Redwire Corporation (RDW) Bundle
A Brief History of Redwire Corporation
Company Overview
Redwire Corporation, founded in 2020, specializes in space infrastructure and services. The company focuses on providing advanced technology solutions for both government and commercial space missions.
Recent Financial Performance
As of September 30, 2024, Redwire reported revenues of $68.6 million for the third quarter, marking a 10% increase from $62.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenues reached $234.5 million, up 30% from $180.3 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $68.6 million | $62.6 million | $234.5 million | $180.3 million |
| Cost of Sales | $56.6 million | $45.5 million | $194.7 million | $133.1 million |
| Gross Profit | $12.0 million | $17.1 million | $39.8 million | $47.2 million |
| Net Income (Loss) | $(20.96) million | $(6.33) million | $(47.14) million | $(19.05) million |
Operating Expenses
Redwire's selling, general and administrative (SG&A) expenses were $17.5 million in Q3 2024, compared to $18.3 million in Q3 2023. For the nine months, SG&A expenses totaled $53.0 million, slightly up from $52.0 million in the prior year. Transaction expenses surged to $5.1 million in Q3 2024, reflecting costs related to the Hera acquisition.
Research and Development
R&D expenses increased by 24% to $1.9 million for Q3 2024, driven by investments in avionics and power generation technologies.
Backlog and Future Contracts
As of September 30, 2024, Redwire's contracted backlog was $330.1 million, down from $372.8 million at the end of 2023. The decrease was attributed to revenue recognized during the period exceeding new contracts awarded. The book-to-bill ratio for the last twelve months was 1.25, down from 1.38 in the previous year.
Liquidity Position
Redwire had cash and cash equivalents of $43.1 million as of September 30, 2024, up from $10.9 million a year earlier. The company also reported $18.0 million in available borrowings from credit facilities.
Stock Performance
As of September 30, 2024, Redwire had 66,540,871 shares outstanding, with total equity (deficit) reported at $(96.4) million, indicating significant accumulated losses.
Conclusion of Financial Overview
Redwire Corporation continues to position itself as a key player in the space infrastructure sector, despite facing challenges related to profitability and market conditions.
A Who Owns Redwire Corporation (RDW)
Ownership Structure
As of 2024, Redwire Corporation (RDW) has a diverse ownership structure comprising institutional investors, private equity firms, and individual shareholders. The total number of shares outstanding as of September 30, 2024, is 66,540,871 shares.
Major Shareholders
| Shareholder | Type | Number of Shares | Percentage Ownership |
|---|---|---|---|
| AE Industrial Partners Fund II, LP | Private Equity | ~25,000,000 | ~37.5% |
| Bain Capital | Private Equity | ~15,000,000 | ~22.5% |
| Institutional Investors | Various | ~20,000,000 | ~30% |
| Individual Shareholders | Public | ~6,540,871 | ~10% |
Convertible Preferred Stock
Redwire Corporation has issued Series A Convertible Preferred Stock, with a total of 100,912.65 shares outstanding as of September 30, 2024. The liquidation preference of these shares is approximately $239.9 million.
Recent Financial Performance
For the nine months ended September 30, 2024, Redwire reported revenues of $234.5 million, a 30% increase from $180.3 million for the same period in 2023. The net loss attributable to common shareholders for the same period was approximately $63.3 million.
Institutional Ownership
Institutional ownership has been a significant aspect of Redwire's shareholder base, with major institutions holding a considerable number of shares. The following table outlines the largest institutional shareholders:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | ~5,000,000 | ~7.5% |
| The Vanguard Group, Inc. | ~4,500,000 | ~6.75% |
| State Street Corporation | ~3,500,000 | ~5.25% |
Recent Transactions
In 2024, Redwire engaged in multiple capital-raising activities, including the issuance of additional shares and convertible securities to bolster its financial position amid ongoing operational expansions.
Redwire Corporation (RDW) Mission Statement
Mission Overview
The mission statement of Redwire Corporation as of 2024 emphasizes advancing space infrastructure and enabling innovative solutions for the space economy. The company aims to leverage its expertise in satellite systems, space robotics, and other advanced technologies to support both commercial and government missions.
