Redwire 2025 Q2 Earnings Widening Losses Amid Revenue Drop

Redwire (RDW) reported its fiscal 2025 Q2 earnings on August 7, 2025, with results that fell short of expectations. The company posted a wider-than-expected net loss and revenue decline, signaling ongoing financial challenges. Management revised its combined revenue guidance higher, but withdrew adjusted EBITDA forecasts due to uncertainties. Investors are now weighing the long-term growth potential against short-term headwinds.

Revenue
Redwire's total revenue declined by 20.9% year-over-year to $61.76 million in Q2 2025, compared to $78.11 million in the same period a year earlier. The civil space segment generated $15.60 million, while national security revenue stood at $14.82 million. The commercial and other segment contributed $31.34 million, making up the largest portion of the company’s revenue. The performance reflects a mix of ongoing contract delays and evolving market dynamics in the space and defense sectors.

Earnings/Net Income
Redwire’s losses widened significantly in the quarter, with a net loss of $96.98 million, or $1.41 per share, compared to a net loss of $18.09 million, or $0.42 per share, in Q2 2024. This represents a 436.2% increase in net loss and a 235.7% wider per-share loss. The continued financial pressure underscores the challenges the company faces in achieving profitability, with losses now extending for five consecutive years in this fiscal quarter.

Price Action
Redwire’s stock has experienced sharp declines, tumbling 13.83% on the latest trading day, 33.73% over the most recent full trading week, and 37.49% month-to-date. The significant downward movement reflects investor concern over the company's earnings performance and uncertain outlook.

Post-Earnings Price Action Review
The buy-and-hold strategy of purchasing RDW following earnings that beat estimates generated a 48.70% return over 30 days, outperforming the benchmark by 7.53%. However, the strategy was characterized by high volatility, with a Sharpe ratio of 0.12 and a maximum drawdown of 93.67%. While the returns were strong, the risk profile was considerable, highlighting the unpredictable nature of the stock in the short term.

CEO Commentary
Peter Anthony Cannito, CEO & Chairman, outlined key growth initiatives, including the deployment of Roll-Out Solar Array wings for the Lunar Gateway and the recent acquisition of Edge Autonomy, which is enhancing Redwire’s airborne platform capabilities. He acknowledged the challenge of delayed U.S. government budgets pushing awards to 2026 but expressed optimism about growing defense and space spending, including NATO’s 5% GDP defense commitment and increased Canadian investment. Cannito emphasized strategic priorities such as lunar and Mars technologies, multi-domain operations, and microgravity-driven pharmaceutical innovations through SpaceMD. He reinforced the company’s long-term vision, stating, “Space is a long-term investment,” and expressed confidence in leveraging the diversified portfolio and recent acquisitions to drive future growth.

Guidance
Redwire provided full-year 2025 revenue guidance of $380–$445 million, reflecting a 30.5% compound annual growth rate at the midpoint compared to fiscal 2023. The company also revised its combined revenue forecast to $470–$530 million, representing a 43.2% compound annual growth rate from 2023 to 2025 at the midpoint. However, due to the second-quarter EAC impacts and budgetary uncertainties, Redwire has withdrawn its adjusted EBITDA guidance for 2025. Management expects EBITDA volatility to ease in 2026 as contracts shift to production models and Edge Autonomy reduces exposure to fixed-price development programs.

Additional News
On the same day Redwire reported earnings, several non-earnings-related news items emerged. Notably, Adekunle Ajasin University in Ondo State became the latest victim of a kidnapping incident as staff member Omoniyi Eleyinmi was reportedly kidnapped by an armed group who have demanded a ransom of N7 million for his safe release. In another development, Nigeria’s Stanbic IBTC Bank announced that 148 customers had won a total of N23 million in its recent savings promotion. Meanwhile, Lens FC made headlines in European football by signing World Cup winner Florian Thauvin from Udinese, marking a significant boost to the French club’s attacking options. The news highlights the intersection of global business, sports, and security developments.