Redwire Record Revenue, Director Sold at 58% Premium
Redwire posted record Q2 revenue of $117.1 million, up 89.6% year-over-year, with gross margin reversing from negative 30.9% to positive 27.8% and a contracted backlog of $542.1 million, lifting share
Redwire Surges on Record Q2 as Insider Sold Near Peak
NEW YORK, August 10 —
Redwire Corporation (RDW) posted record Q2 revenue of $117.1 million, up 89.6% year-over-year, and swung gross margin from negative 30.9% to positive 27.8%, lifting shares 14.9% Friday. The $607.8 million in quarter-end liquidity arrived primarily via a $487.9 million equity offering; a director sold $23 million in shares at $21.48 in June, above even the post-earnings price of $13.59.
- Q2 revenue $117.1M, up 89.6% year-over-year, beat estimates by ~$9M; Defense Tech segment ($61.9M) led Space ($55.2M).
- Record contracted backlog $542.1M, up 64.5% year-over-year; quarterly book-to-bill 1.42x; full-year guidance reaffirmed at $450M to $500M.
- Trailing operating cash flow negative $76M; $487.9M equity offering funded $607.8M liquidity; director sold 1.07M shares at $21.48 in June.
The Margin Flip Is Real
Redwire makes star trackers, antennas, spacecraft platforms, and PIL-BOX units (small containers for pharmaceutical microgravity experiments) alongside a cloud-based digital engineering software suite. After acquiring Edge Autonomy, its Defense Tech segment now builds combat-proven autonomous drone systems for the Department of Defense and allied governments. That acquisition drove Defense Tech revenue to $61.9 million in Q2, outpacing the Space segment's $55.2 million. The gross margin reversal from negative 30.9% to 27.8%, per the Q2 earnings filing, is the headline. The backlog tells the sturdier story: $542.1 million in contracted revenue, up 64.5% year-over-year, with a 1.42x book-to-bill meaning Redwire signs new work faster than it ships existing orders.
Equity-Funded, Not Earned
The $607.8 million balance sheet looks strong until you examine the source: $487.9 million arrived via a share offering during the quarter, not from selling spacecraft and drones. Trailing operating cash flow is negative $76 million and free cash flow is negative $26 million. Redwire reaffirmed full-year 2026 guidance of $450 million to $500 million, with revenue expected to build in the second half. Total debt fell 75% year-over-year to $48.9 million, reducing the risk of another forced raise. Investors running a DCF analysis on those numbers will find the critical variable is the timing of cash conversion, not the revenue ramp itself.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| RDW | $3.2B | n/a | +54.1% |
| LUNR | $2.6B | n/a | +61.6% |
| PL | $8.5B | n/a | +272.7% |
| ASTS | $27.9B | n/a | +56.7% |
| RKLB | $51.8B | n/a | +84.0% |
| ONDS | $5.2B | n/a | +165.6% |
The Director's Math
AE Red Holdings disposed of 1,070,565 shares at $21.48 on June 11, per Form 4 filings, generating approximately $23 million. That exit price represents a 58% premium to Friday's close, meaning the most informed recent seller timed better than investors buying the post-earnings rally. Tax-withholding disposals tied to executive grants on July 14 were priced at $9.74, showing where the stock sat a month ago; no executive added voluntarily at those levels. With 21% short interest and an analyst consensus target of $15.79, the thesis resolves when positive operating cash flow arrives in the second-half results. Run the free Redwire Corporation deep-dive before that report.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
What were Redwire's Q2 2026 earnings results?
Redwire posted record Q2 revenue of $117.1 million, up 89.6% year-over-year, beating estimates by approximately $9 million. Gross margin reversed from negative 30.9% to positive 27.8%. The company reaffirmed full-year 2026 guidance of $450 million to $500 million.
Did a Redwire director sell shares recently?
AE Red Holdings disposed of 1,070,565 shares at $21.48 on June 11, generating approximately $23 million. That exit price is a 58% premium to Friday's post-earnings close of $13.59. Tax-withholding disposals on July 14 were priced at $9.74, and no executive added shares voluntarily at those levels.
What is Redwire's contracted backlog?
Redwire's contracted backlog reached $542.1 million at quarter-end, up 64.5% year-over-year. The quarterly book-to-bill ratio was 1.42x, meaning new work signed exceeds shipments in the period. Full-year revenue guidance is reaffirmed at $450 million to $500 million.
How is Redwire funding its $607 million liquidity?
The $607.8 million in quarter-end liquidity arrived primarily via a $487.9 million equity offering, not from selling spacecraft and drones. Trailing operating cash flow is negative $76 million and free cash flow is negative $26 million. Total debt fell 75% year-over-year to $48.9 million, reducing near-term refinancing pressure.
What does Redwire Corporation make?
Redwire makes star trackers, antennas, spacecraft platforms, and PIL-BOX units for pharmaceutical microgravity experiments, alongside a cloud-based digital engineering software suite. Its Defense Tech segment, built around the Edge Autonomy acquisition, produces autonomous drone systems for the Department of Defense and allied governments. Defense Tech generated $61.9 million in Q2, outpacing the Space segment at $55.2 million.
Redwire Corporation reported record second-quarter revenue of $117.1 million—up 89.6% year-over-year—and swung its gross margin from negative 30.9% to positive 27.8%, sending shares up 14.9% on Friday. The $607.8 million now on the balance sheet arrived primarily via a $487.9 million equity offering rather than operations, and a director who knew the business best sold $23 million in stock at $21.48 per share in June—above the stock's current price even after the post-earnings rally.