Core Insights - Phase Four and Redwire Space have entered a strategic cooperation agreement to develop Hall Effect Thrusters (HETs) for government and commercial markets, enhancing their capabilities and product offerings [9] - The Valkyrie System, based on NASA's H71M Hall Effect Thruster, will provide a range of propulsion systems with features such as post-launch re-programmability and extensive telemetry for satellite life extension [1][2] Company Overview - Phase Four is a provider of next-generation in-space electric propulsion solutions, founded in 2015, focusing on satellite constellation demands and advancing radio-frequency thruster technology [5] - Redwire Corporation is a global space infrastructure and innovation company, offering a wide range of capabilities including avionics, sensors, and microgravity payloads, with approximately 700 employees across 14 facilities [3] Market Outlook - Both companies believe the market for Hall Effect Thrusters will remain robust, combining Phase Four's propulsion expertise with Redwire's space system market knowledge to create a reliable domestic supplier [2][10] - The addition of Hall Effect Thrusters to Phase Four's product line is a strategic move to expand its in-space propulsion offerings, which already include various propulsion systems and services [6]

Company Overview - Redwire Corporation recently appointed Aaron Futch as its Executive Vice President, General Counsel and Secretary, contributing to a 9.3% increase in its share price to $6.58 [1][4] - The stock has shown a significant 20.9% gain over the past four weeks, indicating strong market interest [4] Earnings Expectations - Redwire is expected to report a quarterly loss of $0.12 per share, reflecting a year-over-year improvement of 25% [5] - Revenue projections for the upcoming quarter stand at $66.86 million, which is an 11.3% increase compared to the same quarter last year [5] Stock Performance and Trends - The consensus EPS estimate for Redwire has remained unchanged over the last 30 days, suggesting stability in earnings expectations [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [3][6] Industry Context - Redwire operates within the Zacks Aerospace - Defense industry, which includes other companies like Virgin Galactic [7] - Virgin Galactic's stock has experienced a decline of 14.3% recently and a total return of -19.6% over the past month, contrasting with Redwire's positive performance [7]

Revenue and Contracts - Revenues increased by $30.2 million, or 52%, for the three months ended March 31, 2024, compared to the same period in 2023, reaching $87.8 million[145] - Total contracts awarded for the three months ended March 31, 2024, were $35.1 million, compared to $29.7 million for the same period in 2023[163] - Revenues for the three months ended March 31, 2024, were $87.8 million, an increase from $57.6 million in the same period in 2023[163] - Redwire's book-to-bill ratio was 0.40 for the three months ended March 31, 2024, down from 0.51 for the same period in 2023[165] - The contracted backlog as of March 31, 2024, was $317.9 million, a decrease from $372.8 million as of December 31, 2023[168] Costs and Expenses - Cost of sales rose by $29.6 million, or 68%, for the three months ended March 31, 2024, totaling $73.0 million[148] - Gross margin increased by $0.6 million, or 4%, for the three months ended March 31, 2024, with a gross margin percentage of 17% compared to 25% in the same period of 2023[149] - Selling, general and administrative expenses increased by $1.3 million, or 8%, for the three months ended March 31, 2024, but as a percentage of revenues, decreased to 20% from 28%[150] - Research and development expenses increased significantly, driven by investments in microgravity payloads, radio frequency, and power generation technologies[152] Cash Flow and Financial Position - Net cash provided by operating activities was $2.8 million during the three months ended March 31, 2024, compared to a net cash used of $14.0 million in the same period of 2023[145] - Cash and cash equivalents at the end of the period on March 31, 2024, were $32.6 million, up from $11.3 million at the end of March 31, 2023[184] - The company had $32.6 million in cash and cash equivalents and $15.0 million in available borrowings from existing credit facilities as of March 31, 2024[173] - Net cash used in investing activities increased to $2.4 million for the three months ended March 31, 2024, from $0.8 million in