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JACKSONVILLE, Fla. - Redwire Corporation (NYSE:RDW), a space infrastructure company, saw its shares tumble 21% after reporting fourth-quarter results that fell short of analyst expectations.
The company reported a fourth-quarter adjusted loss of $1.38 per share, significantly wider than the $0.18 loss analysts had forecast. Revenue for the quarter came in at $69.6 million, up 9.6% YoY but below the consensus estimate of $74.82 million.
Redwire’s fourth-quarter performance was impacted by $9.1 million in net unfavorable estimate-at-completion (EAC) changes, primarily due to additional unplanned labor, design, and test cycles required to meet customer requirements across various space infrastructure offerings.
Despite the earnings miss, Redwire reported positive free cash flow of $3.0 million for the fourth quarter, a significant improvement from the previous quarter but down from $12.6 million in the same period last year.
"Redwire continues to execute against its core business while moving up the value chain, supported by accretive M&A," stated Peter Cannito, Chairman and CEO of Redwire. "We see strong demand for our products in space and defense tech and continue to differentiate ourselves in the market with innovative technologies and strong financial performance."
For the full year 2024, Redwire’s revenue increased 24.7% to $304.1 million. However, the company reported a net loss of $114.3 million, compared to a $27.3 million loss in 2023, partly due to a $52.0 million non-cash loss from an increase in the fair value of private warrant liability.
Looking ahead, Redwire forecasts full-year 2025 revenues of $535 million to $605 million and adjusted EBITDA of $70 million to $105 million, assuming the completion of its previously announced acquisition of Edge Autonomy.
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