Key Highlights

  • Revenue was USD 109.0 million against a USD 126.76 million estimate, and diluted EPS was USD -0.09 against USD -0.11.
  • Backlog reached USD 619.7 million, described by management as a record, and the book-to-bill ratio was 1.73.
  • Gross Margin was 32.3% against 16.3% a year earlier, and the net loss was USD 23.2 million.
  • Total Liquidity was USD 538.9 million, and the 2026 Revenue range of USD 450 million to USD 500 million stands.

What did USD 188.656 million of contract awards do to the order book at Redwire (NYSE:RDW)? Backlog ended the third quarter at USD 619.7 million, which management described as a record and as a nearly 75% increase from a year earlier, and the book-to-bill ratio was 1.73. Revenue was USD 109.035 million against USD 103.432 million a year earlier and an estimate of USD 126.76 million, while diluted EPS was USD -0.09 against an estimate of USD -0.11.

Awards, Backlog and Segment Revenue

Space contracts awarded were USD 119.906 million and Defense Tech awards were USD 68.75 million, producing book-to-bill ratios of 1.96 and 1.44. Named awards included a USD 20 million DARPA contract for further testing of a scaled SabreSat spacecraft in very low-Earth orbit, a follow-on Axiom Space order for two Roll-Out Solar Array wings and follow-on Stalker orders from customers including the U.S. National Guard. After quarter end, the company launched four microgravity investigations and the final pair of Roll-Out Solar Arrays to the International Space Station.

Space revenue was USD 61.266 million, against USD 46.548 million, and Defense Tech revenue was USD 47.769 million, against USD 56.884 million. Segment adjusted EBITDA was USD 2.806 million for Space, against a loss of USD 1.9 million, and USD 7.24 million for Defense Tech, against USD 6.459 million. CEO Peter Cannito said revenue timing continues to be uneven.

Margins, Losses and Research Spending

Gross profit was USD 35.222 million, against USD 16.81 million, and gross margin was 32.3%, against 16.3%. Adjusted gross margin a year earlier was 27.1%. Management attributed the margin improvement to both segments, year over year and sequentially.

The net loss was USD 23.178 million, against USD 41.152 million, and adjusted EPS was USD -0.06, against USD -0.20. Adjusted EBITDA was a loss of USD 5.29 million, against a loss of USD 2.569 million, and the company noted that Research and Development expense rose USD 6.7 million, or 87.1%, as an Investment in future growth. Equity-based compensation was USD 6.31 million, against USD 11.993 million.

Liquidity, Equity Raise and Cash Use

Total liquidity was USD 538.9 million, made up of USD 488.9 million in cash, cash equivalents and restricted cash and USD 50.0 million of available borrowings. The company stated that this is 313.9% above the end of 2025.

In the first nine months, proceeds from issuance of common stock were USD 566.67 million, against USD 337.806 million a year earlier, while repayments of Debt were USD 130.662 million. Operating Activities used USD 95.192 million of cash, and third quarter free Cash Flow was negative USD 66.354 million. Inventory use of cash was USD 45.606 million and contract Assets used USD 41.199 million over the nine months.

Benchmarks Ahead

Backlog of USD 619.7 million sits alongside nine-month revenue of USD 323.1 million, total liquidity of USD 538.9 million and a 2026 revenue range of USD 450 million to USD 500 million.

The Chief Financial Officer said recorded revenue, backlog and USD 46.8 million of work in process and finished goods inventory support the reaffirmed revenue range. Management also named the November 5 investor call, continued investment in Manufacturing capacity and innovation, and delivery of mission-critical products across multiple domains as its stated priorities.