Redwire Corporation Q4 FY2025 earnings call

• In 2025, Redwire transformed from a pure play space provider to a multi - domain space and defense tech company, closing the acquisition of Edge Autonomy in June 2025 and integrating it. - Moved up the value chain with spacecraft platforms, prime contracts, and combat - proven airborne platforms. - Expanded customer base to over 170. - Added approximately 660 employees. - Highlighted key accomplishments in each value driver: Next - gen spacecraft awarded $44 million Phase II award for DARPA's Otter program; successfully completed integration of 10 payloads for European Space Agency's SINDEO - 3 satellite mission; introduced extensible low - profile solar array (ELSA); awarded eight - figure contract for International Birthing and Docking Mechanisms; selected for second contract supporting Aspera Biomedicine's research; U.S. Army soldiers began training with Stalker UAS; grand opening of new facility in Michigan for fuel cell production; received award for Penguin CVTOL aircraft and Octopus gimbal camera payloads for Croatian Border Patrol.

In 2025, revenue increased by 10.3% year - over - year to $335.4 million, coming towards the top end of the provided range. In the fourth quarter, total revenue was $108.8 million, a 56.4% increase year - over - year. Space segment revenue was $54.5 million and defense tech segment revenue was $54.3 million. Fourth quarter 2025 gross margin was 9.6%, but excluding non - recurring impacts, gross margin would have been in the mid - 20% range. Ended 2025 with record contracted backlog of $411.2 million, with space backlog at $299.8 million and defense tech backlog at $111.4 million. Book - to - bill ratio in fourth quarter 2025 was 1.52, and full - year 2025 book - to - bill ratio was 1.32.

• Forecasted full - year 2026 revenue to be in the range of $450 to $500 million, representing a 41.6% year - over - year growth rate at the midpoint. - Fourth quarter 2025 bookings were $164.9 million, with space bookings $110.9 million and defense tech bookings $54 million. - Confidence in revenue build over 2026 due to long - term programs like Otter and IBDM orders.

Q: How is management adjusting its pricing model in response to abnormally low gross margin throughout 2025?

A: As with all defense contractors, must meet customers' contracting preferences. The Department of War is moving away from cost plus and time and materials, so Redwire has to be willing to take on firm fixed price development. It's about having a balanced portfolio, taking on development contracts with higher EAC risks to get to production, and as the portfolio becomes more balanced with production - level programs, expect gross margin improvements.

Q: How many aircraft Standalone Edge did in 2024 and are LRR deliveries production orders?

A: Standalone Edge delivered about 200 aircraft in 2024. LRR deliveries were for testing, and full production orders are anticipated later in 2026.

Q: How much of the backlog is expected to be executed on over the next 12 months and are there large concentrations in backlog?

A: About 50% of the guide is in backlog. There are no single orders that would meaningfully move the view one way or the other, with backlog balanced across geography and value drivers.

Q: What's the broader order environment given pickup in three months and book - to - bill in Q4, and order cycles between space and defense tech?

A: Order size is growing as part of moving up the value chain strategy, with big orders like Otter and IBDM contributing to Q4 backlog. Order cycles differ: space has longer multi - year backlogs, while defense tech has faster conversion cycles due to existing inventory and quick purchase orders.

Q: Mix of space versus defense and growth expectation in 26?

A: Defense tech includes legacy Redwire space optics, payloads, and RF systems besides Edge Autonomy. Growth expectation in 2026: defense tech side likely outperforms space side, maybe closer to 20% growth for defense tech, with space side managed by existing order book but with big opportunities in pipeline.