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Investing.com -- Redwire Corporation (NYSE:RDW) shares tumbled 26% after the space and defense technology solutions provider reported second-quarter results that significantly missed analyst expectations, with both revenue and earnings falling well below forecasts.
The company reported second-quarter revenue of $61.8 million, a 20.9% decrease from $78.1 million in the same period last year and substantially below the analyst consensus of $82.75 million. Redwire posted an adjusted loss per share of -$1.41, considerably worse than the -$0.42 reported in the year-ago quarter.
The stock’s sharp decline reflected investor disappointment with the company’s performance and reduced revenue guidance. Redwire’s shares plummeted following the announcement as the market reacted to the significant earnings miss and lowered outlook.
"During the second quarter, we completed our acquisition of Edge Autonomy, establishing Redwire as an integrated global space and defense tech company specializing in multi-domain solutions," stated Peter Cannito, Chairman and Chief Executive Officer of Redwire. "Although we continued to see delays in the U.S. government’s budget approval processes throughout 2025, we have begun to see positive indicators as well."
Redwire’s second-quarter results were heavily impacted by over $90 million in expenses related to non-cash, transaction-related, and non-routine activities. This included $29.6 million in equity-based compensation primarily from the Edge Autonomy acquisition, $16.6 million in transaction expenses, and $25.2 million in unfavorable estimate-at-completion (EAC) adjustments.
For fiscal year 2025, Redwire lowered its revenue forecast to a range of $385-445 million, below the analyst consensus of $430.5 million. The company also withdrew its previously provided Adjusted EBITDA forecast due to uncertain timing of government contracting.
"With an expanding portfolio of space development programs, we experienced unfavorable EAC impacts primarily due to non-recurring engineering on a few, emerging tech programs," said Jonathan Baliff, Chief Financial Officer of Redwire.
Despite the disappointing results, the company reported a book-to-bill ratio of 1.47 for the quarter and ended the period with record total liquidity of $113.6 million, compared to $55.8 million in the second quarter of 2024.
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