Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Redwire Corporation and its executives [1] Financial Performance - Redwire reported Q1 2025 revenue of $61.4 million, missing consensus estimates by $13.14 million, which represents a 30.1% year-over-year decline [2] - The company attributed the revenue decline to delays in U.S. government contract awards due to leadership transitions at agencies like NASA and the Space Development Agency, as well as shifting budget priorities under the Trump administration [2] Stock Market Reaction - Following the financial results announcement, Redwire's stock price fell by $0.75 per share, or 6.63%, closing at $10.56 per share on May 12, 2025 [3]

Financial Performance - Revenues decreased 30% to $61.4 million for the three months ended March 31, 2025, compared to $87.8 million for the same period in 2024[141] - Gross profit decreased by $5.8 million, or 39%, with a gross margin of 15% for the three months ended March 31, 2025, down from 17% in the same period in 2024[143] - Net income (loss) attributable to Redwire Corporation was $(2.9) million for the three months ended March 31, 2025, compared to $(8.1) million for the same period in 2024, a 64% improvement[140] - For the three months ended March 31, 2025, the company reported a net loss of $2.948 million, an improvement from a net loss of $8.096 million in the same period of 2024[154] - Adjusted EBITDA for the same period was $(2.268) million, compared to $4.281 million in the prior year[154] Expenses - Cost of sales decreased by $20.6 million, or 28%, for the three months ended March 31, 2025, primarily due to a shift in the production cycle[142] - Selling, general and administrative expenses increased by $1.4 million, or 8%, leading to an increase in SG&A as a percentage of revenue to 31%[144] - Transaction expenses increased by $3.8 million, or 100%, primarily due to pre-acquisition costs related to the pending acquisition of Edge Autonomy[145] - Interest expense, net increased by $0.7 million, or 23%, due to increased borrowings on the revolving credit facility[147] - The company incurred $3.799 million in transaction expenses related to acquisitions during the three months ended March 31, 2025[154] Contracts and Backlog - The book-to-bill ratio increased to 0.92 for the three months ended March 31, 2025, from 0.40 for the same period in 2024[138] - Total contracts awarded for the three months ended March 31, 2025, were $56.244 million, compared to $35.101 million in the prior year[156] - The company's contracted backlog as of March 31, 2025, was $291.219 million, slightly down from $296.652 million as of December 31, 2024[161] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $54.221 million, an increase from $32.569 million at the end of March 31, 2024[174] - Net cash used in operating activities was $45.081 million for the three months ended March 31, 2025, compared to net cash provided of $2.764 million in the prior year[175] - The company experienced a significant increase in net cash provided by financing activities, totaling $54.190 million for the three months ended March 31, 2025, compared to $2.032 million in 2024[177] - The company had $54.2 million in cash and cash equivalents and $35.0 million in available borrowings from existing credit facilities as of March 31, 2025[165] Foreign Currency and Accounting - The company's operations in Europe primarily conduct transactions in euros, limiting foreign currency exposure[178] - Changes in exchange rates will impact the company's condensed consolidated financial statements expressed in U.S. dollars[178] - There have been no material changes to critical accounting policies and estimates as disclosed in the audited financial statements[179] - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[180] Acquisition - The Company entered into an agreement to acquire Edge Autonomy Holdings, LLC, subject to final closing conditions[138]

Financial Data and Key Metrics Changes - Redwire recorded revenues of $61.4 million, a decrease both sequentially and year-over-year [24] - Adjusted EBITDA improved significantly from a negative $9.2 million in Q4 2024 to a negative $2.3 million in Q1 2025 [25] - The net loss was $2.9 million, showing a significant sequential improvement of over $60 million [26] - Total liquidity reached $89.2 million, a 39.2% improvement from $64.1 million at the end of the previous year [26] Business Line Data and Key Metrics Changes - Contract awards in Q1 2025 were $56.2 million with a book-to-bill ratio of 0.92x, showing significant improvement [19] - Backlog remained relatively flat at $291.2 million as of March 31, 2025, with $107.2 million from international operations in Europe [20] - The company saw a shift in revenue due to delays in awards across customer classes, particularly in the U.S. market [24][20] Market Data and Key Metrics Changes - The company noted notable delays in awards in the U.S. Government market due to transitions in key decision-makers and budget uncertainties [20] - Redwire's contract awards included key wins from the European market, indicating a strong pipeline with an estimated $6 billion of identified opportunities [21] Company Strategy and Development Direction - Redwire's 2025 growth strategy focuses on five key principles: providing foundational products, delivering multi-domain platforms, exploring space missions, unlocking venture optionality, and executing accretive M&A [5][6] - The company aims to capitalize on increased investment in U.S. manufacturing and European space and defense budgets [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future U.S. National security space and defense budgets despite current delays [21] - The