Redwire Posts Record Revenue as Defense Tech Expands
Backlog climbed 8.8% sequentially to a record $542.1 million.
Redwire Corporation (RDW), a space and defense technology company, posted record quarterly revenue as growth accelerated and Defense Tech became its largest business.
Revenue reached $117.1 million, up 89.6% from a year earlier and 20.7% from the first quarter. Year-over-year growth accelerated from 57.9% in the prior period. Gross margin rose to a record 27.8% from 26.6% sequentially and negative 30.9% a year earlier.
The net loss narrowed to $41.0 million from $76.5 million in the first quarter and $97.0 million a year earlier. The adjusted EBITDA loss improved to $3.2 million from $9.2 million sequentially and $27.4 million a year earlier.
Defense Tech drove the acceleration, with revenue rising 39.7% sequentially to $61.9 million. The segment accounted for 52.9% of company revenue, up from an implied 45.7% in the first quarter, while Space revenue increased 4.8% to $55.2 million.
Defense Tech adjusted EBITDA rose to $14.1 million from an implied $5.4 million in the prior quarter. Space's adjusted EBITDA loss widened to $4.2 million from an implied $1.5 million loss. Octopus intelligence, surveillance and reconnaissance payload deliveries reached nearly 200 year to date, more than 15% above the year-earlier period, and the company introduced two additional Octopus products.
Orders continued to outpace revenue, though quarterly book-to-bill declined to 1.42 from 1.92 in the first quarter. The last-12-month ratio rose to 1.52 from a year earlier. First-half operating cash outflow narrowed to $31.6 million from $132.7 million, while free-cash-flow outflow improved to $48.0 million from $142.7 million.
Redwire reiterated its 2026 revenue forecast of $450 million to $500 million after generating $214.0 million in the first half. The company ended the quarter with $607.8 million of liquidity, up $432.6 million sequentially, and reduced its term loans by $40.0 million to $50.0 million.