Redwire Corporation

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 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 Corotolo, Redwire's 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 first quarter of 2026, after which Chris will present the financial highlights for the same period and discuss our outlook for the remainder of 2026. We will then open the call for Q&A. Please turn to slide six. During the first quarter of 2026, Redwire saw strong demand across our differentiated products. During the quarter, Redwire achieved a strong book-to-bill ratio of 1.92, and as a result, ended the quarter with record contracted backlog of $498.1 million, providing confidence in our forecast as we move further into 2026. We sharpened our operational performance and portfolio management, resulting in sequential and year-over-year improvement in gross margin, moving from 9.6% in Q4 2025 and 14.7% in Q1 2025 up to 26.6% in Q1 2026. And finally, we accelerated investing in large procurement opportunities across our portfolio, such as Andromeda, the Commercial Lunar Payload Services Program, or QLPS, the Quantum Key Distribution Satellite, often referred to as QKDSAT, and the Army's Long Range Reconnaissance Program for Group 2 Unmanned Aerial Systems, or LRR. Each of these programs has significant growth potential and are gaining momentum. To summarize the quarter, we return to strong growth in areas with better gross margins, and therefore we will continue to invest in our highest potential opportunities where we are well positioned with differentiated capabilities. Please turn to slide seven. Next, I would like to briefly touch on a highlight or two from the first quarter for each of our five value drivers to underscore our continued value creation in each area. We will start with our space segment, which encompasses next generation spacecraft, large space infrastructure, and microgravity development, and then turn to our defense tech segment, which encompasses combat proven UAS and sensors and payloads. Please turn to slide eight. In Q1, Redwire achieved a significant milestone in our spacecraft strategy as we continued to move up the value chain in the space segment. In April, we were selected as one of 14 vendors out of a total of 32 bids on the Space Systems Command $1.8 billion 10-year Andromeda Indefinite Delivery, Indefinite Quantity, or IDIQ contract. And earlier this week, Space Systems Command provided a notice of its intent to raise the total shared ceiling for the Andromeda IDIQ to more than $6 billion to meet increased demand. The Andromeda contract vehicle is focused on rapidly fielding proliferated space domain awareness capabilities in geosynchronous orbits. We see this as a proof point for the success of our moving up the value chain strategy and further validation that we are strategically positioned as a trusted prime contractor on next generation spacecraft. We now have 10 years in a limited competition pool to monetize this multi-billion dollar contract as we invest in our Mako next generation maneuverable, refuelable, autonomous spacecraft in GEO. Please turn to slide nine. During the first quarter, Redwire was awarded a contract to continue development on a quantum-secure satellite under ESA's QKDSAT program. For QKDSAT, Redwire will manufacture and deliver its European-built Hammerhead spacecraft, equipped with a quantum key distribution payload and Redwire's proprietary ADPMS-3 suite of avionics. leveraging our experience in spacecraft development and avionics in support of this critical program. This program has the potential to grow into a constellation-sized opportunity. During the period, Redwire was also awarded a prime contract for the Belgian Ministry of Defense to build and deliver Belgium's first national security satellite to provide secure, resilient, and independent access to critical space-based services in support of national defense priorities. We see this as an early entry point in European space-based defense capabilities, as the trend towards increased organic European investment in both space and defense gains significant momentum, and Redwire is seen as a trusted partner. Please turn to slide 10. Turning to large space infrastructure, you may remember that on our last earnings call, I introduced ELSA, our new high performance, low mass solar array for high quantity constellations of small sets. I am proud to say that during the first quarter, Redwire made its first sale of this new product with a $12.8 million contract to deliver ELSA solar arrays to Moab. These ELSA arrays will be integrated with MOBE's Meteor Satellite Buzz in support of a low Earth orbit mission for an undisclosed national security customer, and have