Redwire Corporation

Greetings and welcome to the Redwire Corporation full year and fourth 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce Alex Curatolo, Senior Director of Investor Relations, Thank you.

You may begin. And thank you, Diego. Welcome to Redwire's full year and fourth 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 2 and 3. Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide 3 in the appendix, 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 Senior Director of Investor Relations. Joining me on today's call are Peter Conito, Redwire's Chairman and Chief Executive Officer, and Chris Edmonds, 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 full year and fourth quarter of 2025, after which Chris will present the financial highlights for the same period and discuss our 2026 outlook. We will then open the call for Q&A. Please turn to slide six. In 2025, Redwire transformed from a pure play space provider to an agile, scaled, multi-domain space and defense tech company. We closed our transformational acquisition of Edge Autonomy in June 2025 and have been successfully executing on our integration plan to include the full assumption of Edge Autonomy into the Redwire brand. During 2025, Redwire moved up the value chain with five spacecraft platforms and multiple prime contracts in the U.S. and Europe, and two mature combat-proven airborne platforms. We expanded our customer base to more than 170 civil, national security, and commercial space and defense tech customers, emphasizing our breadth and diversity. We added approximately 660 employees for an ending headcount of approximately 1,410 employees around the globe. We ended 2025 with record contracted backlog of $411.2 million, supported by strong bookings and a 1.52 book to bill in the fourth quarter, providing confidence as we move into 2026. And finally, as Chris will talk about in additional detail, strengthened our balance sheet and simplified our capital structure, ending with record year-end total liquidity of $130.2 million. Please turn to slide seven. The result of this major transformation in 2025 is a more balanced portfolio of differentiated products that position Redwire for considerable scaling in 2026 and beyond. At the core of this transformation is the maturation of our product portfolio from predominantly new development programs to a balanced portfolio that includes mature programs that are scaling into production. As you can see on the chart on slide seven, in 2021 when Redwire first went public, the vast majority of our products, almost 75% in fact, were in the development phase with just a few products moving to limited production in small quantities. During this early phase of our growth, we were primarily focused on penetrating the space market with new development programs. what we often refer to as planting seeds or gaining toeholds. This was deliberate as we were establishing ourselves in a nascent space market that required new solutions and capabilities that hadn't been invented yet. At this point in our evolution, this new development often emphasized market share over gross margin and larger exposure to development risk. Moving forward in time to the present, However, through a number of organic and inorganic strategic investments, we have now matured our product mix to a balanced portfolio of development and production programs. The impact of this transformation to our future growth is often underappreciated and cannot be overstated. At the end of 2025, we now estimate estimate that over two thirds of our revenue is moving into production with a large portion of our UAS portfolio entering higher margin, full rate production. This is a very different red wire than five years ago. As we look forward to 2026, our portfolio is evolving to a more balanced risk, balanced mix of risk with opportunities for gross margin improvement. Make no mistake, we still plan to invest heavily in advancing critical technologies with high growth potential, such as VLEO, refuelable geo, quantum satellites, and our stalker Block 40 UAS. But these growth investments are now supported by a broader portfolio and a proven framework for maturing our capabilities into production. Please turn to slide eight. As part of this ongoing transformation, in January, we announced that going forward, Redwire will be organized into two business segments, space and defense tech. These segments map to the five primary value drivers I described on our last earnings call, representing the product areas where Redwire has differentiated intellectual property, first mover advantage, and recognized thought leadership in rapidly growing domains with sizable total addressable markets. Our space segment encompasses the next generation spacecraft, large space infrastructure, and microgravity development value drivers, and focuses on delivering for civil, national security, and commercial space customers. Our defense tech segment encompasses the combat-proven UAS and sensors and payloads value drivers and focuses on systems, sensors, and payloads that provide intelligence, surveillance, and reconnaissance capabilities for U.S. and allied warfighters across multiple domains. Notably, this segment not only includes the operations from our acquisition of Edge Autonomy, but also space-based sensors and payloads such as avionics, cameras, and RF systems. We believe this new structure will enable us to maintain strong positioning and continue our growth trajectory across both established and rapidly emerging domains, as well as provide