Redwire (RDW) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 11:39 AM CDT 29 min read

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DATE

Thursday, May 7, 2026 astatine 9 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Peter Cannito

• Chief Financial Officer — Chris Edmunds

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Full Conference Call Transcript

Peter Cannito: Thank you, Alex. During today's call, I volition outline our cardinal accomplishments during the archetypal 4th of 2026, aft which Chris volition contiguous the fiscal highlights for the aforesaid play and sermon our outlook for the remainder of 2026. We volition past unfastened the telephone for Q&A. Please crook to Slide 6. During the archetypal 4th of 2026, Redwire saw beardown request crossed our differentiated products. During the quarter, Redwire achieved a beardown book-to-bill ratio of 1.92 and arsenic a result, ended the 4th with grounds contracted backlog of $498.1 million, providing assurance successful our forecast arsenic we determination further into 2026.

We sharpened our operational show and portfolio management, resulting successful sequential and year-over-year betterment successful gross margins, moving from 9.6% successful Q4 2025 and 14.7% successful Q1 2025, up to 26.6% successful Q1 2026. And finally, we accelerated investing successful ample procurement opportunities crossed our portfolio, specified arsenic Andromeda, the Commercial Lunar Payload Services Program, oregon CLIPS, the Quantum Key Distribution outer often referred to arsenic QKDSat and the Army's long-range reconnaissance programme for Group 2 Unmanned Aerial Systems oregon LRR. Each of these programs person important maturation imaginable and are gaining momentum.

To summarize the quarter, we returned to beardown maturation successful areas with amended gross margins, and therefore, we volition proceed to put successful our highest imaginable opportunities wherever we are good positioned with differentiated capabilities. Please crook to Slide 7. Next, I would similar to concisely interaction connected a item oregon 2 from the archetypal 4th for each of our 5 worth drivers to underscore our continued worth instauration successful each area. We volition commencement with our Space segment, which encompasses next-generation spacecraft, ample abstraction infrastructure and microgravity improvement and past crook to our Defense Tech segment, which encompasses combat proven UAS and sensors and payloads. Please crook to Slide 8.

In Q1, Redwire achieved a important milestone successful our spacecraft strategy arsenic we proceed to determination up the worth concatenation successful the abstraction segment. In April, we were selected arsenic 1 of 14 vendors retired of a full of 32 bids connected the Space Systems Command $1.8 cardinal 10-year Andromeda Indefinite Delivery Indefinite Quantity, oregon IDIQ contract. And earlier this week, Space Systems Command provided a announcement of its intent to rise the full shared ceiling for the Andromeda IDIQ to much than $6 cardinal to conscionable accrued demand. The Andromeda declaration conveyance is focused connected rapidly fielding proliferated abstraction domain consciousness capabilities successful geosynchronous orbit.