Redwire Corporation Q2 FY2025 earnings call

• Growth strategies: Centered around 5 key principles - providing picks and shovels, delivering multi domain platforms, exploring Moon/Mars and beyond, unlocking breakthrough technologies, and executing accretive M&A. • Key wins: For picks and shovels, completed first deployment test for Roll-Out Solar Array wings for lunar Gateway; for multi domain platforms, closed acquisition of Edge Autonomy and received prototype phase agreement for LRR program; for exploring Moon/Mars, Mason passed Critical Design Review; for unlocking breakthrough technologies, selected by NASA for space microalgae biotechnology experiment; for accretive M&A, Edge Autonomy acquisition closed on June 13, 2025. • Budgeting environment: Delays in U.S. government budgeting impacted awards, but positive trends seen in U.S. (e.g., Golden Dome, NASA Gateway) and international (e.g., NATO defense investment, Canada's defense spending increase). • Contract awards and backlogs: Q2 2025 contract awards were $90.6 million with a book to bill ratio of 1.47x, and backlog was $329.5 million as of June 30, 2025, inclusive of Edge Autonomy's backlog. • Creation of SpaceMD: Launched to commercialize PIL-BOX space pharma strategy, signed agreement with Aspera Biomedicines and executed royalty agreement with ExesaLibero Pharma.

Redwire recorded revenue of $61.8 million in the second quarter of 2025, which was up sequentially. Adjusted EBITDA decreased sequentially to a negative $27.4 million. Net loss was negative $97.0 million. Total liquidity ended the quarter at a record level of $113.6 million, including $76.5 million of cash, $35 million in undrawn revolver capacity, and $2.1 million of restricted cash.

• 2025 revenue guidance: Range of $380 million to $445 million, representing a 30.5% compound annual growth rate from fiscal 2023 to 2025 at midpoint. • Revised combined revenue forecast: For fiscal 2025, range of $470 million to $530 million, a less than 13% reduction from previous combined forecasts at midpoint. • Withdrawal of adjusted EBITDA guidance: Due to EAC changes on a development program and budget uncertainties affecting award timing.

• EAC changes: Unfavorable EAC of $25.2 million in Q2 2025 related to a single program in RF system offerings, introducing volatility in development programs. • Budgetary uncertainties: Delays in U.S. government budgeting process impacting award timing, and uncertainty in NASA and DoD program timelines. • Operational challenges: Managing risk associated with nonrecurring engineering on development programs, with short-term negative impact on profitability but potential for future growth.

Q: How do you view NASA's new directive on future contract awards for the commercial LEO destinations program? And how do you expect that may impact your revenues versus the restored funding from Congress through the ISS?

A: Pete Cannito said restored ISS funding is good for Redwire's microgravity work, and NASA's CLD directive provides clarity, with Redwire positioned as an orbital outfitter for space stations.

Q: With the closing of Edge, can you provide us with a little bit of color on what the information share looks like across Legacy, Redwire and Edge today and maybe a bit of a road map on integration through the remainder of the year?

A: Pete Cannito discussed financial integration as initial focus, followed by aligning strategic road maps and BD opportunities, with integration expected to be completed in 12 months. Jonathan Baliff mentioned financial information on Edge is in proxy filings and will be in future 10-Qs and 10-Ks.