Redwire (NYSE:RDW) Shares Gap Up on Strong Earnings

Key Points

• Redwire shares jumped 12.4% after the company reported second-quarter EPS of a $0.09 loss, beating expectations for a $0.16 loss, while revenue reached a record $117.1 million, up 89.6% year over year.
• Operating momentum strengthened, with gross margin rising to a record 27.8%, contracted backlog reaching $542.1 million and book-to-bill hitting 1.42. Redwire reaffirmed its 2026 revenue outlook of $450 million to $500 million and reported $607.8 million in liquidity.
• Despite improved results, the company remains unprofitable, posting a $41.0 million net loss and negative adjusted EBITDA of $3.2 million. Substantial insider selling may weigh on sentiment, although analysts maintain a “Moderate Buy” consensus with an average price target of $15.94.

Redwire Corporation (NYSE:RDW - Get Free Report) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $10.72, but opened at $12.24. Redwire shares last traded at $11.8220, with a volume of 9,228,661 shares traded.

The company reported ($0.09) EPS for the quarter, topping analysts' consensus estimates of ($0.16) by $0.07. The business had revenue of $117.07 million for the quarter, compared to analysts' expectations of $107.10 million. Redwire had a negative return on equity of 11.68% and a negative net margin of 80.90%.

More Redwire News

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire reported record second-quarter revenue of $117.1 million, up 89.6% year over year and above the $107.1 million analyst consensus. Adjusted loss of $0.09 per share also beat estimates for a $0.16 loss. Redwire Q2 earnings report
• Positive Sentiment: Execution metrics were strong: gross margin reached a record 27.8%, contracted backlog rose to a record $542.1 million, and quarterly book-to-bill was 1.42. The company also cited follow-on Stalker Block 30 awards and Penguin uncrewed aerial systems contracts. Redwire second-quarter financial results
• Positive Sentiment: Redwire reaffirmed its 2026 revenue outlook of $450 million to $500 million, broadly consistent with the roughly $470.1 million consensus forecast. Total liquidity of $607.8 million provides funding for expansion and research and development.
• Positive Sentiment: Cantor Fitzgerald raised its price target from $9.00 to $13.50 and maintained an “overweight” rating, citing improving demand in defense, drones and autonomous systems. Cantor Fitzgerald price-target report
• Neutral Sentiment: Although the quarterly net loss narrowed to $41.0 million from $97.0 million a year earlier, Redwire remained unprofitable. Adjusted EBITDA was negative $3.2 million, while research and development spending totaled $12.5 million.
• Negative Sentiment: Reported information shows substantial insider selling: Red Holdings sold approximately 62.7 million shares over the past six months without reported purchases. Such selling may weigh on investor sentiment, despite stronger operating results.

Analyst Ratings Changes

Several equities research analysts have weighed in on RDW shares. Alliance Global Partners reissued a "buy" rating on shares of Redwire in a research report on Wednesday, April 22nd. Canaccord Genuity Group upped their price objective on shares of Redwire from $12.00 to $14.00 and gave the company a "buy" rating in a research note on Monday, May 11th. Wall Street Zen lowered shares of Redwire from a "hold" rating to a "sell" rating in a report on Saturday, July 4th. Cantor Fitzgerald raised their target price on Redwire from $9.00 to $13.50 and gave the stock an "overweight" rating in a research note on Wednesday. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Redwire in a report on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Redwire currently has an average rating of "Moderate Buy" and an average price target of $15.94.

Insider Transactions at Redwire

In related news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the business's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $21.48, for a total transaction of $22,995,736.20. Following the sale, the director owned 1,077,419 shares of the company's stock, valued at $23,142,960.12. The trade was a 49.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.79% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Redwire

Large investors have recently made changes to their positions in the business. Tema ETFs LLC grew its stake in shares of Redwire by 51,491.5% in the 2nd quarter. Tema ETFs LLC now owns 621,162 shares of the company's stock worth $7,597,000 after buying an additional 619,958 shares during the last quarter. Hennion & Walsh Asset Management Inc. boosted its holdings in Redwire by 82.7% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 63,067 shares of the company's stock worth $771,000 after acquiring an additional 28,540 shares in the last quarter. Assenagon Asset Management S.A. purchased a new stake in shares of Redwire in the second quarter worth $1,730,000. Militia Capital Management LLC bought a new position in shares of Redwire during the first quarter valued at $281,000. Finally, Parallel Advisors LLC bought a new position in Redwire in the 1st quarter worth about $28,000. 8.10% of the stock is currently owned by hedge funds and other institutional investors.

Redwire Trading Up 12.4%

The stock's fifty day moving average price is $12.72 and its 200 day moving average price is $11.31. The company has a quick ratio of 1.37, a current ratio of 1.75 and a debt-to-equity ratio of 0.08. The stock has a market cap of $2.88 billion, a PE ratio of -4.49 and a beta of 3.05.

About Redwire

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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