First Quarter 2025 Financial Results Reported by Redwire
Q1 2025 Revenues Decreased 30.1%
Redwire Corporation has announced its first quarter 2025 results, showing an increase in bookings, but a decrease in revenues and a higher net loss over the same period in 2024.
"Despite facing very dynamic macro-economic conditions, Redwire enters the second quarter ready to close on our acquisition of Edge Autonomy and to capitalize on market trends in space and defense tech.”
Jonathan Baliff, Redwire
However, bookings increased significantly compared to Q4 2024, according to Peter Cannito, Chairman and Chief Executive Officer of Redwire, who said key wins came from the European market. "(T)here were notable delays in awards in the U.S. government market due to transition of key decision makers in NASA, SDA and other agencies, as well as budget uncertainty associated with new administration priorities. However, we are confident that Redwire’s geographic, product and customer diversity across Civil, Commercial, and National Security markets continues to provide resiliency in our business model,” Cannito said. “At a time when European defense and space budgets are increasing, Redwire is expanding its presence in Europe with a new office in Poland to support ongoing international wins including a contract from Thales Alenia Space for the IBDM I-Hab as well as ESA study contracts for the Mars LightShip initiative and ARRAKIHS dark matter mission.”
First Quarter 2025 Highlights
Revenues for the first quarter of 2025 decreased 30.1% to $61.4 million, as compared to $87.8 million for the first quarter of 2024.
Net Loss for the first quarter of 2025 decreased by $5.1 million to $(2.9) million, as compared to $(8.1) million for the first quarter of 2024.
Adjusted EBITDA4 for the first quarter of 2025 decreased by $6.5 million to $(2.3) million, as compared to $4.3 million for the first quarter of 2024.
During the first quarter of 2025, the Company had net unfavorable EAC changes of $3.1 million, which impacted first quarter of 2025 revenues, gross profit, and net loss, and as a result, Adjusted EBITDA. These net unfavorable EAC changes were primarily due to additional unplanned labor and increased production costs as it relates to the development of new technologies required to meet customer specifications in the Company’s structures and mechanisms and avionics, sensors and payloads infrastructure offerings.
On a quarterly basis, Book-to-Bill ratio was 0.92 as of the first quarter of 2025, as compared to 0.40 as of the first quarter of 2024.
Net cash used in operating activities for the first quarter of 2025 increased by $47.8 million to $(45.1) million, as compared to net cash provided by operating activities of $2.8 million for the first quarter of 2024. Net cash used in operating activities for the first quarter of 2025 included one-time payments of $8.0 million related to litigation settlements and $3.4 million related to M&A activities.
Free Cash Flow for the first quarter of 2025 was $(49.1) million, as compared to $0.4 million for the first quarter of 2024.
For the twelve months ended December 31, 2025, Redwire, as a combined company assuming the previously announced transaction with Edge Autonomy had been consummated on January 1, 2025, is forecasting full year revenues of $535 million to $605 million and Adjusted EBITDA of $70 million to $105 million with positive Free Cash Flow.
“Redwire drove significant sequential and year-over-year improvements in Book-to-Bill ratio to 0.92 during the first quarter of 2025,” said Jonathan Baliff, Chief Financial Officer of Redwire. “Additionally, we achieved record levels of cash and total liquidity of $54.2 million and $89.2 million, respectively, primarily driven by the redemption of $82.9 million of the public warrants associated with our going public,” Baliff added. “We recorded revenues of $61.4 million and Adjusted EBITDA4 of -$2.3 million with significant sequential and year-over-year improvement in Net Loss to -$2.9 million. Despite facing very dynamic macro-economic conditions, Redwire enters the second quarter ready to close on our acquisition of Edge Autonomy and to capitalize on market trends in space and defense tech.”