the same period in 2023[186] - The company did not sell shares to B. Riley during the three months ended March 31, 2024, and had 7,592,939 registered shares available for purchase under the committed equity facility[180] Loss and Taxation - Net loss increased by 12% for the three months ended March 31, 2024, amounting to $8.1 million compared to $7.3 million in the same period of 2023[146] - Interest expense, net increased by $0.3 million, or 10%, for the three months ended March 31, 2024, primarily due to unfavorable changes in variable interest rates[153] - Other (income) expense, net decreased by $0.9 million, or 39%, for the three months ended March 31, 2024, primarily due to changes in the fair value of the Company's private warrant liability[154] - The effective tax rate for the three months ended March 31, 2024 was (1.4)%, compared to 0.4% for the same period in 2023, primarily due to changes in the valuation allowance[155] Future Expectations - The company expects all amounts reflected in contracted backlog to ultimately be fully funded despite potential fluctuations due to foreign exchange rates[172]

Financial Data and Key Metrics Changes - In Q1 2024, Redwire achieved revenue of $87.8 million, representing a 52.4% increase compared to Q1 2023 and a 38.3% increase sequentially [4][12] - The company reported positive adjusted EBITDA of $4.3 million, with a net loss of $8.1 million [4][11] - Free cash flow improved to positive $0.4 million, a year-over-year increase of $15.2 million, while cash from operations was positive $2.8 million, up $16.8 million year-over-year [4][37] - The last 12 months book-to-bill ratio was 1.11 times during the quarter [4][34] Business Line Data and Key Metrics Changes - More than 90% of revenue in Q1 2024 came from funded government programs or global marquee customers, focusing on national security and satellite proliferation [12] - The company secured a $142 million contract for power solutions to an undisclosed satellite manufacturer, indicating strong demand in its power generation offerings [6] Market Data and Key Metrics Changes - Redwire's contracted backlog increased by 10.9% year-over-year to $318 million, with a healthy pipeline of $6.3 billion in identified opportunities [34] - The company reported a significant increase in proposals submitted year-to-date, totaling approximately $610 million, a 177.3% increase compared to the same period in 2023 [34] Company Strategy and Development Direction - Redwire's growth strategy focuses on four key principles: protecting the core, scaling production, moving up the value chain, and venture optionality [28] - The company is actively pursuing advancements in very low Earth orbit (VLEO) technology, with platforms like SabreSat and Phantom being developed for various missions [7][30] - Redwire aims to leverage its microgravity technology for pharmaceutical development, targeting a significant market opportunity in drug discovery [9][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue guidance of $300 million, representing a 23% year-over-year growth rate [14] - The company emphasized the importance of operational excellence and cost efficiency to improve profitability while managing the dynamics of contract awards and revenue recognition [19][81] - Management acknowledged the challenges of the space industry but highlighted the strong demand for their core offerings and the potential for future growth [85] Other Important Information - Redwire's capital expenditures in Q1 2024 were $2.4 million, the highest for a first quarter since going public, alongside $1.0 million in internal research and development investments [13] - The company is focused on maintaining a balance between top-line growth and bottom-line profitability, with SG&A expenses now below 20% of revenue [36][81] Q&A Session Summary Question: Can you discuss the dynamics around win rates and backlog? - Management indicated that win rates are variable due to market dynamics and bid sizes, but they believe their backlog and submitted bids are sufficient to sustain their current year forecast [16][19] Question: What are the lessons learned from EAC adjustments? - Management noted that EAC adjustments highlight the importance of operational excellence and the need for disciplined bidding practices, emphasizing that space projects can be complex and challenging [53][54] Question: How does the company view the venture optionality in the drug discovery market? - Management expressed optimism about the growing interest in microgravity research and the potential for significant market opportunities, indicating that they are transitioning from research to production-level capabilities [45][49] Question: Will proposal submissions remain at elevated levels? - Management confirmed that they are bidding more as a prime contractor and aim to maintain the current level of submissions, although timing can affect quarterly results [73][74]

