Redwire Corporation Reports 25% Revenue Increase to $304.1 Million, Faces $114.3 Million Net Loss

Redwire Corporation reported a significant increase in revenue for the fiscal year ending December 31, 2024, achieving $304.1 million, a 25% rise from $243.8 million in 2023. However, the company also experienced a net loss of $114.3 million, which is a substantial increase from a loss of $27.3 million in the previous year. This loss was attributed to unfavorable changes in estimated costs at completion (EAC) amounting to $17.7 million and a non-cash loss of $52 million related to the change in fair value of private warrants. The company's cash flow from operating activities turned negative, with a net cash usage of $17.3 million compared to a positive cash flow of $1.2 million in 2023.

In terms of operational developments, Redwire's contracted backlog decreased to $296.7 million from $372.8 million year-over-year. The company completed its tenth acquisition in August 2024, acquiring Hera Systems, Inc., which specializes in spacecraft development for national security missions. Additionally, Redwire expanded its global footprint by opening new facilities in California and Poland, and it was awarded a contract from the Air Force Research Laboratory to enhance space-based capabilities. The company also reported successful advancements in its technology, including the 3D bioprinting of human heart tissue aboard the International Space Station.

The filing indicated that Redwire's employee headcount stood at approximately 750 as of December 31, 2024, reflecting the company's commitment to expanding its workforce to support its growth initiatives. The company has also focused on improving its internal controls, having identified material weaknesses in its financial reporting processes. Management is actively working on remediation plans, which include engaging a third-party consulting firm to enhance its financial reporting controls.

Looking ahead, Redwire's management expressed optimism about future growth, particularly with the anticipated acquisition of Edge Autonomy, a provider of uncrewed airborne system technology, for an aggregate purchase price of $925 million. This acquisition is expected to enhance Redwire's capabilities and market position. However, the company also acknowledged the challenges posed by macroeconomic conditions, including inflation and supply chain pressures, which could impact its operational performance and financial results.