also been baselined as a standard component for the Meteor line of spacecraft. With the introduction of ELSA, our power product portfolio now spans the total addressable market from large constellations in LEO to the lunar surface and beyond. Please turn to slide 11. Turning to our microgravity development value driver. During the quarter, Redwire received an additional $4 million from NASA to support drug development investigations on the International Space Station using Redwire's proven pharmaceutical manufacturing solution, Pillbox. This additional funding expands an existing task order under a $25 million five-year IDIQ through NASA's In-Space Productions Applications, or INSPPA, program. During the quarter, Redwire's pillbox also supported a cancer therapy investigation led by Aspero Biomedicines that launched aboard the Crew-12 mission. NASA sees the groundbreaking potential and continues to invest in Pillbox. And by supporting partners like Aspera, Redwire is helping to usher in a new era of biotechnology where microgravity is used to unlock insights that can improve treatments for some of the world's most challenging diseases. Please turn to slide 12. Turning next to our Combat Proven UAS Value Driver, which falls within our Defense Tech segment. During the quarter, Redwire was awarded more than $20 million in follow-on purchase orders to deliver standard and advanced navigation stalker systems supporting the Navy and Marine Corps' Small UAS Program Management Office. This award, in support of the long-range tactical program of record, encompasses the Marine Corps' first acquisition of the advanced navigation version of Stalker Block 30. These new systems will join the approximately 250 existing Stalker aircraft already fielded by the Marine Corps as our trusted, combat-proven platform continues to scale for the most demanding customers. This is not a demonstration. This is not an experiment. This is scaling a field-proven capability. Please turn to slide 13. In addition, during the first quarter, S.T.A.L.K.E.R. continued integration efforts with the U.S. Army's Next Generation Command and Control, or NGC-2, tactical network during the Ivy Sting exercises, further integrating the platform into the U.S. Army's future concepts of operations. Continued integration is expected at upcoming events to enhance situational awareness and decision making across the battlefield. S.T.A.L.K.E.R. was the only fixed-wing VTOL to support this exercise, underscoring the criticality of our S.T.A.L.K.E.R. as a platform for the warfighter. Please turn to slide 14. Lastly, moving to our sensors and payloads value driver. Building on the extensive heritage of our avionics and sensor products, on April 1st, Redwire's advanced imaging and navigation technology launched aboard NASA's Artemis II mission, the first crewed mission for the Artemis program. Through these images, everyone here on Earth was able to take part in Artemis II's historic journey of discovery. Once again, Redwire is proud to be a trusted partner on the most important missions on and off Earth. Please turn to slide 15. As part of our transformation over the last two years, both moving up the value chain and expanding into multi-domain technologies, Redwire has become very well positioned at the ground floor of some emerging opportunities with asymmetric upside potential. As a result, we have begun to ramp investment with a more than $10 million increase in research and development expense during the first quarter on a year-over-year basis. We are in quality growth mode. In Q1, we demonstrated the ability to grow while simultaneously increasing our gross margin. This is the focus. Therefore, as you can see from this slide, net of discretionary IRAD spending, we would have had positive adjusted EBITDA for the quarter. We are currently investing in quality growth. As to where we plan to invest, we are specifically increasing investment in six critical opportunities with outsized potential, most of which we have already spoken about today. These opportunities include VLEO in the United States and Europe with our SaberSat and Phantom spacecraft, QKDSat for a quantum secure constellation, maneuverable refuelable geospacecraft for programs like Andromeda, lunar infrastructure, including such opportunities as a lunar power grid and future CLPS lunar lander missions, SpaceMD, including pillbox and bioprinting. And finally, our next generation Stalker Block 40 and Penguin Mark III aircraft. These are investments to strengthen our positioning, supported by identified opportunities with existing customers. Please turn to slide 16. 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 first quarter of 2026. Thank you, Pete.