Financial Performance - Revenues for Q1 2024 increased by 52.4% year-over-year to $87.8 million, compared to $57.6 million in Q1 2023[5] - Net Loss for Q1 2024 was $(8.1) million, an increase of $0.8 million from $(7.3) million in Q1 2023[5] - Adjusted EBITDA for Q1 2024 remained flat at $4.3 million, consistent with Q1 2023[5] - Revenues for Q1 2024 were $87,792,000, a 52.4% increase from $57,605,000 in Q1 2023[28] - Gross margin for Q1 2024 was $14,825,000, compared to $14,217,000 in Q1 2023, reflecting a slight improvement[28] - Net loss for Q1 2024 was $8,096,000, compared to a net loss of $7,258,000 in Q1 2023[28] Cash Flow and Liquidity - Net cash provided by operating activities improved by $16.8 million to $2.8 million in Q1 2024, compared to $(14.0) million in Q1 2023[5] - Free Cash Flow for Q1 2024 improved by $15.2 million to $0.4 million, compared to $(14.8) million in Q1 2023[6] - Cash and cash equivalents increased to $32,569,000 as of March 31, 2024, from $30,278,000 at the end of 2023[24] - Total current assets decreased to $99,915,000 as of March 31, 2024, down from $109,313,000 at the end of 2023[24] - Total liabilities decreased to $213,006,000 as of March 31, 2024, from $218,444,000 at the end of 2023[24] - Free cash flow for Q1 2024 was $397,000, a significant improvement from a negative $14,847,000 in Q1 2023[38] Backlog and Contracts - The Book-to-Bill ratio was 1.11 for the last twelve months as of Q1 2024, down from 1.76 in Q1 2023[5] - Book-to-bill ratio for Q1 2024 was 0.40, down from 0.51 in Q1 2023, indicating a decline in contracts awarded relative to revenues[40] - The organic backlog as of March 31, 2024, was $317.964 million, a decrease from $372.790 million as of December 31, 2023[46] - Contracted backlog as of March 31, 2024, was $317.964 million, reflecting the estimated dollar value of firm funded executed contracts for which work has not been performed[46] - Contracted backlog from foreign operations in Luxembourg and Belgium was $96.6 million and $106.0 million as of March 31, 2024, and December 31, 2023, respectively[50] - The company expects all amounts reflected in contracted backlog to ultimately be fully funded[50] Research and Development - Research and development expenses increased to $1,040,000 in Q1 2024, compared to $388,000 in Q1 2023, indicating a focus on innovation[28] - Redwire achieved positive net cash flow from operations and Free Cash Flow while investing record amounts in R&D and CapEx in Q1 2024[7] Shareholder Equity - Total shareholders' equity (deficit) was $(49,792,000) as of March 31, 2024, compared to $(43,509,000) at the end of 2023, reflecting a worsening equity position[26] Company Outlook - The company forecasts full-year revenues of $300 million for 2024[7] - The pipeline increased to approximately $6.3 billion, with $610.0 million in bids submitted year-to-date through March 31, 2024[2] - The company views growth in backlog as a key measure of business growth[46] - The company reported no acquisition-related backlog activity as all acquired entities have completed four fiscal quarters post-acquisition[49]

Financial Performance - Redwire Corporation reported revenues of $243.8 million for the year ended December 31, 2023, a 51.7% increase from $160.5 million in 2022[381]. - The gross margin for 2023 was $58.0 million, compared to $28.7 million in 2022, reflecting a significant improvement in profitability[381]. - Operating loss narrowed to $15.5 million in 2023 from a loss of $146.4 million in the previous year, indicating better operational efficiency[381]. - Net loss attributable to Redwire Corporation was $27.3 million in 2023, compared to a net loss of $130.6 million in 2022, showing a substantial reduction in losses[381]. - Cash flows from operating activities provided $1.231 million in 2023, a recovery from a cash outflow of $31.657 million in 2022[388]. - Net income for the year ended December 31, 2023, was a loss of $27.264 million, compared to a loss of $130.620 million in 2022, indicating a