Redwire Corporation

Greetings. Welcome to the Redwire Corporation first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Alex Curitolo, Senior Director of Investor Relations. Thank you. You may begin.

Good morning, and thank you, Daryl. Welcome to Redwire's first quarter 2025 earnings call. We hope that you have seen our earnings release, which we issued earlier this morning. It has also been posted in the investor relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions, or predictions of the future. Our forward-looking statements are subject to risks and uncertainties, that are described in more detail on slide three. Additionally, to the extent we discuss non-GAAP measures during the call, please see slide four, our earnings release, or the investor presentation on our website for the calculation of these measures and their reconciliation to U.S. GAAP measures. I am Alex Caritolo, Redwire's Senior Director of Investor Relations. Joining me on today's call are Peter Conito, Redwire's Chairman and Chief Executive Officer, and Jonathan Bailiff, Redwire's Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete?

Thank you, Alex. During today's call, I will outline our key accomplishments during the first quarter of 2025, and Jonathan will then present the financial highlights for the same period. We will then discuss our 2025 outlook, after which we will open the call for Q&A. Please turn to slide seven. On our last earnings call, I introduced our 2025 growth strategy, which is centered around five key principles. Providing picks and shovels, which means delivering on our strong foundation of proven products with demonstrated flight heritage that formed the building blocks of space missions for our customers. Delivering multi-domain platforms, which means executing our platform strategy by delivering highly differentiated space and airborne platforms for critical missions to include multi-domain missions. Exploring the Moon, Mars, and beyond, which means capitalizing on our decades of experience in providing systems for space exploration and delivering on ambitious missions to the lunar surface, to Mars, and beyond. Unlocking venture optionality, which means continuing to pursue breakthrough developments on advanced technologies that could unlock new markets with game-changing potentials. And finally, executing accretive M&A, which means continuing our proven track record of effectively creating enterprise value by acquiring technologically differentiated companies at accretive values. a key competitive advantage of Redwire, which enables us to continue to rapidly scale as a public platform. Over the next few slides, I will discuss a recent key success for each growth area to demonstrate how we are executing against these focus areas. Please turn to slide eight. Starting with PICs, providing PICs and shovels. During the quarter, Redwire was awarded a contract from Thales Alenia Space to provide four docking systems for the European Space Agency's IHAB habitation module. The Redwire system is branded as the International Birthing and Docking Mechanism, or IBDM. The IBDM will enable safe transfers of crew and cargo from the visiting spacecraft to IHAB, supporting continuous operations and missions within the Lunar Space Station. This is a mission critical element of infrastructure that has applicability to space habitats and both crude and uncrewed space capsules. Please turn to slide nine. Turning next to delivering multi-domain platforms, in February, Redwire announced the award of a study contract from ESA to develop the preliminary spacecraft design for the upcoming Arrakis Dark Matter mission that will image faint galaxies in the nearby universe and provide insight into the nature of dark matter. Redwire's solution is built around an adapted version of our flight-proven small satellite platform, Hammerhead, shown on the right of this slide. If selected for the implementation phase of the Arrakis mission, Redwire would integrate the full satellite in our state-of-the-art cleanroom facilities in Belgium, underscoring the maturity of our full mission systems capability in the European market. These first quarter successes illustrate that Redwire is proudly building on decades of flight heritage, and we continue to play a critical role in developing organic capabilities for the European market as it pivots toward increased independence in space and defense. Please turn to slide 10. Moving next to exploring the Moon, Mars, and beyond, In early April, Redwire and iSpace US signed a memorandum of understanding to jointly pursue commercial lunar exploration and science missions for the NASA CLPS initiatives, as well as additional private sector customers. Redwire is a prime contractor on the CLPS IDIQ contract, which has a cumulative amount maximum contract value of $2.6 billion through 2028. Redwire is proud to combine our advanced digital engineering, integration and testing, and lunar subsystems and payloads with i-SPACE's proven lunar landing platform and mission operations to create a world-class team to support future lunar missions. This partnership furthers our already robust set of capabilities for commercial lunar exploration. Please turn to slide 11. Turning to unlocking venture optionality. In April, Redwire launched both a new drug development technology and a cancer detection experiment to the International Space Station as we scale our in-space pharmaceutical drug development. Based upon our highly successful Pillbox platform, the high-volume industrial crystallizer is capable of processing samples that are up to 200 times the volume of what could be processed in the original technology. To validate the new hardware, Redwire launched its Golden Balls nanotechnology manufacturing demonstration, which I discussed on our last earnings call. The goal of the new industrial crystallizer technology is