Before turning to slide 17, I want to highlight this incredible image of the Orion capsule with a lunar eclipse taken by a Redwire camera during the Artemis II mission. Now let's turn to the financial results. Please turn to slide 17. During the first quarter, in line with our expectations, we reported total revenue of $97 million, a 57.9% increase on a quarterly, year-over-year basis. Our space segment recorded revenue of $52.7 million, and our defense tech segment recorded revenue of $44.3 million. I would note that the contributions from the acquisition of Edge Autonomy were the primary driver behind the significant increase for Defense Tech on a quarterly, year-over-year basis. With more than $350 million in bookings during the last two quarters, we expect our revenue to build as we move through 2026. Please turn to slide 18. As we mentioned on our year-end earnings call, gross margin improvement is a significant focus area for Redwire, and I'm pleased to report that in line with our expectations, we achieved gross margin of 26.6% during the quarter, representing an 11.9 point improvement on a year-over-year basis and a 17 point improvement on a sequential basis. Our first quarter of 2026 net loss was 76.5 million, which was impacted by more than 44 million in non-recurring activity, 42.5 million of which was the non-cash, non-dilutive impact from the accelerated vesting of the equity incentive units assumed through the edge autonomy acquisition. Our first quarter adjusted EBITDA was negative 9.2 million, a decrease on a year-over-year basis, but a sequential increase. Notably, The unfavorable impact from net EACs decreased to 1.1 million during the first quarter, a marked improvement. We are proud of the progress we've made. Cost control and program execution remain a key focus. Finally, RedRyre remains highly focused on capital allocation. Based on the signals we are receiving from the market and our customers, We have significantly increased our internal research and development investment from under $1 million in Q1 2025 to $12.6 million in Q1 2026. We see this investment as accelerating the maturation of our products and solutions to meet current demand, like the recent $1.8 billion Andromeda IDIQ. Please turn to slide 19. Turning next to a discussion of liquidity and capital structure, we ended the first quarter of 2026 with record total liquidity of $175.2 million, comprised of $145.2 million of cash, cash equivalents and restricted cash, and $30 million in undrawn revolver capacity, a significant year-over-year improvement. Redwire saw a meaningful reduction in net cash used in operating activity on both a sequential and a year-over-year basis to $6.7 million. This improvement is largely related to improvement in gross margin, disciplined cost control, and positive working capital contribution. With improvement in quarterly free cash flow of more than $36 million on a year-over-year basis and $17 million on a sequential basis, we have reduced our cash burn. As mentioned on our previous call, during the first quarter, the company amended its credit agreement, extending the maturity to May 2029 and lowering the interest spread from SOFR plus 700 to SOFR plus 375, resulting in an annualized interest savings of approximately $3 million. contributing to a total estimated annual interest savings of more than $17 billion from delevering and refinancing activities completed in 2025 and the first quarter of 2026. Finally, we remain committed to a disciplined approach to responsibly fund growth initiatives like those Pete spoke about earlier. With scalable opportunities for investment, We've entered into another at-the-market or ATM program to allow us to opportunistically fund emerging technologies across our portfolio. We are investing in quality growth. Please turn to slide 20. During the first quarter, we saw a continuation of the positive trend in contracts awarded, with bookings of $186.5 million, a significant increase on both the year-over-year and sequential basis. resulting in a book-to-bill ratio for the quarter of 1.92, with a book-to-bill ratio of 1.54 on a last 12 months basis. Turning to bookings by segment, space bookings were 114.6 million, driven by strong demand for power solutions, including the first sale of ELSA and an approximate $50 million follow-on production order for RosaWings. Defense Tech bookings were $72 million, driven by demand for our Stalker and Penguin aircraft. Turning to backlog, we once again saw strong growth in the metric as backlog increased by 21.1% on a sequential basis and 71.1% on a year-over-year basis to a record $498.1 million. As of March 31st, 2026, space backlog was 359.7 million and defense tech backlog was 138.4 million. As a reminder, the majority of defense tech revenue is recognized at a point in time, whereas in our space segment, the majority of revenue is recognized over time, driving different backlog profiles. With further line of sight into 2026, we remain pleased with the continued positive change in our trend line of contracts awarded and believe our pipeline of new opportunities across space and defense tech around the globe remains strong, bolstering our confidence and continued growth through the year. Please turn to slide 21 for a brief discussion of the outlook for the remainder of 2026. Having achieved first quarter revenue in line with our expectations, plus another quarter of acceleration in our contracts awarded, confidence provided by our record backlog of 498.1 million and a supportive macro environment, we are reaffirming our full year 2026 revenue forecast in the range of 450 to 500 million, which represents 41.6% year-over-year growth at the midpoint. With more than $350 million in bookings during the last two quarters, we expect our revenue to build as we move through 2026. With that, please turn to slide 22, and I'll now turn the call back over to Pete.