Good news: Redwire is still buying Edge Autonomy.Redwire Corporation (RDW 7.18%) stock jumped a lucky 7.7% Monday morning after the company gave an update on its plan to acquire privately held Edge Autonomy, "a leader in providing innovative autonomous systems, advanced optics, and resilient energy solutions" (i.e., drones).As you may recall, Redwire announced in January that it will buy the maker of Penguin unmanned aerial vehicles for $925 million, payable in $150 million cash plus $775 million in Redwire ...

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Redwire Corporation and its executives, following disappointing financial results and stock price decline [1][3]. Financial Performance - Redwire reported Q1 2025 revenue of $61.4 million, which was $13.14 million below consensus estimates, marking a 30.1% decline year-over-year [3]. - The company attributed the revenue shortfall to delays in U.S. government contract awards, linked to leadership transitions at agencies such as NASA and the Space Development Agency, as well as changing budget priorities under the Trump administration [3]. Stock Market Reaction - Following the release of the financial results, Redwire's stock price decreased by $0.75, or 6.63%, closing at $10.56 per share on May 12, 2025 [4].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Redwire Corporation and its officers or directors [1]. Financial Performance - Redwire reported Q1 2025 revenue of $61.4 million, which missed consensus estimates by $13.14 million and marked a 30.1% decline year-over-year [3]. - The company attributed the revenue decline to delays in U.S. government contract awards, linked to leadership transitions at agencies such as NASA and the Space Development Agency, as well as changing budget priorities under the Trump administration [3]. Stock Market Reaction - Following the financial results announcement, Redwire's stock price decreased by $0.75 per share, or 6.63%, closing at $10.56 per share on May 12, 2025 [4].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Redwire Corporation and its executives [1] Financial Performance - Redwire reported Q1 2025 revenue of $61.4 million, missing consensus estimates by $13.14 million, which represents a 30.1% year-over-year decline [2] - The company attributed the revenue decline to delays in U.S. government contract awards due to leadership transitions at agencies like NASA and the Space Development Agency, as well as shifting budget priorities under the Trump administration [2] Stock Market Reaction - Following the financial results announcement, Redwire's stock price fell by $0.75 per share, or 6.63%, closing at $10.56 per share on May 12, 2025 [3]

Financial Performance - Revenues decreased 30% to $61.4 million for the three months ended March 31, 2025, compared to $87.8 million for the same period in 2024[141] - Gross profit decreased by $5.8 million, or 39%, with a gross margin of 15% for the three months ended March 31, 2025, down from 17% in the same period in 2024[143] - Net income (loss) attributable to Redwire Corporation was $(2.9) million for the three months ended March 31, 2025, compared to $(8.1) million for the same period in 2024, a 64% improvement[140] - For the three months ended March 31, 2025, the company reported a net loss of $2.948 million, an improvement from a net loss of $8.096 million in the same period of 2024[154] - Adjusted EBITDA for the same period was $(2.268) million, compared to $4.281 million in the prior year[154] Expenses - Cost of sales decreased by $20.6 million, or 28%, for the three months ended March 31, 2025, primarily due to a shift in the production cycle[142] - Selling, general and administrative expenses increased by $1.4 million, or 8%, leading to an increase in SG&A as a percentage of revenue to 31%[144] - Transaction expenses increased by $3.8 million, or 100%, primarily due to pre-acquisition costs related to the pending acquisition of Edge Autonomy[145] - Interest expense, net increased by $0.7 million, or 23%, due to increased borrowings on the revolving credit facility[147] - The company incurred $3.799 million in transaction expenses related to acquisitions during the three months ended March 31, 2025[154] Contracts and Backlog - The book-to-bill ratio increased to 0.92 for the three months ended March 31, 2025, from 0.40 for the same period in 2024[138] - Total contracts awarded for the three months ended March 31, 2025, were $56.244 million, compared to $35.101 million in the prior year[156] - The company's contracted backlog as of March 31, 2025, was $291.219 million, slightly down from $296.652 million as of December 31, 2024[161] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $54.221 million, an increase from $32.569 million at the end of March 31, 2024[174] - Net cash used in operating activities was $45.081 million for the three months ended March 31, 2025, compared to net cash provided of $2.764 million in the prior year[175] - The company experienced a significant increase in net cash provided by financing activities, totaling $54.190 million for the three months ended March 31, 2025, compared to $2.032 million in 2024[177] - The company had $54.2 million in cash and cash equivalents and $35.0 million in available borrowings from existing credit facilities as of March 31, 2025[165] Foreign Currency and Accounting - The company's operations in Europe primarily conduct transactions in euros, limiting foreign currency exposure[178] - Changes in exchange rates will impact the company's condensed consolidated financial statements expressed in U.S. dollars[178] - There have been no material changes to critical accounting policies and estimates as disclosed in the audited financial statements[179] - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[180] Acquisition - The Company entered into an agreement to acquire Edge Autonomy Holdings, LLC, subject to final closing conditions[138]

