Redwire Corporation (RDW) reported a significantly widened loss in its Q2 2025 results in after hours trading yesterday. Despite announcing a promising new defense contract with the U.S. Army, shares of RDW plunged over 30% today.
The aerospace and defense tech company posted a Q2 net loss of $97.0 million, a sharp deterioration from a $18.1 million loss in the same quarter last year. Adjusted EBITDA fell to negative $27.4 million, and revenue dropped 21% year-over-year to $61.8 million, driven in part by execution challenges and cost overruns tied to complex RF systems programs.
The poor results were compounded by more than $90 million in non-recurring and transaction-related expenses, including $29.6 million in equity-based compensation and $25.2 million in unfavorable EAC adjustments. The company’s free cash flow fell to negative $93.5 million for the quarter.
Still, Redwire did secure a strategic win. Its subsidiary, Edge Autonomy, was awarded a prototype phase contract under the U.S. Army’s Long Range Reconnaissance (LRR) program. The award tasks Redwire with delivering its Stalker uncrewed aerial systems, designed with modular payloads and autonomous mobility features for surveillance in contested environments.
This development adds to Redwire’s growing defense portfolio following its recent acquisition of Edge Autonomy in June. The company is now positioning itself as a multi-domain technology provider, spanning space infrastructure and military-grade autonomous platforms.
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