Redwire Corporation

Greetings and welcome to the Redwire Corporation second quarter 2025 earnings 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, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alex Krivotola, Senior Director of Investor Relations. Thank you. You may begin.

Good morning and thank you, Shamali. Welcome to Redwire's second quarter 2025 earnings call. We hope that you have seen our earnings release, which we issued yesterday afternoon. It has also been posted in the investor relations section of our website at rdw.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 Curatolo, Redwire's Senior Director of Investor Relations. Joining me on today's call are Peter Canino, Redwire's Chairman and Chief Executive Officer, and Jonathan Bayless, 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 notable items during the second quarter of 2025. Jonathan will then present the financial highlights for the same period and discuss our 2025 outlook. Finally, I will close the call by discussing our creation of a new entity, SpaceMD, to advance the commercialization of our pillbox space pharma strategy, 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 form 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 vehicles for critical missions, including 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 breakthrough technologies, which means continuing to pursue breakthrough technologies that could unlock new markets with game-changing potential. And finally, executing accretive M&A, which means building on our proven track record of effectively creating enterprise value by acquiring technologically differentiated companies at accretive values, a key competitive advantage that enables Redwire to rapidly scale as a public platform. Over the next few slides, I will discuss a key win for each growth area to demonstrate how we are executing against them. Please turn to slide eight. Starting with providing picks and shovels, during the quarter, Redwire successfully completed the first deployment test for one of our rollout solar array wings for the Lunar Gateway's power and propulsion element. These next-generation Gateway Rosas will generate an unprecedented 60 kilowatts of electricity, making these the most powerful Rosas ever built. In the coming months, the pair of wings will undergo additional testing as we prepare to deliver them to Maxar in the fourth quarter of 2025. We are proud to be delivering our well-proven ROSAs to support this key capability. Successful execution on this critical capability continues to underscore our foundational position in advanced power generation. Please turn to slide nine. Turning next to delivering multi-domain platforms. During the quarter, we closed our acquisition of Uncrewed Aerial System, or UAS manufacturer, Edge Autonomy, and we are already seeing significant positive conversion of their pipeline. During the second quarter, our Stalker platform was added to the Defense Innovation Unit's UAS Blue List, which contains technology vetted and approved by the Department of Defense for universal use across government agencies. This selection streamlines our ability to deliver combat proven, commercially developed UAS technology at scale to meet the evolving mission needs of the U.S. government. Today, I would like to give you an update on a critical U.S. Army program called the Long Range Reconnaissance Program, or LRR. I'll start by providing a high level description. LRR is a U.S. Army program of record to provide maneuver battalions with a UAS designed to support reconnaissance, surveillance, and target acquisition efforts. For LRR, systems will have aircraft weight of less than 55 pounds, range of 40 to 60 kilometers, and endurance of 5 to 10 hours, making our stalker platform well-suited to this specific set of requirements. For fiscal year 2026, the DOD's budget estimate for Army aircraft procurement, published this last June, included approximately $325 million in funding for the LRR program. We believe Redwire Edge Autonomy is well positioned to be a performer on this program. Please turn to slide 10. As such, we're pleased to announce the award to Redwire Edge Autonomy of a prototype phase agreement by the U.S. Army to develop and deliver Stalker uncrewed aerial systems for the LRR program. Under the terms of the contract, we will deliver the Stalker UASs, which will be evaluated by the Army during hands-on flight operations in the coming months. This is a strong signal that the U.S. Army recognizes the Stalker system as a potential future platform for their UAS architecture. We are proud to support this critical program and are committed to meeting the Army's evolving mission needs. Please turn to slide 11. Moving next to exploring the moon, Mars, and beyond, in early June, Redwire announced that our advanced manufacturing technology, Mason, passed critical design review, or CDR, with NASA participation. Mason is an advanced tool suite designed to operate on the moon and Mars and will enable the construction of berms, landing pads, and roads for future lunar and Martian habitats. This technology can reduce operational risks and protect assets from damage caused by regolith, the material on the surface of the moon, as lunar surface activity continues to increase. This is a critical milestone that brings Mason one step closer to launch in the future. And having completed the CDR, engineers at Redwire will begin to focus on fabricating a prototype and conducting functional testing of Mason. Please turn to slide 12. Now let's turn to unlocking breakthrough technologies. During the second quarter, Redwire was selected by NASA to facilitate a space microalgae biotechnology experiment developed by the Indian Space Research Organization International Center for Genetic Engineering and Biotechnology and the National Institute of Plant Genome Research, New Delhi. For this research mission, Redwire will manage mission integration, scientific fulfillment, and on-orbit operations. This is but the latest example of Redwire's reputation as a leader when it comes to microgravity research, not only in the US, but globally. Please turn to slide 13. Finally, when it comes to executing accretive M&A, our acquisition of Edge Autonomy was overwhelmingly approved by Redwire shareholders and closed on June 13, 2025. With Edge, Redwire is well-positioned to transform the future of multi-domain operations and provide decisive advantages to U.S. and allied warfighters. Integration is well underway, and our goal is to achieve commercial, operational, and financial integration objectives within 12 months. Please turn to slide 14. Next, I would like to discuss the impact of the U.S. and international budgeting environment in the context of the industries we operate in. As we have previously discussed, delays in the U.S. government budgeting process impacted Redwire during the first half of 2025, and in some cases, these delays have pushed out awards previously scheduled for the second half of 2025 into the beginning of 2026. Despite these delays, however, we have started to see positive trends from both the U.S. and our allies that will present significant growth potential moving forward. Starting in the United States, in the big beautiful bill, the U.S. government is funding key programs Redwire could address, including Golden Dome, with funding of approximately $24 billion, and NASA Gateway with funding of approximately $2.6 billion. Further, we see both the July 2025 Unleash U.S. Military Drone Dominance Memo and recently proposed Ukraine Aid as positive indicators for our airborne platforms as we move into the back half of 2025 and towards 2026. Turning to the international environment, during a summit in The Hague that took place this past June, NATO allies committed to invest 5% of gross domestic product annually on core defense requirements and defense and security related spending by 2035. Given our longstanding existing operations in Europe, we are considered local in multiple countries and are therefore significantly advantaged in our ability to participate in European government programs. Also in June, Canada announced a plan to increase and accelerate investments in defense with a cash increase of more than $9 billion anticipated in fiscal year 2025 to 2026. These developments are positive indicators for continued investment in the national security space and defense budgets, both in the US and internationally, as we move into the second half of the year and beyond. and Redwire is well positioned to take advantage of these key trends. Please turn to slide 15. Turning to our contract awards and backlogs, our contract awards during the second quarter of 2025 were $90.6 million with a book to bill ratio of 1.47 times and backlog of $329.5 million as of June 30th, 2025. Both an improvement on a sequential basis and inclusive of the backlog from the acquisition of Edge Autonomy. As a reminder, we often see lumpy contract awards from quarter to quarter. However, we continue to see a strong and growing pipeline with an estimated $11 billion of identified opportunities across our space and airborne solutions including approximately $2.5 billion in proposals submitted year-to-date as of June 30, 2025, inclusive of the year-to-date bids submitted by Edge Autonomy. 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 these larger opportunities. Due to the success of our transformational investments building the Redwire platform, 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 Bailiff, Redwire's Chief Financial Officer, to discuss the financial results for the second quarter of 2025. Jonathan?