significant improvement[388]. Assets and Liabilities - Total current assets increased to $109.3 million as of December 31, 2023, up from $96.2 million in 2022, driven by higher cash and accounts receivable[374]. - Total liabilities rose to $218.4 million in 2023, compared to $187.8 million in 2022, primarily due to increased long-term debt[376]. - The company had cash and cash equivalents of $30.3 million as of December 31, 2023, an increase from $28.3 million in 2022[374]. - Redwire Corporation's total assets increased to $271.3 million in 2023 from $257.7 million in 2022, reflecting overall growth in the company's financial position[376]. - Total equity as of December 31, 2023, was $188.323 million, down from $198.126 million in 2022, reflecting a decrease in accumulated deficit[385]. Research and Development - Research and development expenses for the year ended December 31, 2023, were $5.0 million, reflecting the company's commitment to advancing space infrastructure technology[65]. - Redwire's research and development strategy focuses on areas with significant growth and long-term opportunities, aligning with its core space infrastructure offerings[64]. - Research and development expenses remained stable at approximately $5.0 million in both 2023 and 2022, indicating continued investment in innovation[381]. Contracts and Market Position - As of December 31, 2023, the total contracted backlog was $372.8 million, indicating a strong measure of business growth[50]. - The company has formalized contracts and strategic partnerships with numerous customers, aiming to expand its market presence[52]. - Redwire is involved in high-profile contracts, including the Artemis program, where it is contracted to provide one of the largest solar arrays ever built[58]. - The majority of the company's revenues are derived from government contracts, highlighting a concentrated customer base[60]. - The company views the commercial market opportunity as having significant growth potential as launch costs decrease[59]. Employee and Diversity Initiatives - Redwire has approximately 700 employees as of December 31, 2023, emphasizing its human capital in the space industry[73]. - The company is committed to diversity and inclusion, implementing programs to support under-represented communities in the aerospace field[75]. Debt and Financing - Total debt rose to $89,477 million in 2023 from $78,938 million in 2022, with total long-term debt, net increasing to $86,842 million[513]. - Interest expense on debt for the year ended December 31, 2023, was $10.702 million, compared to $8.220 million for the previous year, reflecting an increase of approximately 30.2%[524]. - The Company borrowed $35.5 million and repaid $23.5 million on the revolving credit facility during 2023, with $12.0 million outstanding as of December 31, 2023[514]. Acquisitions - The Company acquired QinetiQ Space NV for $36.9 million (€37 million) in cash on October 31, 2022, enhancing its satellite technologies and global footprint[469]. - The fair value of net identifiable assets acquired from Space NV was $19.3 million, with goodwill recorded at $17.9 million after a non-cash measurement period adjustment[475]. - The total liabilities from the Space NV acquisition were $33.7 million, including accrued expenses of $18.6 million and deferred revenue of $5.5 million[475]. Revenue Recognition and Accounting Policies - The Company recognizes revenue for long-term contracts over time, using the input method based on cost-to-cost measures of progress, which reflects the value transferred to the customer[443]. - The Company’s revenue recognition follows a five-step model, ensuring that performance obligations are identified and transaction prices allocated accordingly[435]. - The Company evaluates equity method investments for impairment whenever events indicate that carrying amounts may be impaired, recording losses if declines are determined to be other than temporary[430].

255 0 0 191 191 191 The 2024 financial outlook, non-GAAP financial information and Key Performance Indicators included in this Presentation is unaudited and, in the case of future periods, is preliminary and subject to completion. Additionally, such information reflects management's current views, and may change as a result of management's review of results and other information, which may not be currently available. The financial outlook, including any related non-GAAP information, is subject to the finali ...

