Redwire Corporation Reports 21% Revenue Decline and $97 Million Net Loss in Q2 2025

Redwire Corporation reported a significant decline in financial performance for the second quarter of 2025, with revenues totaling $61.8 million, a decrease of 21% from $78.1 million in the same period of 2024. For the first half of 2025, revenues were $123.2 million, down 26% from $165.9 million year-over-year. The company attributed this decline primarily to unfavorable changes in estimated costs at completion (EAC), which negatively impacted gross profit, resulting in a loss of $19.1 million for the quarter and $10 million for the six-month period. This contrasts sharply with a gross profit of $13 million and $27.8 million in the respective periods of the previous year.

The company's operational expenses surged, with selling, general, and administrative (SG&A) expenses rising to $54.5 million for the quarter, up 201% from $18.1 million in 2024. This increase was largely driven by equity-based compensation related to the acquisition of Edge Autonomy, which was completed on June 13, 2025. The total net loss attributable to Redwire Corporation for the second quarter was $97 million, compared to a loss of $18.1 million in the prior year, marking a 436% increase in losses.

In terms of strategic developments, Redwire completed the acquisition of Edge Autonomy, a provider of uncrewed airborne systems technology, which contributed to a book-to-bill ratio of 1.47 for the quarter, consistent with the previous year. The acquisition is expected to enhance Redwire's capabilities in the defense sector, particularly in autonomous systems. Additionally, the company was awarded a contract from Aspera Biomedicines to conduct space-based research on cancer treatment, further expanding its portfolio.

Operationally, Redwire's customer base and geographic reach have been bolstered by recent acquisitions, with the company reporting a backlog of $329.5 million as of June 30, 2025, up from $296.7 million at the end of 2024. However, the company faces challenges, including a significant increase in interest expenses, which rose to $23.8 million for the quarter, primarily due to the repayment of the Seller Note associated with the Edge acquisition.

Looking ahead, Redwire's management remains cautious, citing ongoing economic uncertainties, including inflation and supply chain challenges, which could impact future performance. The company is focused on integrating its recent acquisitions and optimizing its operational efficiencies to navigate these challenges. Despite the current financial setbacks, Redwire aims to leverage its expanded capabilities to drive future growth in the space and defense sectors.