Redwire Corporation Q1 FY2026 earnings call

Pete outlined key accomplishments in Q1 2026: strong book-to-bill ratio of 1.92, record contracted backlog of $498.1 million, improved gross margin to 26.6%, and accelerated investing in large procurement opportunities. Highlights for each value driver: Space segment - selected for $1.8 billion 10-year Andromeda IDIQ contract, first sale of ELSA solar arrays, received $4 million from NASA for Pillbox. Defense Tech segment - awarded over $20 million in follow-on purchase orders for Stalker systems, continued integration of S.T.A.L.K.E.R. with U.S. Army's NGC-2. Sensors and payloads - advanced imaging and navigation technology launched aboard NASA's Artemis II mission. Also, ramped investment in research and development with over $10 million increase year-over-year in Q1 2026, focusing on six critical opportunities.

In Q1 2026, total revenue was $97 million, a 57.9% year-over-year increase. Space segment revenue was $52.7 million, and defense tech segment revenue was $44.3 million. Gross margin moved from 9.6% in Q4 2025 and 14.7% in Q1 2025 to 26.6% in Q1 2026. Bookings were $186.5 million, with space bookings at $114.6 million (driven by power solutions like ELSA and RosaWings) and defense tech bookings at $72 million (driven by Stalker and Penguin aircraft). Backlog increased to a record $498.1 million, with space backlog at $359.7 million and defense tech backlog at $138.4 million.

Reaffirmed full year 2026 revenue forecast in the range of 450 to 500 million, representing 41.6% year-over-year growth at the midpoint. With more than $350 million in bookings during the last two quarters, expect revenue to build through 2026.

Q: About the Andromeda Space Force program, how is Redwire positioned and how will it be targeted with investment?

A: Redwire was selected as one of 14 vendors out of 32 bids, needs to invest to deliver best capability, using ATM to raise money.

Q: Update on VLEO platforms?

A: VLEO is a key growth area, Redwire is well positioned, investing in maturing technology with partners.

Q: Specific layers of Golden Dome architecture Redwire is targeting?

A: Golden Dome is multi-orbit, Redwire is prime lead in VLEO and highly maneuverable refuelable geo, merchant supplier in LEO.

Q: Leveraging the business and expectations around gross margins and OPEX?

A: Goal is positive EBITDA net of IRAD, in quality growth mode, investing but managing IRAD.

Q: What do R&D investments for six opportunities include?

A: Labor, facilities, material, inventory, mix of these.

Q: Biggest opportunities for Redwire in lunar economy?

A: Building lunar grid with ROSA and ELSA, and leveraging CLPS prime contract position.

Q: Edge Autonomy since acquisition?

A: Edge is now fully branded Redwire, defense tech has $72 million bookings this quarter, gross margins holding consistent, ramping investment in major product groups.