Space infra firm Redwire plunges after disappointing results

Redwire

07/08/2025 16:46

** Shares of space infrastructure technology Redwire RDW.N plunge 29.1% to $9.72, over three-mth low, on Thurs after disappointing qtrly report

    ** RDW shares tracking biggest daily pct drop on record

    ** Jacksonville, Florida
    -based firm late Weds reported Q2 rev fell 21% y/y to $61.8 mln, below analysts' expectation of $88.8 mln, citing continued delays in U.S. government's budget approval process

    ** Adj EBITDA in qtr was negative $27.4 mln compared to positive $1.6 mln a yr ago. Analysts had modeled for positive $1.8 mln EBITDA

    ** ""With an expanding portfolio of space development programs, we experienced unfavorable EAC (Estimate-At-Completion) impacts primarily due to non-recurring engineering on a few, emerging tech programs," CFO Jonathan Baliff said in a statement

    ** For 2025, co forecasted rev of $385-$445 mln, including the recently

      completed acquisition of Edge Autonomy

    ** 7 of 8 analysts
    covering rate RDW "strong buy" or "buy", 1 has "hold" and median PT is $23 - LSEG data

    ** With move on the session, stock down 41% YTD

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))