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Merlintrader Trading Pub
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Nov 5, 2026, 7:00 AM ET
Redwire Awarded $20 Million Contract for Additional Otter VLEO Testing and Experimentation
NYSE: $RDWDefense / space infrastructureBacklog conversionContract and cash-flow risk
RDW Stock Hub: Redwire News, Defense Deliveries and Space Infrastructure
Defense demand and space programs must turn into profitable deliveries and cash. On November 4 Redwire reported third-quarter revenue of $109.0 million, a record 32.3% gross margin, a $23.2 million net loss and a record $619.7 million contracted backlog; the results call was held on November 5 at 9:00 a.m. ET. The November 4 regular-session close, before the release, was $7.72 (-4.93% versus November 3).
Full research report · PDF
Redwire ($RDW), research updated November 5, 2026
20 pages · Third-quarter 2026 results: record backlog and gross margin, segment results, cash use and liquidity at September 30, the reaffirmed 2026 forecast, plus defense and space operations, Edge Autonomy, contract accounting, debt and share issuance, price chart to the November 4 close, Health Score. For personal use only: redistribution prohibited.
Latest company event · next dated catalyst not announced
November 5, 2026 · results call held at 9:00 a.m. ET
Redwire reported September-quarter results after the November 4 market close and reviewed them on a call November 5 at 9:00 a.m. ET, with a live-streamed slide presentation. As of November 5 no later company-dated event had been announced. Primary source
Contracted backlog was $619.666M at September 30, against $542.127M at June 30, while third-quarter operating cash outflow was $63.590M. The results release does not update ATM use or debt principal.
RDW stock at a glance
Close · November 4, 2026
$7.72
Regular session; -4.93% versus $8.12 on November 3. Q3 results were released after the close.
Calculated equity value · November 4
$1.931B
November 4 close multiplied by 250,181,098 common shares issued and outstanding at September 30 (Merlintrader calculation); potential dilution excluded.
Cash incl. restricted · September 30
$488.866M
Cash, equivalents and restricted cash; total liquidity of $538.9M includes $50.0M of available borrowings. June unrestricted cash was $556.967M.
Balance-sheet debt · September 30
$47.002M
Carrying value: $4.500M short-term plus $42.502M long-term, net (Merlintrader sum). June 30 principal was $48.875M.
Q3 2026 revenue
$109.035M
Quarter ended September 30; +5.4% versus $103.432M a year earlier and below $117.074M in Q2.
Q3 2026 gross margin
32.3%
A record, per the company; 16.3% a year earlier and 27.8% in Q2. Different from operating profit and net income.
Contracted backlog · September 30
$619.666M
$542.127M at June 30; Q3 book-to-bill 1.73. Requires execution; does not equal current revenue or cash.
Unused ATM capacity · June 30
$350.4M
Potential gross issuance capacity remaining under the June program.
Where Redwire stands now
Redwire combines defense products and space infrastructure after the Edge Autonomy acquisition. September-quarter revenue was $109.035M with a 32.3% gross margin, but net loss was $23.178M, adjusted EBITDA negative $5.290M and quarterly operating cash outflow $63.590M. After $323.081M of revenue in the first nine months, the company reaffirmed its 2026 revenue forecast of $450 million to $500 million. Revenue growth, segment performance and consolidated cash generation are different measures. Primary source
Backlog and contract ceilings differ from realized cash and profit. Contract estimates, inventory, customer advances, integration and milestone collections can change cash conversion. Framework awards and memoranda do not guarantee quantified revenue.
The constructive case
A record $619.7M backlog, defense-product orders, deployed space hardware and $488.9M of cash at September 30 can support execution and expansion if deliveries and margins hold.
The cautious case
Operations consumed $95.192M of cash in the first nine months despite record gross margin. Contract assets and inventory rose to $84.770M and $99.778M at September 30, from $44.019M and $55.847M at December 31, and acquisition integration also absorbs capital, while substantial unused ATM capacity permits further common-share issuance.
Latest Redwire news
Nov 5, 2026
Redwire awarded $20 million contract for additional Otter VLEO testing and experimentation
Redwire has been awarded a $20 million contract for additional Otter VLEO testing and experimentation.
Nov 4, 2026
Redwire reports third quarter 2026 financial results, expands backlog
Redwire reported third quarter 2026 revenues of $109.0 million, up 5.4% year-over-year, with gross margin of 32.3% compared to 16.3% a year earlier. Backlog reached $619.7 million, and Book-to-Bill increased to 1.73. Net loss improved by $18.0 million to $(23.2) million, and the company reaffirmed its 2026 revenue forecast of $450 million to $500 million.
Oct 30, 2026
Vanguard Capital Management reports a September ownership position
The new Schedule 13G reports 12,513,016 beneficially owned shares, equal to 5%, with September 30 as the event date. Sole voting power covers 1,877,095 shares. The ordinary-course filing has no stated control purpose; it is not evidence of purchases on October 30.
