Redwire Gross Margin Reaches a Record 32.3%

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue was $109.0 million as the space and defense tech company posted a record 32.3% gross margin and a $619.7 million backlog.

Redwire Corporation (RDW), a global leader in space and defense technology solutions, reported third-quarter revenue of $109.0 million, up 5.4% from a year earlier, as gross margin expanded to a record 32.3% from 16.3% in the year-ago quarter.

The year-over-year revenue gain slowed from the 89.6% increase to $117.1 million in the second quarter. Chairman, Chief Executive Officer and President Peter Cannito said revenue timing continued to be uneven, and that the company saw durable demand across its space and defense tech portfolio.

Gross profit was $35.2 million. Chief Financial Officer Chris Edmunds said the record margin was driven by year-over-year and sequential improvement from both the Space and Defense Tech segments. Adjusted gross margin was also 32.3%, with no purchase-accounting adjustment in the quarter.

Net loss improved $18.0 million year-over-year to $(23.2) million, or $(0.09) a share, from $(0.29) a share. That followed a $56.0 million year-over-year improvement to a $(41.0) million net loss in the second quarter. Adjusted EBITDA decreased $2.7 million year-over-year to $(5.3) million. Research and development expense increased $6.7 million, or 87.1%, to $14.4 million.

Space revenue was $61.3 million and Defense Tech revenue was $47.8 million. Space segment Adjusted EBITDA was $2.8 million, and Defense Tech segment Adjusted EBITDA was $7.2 million.

Backlog reached a record $619.7 million, a nearly 75% increase year-over-year, after a record $542.1 million at the end of the second quarter. With $188.7 million in contracts awarded during the third quarter, the company said it achieved meaningful year-over-year increases in Book-to-Bill to 1.73 on a quarterly basis and 1.63 on a last-twelve-months basis.

Among the awards, Redwire said it received a $20 million contract from the Defense Advanced Research Projects Agency to complete additional testing and experimentation on a scaled version of its SabreSat spacecraft for a precursor flight test in very low-Earth orbit. It also received a follow-on contract from Axiom Space to develop and deliver two Roll-Out Solar Array wings for Axiom’s second space station module, and secured follow-on orders for the Stalker platform from customers including the U.S. National Guard. Subsequent to quarter-end, the company said it launched key technologies to the International Space Station, including four microgravity investigations and the fourth and final pair of Roll-Out Solar Arrays.

Total liquidity ended the third quarter at $538.9 million, a 313.9% increase over year-end 2025, after $607.8 million at the end of the second quarter. That total comprised $488.9 million in cash, cash equivalents and restricted cash and $50.0 million in available borrowings from existing credit facilities.

For the full year ended December 31, 2026, Redwire reaffirmed that it is forecasting revenues of $450 million to $500 million. Edmunds said $323.1 million of recorded revenue during the first nine months of 2026, supported by the record $619.7 million backlog and $46.8 million of work in process and finished goods inventory, underpinned that reaffirmation.