Redwire Corporation

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

Good morning, and thank you, Diego. Welcome to Redwire's third 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 slides two and three. Additionally, to the extent we discuss non-GAAP measures during the call, please see slide three, 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 Curitolo, Redwire's Senior Director of Investor Relations. Joining me on today's call are Peter Conito, Redwire's Chairman and Chief Executive Officer, Jonathan Bailiff, Redwire's Chief Financial Officer, and Chris Edmunds, Redwire's Chief Accounting Officer and incoming Chief Financial Officer, effective December 1st, 2025. 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 third quarter of 2025. Chris, our incoming chief financial officer, will then present the financial highlights for the same period and discuss our 2026 outlook, after which we will open the call for Q&A. Please turn to slide five. Now that we have a full quarter of performance from the combination of Redwire Space and Edge Autonomy, I would like to continue to emphasize the major transformation underway at Redwire. As you will see in our accomplishments and results, the technical, operational, and financial positioning of our platform has been significantly enhanced. As part of this transformation, I am excited to introduce our updated vision statement, reflecting Redwire as an integrated space and defense tech company. At Redwire, our expanded vision is to pioneer next-generation space and defense technologies that empower scientific discovery, advance global industries, and strengthen security, transforming how humanity explores, connects, and protects from the skies above to the stars beyond. Let's now turn to a discussion of highlights from the third quarter of 2025. Please turn to slide seven. As you can see from the highlights on this slide, the impact of our transformation, including the acquisition of Edge Autonomy, was accretive to our financial performance. During third quarter of 2025, we increased our adjusted gross margin to 27.1% in the third quarter. We also saw sequential improvement of $24.8 million in our adjusted EBITDA. Additionally, we recorded significant revenue growth of 67.5% sequentially and 50.7% year-over-year to revenues of $103.4 million during the third quarter. We continue to scale aggressively. From a growth perspective, we closed a number of key strategic opportunities, adding to our backlog by achieving a book-to-bill ratio of 1.25, resulting in backlog of $355.6 million as of September 30, 2025. We are greatly encouraged by our growth reflected in our strong book-to-bill in Q3 based on strong customer demand for our differentiated products. However, looking forward, we anticipate some issues with near-term timing of awards in Q4 resulting from the ongoing U.S. government shutdown. In particular, we have seen delays in the U.S. Army's long-range reconnaissance and similar UAS programs, as well as a slow start to Golden Dome. We've ramped production capability to meet these needs, but have not yet seen awards begin to flow. Therefore, we anticipate the diminished government staff and resulting delay in contracting activity is likely to push a number of our anticipated awards out of the quarter. Notably, however, we do not see a decrease in demand, but rather a temporary near-term timing impact that supports a strong 2026 as the government returns to full strength. Please turn to slide eight. As Redwire nears completion of its transformation, expanding from exclusively space subsystems and components to becoming a highly scalable space and defense technology platform, I'd like to reorient investors to our five primary value-driving product areas. These value drivers represent the product areas where Redwire has differentiated intellectual property, first-mover advantage and recognize thought leadership in rapidly growing domains with sizable total addressable markets. They are differentiated next-gen spacecraft, particularly in VLEO and GEO like Sabersat, Phantom, and Mako, and others that support next-generation capabilities such as high-fidelity Earth observation, quantum key distribution, in-space refueling, AI imaging, and maneuverability. Large space infrastructure, specifically our rollout solar arrays and international birthing and docking mechanisms, where we provide building blocks for critical space infrastructure like space stations and moon-to-Mars exploration. Microgravity development, where we are a global leader with decades of heritage and hundreds of experiments flown in the areas of biotechnology and advanced materials and manufacturing. Combat-proven UAS, namely the Stalker and Penguin series, where we supply combat-proven autonomous UAS built in the United States and Europe to warfighters in the most challenging battlefield environments. And finally, sensors and payloads, such as optics and radio frequency systems, where we support multi-domain missions ranging from airborne ISR to Artemis and the historic commercial moon landings. To underscore our strategic positioning in each area, I will share a brief description of the differentiators, a highlight or two from the third quarter, as well as examples of future growth targets as we move towards 2026. Please turn