company reaffirmed its combined revenue forecast for 2025 to be in the range of $535 million to $605 million, representing a 52.9% compound annual growth rate from FY 2023 to FY 2025 [29] Other Important Information - Redwire signed an agreement to acquire Edge Autonomy, expected to close in Q2 2025, which will enhance its capabilities in multi-domain autonomous technology [14] - The company launched new drug development technology and a cancer detection experiment to the International Space Station, expanding its in-space pharmaceutical development [11] Q&A Session Summary Question: Can you talk about the risks associated with Europe's increased independence in space and defense? - Management noted that Europe is investing more in independent national programs for space, which could create new opportunities despite potential shifts in funding [40] Question: What is the current state of U.S. Government programs and their impact on Redwire? - Management indicated that the U.S. market is dynamic, with some programs being deprioritized while others, like Golden Dome, are highly prioritized [44] Question: How does Redwire view the role of drones in defense spending? - Management highlighted that drones are seen as a critical force multiplier in combat, with expected growth in defense spending in both the U.S. and Europe [50] Question: Can you elaborate on the milestones to watch for the MOU with iSpace? - Management emphasized that Redwire is a prime contractor on the CLIPS contract and is excited about taking on larger roles in lunar missions [55] Question: What is the current pipeline status and expected cash flow for Redwire? - Management stated that they expect cash flow to improve as revenues from bids are realized and milestone payments are received [70]

Financial Data and Key Metrics Changes - Redwire recorded revenues of $61.4 million, a decrease both sequentially and year-over-year [23] - Adjusted EBITDA improved sequentially from a negative $9.2 million in Q4 2024 to a negative $2.3 million in Q1 2025 [24] - The net loss was $2.9 million, showing a significant sequential improvement of over $60 million [25] - Total liquidity reached $89.2 million, a 39.2% improvement from $64.1 million at the end of the previous year [25] Business Line Data and Key Metrics Changes - Contract awards in Q1 2025 were $56.2 million with a book-to-bill ratio of 0.92x, showing significant improvement [18] - Backlog remained relatively flat at $291.2 million as of March 31, 2025, with 37% or $107.2 million from international operations in Europe [19] - The company saw key wins in the European market, including contracts for the International Birthing and Docking Mechanism and the Arrakis mission study [19] Market Data and Key Metrics Changes - The company noted delays in awards in the U.S. Government market due to transitions in key decision-makers and budget uncertainties [19] - There is an estimated $6 billion of identified opportunities in the pipeline, with approximately $5 billion in proposals submitted during Q1 2025 [20] Company Strategy and Development Direction - Redwire's 2025 growth strategy focuses on five key principles: providing foundational products, delivering multi-domain platforms, exploring lunar and Martian missions, unlocking venture optionality, and executing accretive M&A [4][5] - The company aims to capitalize on increased European independence in space and defense, while also addressing U.S. defense spending pressures [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future U.S. National security space and defense budgets despite current delays [20] - The company reaffirmed its combined revenue forecast for 2025 to be in the range of $535 million to $605 million, representing a 52.9% compound annual growth rate from FY 2023 to FY 2025 [28] Other Important Information - Redwire's supply chain is resilient, with a U.S.-based supply chain for domestic customers and a European-based supply chain for international clients, mitigating tariff impacts [14] - The company is actively pursuing multiple opportunities related to the Golden Dome defense initiative [17] Q&A Session Summary Question: Risks associated with Europe's increased independence in Space and Defense - Management acknowledged that Europe is investing more in independent space programs, which could create new opportunities despite potential shifts in U.S.-European partnerships [36][38] Question: Changes in U.S. Government program prioritization - Management noted that the current environment is dynamic, with some programs being deprioritized while others, like Golden Dome, are prioritized [40] Question: Edge Autonomy acquisition and its impact - Management highlighted that drones are becoming a significant part of defense spending, particularly in the U.S. and European markets, and Edge Autonomy will enhance capabilities in this area [46][48] Question: Details on Edge Autonomy's performance and pipeline - Management refrained from disclosing specific Q1 performance metrics for Edge but noted an increase in its backlog to $99.4 million [57] Question: Future deals focus between space and unmanned systems - Management indicated a balanced approach, being opportunistic across both segments while ensuring acquisitions are accretive [90][92]

Q1 2025 Investor Presentation May 12, 2025 No Solicitation This Presentation is not intended to and does not constitute the solicitation of a vote with respect to any matter subject to the vote of Redwire's stockholders, which solicitation is made solely pursuant to a definitive proxy statement, nor does it constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities in any jurisdiction. Use of Data Industry and market data ...

