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Mar 31

Redwire Q1 2025 Earnings Report

Redwire reported a year-over-year revenue decline with a narrowed net loss in Q1 2025.

Key Takeaways

Redwire's Q1 2025 showed a significant drop in revenue compared to the prior year, but a notable improvement in net loss. The company reported record liquidity, improved book-to-bill ratio, and secured key international contracts amid delays in U.S. government awards.

Revenue fell 30.1% year-over-year to $61.4 million.

Net loss improved to $2.9 million from $8.1 million in Q1 2024.

Book-to-bill ratio improved to 0.92, indicating strong order inflow.

Liquidity reached a record $89.2 million driven by warrant redemptions.

Total Revenue
$61.4M
Previous year: $87.8M
-30.1%
EPS
-$0.09
Previous year: -$0.17
-47.1%
Total Backlog
$291M
0
Book-to-Bill Ratio
0.92
Previous year: 0.4
+130.0%
Adjusted EBITDA
-$2.27M
Previous year: $4.28M
-153.0%
Gross Profit
$9.04M
Previous year: $14.8M
-39.0%
Cash and Equivalents
$54.2M
Previous year: $32.6M
+66.5%
Free Cash Flow
-$49.1M
Previous year: $397K
-12476.8%
Total Assets
$314M
Previous year: $260M
+21.0%

Redwire

Redwire

Forward Guidance

Redwire expects to complete its acquisition of Edge Autonomy and forecasts strong revenue and adjusted EBITDA growth for the full year 2025.

Positive Outlook

  • Full-year revenue guidance: $535M–$605M (pro forma for Edge Autonomy).
  • Adjusted EBITDA guidance: $70M–$105M for FY25.
  • Positive free cash flow expected for FY25.
  • Strong European market presence bolstered by new contracts.
  • Record liquidity enhances operational flexibility.

Challenges Ahead

  • Delays in U.S. government contracts due to agency transitions.
  • Net cash used in operations was $45.1M in Q1 2025.
  • Unfavorable EAC changes negatively impacted revenue and profitability.
  • Adjusted EBITDA turned negative compared to Q1 2024.
  • Revenue declined 30.1% year-over-year.