Redwire shares fell 19.8% after earnings, with the likely concern being weak near-term revenue momentum: Q3 revenue grew just 5.4% year over year, and management said uneven milestones and deliveries shifted revenue timing. Record gross-margin expansion and backlog growth were positives, but do not offset the modest reported growth in the quarter.
- Q3 revenue was $109 million, up 5.4% year over year; management attributed timing variability to uneven milestones and deliveries.
- Gross margin increased to 32.3% from 16.3% a year earlier. Management said revenue timing coincided with increases in backlog, work in process, and finished goods.
- Book-to-bill was 1.73, and contracted backlog reached a record $619.7 million, marking six consecutive quarters of backlog growth.
- Total liquidity was $538.9 million against $47.8 million of debt. R&D expense rose 87.1% year over year to $14.4 million.
- New awards included a $20 million DARPA contract for SabreSat testing and a $15 million ELSA wings contract; ELSA has secured $27.8 million in contracts since its introduction.
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