Redwire (RDW) Q1 2026 earnings summary

Executive summary

• Achieved record contracted backlog of $498.1 million as of March 31, 2026, driven by a Book-to-Bill ratio of 1.92 and strong demand for differentiated products.

• Revenues rose 58% year-over-year to $97.0 million for Q1 2026, driven by the Edge Autonomy acquisition, favorable contract mix, and major contract wins in next-gen spacecraft, quantum-secure satellites, and defense tech.

• Gross margin improved to 27% from 15% in Q1 2025, reflecting higher-margin business, acquisition impact, and operational improvements.

• Net loss widened to $76.5 million, primarily due to over $42.5 million in accelerated equity-based compensation and higher SG&A from the Edge Autonomy acquisition.

• Increased investment in transformative opportunities such as VLEO, quantum secure constellations, lunar infrastructure, and advanced UAS platforms.

Financial highlights

• Q1 2026 revenue was $97 million, up 57.9% year-over-year; space segment revenue was $52.7 million, defense tech $44.3 million.

• Gross margin improved to 26.6%–27%, up from 14.7%–15% in Q1 2025.

• Net loss of $76.5 million, impacted by over $42.5 million in non-recurring items, mainly from accelerated vesting related to the Edge Autonomy acquisition.

• Adjusted EBITDA was $(9.2) million, a sequential improvement; positive adjusted EBITDA would have been achieved net of discretionary IRAD.

• Record liquidity of $175.2 million, with $144.5–$145.2 million in cash and $30 million undrawn revolver.

Outlook and guidance

• Reaffirmed full-year 2026 revenue forecast of $450–$500 million, representing 41.6% year-over-year growth at midpoint.

• Management expects continued improvement in operational performance and cash from operations, with 68% of remaining $393.4 million performance obligations to be recognized as revenue within 12 months.

• Continued focus on investing in high-margin, high-growth opportunities and maintaining flexibility in IRAD spending.