分组1 - Redwire Corporation reported a quarterly loss of $0.20 per share, which aligns with the Zacks Consensus Estimate, compared to a loss of $0.17 per share a year ago [1] - The company's revenues for the quarter ended March 2025 were $61.4 million, missing the Zacks Consensus Estimate by 14.92%, and down from $87.79 million year-over-year [2] - Redwire Corporation shares have declined approximately 31.3% since the beginning of the year, while the S&P 500 has decreased by 3.8% [3] 分组2 - The earnings outlook for Redwire Corporation is currently unfavorable, resulting in a Zacks Rank of 5 (Strong Sell), indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $114.39 million, and for the current fiscal year, it is -$0.28 on revenues of $463.02 million [7] - The Aerospace - Defense industry, to which Redwire belongs, is ranked in the top 38% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Performance - Revenues for Q1 2025 were $61.4 million, a decrease of 30.1% compared to $87.8 million in Q1 2024[9] - Net Loss for Q1 2025 was $(2.9) million, improved by $5.1 million from $(8.1) million in Q1 2024[9] - Adjusted EBITDA for Q1 2025 was $(2.3) million, down $6.5 million from $4.3 million in Q1 2024[9] - Gross profit for Q1 2025 was $9.0 million, down from $14.8 million in Q1 2024, reflecting a gross margin decline[29] - Operating loss for Q1 2025 was $14.3 million, compared to a loss of $3.6 million in Q1 2024[29] - Free Cash Flow for Q1 2025 was $(49.1) million, compared to $0.4 million in Q1 2024[9] - Net cash used in operating activities for Q1 2025 was $(45.1) million, an increase of $47.8 million from $2.8 million in Q1 2024[9] - Net income for the three months ended March 31, 2025, was a loss of $2,948,000, an improvement from a loss of $8,096,000 for the same period in 2024[32] - Adjusted EBITDA for the three months ended March 31, 2025, was $(2,268,000), compared to $4,281,000 for the same period in 2024[36] - Free cash flow for the three months ended March 31, 2025, was $(49,136,000), compared to $397,000 for the same period in 2024[40] Liquidity and Assets - Total liquidity reached a record $89.2 million, consisting of $54.2 million in cash and cash equivalents and $35.0 million in available borrowings[2][9] - Total current assets increased to $142.1 million as of March 31, 2025, up from $125.9 million at the end of 2024[27] - Total liabilities decreased to $247.4 million as of March 31, 2025, down from $344.5 million at the end of 2024[27] - Cash, cash equivalents, and restricted cash at the end of the period were $54,221,000, up from $32,569,000 at the end of the same period in 2024[32] Contracts and Backlog - Book-to-Bill ratio increased significantly to 0.92 in Q1 2025, compared to 0.40 in Q1 2024[9] - Significant contracts awarded include a NASA contract for launching pharmaceutical investigations and a contract from Thales Alenia Space for the Lunar I-Hab module[1][2] - Total contracts awarded for the three months ended March 31, 2025, were $56,244,000, compared to $35,101,000 for the same period in 2024[43] - The contracted backlog as of March 31, 2025, was $291,219,000, a slight decrease from $296,652,000 as of December 31, 2024[48] - The company recognized $57,568,000 in organic revenue during the three months ended March 31, 2025[48] - The company’s organic backlog at the end of the period was $279,363,000, compared to $280,969,000 at the beginning of the period[48] Acquisition and Risks - The company announced the acquisition of Edge Autonomy, receiving all regulatory approvals for the transaction[1] - Redwire's Adjusted EBITDA and Free Cash Flow forecasts are not provided due to uncertainties surrounding the acquisition of Edge Autonomy[20] - The company is facing risks related to the acquisition of Edge Autonomy, including potential dilution of existing shareholders[19] - Edge Autonomy's revenue is significantly impacted by sales to customers in Ukraine, which have been declining due to ongoing conflicts[19] - The company incurred $3,799,000 in transaction expenses related to acquisitions during the three months ended March 31, 2025[36]

Group 1 - Redwire (NYSE: RDW) and the broader space industry have experienced significant activity in recent months, with space stocks rising sharply at the beginning of 2025 due to a rally in smaller-cap growth and technology firms [1] Group 2 - The investing group Ian's Insider Corner offers features such as a Weekend Digest that includes new investment ideas, updates on current holdings, macro analysis, trade alerts, and direct access to the lead analyst [2] - Ian Bezek, a former hedge fund analyst, specializes in high-quality compounders and growth stocks at reasonable prices, focusing on markets in Latin America and developed markets [3]

