Redwire (RDW) - 2025 Q3 - Quarterly Results

Financial Performance - Revenues for the third quarter of 2025 increased by 50.7% year-over-year to $103.4 million, compared to $68.6 million in the third quarter of 2024[9] - Net Loss for the third quarter of 2025 was $(41.2) million, an increase of $20.2 million from $(21.0) million in the same quarter of 2024[9] - Free Cash Flow for the third quarter of 2025 was $(27.8) million, compared to $(20.5) million for the third quarter of 2024[9] - Revenues for the three months ended September 30, 2025, were $103,432 thousand, a significant increase from $68,638 thousand in the same period of 2024, representing a growth of 50.6%[28] - Gross profit for the nine months ended September 30, 2025, was $6,787 thousand, down from $39,832 thousand in the same period of 2024, indicating a decline of 83.0%[28] - Net loss attributable to Redwire Corporation for the nine months ended September 30, 2025, was $141,079 thousand, compared to a loss of $47,146 thousand in the same period of 2024, representing a deterioration of 198.5%[28] - Free Cash Flow for the nine months ended September 30, 2025, was $(170,496) thousand, compared to $(31,264) thousand in the same period of 2024, indicating a negative change of 444.5%[40] Liquidity and Assets - Total liquidity as of September 30, 2025, was $89.3 million, up from $61.1 million in the third quarter of 2024[9] - Total current assets increased to $210,640,000 as of September 30, 2025, up from $125,925,000 on December 31, 2024, representing a 67% increase[26] - Cash, cash equivalents, and restricted cash rose to $54,328,000, compared to $49,071,000, indicating an increase of 7%[26] - Cash, cash equivalents, and restricted cash at the end of the period were $54,328 thousand, up from $43,094 thousand at the end of September 30, 2024, showing an increase of 26.3%[30] Liabilities and Equity - Total liabilities increased to $413,332,000 from $344,526,000, marking a rise of 20%[26] - Long-term debt net increased to $184,699,000 from $124,464,000, a 48% increase[26] - Shareholders' equity improved to $928,045,000 from a deficit of $188,714,000, indicating a substantial recovery[26] Operational Metrics - Gross Margin for the third quarter of 2025 was 16.3%, with an Adjusted Gross Margin of 27.1%[1] - Adjusted Gross Profit for the three months ended September 30, 2025, was $28,037 thousand, with an Adjusted Gross Margin of 27.1%, compared to 17.5% in the same period of 2024[38] - Operating expenses for the three months ended September 30, 2025, totaled $58,662 thousand, compared to $24,635 thousand in the same period of 2024, reflecting an increase of 138.0%[28] Book-to-Bill and Backlog - Book-to-Bill ratio improved to 1.25, with a Contracted Backlog of $355.6 million as of the third quarter of 2025[1][3] - The book-to-bill ratio for the three months ended September 30, 2025, was 1.25, compared to 0.65 for the same period in 2024[44] - The contracted backlog as of September 30, 2025, was $355.6 million, an increase from $296.7 million as of December 31, 2024[47] - Organic backlog at the end of September 30, 2025, was $279.5 million, down from $296.7 million at the end of December 31, 2024[47] - Acquisition-related backlog as of September 30, 2025, was $76.1 million, with $73.7 million of this value acquired during the period[47] Strategic Initiatives - The acquisition of Edge Autonomy is expected to drive revenue synergies and improve financial positioning[3] - The company launched 14 PIL-BOXes to the ISS during the third quarter of 2025 with three partners[2] - Positive demand signals are anticipated from both the U.S. and Europe for various products and solutions[3] Risks and Challenges - The company faces various risks including economic uncertainty, integration challenges from acquisitions, and reliance on government contracts[16] - The forecast for full-year revenues for 2025 is between $320 million and $340 million, impacted by the ongoing U.S. government shutdown[5]