RDW - Backlog Continues to Build; Ramping IRAD

Research evidence excerpt

RDW - Backlog Continues to Build; Ramping IRAD

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wins include a prime contract for the Belgian Ministry of Defense to deliver its first national Total Debt ($M) $90

security satellite and the $12.8 million contract for the first sale of the ELSA high-performance

solar array. These programs span the total addressable market from large constellations in

5 Page Document low Earth orbit to the lunar surface and beyond.

Ramping research and development investments. IRAD spending increased from

Reasons for this report under $1M in the 1Q25 to $12.6M in the 1Q26 to accelerate the maturation of

products and solutions. The company is specifically targeting six critical opportunities

✓ Earnings Recap with outsized potential: VLEO (SabreSat and Phantom spacecraft), QKDSat for quantum

✓ Updating Estimates secure constellations, maneuverable GEO spacecraft like Andromeda, lunar infrastructure,

SpaceMD (PIL-BOX), and next-generation UAS platforms. To fund these emerging

technologies and growth initiatives responsibly, Redwire has entered into an at-the-market

(ATM) program to allow for opportunistic capital raises. This investment approach is

designed to meet strong demand signals and ensure the company is funding for future

growth; with the current defense budget dynamics there are funding opportunities, but

we believe companies that are making investments in R&D independently may be better

positioned to win contracts.

Guidance. Management reiterated their revenue guidance of $450M-$500M with

expectations to build through the remainder of the year.

Updating Estimates. We are maintaining our FY26 revenue estimate of $464M which is

within the guidance range reiterated by management, but are lowering our FY26 EPS to

$(0.84) (from $(0.48)) as higher R&D flows through.