Financial Performance - Revenues for the year ended December 31, 2024, increased to $304.1 million from $243.8 million in 2023, representing a growth of approximately 24.7%[346] - Total revenues for the year ended December 31, 2024, were $304,101,000, representing a 24.6% increase from $243,800,000 in 2023[519] - Gross profit decreased to $44.5 million in 2024 from $58.0 million in 2023, a decline of about 23.4%[346] - Operating loss widened to $(42.2) million in 2024 compared to $(15.5) million in 2023[346] - Net loss attributable to Redwire Corporation increased to $(114.3) million in 2024 from $(27.3) million in 2023, reflecting a significant increase of 318.5%[346] - Basic and diluted net income (loss) per common share was $(2.35) for 2024, compared to $(0.73) for 2023[346] - Total comprehensive loss for 2024 was $(115.7) million, compared to $(26.4) million in 2023[346] Assets and Liabilities - Total assets increased to $292.6 million as of December 31, 2024, up from $271.3 million in 2023, representing a growth of 7.9%[339] - Total current liabilities increased significantly to $149.3 million in 2024, up from $112.0 million in 2023, reflecting a rise of 33.3%[339] - Long-term debt rose to $124.5 million in 2024, compared to $86.8 million in 2023, indicating a 43.5% increase[339] - The company reported an accumulated deficit of $348.1 million as of December 31, 2024, compared to $233.8 million in 2023, which is an increase of 48.8%[341] - Total shareholders' equity deficit widened to $188.7 million in 2024 from $43.5 million in 2023, representing a significant increase of 333.4%[341] Cash Flow and Investments - Cash and cash equivalents rose to $49.1 million in 2024, compared to $30.3 million in 2023, marking an increase of 62.2%[339] - Cash flows from operating activities resulted in a net cash outflow of $17.3 million for the year ended December 31, 2024, compared to a net cash inflow of $1.2 million in 2023[352] - Proceeds received from debt increased to $46.0 million in 2024, compared to $36.7 million in 2023[352] - The company incurred equity-based compensation expense of $11.3 million in 2024, compared to $8.7 million in 2023[352] - The company acquired businesses for a net cash outflow of $0.9 million in 2024[352] Revenue Recognition and Contracts - The Company uses a five-step model for revenue recognition, ensuring that performance obligations are satisfied before revenue is recognized[399] - The Company’s long-term contracts typically recognize revenue using the input method, measuring progress based on costs incurred[405] - Contract balances result from the timing of revenue recognized, billings, and cash collections, with contract assets representing revenue recognized in excess of amounts invoiced[410] - The company recognizes anticipated contract losses as soon as they become known and estimable for long-term contracts[405] Research and Development - Research and development expenses rose to $6.1 million in 2024 from $5.0 million in 2023, an increase of 22.9%[346] - Research and development costs are primarily composed of labor charges, prototype material, and development expenses, which are expensed in the period incurred[413] Goodwill and Intangible Assets - Goodwill increased to $71.2 million in 2024, compared to $65.8 million in 2023, marking an increase of 8.2%[339] - Total intangible assets as of December 31, 2024, amounted to $61,788,000, with a gross carrying amount of $87,708,000 and accumulated amortization of $25,920,000[451] - The amortization expense for intangible assets for the year ended December 31, 2024, was $7,625,000, compared to $7,212,000 for the year ended December 31, 2023[454] Lease Obligations - Total lease costs for the year ended December 31, 2024, were $5,800 million, an increase of 15% from $5,042 million in 2023[471] - Operating lease costs amounted to $4,637 million in 2024, up from $4,251 million in 2023, reflecting a 9% increase[471] - The total right-of-use assets increased to $15,277 million in 2024 from $13,181 million in 2023, representing a 16% growth[474] Tax and Legal Matters - The company recorded a total income tax expense (benefit) of $(2,020) million for the year ended December 31, 2024, compared to $(486) million in 2023[484] - As of December 31, 2024, the company had $130.6 million of net operating losses, resulting in deferred tax assets of $27.4 million for U.S. federal taxes[486] - The Company recognized a loss contingency of $8.0 million related to a settlement agreement, with an anticipated insurance recovery of $1.0 million as of December 31, 2024[492] Shareholder Equity - The balance of Series A Convertible Preferred Stock increased from 93,890.20 shares valued at $96.1 million as of December 31, 2023, to 108,649.30 shares valued at $136.8 million as of December 31, 2024[497] - The liquidation preference of the Convertible Preferred Stock was $599.4 million as of December 31, 2024, compared to $187.8 million as of December 31, 2023[509]

Financial Data and Key Metrics Changes - Redwire achieved approximately 25% revenue growth in 2024, with record annual revenue of $304.1 million, representing a 24.7% year-over-year increase [5][9][14] - The company recorded an adjusted EBITDA loss of $0.8 million for the full year 2024, with a negative adjusted EBITDA of $9.2 million in Q4 2024 due to unfavorable net EAC adjustments [15][16] - Total liquidity at the end of 2024 was $64.1 million, which included $48.7 million in available liquidity and $15.4 million in restricted cash [21] Business Line Data and Key Metrics Changes - Redwire executed programs for over 100 customers, with more than 85% of revenues coming from government and marquee customers, indicating strong revenue diversity [8] - The company launched over 70 products and solutions across 15 launches in 2024, expanding its global footprint with three new facilities [9] Market Data and Key Metrics Changes - Redwire's contract awards for 2024 totaled $229.8 million, with a book-to-bill ratio of 0.76 times and a backlog of $296.7 million at year-end [10] - The company submitted approximately $4.1 billion in proposals during 2024, reflecting a significant increase of 334.3% year-over-year [11] Company Strategy and Development Direction - Redwire's 2025 growth strategy focuses on five key principles: providing proven products, delivering multi-domain platforms, exploring lunar and Martian missions, advancing venture optionality, and executing accretive M&A [25][26] - The company aims to transition from a trusted supplier to a strategic platform provider, with advancements in microgravity and the introduction of five spacecraft platforms [7][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for 2025, highlighting robust revenue growth, demonstrated cost control, and ample liquidity [24] - The company anticipates that the combination with Edge Autonomy will enhance operational and financial scale, leading to significant growth in revenue and adjusted EBITDA [44][47] Other Important Information - Redwire's net loss in 2024 was impacted by significant non-routine activities, including a $49.9 million increase in non-cash warrant liability fair value adjustments and a $14.2 million increase in net unfavorable EAC impacts [22][23] - The company is well-positioned to capitalize on European defense budgets, with 50.6% of its revenue in 2024 derived from European customers, reflecting a 117.1% increase over 2023 [132] Q&A Session Summary Question: Insights into underlying Redwire organic growth and guidance range - Management indicated that Redwire has historically grown between 15% and 25% organically, while Edge Autonomy has seen 20% to 30% organic growth, suggesting a combined organic growth potential of around 20% [54][55] Question: Potential benefits from combining businesses and revenue synergies - Management acknowledged that the guidance does not include revenue synergies, but highlighted opportunities for geographic alignment and consolidation of manufacturing capabilities [68][70] Question: Changes in Edge's Ukraine-related revenue expectations - Management took a conservative approach to forecasting Ukraine-related revenue, noting potential opportunities for peacekeeping drone technology regardless of the situation in Ukraine [85][86] Question: Competitive landscape for larger programs - Management noted that while the competitive landscape may change, Redwire's strategy is selective in pursuing prime contracts where there is no clear leader [92] Question: Update on share count following warrant redemption - As of the last update, the total share count was 75,573,294 shares [96]