Redwire Shares Plummet After Q4 Earnings Report

Redwire Corp (NYSE: RDW) experienced a significant drop in its share price during Monday's after-hours trading, following the release of its fourth-quarter earnings report. Here’s a detailed overview of the financial results.

• Q4 Revenue: The company reported revenue of $69.56 million, which fell short of analyst expectations of $74.82 million.
• Q4 EPS: Redwire posted a loss per share of $1.38, significantly worse than the anticipated loss of 18 cents.

Despite the disappointing earnings, Redwire's total revenue saw a year-over-year increase of 9.6% in the fourth quarter. The company generated $7.1 million in net cash from operations and recorded free cash flow of $3 million during the quarter.

As of the end of the quarter, Redwire held $64.1 million in total liquidity, which included $33.7 million in cash and cash equivalents. This financial backing aims to support the company's future endeavors.

Peter Cannito, the chairman and CEO of Redwire, commented, "Redwire continues to execute against its core business while moving up the value chain, supported by accretive M&A. As a result, we have a strong and sustainable foundation for success in 2025." He also highlighted strong demand for the company’s products in both space and defense sectors, indicating that innovative technologies and financial performance are setting the company apart in the marketplace.

Looking Ahead: For the full year 2025, Redwire anticipates revenue between $535 million and $605 million. Furthermore, the company expects adjusted EBITDA to range from $70 million to $105 million, alongside positive free cash flow.

A conference call is scheduled for Tuesday morning at 9 a.m. ET, where management will delve deeper into the quarterly results.

Stock Performance: Following the earnings report, Redwire shares plummeted by 19.36%, trading at $9.08 at the time of this report, as indicated by market data.

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