Redwire (NYSE:RDW) Announces Earnings Results

Key Points

• Q1 miss: Redwire reported EPS of ($0.40) vs. consensus ($0.16) and revenue of $96.97M vs. $105.94M expected, while profitability remains weak (net margin -80.9%, ROE -12.05%) despite revenue up ~58% year-over-year.
• Management highlighted a record contract backlog of $498.1M and a strong book-to-bill of 1.92, and provided FY2026 revenue guidance of $450M–$500M, reinforcing revenue visibility if margins improve.
• The company announced a potential $350M offering of common stock and insiders sold material stakes (including a 7.5M-share sale), prompting heavy after-hours selling and roughly a 10% stock drop to $9.15 on very high volume.

Redwire (NYSE:RDW - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported ($0.40) earnings per share for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.24), FiscalAI reports. Redwire had a negative net margin of 80.90% and a negative return on equity of 12.05%. The company had revenue of $96.97 million during the quarter, compared to the consensus estimate of $105.94 million. During the same quarter last year, the company earned ($0.09) earnings per share. The business's revenue was up 57.9% on a year-over-year basis.

Redwire Price Performance

Redwire stock traded down $0.50 on Thursday, reaching $9.15. The company's stock had a trading volume of 31,700,957 shares, compared to its average volume of 24,244,386. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.62. The company has a market cap of $1.76 billion, a price-to-earnings ratio of -3.41 and a beta of 2.41. The business's fifty day moving average price is $9.44 and its 200 day moving average price is $8.63. Redwire has a twelve month low of $4.87 and a twelve month high of $22.25.

Redwire News Summary

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Company reported record backlog ($498.1M) and a strong book-to-bill (1.92), plus management highlighted significant contract wins and gross-margin improvement — supports future revenue visibility and growth expectations. Redwire Corporation Reports First Quarter 2026 Financial Results, Achieves Record Contract Backlog with Significant Gross Margin Improvement
• Positive Sentiment: Top line showed strong year-over-year growth (revenue up ~58% YoY), which some coverage flags as a growth narrative that could support higher valuations if margins improve. Redwire (RDW) Is Up 12.1% After Revenue Jumps But Losses Deepen And Equity Issuance Grows
• Neutral Sentiment: Company gave FY2026 revenue guidance of $450M–$500M (bracketing consensus), which provides a framework for investors but leaves profitability trajectory and EPS guidance unclear. Redwire Corporation Reports First Quarter 2026 Financial Results, Achieves Record Contract Backlog with Significant Gross Margin Improvement
• Neutral Sentiment: Management commentary and the full Q1 earnings call/Q&A (transcript) provide additional color on backlog conversion, margins, and timing of key contracts — useful for assessing execution risk but not immediately decisive. Redwire Corporation (RDW) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Quarterly results missed expectations: reported EPS (wider loss) and revenue below consensus (reported revenue ~$96.97M vs. estimates ~ $105.9M), driving concern over near-term profitability. Redwire Corporation (RDW) Reports Q1 Loss, Lags Revenue Estimates
• Negative Sentiment: Company announced plans to offer and sell up to $350M of common stock — a potentially dilutive capital raise that prompted heavy after-hours selling and increases near-term share supply risk. Redwire Stock Sees Heavy Selling After The Close: Here's Why
• Negative Sentiment: Market reaction included sharp intra-/after-hours selling (reports of ~10% drop), reflecting investor focus on the EPS miss and dilution risk despite the upbeat backlog data. Redwire NYSE: RDW reports sales below analyst estimates in Q1 CY2026 earnings, stock drops 10.5%

Wall Street Analyst Weigh In

A number of analysts have weighed in on RDW shares. Zacks Research upgraded Redwire from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 11th. Canaccord Genuity Group boosted their price objective on Redwire from $11.00 to $12.00 and gave the stock a "buy" rating in a research note on Friday, February 27th. Weiss Ratings reissued a "sell (d-)" rating on shares of Redwire in a research note on Tuesday, April 21st. Jefferies Financial Group reduced their price objective on Redwire from $13.00 to $12.00 and set a "buy" rating on the stock in a research note on Friday, March 6th. Finally, Truist Financial raised Redwire to a "strong-buy" rating in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Redwire presently has an average rating of "Moderate Buy" and an average price target of $13.89.

Insider Buying and Selling

In other Redwire news, Director Ae Red Holdings, Llc sold 7,500,000 shares of the business's stock in a transaction on Tuesday, March 24th. The stock was sold at an average price of $9.15, for a total value of $68,625,000.00. Following the transaction, the director owned 36,135,217 shares of the company's stock, valued at approximately $330,637,235.55. The trade was a 17.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold a total of 24,763,287 shares of company stock valued at $243,300,159 over the last quarter. 0.79% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Redwire

Hedge funds have recently added to or reduced their stakes in the company. Sunbelt Securities Inc. boosted its holdings in Redwire by 601.1% in the fourth quarter. Sunbelt Securities Inc. now owns 3,961 shares of the company's stock valued at $30,000 after acquiring an additional 3,396 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in Redwire by 308.6% in the third quarter. Russell Investments Group Ltd. now owns 4,862 shares of the company's stock valued at $44,000 after acquiring an additional 3,672 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in Redwire by 440.4% in the third quarter. Caitong International Asset Management Co. Ltd now owns 6,620 shares of the company's stock valued at $60,000 after acquiring an additional 5,395 shares during the last quarter. Strs Ohio bought a new position in Redwire in the first quarter valued at about $69,000. Finally, Captrust Financial Advisors bought a new position in Redwire in the fourth quarter valued at about $83,000. Institutional investors own 8.10% of the company's stock.

Redwire Company Profile

Redwire Corporation is a space infrastructure company specializing in the design, engineering and manufacturing of mission-critical hardware and software for the spaceflight industry. The company's offerings include deployable structures, solar power systems, radio frequency antennas, advanced composites and transparent optics. Redwire serves a broad customer base that spans civil space agencies, national defense organizations and commercial satellite operators, helping enable missions ranging from communications and Earth observation to deep-space exploration.

Formed through the strategic combination of several specialized space technology firms, Redwire's portfolio encompasses both flight-proven hardware and cutting-edge in-space manufacturing capabilities.

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