to slide nine. Starting with next-gen spacecraft, Redwire's key differentiators are that we have existing funded customers classified personnel and facilities, and a first-mover advantage in VLEO, geo-in-space refueling, and quantum-secure satellites. During Q3, Redwire announced that we have reached an agreement with Thales Alenia Space to become the prime contractor for ESA's SKIMSAT mission, a technology demonstration mission for a spacecraft designed to operate in VLEO. The SCIMSAT mission leverages Redwire's Phantom spacecraft, an advanced European VLEO platform out of our Belgian facility. With this prime ship, we further establish ourselves as a global leader in VLEO capabilities. In addition, we signed an MOU with Honeywell during the quarter for QKDSAT. Under this ESA public-private partnership, we aim to combine Redwire's quantum platform technology with with Honeywell's quantum optical payload as we build towards a QKD constellation. As we look for further growth opportunities, VLEO is a relatively untapped orbit with no dominant provider. Redwire is now executing on two prime contracts in VLEO, DARPA's Otter program in the U.S., and ESA's SKIMSAT mission in Europe. And these funded contracts position us as an early mover and market leader in this exciting orbit. We are leveraging this funded development to position VLEO for Golden Dome and growing European defense spending. In the future, we are targeting opportunities with the intelligence community, Air Force Research Lab, or AFRL, most notably our current TETRA program, Space Force, as well as additional phases for DeepSat and expanding our Honeywell partnership for QKDSat as just a few examples. Please turn to slide 10. Another key value driver is our large space infrastructure, where we are differentiated as a key supplier for products like ROSA and IBDM on funded contracts from customers with significant heritage and protected IP, such as our rollout design. Our unmatched heritage with ROSA on the ISS continues to translate into follow-on orders from customers that need a proven solution. During the quarter, Redwire was awarded a contract to develop and deliver rollout solar arrays, or ROSA wings, for Axiom's commercial space station. Power is critical to a sustained presence in low-Earth orbit, and another commercial station provider selecting ROSA further underscores our strong positioning in this key capability. Building on Redwire's heritage from the ISS, DART, Blue Origins Blue Ring, Thales Alenia Space Geosatellites, the power and propulsion element of Gateway, and now Axiom's commercial space station, Redwire is pursuing numerous follow-on opportunities to scale with our existing customers as their businesses grow. Additionally, we are aggressively pursuing orders for large space infrastructure, such as ROSA and IBDM, for other commercial space stations, as well as other power-intensive spacecraft programs and moon-to-Mars infrastructure like Artemis. Please turn to slide 11. With hundreds of microgravity experiments conducted, proven IP like Pillbox, and existing funded commercial, governmental, and international customers, Redwire is at the forefront of microgravity development. We are decades ahead of many of our competitors. During the third quarter, Redwire launched 14 Pillboxes, studying 18 molecules to the International Space Station with three different partners, Bristol-Myers Squibb, Butler University, and Purdue University. These pillboxes are expected to return to Earth in the coming months. With these, Redwire has now flown a total of 42 pillboxes studying 35 unique molecules as of the end of the third quarter. adding to our extensive heritage in pharmaceutical development on orbit. In terms of future growth, we see the potential impact is extraordinary. PhRMA has less than a 10% success rate from phase one trials to approval and a fast approaching patent cliff that threatens approximately $350 billion in annual worldwide revenue from drugs losing exclusivity through 2030. We see Redwire's pharmaceutical development on orbit as offering a potential solution to these challenges, as we will take advantage of the unique microgravity environment in space to grow seed crystals using Redwire's flight-proven pillbox technology. Our subsidiary, SpaceMD, will then sell or license these seed crystals to companies that can use them to create reformulated versions of existing drugs or entirely new therapeutics. We have a template for these commercial agreements and many successes with key partners in the biotech community to build on. Please turn to slide 12. Next, let's turn to our combat proven UAS. First, I'd like to take a moment to discuss a few key differentiators of the Stalker. The Stalker is a combat proven UAS that is built on nearly 20 years of heritage. with more than 300,000 flight hours, including in highly contested and harsh environments. The stalker is silent, enabling covert surveillance and reconnaissance and minimizing detectability in contested or civilian-sensitive environments. The stalker is also payload agnostic. More than 30 different third-party payloads have been integrated via our modular open systems approach, which enables plug-and-play integration. And finally, the Stalker Block 40 offers extended endurance of more than 18 hours, critical for