Redwire Corporation Reports Q4 and Full Year 2025 Results: Record Backlog, Revenue Growth, and Strategic Developments

Key Financial and Strategic Highlights

• Record Contracted Backlog: Backlog reached \$411.2 million as of December 31, 2025, reflecting strong contract award momentum and providing visibility into future revenue streams.
• Revenue Growth: Full year 2025 revenue increased by 10.3% year-over-year to \$335.4 million. Q4 2025 revenue surged by 56.4% year-over-year to \$108.8 million.
• Book-to-Bill Ratio: The annualized book-to-bill ratio rose to 1.32 for FY2025 (up from 0.76 in 2024), and 1.52 for Q4 2025. This indicates that new contracts significantly outpaced revenue recognition, positioning the company for continued growth.
• Liquidity Improvement: Total liquidity at year-end 2025 stood at \$130.2 million, up 103.2% from the prior year, giving Redwire greater financial flexibility.
• Debt Repayment and Capital Structure Simplification: The company repaid \$105.5 million in debt during Q4 2025 using proceeds from an At-The-Market (ATM) program and refinanced remaining debt in February 2026, resulting in estimated annualized interest savings of over \$17 million.
• Acquisition of Edge Autonomy: Completed in June 2025, this acquisition expands Redwire’s presence in uncrewed aerial systems (UAS) and has already contributed to deliveries of over 100 Stalker/Penguin UAS to the U.S. Army, Marine Corps, NATO, and allied nations.
• Strategic Facility Expansion: Opened a new 85,000 sq. ft. facility in Ann Arbor, Michigan, to scale up critical fuel cell production, supporting Redwire’s vertical integration strategy for UAS.
• Significant Contract Wins: Secured a \$44 million Phase 2 contract from DARPA for the Otter mission, leveraging Redwire’s SabreSat platform. Also entered an eight-figure agreement with The Exploration Company to supply International Berthing and Docking Mechanisms (IBDMs) for the Nyx spacecraft.
• International Space Station (ISS) Leadership: Launched 14 PIL-BOXes in 2025, studying 18 unique molecules, and maintained 11 active payload facilities on the ISS as of year-end.

Financial Performance Details

• Net Loss: Net loss for FY2025 was \$(226.6) million, an increase of \$112.2 million from FY2024. Q4 net loss was \$(85.5) million, up \$18.3 million year-over-year. Both periods include significant non-recurring items—over \$130 million and \$40 million, respectively.
• Adjusted EBITDA: Adjusted EBITDA for FY2025 was \$(50.3) million, a decrease of \$49.5 million year-over-year. Q4 Adjusted EBITDA was \$(18.1) million, down \$8.9 million from Q4 2024.
• Gross Profit and Margins: Adjusted Gross Profit for FY2025 was \$30.9 million (Adjusted Gross Margin of 9.2%), down from \$44.5 million (14.6%) in 2024. Q4 Adjusted Gross Profit was \$10.5 million (9.6% margin).
• Cash Flow: Free Cash Flow was negative \$(200.6) million for FY2025, reflecting investments in acquisitions and growth initiatives.
• Shareholder Equity: Shareholders’ equity swung to \$1.06 billion at year-end 2025 from a deficit of \$(188.7) million in 2024, primarily due to equity capital raises and changes related to the Edge Autonomy acquisition.

2026 Outlook

Redwire forecasts revenues of \$450 million to \$500 million for the full year ending December 31, 2026, signaling confidence in continued top-line growth.

Management indicated that the Q4 2025 results were negatively impacted by EAC (Estimate at Completion) adjustments on development-stage programs. The company expects gross margin improvement as these programs transition to production in 2026.

Segment Performance

• Space Segment: FY2025 revenue of \$209.8 million (down from \$255.3 million in 2024); Segment Adjusted EBITDA was \$4.9 million (down from \$26.3 million).
• Defense Tech Segment: FY2025 revenue of \$125.6 million (up from \$48.8 million); Segment Adjusted EBITDA was \$(10.9) million (down from \$12.5 million), reflecting integration and scaling investments following the Edge Autonomy acquisition.

Contracted Backlog and Book-to-Bill

• Backlog Growth: Year-end 2025 contracted backlog was \$411.2 million, up from \$296.7 million in 2024. The Defense Tech backlog saw the most significant increase, rising from \$32.7 million to \$111.4 million.
• Book-to-Bill Ratios: The company’s ability to win new business accelerated sharply, with book-to-bill ratios above 1.0 for both Space and Defense Tech segments.

Risks and Considerations for Shareholders

• Continued Losses and Non-Recurring Charges: The company remains unprofitable, with significant non-recurring costs affecting bottom line results.
• Integration of Acquisitions: Risks exist around the successful integration of Edge Autonomy and future acquisitions, as well as realization of anticipated synergies.
• Dependence on U.S. Government Contracts: A large portion of Redwire’s revenue is tied to U.S. government and allied contracts, exposing the company to budgetary and geopolitical risks.
• Execution on Development Programs: Margin improvement is predicated on the transition of current development-stage contracts to production; delays or performance issues could impact profitability.
• Stockholder Dilution and Volatility: Significant equity raises, ATM program usage, and preferred stock provisions may result in continued dilution and share price volatility.
• Forward-Looking Statements: All projections are subject to substantial uncertainties and risks, including macroeconomic, industry, and company-specific factors.

Additional Information for Investors

Redwire will host a conference call and webcast on February 26, 2026, to discuss results in detail. The investor presentation will be available on the company’s website.

As a reminder, non-GAAP measures such as Adjusted EBITDA and Adjusted Gross Margin are provided for supplemental analysis and may not be comparable to similarly titled measures used by other companies.

Conclusion

Redwire’s Q4 and full year 2025 results highlight both significant momentum in winning new business and critical investments in infrastructure and technology. The company’s record backlog and improved liquidity provide positive signals for future growth, but ongoing losses and integration risks should be carefully monitored by investors. The outlook for 2026 is optimistic, but execution on margin improvement and integration of recent acquisitions will be key to realizing value for shareholders.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any securities. All forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Investors should consult the company’s official filings with the SEC and seek advice from qualified financial advisors before making investment decisions.

View Redwire Corp Historical chart here