a record backlog of $498.1 million (up 21.1% sequential, 71.1% YoY; Space $359.7M, Defense Tech $138.4M). In Q1 the company reported $97.0 million of revenue (+57.9% YoY), gross margin of 26.6% (up 11.9 pts YoY, 17 pts sequential), a net loss of $76.5 million (including >$44M of nonrecurring items, $42.5M noncash from accelerated equity vesting) and adjusted EBITDA of negative $9.2 million (sequential improvement), while ramping R&D/IRAD to $12.6M in Q1 (from < $1M a year ago). Liquidity and cash metrics underpinning the guidance include total liquidity of $175.2 million ($145.2M cash/restricted cash + $30M undrawn revolver), net cash used in operating activities of $6.7M, quarterly free cash flow improvement of >$36M YoY and $17M sequential, a credit amendment extending maturity to May 2029 and lowering spread from SOFR+700 to SOFR+375 (≈ $3M annualized interest savings; >$17M estimated annual savings from recent delevering/refinancing), and an at‑the‑market program to opportunistically fund targeted investments.
Record Backlog and Robust Bookings
Bookings of $186.5M in Q1 2026 with a book‑to‑bill ratio of 1.92; record contracted backlog of $498.1M, up 21.1% sequentially and 71.1% year‑over‑year.
Material Gross Margin Improvement
Gross margin improved to 26.6% in Q1 2026, up 11.9 percentage points year‑over‑year (from 14.7%) and up 17.0 percentage points sequentially (from 9.6%).
Major Contract Awards and Program Wins
Selected as 1 of 14 vendors on the Space Systems Command Andromeda IDIQ (initially $1.8B, ceiling raised to >$6B); ESA QKDSat contract continuation; prime contract to build Belgium’s first national security satellite; first ELSA sale ($12.8M to Moog); >$20M follow‑on Stalker orders; PIL‑BOX funding (+$4M from NASA).
Improved Liquidity and Lower Financing Cost
Record total liquidity of $175.2M (cash and equivalents $145.2M + $30M undrawn revolver); amended credit facility extending maturity to May 2029 and lowering spread from SOFR+700 to SOFR+375, with ~ $3M annualized interest savings and >$17M estimated annualized savings from 2025–Q1 2026 delevering/refinancing.
Reduced Cash Burn and Operational Cash Improvements
Net cash used in operating activities reduced to $6.7M; quarterly free cash flow improved by >$36M year‑over‑year and by $17M sequentially.
Increased Investment in High‑Potential Programs
Ramped internal R&D/IRAD from under $1M in Q1 2025 to $12.6M in Q1 2026 (net increase >$10M YoY) to accelerate maturation of products for opportunities like Andromeda, QKDSat, VLEO, lunar infrastructure and Stalker Block 40.
Reaffirmed 2026 Revenue Guidance
Reaffirmed full‑year 2026 revenue guide of $450M–$500M, which implies ~41.6% year‑over‑year growth at the midpoint, supported by >$350M in bookings over the last two quarters.
Operator
Greetings, and welcome to the Redwire Corporation Q1 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alex Curatolo, Senior Director of Investor Relations. Thank you. You may begin.
Alex Curatolo
Good morning, and thank you, Shamali. Welcome to Redwire's First Quarter 2026 Earnings Call. We hope that you have seen our earnings release, which we issued yesterday afternoon. It has also been posted in the Investor Relations section of our website at rdw.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on Slides 2 and 3. Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide 3 in the appendix, our earnings release or the investor presentation on our website for the calculation of these measures and their reconciliation to U.S. GAAP measures.
I am Alex Curatolo, Redwire's Senior Director of Investor Relations. Joining me on today's call are Peter Cannito, Redwire's Chairman and Chief Executive Officer; and Chris Edmunds, Redwire's Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete?
Peter Cannito
Thank you, Alex. During today's call, I will outline our key accomplishments during the first quarter of 2026, after which Chris will present the financial highlights for the same period and discuss our outlook for the re...
Subscribe to unlock transcripts
Get The Fly Pro 7 days for free