long-range operations. We also have significant heritage with our Penguin series, built in Riga, Latvia, having delivered more than 200 Penguin aircraft to the Ukraine Armed Forces. European defense spending is growing rapidly, and we are one of a few European-based suppliers with proven performance on the battlefield. During the quarter, we were awarded and delivered Stalkers for the prototype phase agreement of the U.S. Army's Long Range Reconnaissance, or LRR, program. The Stalker has previously been selected for two programs of record, the U.S. Marine Corps' Long Range Long Endurance and the U.K. Ministry of Defense's Tequila program. In total, during the third quarter, we shipped Stalker aircraft to eight different end customers in the United States and other allied countries, showing the global demand for the combat proven STALKER platform. Clearly STALKER is broadly fielded for a variety of mission sets with multiple countries and U.S. military branches based on our differentiated capabilities. From unleashing American drone dominance in the U.S. to the European Drone Defense Initiative, the demand signal is strong. With existing production facilities and a broad customer base, we are targeting future growth globally. Redwire is ready with production capacity and fielded aircraft to deliver on key programs like LRR as we move into 2026. Please turn to slide 13. Finally, moving to sensors and payloads. Redwire has decades of heritage, having delivered thousands of space-based sensors and payloads, including antennas, sun sensors, star trackers, and cameras for some of the most high-profile missions. Redwire now also has significant heritage with UAS sensors and payloads, having delivered more than 400 Octopus gimbals to the Ukraine Armed Forces, for example. These gimbals are compatible with a wide variety of UAS platforms. These are not just for Stalker and Penguin. We are selling these systems to other platform providers. During the quarter, Redwire announced a partnership with REDCAT to integrate their Black Widow small UAS onto the Stalker to support UAS Army echelon missions. The Black Widow, which was selected by the Army for its short-range reconnaissance Tranche 2 program, can be mounted under the center wing of the Stalker as a deployable payload. By integrating best-of-breed short- and long-range reconnaissance systems, this partnership will provide warfighters on the front lines with great mission reach and reliable data for effective decision-making. Stalker and Gimbals are already integrated with controllers such as ATAK and CUDA technologies. And after Q3, we announced an MOU with UXV technologies to enhance controller interoperability and align with the EU's ambitions to strengthen its defense industrial base through cross-border industrial cooperation. As we look forward, we see significant growth opportunities for airborne and space-based sensors and payloads. The UAS EOIR sensor market segment is forecasted to grow from approximately $1.6 billion in FY23 to approximately $4.8 billion in FY32, a 12.9% CAGR. Redwire targets future growth both with the U.S. government and other key OEMs around the world for these products. In space, the proliferation of satellites is expected to continue, with an estimated 70,000 satellites expected to be launched over the next five years. Further, as capabilities like space situational awareness and airborne ISR become increasingly important, Redwire is positioned for continued growth in this area. Please turn to slide 14. Although in the near term we've seen delays from the U.S. government shutdown, which is likely to push keywords into next year, our pipeline of opportunities remains very strong. And we saw a positive trend in contracts awarded during the third quarter as compared with the first half of 2025. Our contract awards during the third quarter of 2025 almost tripled year over year to $129.8 million with a book-to-bill ratio of 1.25 times. improving backlog to $355.6 million, including contracted backlog from international operations of $128.7 million, or 36% of total backlog. As a reminder, we often see lumpy contract awards from quarter to quarter. However, we continue to see a strong pipeline with an estimated $10 billion of identified opportunities across our space and airborne solutions. including approximately $3 billion in proposals submitted year-to-date as of September 30, 2025, inclusive of the year-to-date bids submitted by Edge Autonomy. Although the U.S. government shutdown is likely to delay timing of Q4 awards into 2026, with key wins during the third quarter and in the intervening weeks, We are pleased with the positive change in our trend line for contracts awarded and believe our pipeline of new opportunities is very strong, positioning us for continued growth for the next 12 months and beyond. Please turn to slide 15. With that, I'd now like to turn the call over to Chris Edmonds, Redwire's Chief Accounting Officer. As previously announced, Chris will succeed Jonathan Bailiff to become our Chief Financial Officer effective December 1, 2025. Chris brings deep knowledge of our business and significant finance and accounting expertise, and I look forward to working with him in his new role. Chris will now discuss the financial results for the third quarter of 2025. Chris?