Key Points
Redwire missed badly on earnings, but beat on sales last night.
The space company and drones manufacturer is bringing in orders 50% faster than it can fulfill them.
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Redwire Corporation (NYSE: RDW) stock, the space infrastructure company that has transformed itself into a military drones stock as well, soared 10.8% through 11:45 a.m. ET Thursday after reporting mixed earnings results for Q4 2025 last night.
Analysts weren't optimistic about Redwire heading into the report, expecting a $0.18-per-share loss on sales of only $98.8 million. In fact, Redwire lost $0.58 per share -- three times as bad as feared. Redwire's sales exceeded expectations, however, coming in at a strong $108.8 million.
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And that seems to have been good enough for investors.
Image source: Getty Images.
Redwire Q4 earnings
How did Redwire surprise the analysts? Redwire experienced an "acceleration in contract awards during the fourth quarter of 2025," says CEO Peter Cannito. The company won a $44 million "Otter mission" contract from DARPA, for example, using Redwire's SabreSat to demonstrate the concept of air-breathing satellites orbiting at very low altitudes, at the same time as its drones division expanded shipments of Stalker/Penguin UAVs to customers in seven separate countries.
Sales surged 56% in the quarter as a result. Full-year sales grew 10% to $335.4 million.
What's more, sales growth may be accelerating. Redwire says its book-to-bill ratio, which foreshadows future sales growth, ran up past 1.3x in 2025, and surged past 1.5x in Q4 in particular. And as for the loss ($85.5 million for the quarter and $226.6 million for the year), Redwire dismissed those as largely attributable to "non-recurring activity."
Is Redwire stock a buy?
Redwire anticipates 2026 sales of between $450 million and $500 million -- 42% growth at the midpoint. Redwire will probably still lose money and burn cash; analysts don't see that changing before 2027 at the earliest.
But with sales accelerating, Redwire's clearly on the right path here.
Should you buy stock in Redwire right now?
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Redwire. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