Financial Data and Key Metrics Changes - The company reported record revenue of $63.5 million for Q4 2023, representing an 18.2% year-over-year increase and a 1.4% sequential increase [2][8] - For the full year 2023, total revenue reached $243.8 million, a 51.9% increase compared to 2022, with organic growth of 26.9% [5][10] - The net loss narrowed to $8.2 million in Q4 2023, a $17.7 million improvement year-over-year, while the full year net loss was $27.3 million, improving by $103.4 million from 2022 [3][6] - Adjusted EBITDA improved to $1.7 million in Q4 2023, a $2.5 million increase year-over-year, and for the full year, adjusted EBITDA was $15.3 million, up $26.3 million from 2022 [3][6][12] - Free cash flow for Q4 2023 was a record positive $12.6 million, an improvement of $18.1 million year-over-year [4][16] Business Line Data and Key Metrics Changes - The company achieved four consecutive quarters of positive adjusted EBITDA and its first full year of positive cash from operations [5][6] - More than 85% of Q4 revenue came from funded government programs or global marquee customers, focusing on national security and satellite proliferation [8] - Excluding revenue from Space NV, Q4 revenues were $48.6 million, reflecting a 15.5% organic growth year-over-year [9] Market Data and Key Metrics Changes - In 2023, 71% of revenue was generated from U.S. customers, while 29% came from Europe and other regions [10] - The contracted backlog increased by 19.1% since the end of 2022, reaching $372.8 million, which supports future growth expectations [56] Company Strategy and Development Direction - The company is focused on four key principles for growth in 2024: protecting the core, scaling production, moving up the value chain, and maintaining venture optionality [48][52] - Significant investments were made in capital expenditures and research and development, totaling $8.3 million and $5 million respectively in 2023 [15] - The company is optimistic about the growth in national security revenue, having doubled it in Q4 2023 [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the visibility of the backlog for 2024 and 2025, indicating a good outlook for revenue despite the lumpy nature of revenue recognition [24] - The company anticipates continued demand for space infrastructure driven by decreasing launch costs and expanding investment in lunar and satellite infrastructure [45][46] - Management highlighted the importance of on-time delivery and project management in achieving financial results and maintaining operational efficiency [95] Other Important Information - The company achieved a book-to-bill ratio of 2.81 times in Q4 2023, indicating strong demand for its services [42] - The liquidity position improved significantly, with available liquidity totaling $48.3 million as of December 31, 2023 [19] Q&A Session Summary Question: Can you provide insight into the $300 million revenue guidance for 2024? - Management indicated that backlog visibility is strong for both 2024 and 2025, but revenue may be lumpy due to significant material buys in certain quarters [24] Question: What is the outlook for gross margin trends going into 2024? - Management noted that while gross margins may not see the same level of increases as in 2023, improved project management and operating leverage will support profitability [25][26] Question: How does the company view the implications of government funding trends in space endeavors? - Management clarified that they have no exposure to specific programs like OSAM-1 but see opportunities arising from budget reallocations within NASA [29] Question: Can you elaborate on the growth in lunar infrastructure and NASA's CLPS program? - Management expressed pride in their involvement in lunar infrastructure projects and highlighted ongoing partnerships with NASA for technology development [94] Question: What is the company's approach to M&A activity in 2024? - Management confirmed they are actively scanning the market for strategic acquisitions that align with their growth objectives [118]

Exhibit 99.1 8226 Philips Highway, Suite 101 Investor Relations Contact: Jacksonville, FL 32256 USA investorrelations@redwirespace.com Redwire Corporation Reports Fourth Quarter and Full Year 2023 Financial Results Revenues for full year 2023 increased 51.9% to $243.8 million Net Loss for full year 2023 improved by $103.4 million to $(27.3) million Adjusted EBITDA for full year 2023 increased by $26.3 million to $15.3 million 1 Net cash provided by (used in) operating activities for the fourth quarter of 20 ...