Financial Data and Key Metrics Changes - Redwire recorded revenues of $61.4 million, a decrease both sequentially and year-over-year [24] - Adjusted EBITDA improved significantly from a negative $9.2 million in Q4 2024 to a negative $2.3 million in Q1 2025 [25] - The net loss was $2.9 million, showing a significant sequential improvement of over $60 million [26] - Total liquidity reached $89.2 million, a 39.2% improvement from $64.1 million at the end of the previous year [26] Business Line Data and Key Metrics Changes - Contract awards in Q1 2025 were $56.2 million with a book-to-bill ratio of 0.92x, showing significant improvement [19] - Backlog remained relatively flat at $291.2 million as of March 31, 2025, with $107.2 million from international operations in Europe [20] - The company saw a shift in revenue due to delays in awards across customer classes, particularly in the U.S. market [24][20] Market Data and Key Metrics Changes - The company noted notable delays in awards in the U.S. Government market due to transitions in key decision-makers and budget uncertainties [20] - Redwire's contract awards included key wins from the European market, indicating a strong pipeline with an estimated $6 billion of identified opportunities [21] Company Strategy and Development Direction - Redwire's 2025 growth strategy focuses on five key principles: providing foundational products, delivering multi-domain platforms, exploring space missions, unlocking venture optionality, and executing accretive M&A [5][6] - The company aims to capitalize on increased investment in U.S. manufacturing and European space and defense budgets [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future U.S. National security space and defense budgets despite current delays [21] - The company reaffirmed its combined revenue forecast for 2025 to be in the range of $535 million to $605 million, representing a 52.9% compound annual growth rate from FY 2023 to FY 2025 [29] Other Important Information - Redwire signed an agreement to acquire Edge Autonomy, expected to close in Q2 2025, which will enhance its capabilities in multi-domain autonomous technology [14] - The company launched new drug development technology and a cancer detection experiment to the International Space Station, expanding its in-space pharmaceutical development [11] Q&A Session Summary Question: Can you talk about the risks associated with Europe's increased independence in space and defense? - Management noted that Europe is investing more in independent national programs for space, which could create new opportunities despite potential shifts in funding [40] Question: What is the current state of U.S. Government programs and their impact on Redwire? - Management indicated that the U.S. market is dynamic, with some programs being deprioritized while others, like Golden Dome, are highly prioritized [44] Question: How does Redwire view the role of drones in defense spending? - Management highlighted that drones are seen as a critical force multiplier in combat, with expected growth in defense spending in both the U.S. and Europe [50] Question: Can you elaborate on the milestones to watch for the MOU with iSpace? - Management emphasized that Redwire is a prime contractor on the CLIPS contract and is excited about taking on larger roles in lunar missions [55] Question: What is the current pipeline status and expected cash flow for Redwire? - Management stated that they expect cash flow to improve as revenues from bids are realized and milestone payments are received [70]

Financial Data and Key Metrics Changes - Redwire recorded revenues of $61.4 million, a decrease both sequentially and year-over-year [23] - Adjusted EBITDA improved sequentially from a negative $9.2 million in Q4 2024 to a negative $2.3 million in Q1 2025 [24] - The net loss was $2.9 million, showing a significant sequential improvement of over $60 million [25] - Total liquidity reached $89.2 million, a 39.2% improvement from $64.1 million at the end of the previous year [25] Business Line Data and Key Metrics Changes - Contract awards in Q1 2025 were $56.2 million with a book-to-bill ratio of 0.92x, showing significant improvement [18] - Backlog remained relatively flat at $291.2 million as of March 31, 2025, with 37% or $107.2 million from international operations in Europe [19] - The company saw key wins in the European market, including contracts for the International Birthing and Docking Mechanism and the Arrakis mission study [19] Market Data and Key Metrics Changes - The company noted delays in awards in the U.S. Government market due to transitions in key decision-makers and budget uncertainties [19] - There is an estimated $6 billion of identified opportunities in the pipeline, with approximately $5 billion in proposals submitted during Q1 2025 [20] Company Strategy and Development Direction - Redwire's 2025 growth strategy focuses on five key principles: providing foundational products, delivering multi-domain platforms, exploring lunar and Martian missions, unlocking venture optionality, and executing accretive M&A [4][5] - The company aims to capitalize on increased European independence in space and defense, while also addressing U.S. defense spending pressures [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future U.S. National security space and defense budgets despite current delays [20] - The company reaffirmed its combined revenue forecast for 2025 to be in the range of $535 million to $605 million, representing a 52.9% compound annual growth rate from FY 2023 to FY 2025 [28] Other Important Information - Redwire's supply chain is resilient, with a U.S.-based supply chain for domestic customers and a European-based supply chain for international clients, mitigating tariff impacts [14] - The company is actively pursuing multiple opportunities related to the Golden Dome defense initiative [17] Q&A Session Summary Question: Risks associated with Europe's increased independence in Space and Defense - Management acknowledged that Europe is investing more in independent space programs, which could create new opportunities despite potential shifts in U.S.-European partnerships [36][38] Question: Changes in U.S. Government program prioritization - Management noted that the current environment is dynamic, with some programs being deprioritized while others, like Golden Dome, are prioritized [40] Question: Edge Autonomy acquisition and its impact - Management highlighted that drones are becoming a significant part of defense spending, particularly in the U.S. and European markets, and Edge Autonomy will enhance capabilities in this area [46][48] Question: Details on Edge Autonomy's performance and pipeline - Management refrained from disclosing specific Q1 performance metrics for Edge but noted an increase in its backlog to $99.4 million [57] Question: Future deals focus between space and unmanned systems - Management indicated a balanced approach, being opportunistic across both segments while ensuring acquisitions are accretive [90][92]