greater visibility into our unique positioning in space and defense. Next, I would like to briefly touch on a highlight or two from the fourth quarter for each of our five value drivers. Please turn to slide nine. Starting with next-gen spacecraft, during the fourth quarter, Redwire was awarded a $44 million Phase II award to advance DARPA's Otter program. Otter leverages the design of Redwire's Sabersat platform, and this Phase II contract provides us funding to complete manufacturing and deliver the spacecraft to launch. Through our work with DARPA, we are strengthening our leadership in this critical domain and accelerating the development of cutting-edge capabilities that will define the future of VLEO. Please turn to slide 10. During the fourth quarter, Redwire successfully completed integration of 10 payloads for the European Space Agency's SINDEO-3 satellite mission. marking a major milestone as it readies for launch in Q4 2026. The spacecraft is built with our highly versatile Hammerhead LEO spacecraft platform, which has logged 50 years of on-orbit performance. This mission aims to accelerate the development of new technologies and stimulate the European space ecosystem. As the prime contractor, Redwire is proud to lead these efforts. Please turn to slide 11. Turning to large space infrastructure, today I am proud to introduce our extensible low-profile solar array, or ELSA. Building on the experience, technical expertise, and success of our flight-proven ROSA product, ELSA is an innovative, high-performance, low-mass power solution that leverages the flexible substrate technology of ROSA in a smaller form factor. Whereas ROSA is our leading flexible array solution for large spacecraft or space stations, such as Blue Ring and the ISS, ELSA is our equivalent for high quantity constellations of small satellites and provides 50% more power by volume than our traditional solar arrays of equivalent size. ELSA is engineered for volume production and offers a step change improvement in modular, scalable design and rapid turnarounds to drive down costs and improve delivery times. We look forward to announcing key ELSA contract awards in the near future as the industry recognizes the benefits and performance of this new product line. Please turn to slide 12. Also under our Large Space Infrastructure Value Driver, during the fourth quarter, Redwire was awarded an eight-figure contract by the Exploration Company to provide two International Birthing and Docking Mechanisms, or IBDMs, developed in Belgium for their flagship spacecraft, Nix. This agreement marks a significant step in supporting Europe's burgeoning commercial space sector and follows an IBDM award from Thalassolina Space we announced earlier in the year. This is an exciting example of how our investment in birthing and docking product development is now expanding into new opportunities for production. Please turn to slide 13. Turning to our microgravity development value driver, during the quarter, Redwire was selected for a second contract supporting Aspero Biomedicine's research into a cancer kill switch. Aspera is revolutionizing oncology and regenerative medicine, and Redwire was proud to have once again been selected as a trusted implementation partner. Under this follow-on contract, Aspera's second set of on-orbit experiments will use Redwire's pillbox hardware to further understand the crystal structure of ADAR1P150 with the goal of creating better cancer drugs that improve patient outcomes here on Earth. Please turn to slide 14. Let's turn now to our Combat Proving UAS Value Driver, which falls within our Defense Tech segment. During the quarter, U.S. Army soldiers began training with Red Wire Stalker UAS, representing the first time in years that a new Group 2 UAS was used in support of a U.S. Army course at Fort Rucker in Alabama. As a mature combat proven commercial technology that is built using a modular open systems approach, Stalker allows for easy integration with third party technologies and this flexibility drew attention during the training demos. This further reinforces that Stalker is seen by the U.S. Army as a critical part of their force design for long range reconnaissance training and operations. Please turn to slide 15. In addition, during the fourth quarter, we announced the grand opening of our new 85,000-square-foot facility in Ann Arbor, Michigan, to increase production of fuel cells. Our fuel cells are a key differentiator for our stalker aircraft, allowing for extended range and endurance, silent operations, and easily sourced fuels. This is another great example of our shift from predominantly development to full production capacity in our portfolio. This new facility provides us the ability to scale production as the U.S. Department of War executes on its drone dominance strategy. Please turn to slide 16. Lastly, moving to our sensors and payload value driver. During the quarter, Redwire received an award for Penguin CVTOL aircraft and Octopus gimbal camera payloads for the Croatian Border Patrol. Funded under the European Border and Coast Guard Agency, or Frontex, This award builds on successful border deployments around the world, and Redwire is proud to have been chosen again to provide these key technologies that are especially effective for border security and European defense initiatives. Please turn to slide 17. With that, I'd now like to turn the call over to Chris Edmonds, Redwire's Chief Financial Officer, to discuss the financial results for the fourth quarter of 2025. Chris? Thank you, Pete.