Revenue Growth - Revenues increased 68% to $62.6 million for Q3 2023 compared to $37.2 million in Q3 2022, driven by $13.5 million from the Space NV Acquisition[176] - Revenues increased by $73.5 million, or 69%, for the nine months ended September 30, 2023, compared to the same period in 2022, driven by $40.0 million from the Space NV Acquisition[190] Profitability and Loss - Net loss decreased 39% to $6.3 million in Q3 2023 from $10.4 million in Q3 2022, and decreased 82% for the nine months ended September 30, 2023[176] - Net income attributable to Redwire Corporation improved to a loss of $18.975 million for the nine months ended September 30, 2023, compared to a loss of $104.7 million in the same period in 2022[189] - Gross margin improved to 27% in Q3 2023 from 21% in Q3 2022, reflecting increased profitability on new contracts[181] - Gross margin increased by $27.1 million, or 135%, for the nine months ended September 30, 2023, with gross margin as a percentage of revenues rising to 26% from 19%[192] Expenses Management - Selling, general and administrative expenses as a percentage of revenues decreased to 29% in Q3 2023 from 41% in Q3 2022[182] - SG&A expenses decreased by $1.8 million, or 3%, for the nine months ended September 30, 2023, with SG&A as a percentage of revenues dropping to 29% from 50%[192] - Research and development expenses increased by 35% to $1.5 million in Q3 2023 compared to $1.1 million in Q3 2022[178] - Research and development expenses decreased by $0.6 million, or 13%, for the nine months ended September 30, 2023, due to resource redirection towards direct billing projects[196] Cash Flow and Financing - Net cash used in operating activities decreased by $12.4 million during the nine months ended September 30, 2023[176] - Net cash used in operating activities for the nine months ended September 30, 2023, was $14.5 million, an improvement of $12.4 million compared to the same period in 2022[229] - Cash and cash equivalents at the end of the period were $10.9 million, compared to $7.0 million at the end of September 2022, reflecting an increase of approximately 55%[228] - Net cash provided by financing activities decreased by $14.6 million, primarily due to $19.9 million in loan repayments during the nine months ended September 30, 2023[231] - The company had $20.0 million in available borrowings from existing credit facilities as of September 30, 2023[220] Backlog and Contracts - Contracted backlog increased to $253.4 million as of September 30, 2023, up from $158.9 million a year earlier[176] - The book-to-bill ratio was 0.74 for the three months ended September 30, 2023, compared to 0.91 for the same period in 2022, indicating a decrease in contracts awarded relative to revenues[210] - Contracted backlog as of September 30, 2023, was $253.4 million, down from $313.1 million as of December 31, 2022, representing a decrease of approximately 19%[216] - Organic backlog ending balance decreased to $141.8 million from $184.9 million, a decline of about 23%[216] - Acquisition-related backlog ending balance decreased to $111.6 million from $128.1 million, a decline of approximately 13%[216] - The company expects all amounts reflected in contracted backlog to be fully funded despite potential terminations or cancellations[219] Tax and Interest - The effective tax rate decreased to 3.8% for Q3 2023 from 17% in Q3 2022, primarily due to an increase in the valuation allowance[187] - Interest expense, net increased by $2.4 million, or 44%, for the nine months ended September 30, 2023, primarily due to unfavorable changes in variable interest rates[197] Other Financial Metrics - Other (income) expense, net decreased by $17.2 million for the nine months ended September 30, 2023, primarily due to a loss related to the fair value of private warrant liability[198] - Pro Forma Adjusted EBITDA for the nine months ended September 30, 2023, was $13.6 million, compared to a loss of $6.6 million for the same period in 2022[204] Lease Obligations - The company has committed to a lease for a 30,000 square foot property at the Novaparke Innovation & Technology Campus, creating a significant future lease obligation[227]