to further optimize large-scale production of pillbox pharmaceutical development in space to achieve economies of scale that significantly advance the business model potential. In addition, today Redwire is proud to announce that we have signed an agreement with a new commercial partner, Aspero Biomedicines, to fly two additional pillboxes to the ISS. Redwire will crystallize a new cancer treatment that Aspera Biomedicines is working on. Redwire and Aspera Biomedicines see this as the start of a long and fruitful partnership and we are excited to have a new commercial customer funding advanced biopharma development in space for the benefit of people on Earth. Please turn to slide 12. Finally, when it comes to executing accretive M&A, as many of you know, in January 2025, Redwire announced that it had signed an agreement to acquire Edge Autonomy. In March 2025, we announced that we had received all regulatory approvals needed to complete the transaction. And just this past Friday, May 9th, 2025, we filed our definitive proxy with the SEC. With these critical milestones behind us, we expect to close during the second quarter of 2025 with the special meeting scheduled for June 9th, 2025. This transaction is expected to transform Redwire into a global leader in multi-domain autonomous technology, broadening our portfolio of mission critical space platforms to include combat proven autonomous airborne platforms. Please turn to slide 13. Next, I would like to discuss tariffs in the context of Redwire's supply chain. Redwire's supply chain provides resiliency in the current environment with a U.S.-based supply chain for our U.S. customer base, particularly on federally funded contracts, and with a European-based supply chain for international customers. Our global manufacturing footprint serving local markets is a natural tariff mitigant. As such, we have yet to see notable widespread price increases or shocks due to tariffs. We are addressing one-off cases with suppliers. However, we currently do not expect any material financial impact. Redwire will continue to monitor potential impacts closely as we manage our business through this dynamic environment. In some instances, we believe that the current trade environment may lead to both increasing investment in U.S. manufacturing and in European space and defense budgets that could benefit Redwire's significant manufacturing presence in both regions. Please turn to slide 14. As many of you likely saw, the recent presidential budget request includes funding for key space and defense programs like Golden Dome. And Redwire is exploring multiple solutions throughout the Golden Dome layered defense architecture to help defeat threats targeted at the U.S. homeland. I'd like to highlight just a few examples of how Redwire's solutions could be leveraged in support of these efforts. First, Redwire's spacecraft to include our VLEO, LEO, and GEO capabilities can be leveraged in a multi-orbit architecture to identify, detect, and potentially mitigate threats. In addition, Redwire's space-based optical sensor capabilities that use the same technologies as developed in the cameras for Firefly's Blue Ghost and Intuitive Machines' IM2 Lunar Landers can be leveraged to develop timely threat detection and custody. And finally, Redwire's Digitally Engineered Mission Systems and Integration, or DEMSI, agent-based digital engineering environment enables end-to-end architecture assessment for threat mitigation. We are particularly well positioned because we have secure facilities and clearances to operate in this domain. Redwire is aggressively pursuing multiple Golden Dome opportunities and looks forward to the opportunity to leverage our extensive national security heritage in defense of the United States and is in discussions with relevant stakeholders. Please turn to slide 15. Turning to our contract awards and backlog. Our contract awards during the first quarter of 2025 were $56.2 million with a book to bill ratio of 0.92 times, a significant improvement on both a sequential and year over year basis. In addition, backlog remained relatively flat at 291.2 million as of March 31st, 2025. 37% or $107.2 million of this contracted backlog is from our international operations in Europe. As we have continuously reinforced, we often see lumpy contract awards from quarter to quarter. Although we saw key wins for the first quarter coming out of the European market, including the contract for the IBDM IHAB and ESA study contract for the Arrakis mission mentioned previously, we also saw notable delays in awards in the U.S. government market due to the transition of key decision makers in NASA, SDA, and other agencies, as well as budget uncertainty associated with new administration priorities. We believe these delays are temporary, and based on analysis of the presidential budget request that includes funding for key space and defense programs like Golden Dome, we remain optimistic about the future of U.S. national security space and defense budgets. In the meantime, we continue to see a strong pipeline with an estimated $6 billion of identified opportunities, including approximately a half a billion dollars in proposals submitted during the first quarter of 2025. We continue our efforts to increase the average size of the individual opportunities we are pursuing. And as a result, we continue to have a pipeline of bids that could result in a substantial increase in backlog if we land some of these larger opportunities. Because of the success of our transformational investments building the Redwire platform in 2024, we are now positioned to continuously pursue larger opportunities in 2025 and beyond. Please turn to slide 16. With that, I'd now like to turn the call over to Jonathan Bayless, Redwire's Chief Financial Officer, to discuss the financial results for the first quarter of 2025. Jonathan?