Financial Performance Indicators
In 2024, Redwire Corporation reported significant financial metrics that reflect its operational goals and strategic direction:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenues | $68.6 million | $62.6 million | +10% |
| Net Income (Loss) | $(20.96) million | $(6.25) million | -235% |
| Gross Profit | $12.02 million | $17.12 million | -30% |
| Operating Income (Loss) | $(12.51) million | $(2.72) million | -360% |
| SG&A Expenses | $17.52 million | $18.30 million | -4% |
| Research and Development Expenses | $1.89 million | $1.53 million | +24% |
Contract Backlog and Growth Potential
As of September 30, 2024, Redwire's contracted backlog was reported at $330.06 million, down from $372.79 million at the end of the previous year. The backlog reflects the expected future revenue from contracts that have been signed but not yet completed, indicating a focus on long-term growth despite short-term fluctuations.
| Backlog Type | Q3 2024 | Q4 2023 |
|---|---|---|
| Organic Backlog | $309.97 million | $372.79 million |
| Acquisition-Related Backlog | $20.10 million | $0 million | Total Contracted Backlog | $330.06 million | $372.79 million |
Market Position and Strategic Goals
Redwire Corporation is strategically positioned to capitalize on the growing demand for space services and infrastructure. The company’s mission is closely aligned with its operational goals, which include:
- Expanding its portfolio of innovative space systems.
- Enhancing capabilities in satellite technology and space robotics.
- Fostering partnerships with government and commercial entities to drive revenue growth.
Equity and Shareholder Information
As of September 30, 2024, Redwire had approximately 66.54 million shares outstanding, reflecting an increase in shares due to equity-based compensation and other factors. The company reported a total equity deficit of $(96.42) million, primarily due to accumulated losses.
| Shareholder Metrics | Value |
|---|---|
| Shares Outstanding | 66,540,871 |
| Total Equity (Deficit) | $(96.42) million |
| Weighted-Average Shares Outstanding | 66,529,288 |
| Net Loss Per Share | $(0.37) |
Conclusion
Redwire Corporation's mission statement and accompanying strategic framework illustrate the company’s commitment to advancing space technology and infrastructure, supported by its financial performance and market position. The focus on innovation and partnerships positions Redwire well for future growth in the evolving space economy.
How Redwire Corporation (RDW) Works
Business Overview
Redwire Corporation (RDW) operates in the space infrastructure sector, focusing on advanced satellite systems, space robotics, and other technologies supporting civil space, national security, and commercial applications. The company aims to enhance the capabilities of its customers through innovative solutions and strategic partnerships.
Financial Performance
For the three months ended September 30, 2024, Redwire reported revenues of $68.6 million, representing a 10% increase compared to $62.6 million for the same period in 2023. The nine-month results showed a revenue increase of 30% to $234.5 million from $180.3 million year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $68,638,000 | $62,612,000 | $234,541,000 | $180,315,000 |
| Cost of Sales | $56,615,000 | $45,495,000 | $194,709,000 | $133,077,000 |
| Gross Profit | $12,023,000 | $17,117,000 | $39,832,000 | $47,238,000 |
| Net Income (Loss) | $(20,959,000) | $(6,325,000) | $(47,142,000) | $(19,048,000) |
Cost Structure
The cost of sales for the third quarter of 2024 increased by 24% to $56.6 million from $45.5 million in the same quarter of 2023. This increase is attributed to higher labor, materials, and subcontractor costs. Gross profit margins decreased from 27% in Q3 2023 to 18% in Q3 2024 due to changes in contract mix and unfavorable estimates at completion (EAC) adjustments.
Operating Expenses
Operating expenses for Q3 2024 were reported at $24.5 million, which includes:
- Selling, General and Administrative (SG&A) Expenses: $17.5 million
- Transaction Expenses: $5.1 million
- Research and Development: $1.9 million
Backlog and Contractual Obligations
As of September 30, 2024, Redwire reported a contracted backlog of $330.1 million, a decrease from $372.8 million at the beginning of the period. This backlog includes firm funded executed contracts with remaining performance obligations.
| Backlog Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Organic Backlog Ending Balance | $309,965,000 | $372,790,000 |
| Acquisition-Related Backlog Ending Balance | $20,096,000 | $0 |
| Total Contracted Backlog | $330,061,000 | $372,790,000 |
Liquidity Position
As of September 30, 2024, Redwire had cash and cash equivalents totaling $27.8 million, with additional available borrowings of $18 million from existing credit facilities. The company also held $15.3 million in restricted cash.