Q1 2025 Investor Presentation May 12, 2025 No Solicitation This Presentation is not intended to and does not constitute the solicitation of a vote with respect to any matter subject to the vote of Redwire's stockholders, which solicitation is made solely pursuant to a definitive proxy statement, nor does it constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities in any jurisdiction. Use of Data Industry and market data ...

分组1 - Redwire Corporation reported a quarterly loss of $0.20 per share, which aligns with the Zacks Consensus Estimate, compared to a loss of $0.17 per share a year ago [1] - The company's revenues for the quarter ended March 2025 were $61.4 million, missing the Zacks Consensus Estimate by 14.92%, and down from $87.79 million year-over-year [2] - Redwire Corporation shares have declined approximately 31.3% since the beginning of the year, while the S&P 500 has decreased by 3.8% [3] 分组2 - The earnings outlook for Redwire Corporation is currently unfavorable, resulting in a Zacks Rank of 5 (Strong Sell), indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $114.39 million, and for the current fiscal year, it is -$0.28 on revenues of $463.02 million [7] - The Aerospace - Defense industry, to which Redwire belongs, is ranked in the top 38% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Performance - Revenues for Q1 2025 were $61.4 million, a decrease of 30.1% compared to $87.8 million in Q1 2024[9] - Net Loss for Q1 2025 was $(2.9) million, improved by $5.1 million from $(8.1) million in Q1 2024[9] - Adjusted EBITDA for Q1 2025 was $(2.3) million, down $6.5 million from $4.3 million in Q1 2024[9] - Gross profit for Q1 2025 was $9.0 million, down from $14.8 million in Q1 2024, reflecting a gross margin decline[29] - Operating loss for Q1 2025 was $14.3 million, compared to a loss of $3.6 million in Q1 2024[29] - Free Cash Flow for Q1 2025 was $(49.1) million, compared to $0.4 million in Q1 2024[9] - Net cash used in operating activities for Q1 2025 was $(45.1) million, an increase of $47.8 million from $2.8 million in Q1 2024[9] - Net income for the three months ended March 31, 2025, was a loss of $2,948,000, an improvement from a loss of $8,096,000 for the same period in 2024[32] - Adjusted EBITDA for the three months ended March 31, 2025, was $(2,268,000), compared to $4,281,000 for the same period in 2024[36] - Free cash flow for the three months ended March 31, 2025, was $(49,136,000), compared to $397,000 for the same period in 2024[40] Liquidity and Assets - Total liquidity reached a record $89.2 million, consisting of $54.2 million in cash and cash equivalents and $35.0 million in available borrowings[2][9] - Total current assets increased to $142.1 million as of March 31, 2025, up from $125.9 million at the end of 2024[27] - Total liabilities decreased to $247.4 million as of March 31, 2025, down from $344.5 million at the end of 2024[27] - Cash, cash equivalents, and restricted cash at the end of the period were $54,221,000, up from $32,569,000 at the end of the same period in 2024[32] Contracts and Backlog - Book-to-Bill ratio increased significantly to 0.92 in Q1 2025, compared to 0.40 in Q1 2024[9] - Significant contracts awarded include a NASA contract for launching pharmaceutical investigations and a contract from Thales Alenia Space for the Lunar I-Hab module[1][2] - Total contracts awarded for the three months ended March 31, 2025, were $56,244,000, compared to $35,101,000 for the same period in 2024[43] - The contracted backlog as of March 31, 2025, was $291,219,000, a slight decrease from $296,652,000 as of December 31, 2024[48] - The company recognized $57,568,000 in organic revenue during the three months ended March 31, 2025[48] - The company’s organic backlog at the end of the period was $279,363,000, compared to $280,969,000 at the beginning of the period[48] Acquisition and Risks - The company announced the acquisition of Edge Autonomy, receiving all regulatory approvals for the transaction[1] - Redwire's Adjusted EBITDA and Free Cash Flow forecasts are not provided due to uncertainties surrounding the acquisition of Edge Autonomy[20] - The company is facing risks related to the acquisition of Edge Autonomy, including potential dilution of existing shareholders[19] - Edge Autonomy's revenue is significantly impacted by sales to customers in Ukraine, which have been declining due to ongoing conflicts[19] - The company incurred $3,799,000 in transaction expenses related to acquisitions during the three months ended March 31, 2025[36]