Redwire Q3 revenue up 5% but misses estimates

Overview

• US space and defense tech firm's Q3 revenue rose 5% yr/yr but missed analyst expectations

• Company achieved record Q3 gross margin of 32.3%, up from 16.3% a year ago

• Net loss narrowed yr/yr as company invested in innovation and capacity

Outlook

• Redwire reaffirms 2026 revenue forecast of $450 mln to $500 mln

• Company cites record $619.7 mln backlog supporting full-year revenue outlook

• Company says demand remains strong, with book-to-bill ratio at 1.73 as of Q3

Result Drivers

• SEGMENT MARGIN IMPROVEMENT - Record gross margin attributed to improved performance in both Space and Defense Tech segments

• R&D INVESTMENT - Higher research and development spending reflected investment in future growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Redwire Corporation is $15.00, about 84.7% above its November 3 closing price of $8.12

Reuters Recommended Reads

• Nov 3 - Leidos Q3 profit beats estimates on cost controls; lifts FY EPS outlook

• Nov 2 - Guerrilla RF Q3 revenue rises 61% on aerospace & defense demand

• Nov 4 - Defense firms fall as Democratic victory stokes fears of tighter Pentagon budget

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)