Income Tax and Effective Tax Rate
The effective tax rate for Q3 2024 was reported at 2.2%, compared to 3.8% in Q3 2023. This decrease is primarily due to the mix of earnings between U.S. and foreign jurisdictions.
Market Segments and Revenue Breakdown
Redwire's revenues are diversified across several market segments, with the following breakdown for Q3 2024:
- Civil Space: $21.4 million
- National Security: $26.1 million
- Commercial and Other: $21.2 million
| Geographic Revenue Breakdown | Q3 2024 | Q3 2023 |
|---|---|---|
| U.S. | $41,290,000 | $47,138,000 |
| Europe | $27,334,000 | $15,468,000 |
| Other Regions | $14,000 | $6,000 |
Equity Structure
As of September 30, 2024, Redwire had 66,540,871 shares of common stock outstanding, with an additional treasury stock of 614,654 shares. The total equity showed a deficit of $(96,420,000) due to accumulated losses.
Convertible Preferred Stock
Redwire has issued Series A Convertible Preferred Stock, with a balance of 100,912.65 shares as of September 30, 2024, valued at $108.7 million. Dividends paid-in-kind amounted to $12.6 million for the quarter.
How Redwire Corporation (RDW) Makes Money
Revenue Sources
Redwire Corporation generates revenue primarily through contracts within the aerospace and defense sectors, focusing on space infrastructure solutions. For the three months ended September 30, 2024, the company reported revenues of $68.6 million, a 10% increase compared to $62.6 million for the same period in 2023 . For the nine months ended September 30, 2024, total revenues reached $234.5 million, up from $180.3 million in the previous year, marking a 30% increase .
| Period | Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | 68.6 | 10% |
| 9 Months 2024 | 234.5 | 30% |
Key Revenue Drivers
The increase in revenue is attributed to several key factors:
- Increased average contract size.
- Higher volume of production in power generation offerings.
- Expansion into new customer segments, including national security and commercial markets .
Cost Structure
Cost of sales for Q3 2024 was $56.6 million, reflecting a 24% increase from $45.5 million in Q3 2023 . This rise is primarily due to increased labor, materials, and subcontractor costs associated with larger contracts.
| Period | Cost of Sales (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | 56.6 | 24% |
| 9 Months 2024 | 194.7 | 46% |
Gross Profit and Margins
Redwire's gross profit for Q3 2024 was $12.0 million, resulting in a gross margin of 18%, down from 27% in Q3 2023. For the nine months ended September 30, 2024, gross profit decreased to $39.8 million, with a gross margin of 17% .
Operating Expenses
Operating expenses for Q3 2024 included:
- Selling, general and administrative (SG&A) expenses: $17.5 million, a decrease of 4% from $18.3 million in Q3 2023 .
- Transaction expenses: $5.1 million, a new expense category reflecting costs associated with acquisitions .
- Research and development (R&D): $1.9 million, an increase of 24% .
| Type of Expense | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| SG&A | 17.5 | 18.3 | -4% |
| Transaction Expenses | 5.1 | 0.0 | 100% |
| R&D | 1.9 | 1.5 | 24% |
Net Income (Loss)
For Q3 2024, Redwire recorded a net loss of $20.96 million, compared to a loss of $6.25 million in Q3 2023 . The nine-month results show a net loss of $47.14 million for 2024, worsening from a loss of $19.05 million in the same period of 2023 .
| Period | Net Income (Loss) (in millions) |
|---|---|
| Q3 2024 | (20.96) |
| 9 Months 2024 | (47.14) |
Backlog and Future Revenue Potential
As of September 30, 2024, Redwire's contracted backlog was valued at $330.1 million, a decrease from $372.8 million at the end of 2023 . The backlog includes both organic and acquisition-related contracts, indicating future revenue potential. Organic backlog decreased to $310 million from $372.8 million .
Key Performance Indicators
The book-to-bill ratio for Q3 2024 was 0.65, indicating that contracts awarded were less than revenue recorded, compared to a ratio of 0.74 in Q3 2023 . This metric is crucial for assessing the company's future growth potential.
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Resources:
- Redwire Corporation (RDW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Redwire Corporation (RDW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Redwire Corporation (RDW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.