Oct 29, 2026
Third-quarter 2026 results on November 4, conference call on November 5
The company scheduled third-quarter results after market close on November 4, with the conference call November 5 at 9:00 a.m. ET. The announcement sets the reporting calendar without supplying quarterly results.
Oct 21, 2026
MOU with EnduroSat for European space infrastructure
Redwire and EnduroSat signed a memorandum on European space infrastructure. Cooperation and possible capabilities differ from a quantified binding order or recognized revenue.
Oct 15, 2026
About $13.8 million of Stalker UAS orders for the National Guard
Redwire announced approximately $13.8M of additional Stalker UAS orders for the U.S. National Guard. Financial contribution depends on delivery, production economics and customer acceptance.
RDW stock catalysts: quarterly reporting and contract conversion
- November 4, 2026 · after market close — Third-quarter results reported: revenue $109.0M, gross margin 32.3%, net loss $23.2M, contracted backlog $619.7M; 2026 revenue forecast of $450M–$500M reaffirmed. Completed
- November 5, 2026 — $20 million DARPA contract for additional Otter VLEO testing and experimentation on a scaled SabreSat spacecraft announced; $64 million in total with the 2025 Phase 2 award. Contract award · not recognized revenue
- November 5, 2026 · 9:00 a.m. ET — Results conference call held, with a live-streamed slide presentation. Completed
- Operating delivery schedules — Defense orders and space hardware must progress through production, delivery and collection. Contract-specific execution
- October 30 filing / September 30 position — Vanguard Capital Management reports 12,513,016 beneficially owned shares, or 5%. Dated ownership disclosure, not purchases on the filing date
Defense and space contracts: the revenue and cash distinction
The October Stalker UAS orders totaled about $13.8M. The EnduroSat memorandum concerns possible European infrastructure cooperation, while the NITE-STAR vehicle has a shared ceiling and does not guarantee Redwire revenue. Honda’s robotics concept discloses neither a quantified Redwire contract nor a confirmed integrated flight date.
September-quarter gross margin of 32.3% accompanied consolidated net loss of $23.178M and adjusted EBITDA of negative $5.290M, while research and development expense rose to $14.396M from $7.693M a year earlier. Quarterly operating cash outflow was $63.590M and free cash outflow $66.354M, against $24.936M and $35.341M in the June quarter. Third-quarter contract awards totaled $188.656M, a 1.73 book-to-bill ratio. On November 5 Redwire detailed one of the awards cited in the results: a $20 million DARPA contract under the Otter program for additional testing and experimentation on a scaled version of its SabreSat spacecraft, ahead of a precursor flight test in very low-Earth orbit. It adds a second VLEO flight mission to Redwire’s Otter work and builds on the $44 million Phase 2 contract announced in November 2025, for $64 million in total; contract value is not yet recognized revenue. DARPA Otter award · Primary source · June quarterly report
RDW historical cash, capital capacity and the new ownership filing
At September 30, cash, cash equivalents and restricted cash were $488.866M; with $50.0M of available borrowings, the company reports total liquidity of $538.9M. Nine-month operating cash use was $95.192M, against $31.602M in the first half. Balance-sheet debt was $47.002M at carrying value, against $48.875M of principal at June 30. The June ATM program kept $350.4M unused gross capacity at June 30; the results release does not update that figure. Common shares issued and outstanding were 250,181,098 at September 30. Primary source · June quarterly report
The October 30 Schedule 13G reports Vanguard Capital Management’s September 30 position of 12,513,016 shares, 5% of the class. Sole voting power covered 1,877,095 shares. The filing certifies ordinary-course investment ownership without a control purpose; it reports a dated position rather than purchases made on October 30. Primary source
Merlintrader Health Score · $RDW
3.25out of 5
Assessed November 5, 2026 after the third-quarter release. Weighted calculation: 4.0×30% + 3.5×30% + 2.0×20% + 3.5×10% + 2.5×10% = 3.25. This describes financial and operational robustness over twelve to eighteen months, not an investment recommendation.
Red flags
- Orders, memoranda and shared framework ceilings carry different revenue certainty.
- Contract estimates and working-capital timing can separate revenue from cash.
- The June cash increase depended substantially on financing.
- Unused ATM capacity permits potential future dilution.
- Ownership reports have a position date distinct from their filing date.
RDW Stock FAQ: Redwire Questions Answered
When is the next RDW stock catalyst?
Redwire reported Q3 2026 results after market close on November 4, 2026, and held its results call on November 5 at 9 a.m. ET. As of November 5, no later company-dated event had been announced; backlog conversion, working capital and financing remain the measurable tests, and contract announcements are separate from realized revenue and cash. Details.
How much revenue does Redwire make, and is it profitable?
Redwire reported $109.035 million revenue and a $23.178 million net loss, or $0.09 per share, for the quarter ended September 30, 2026. Adjusted EBITDA was negative $5.290 million. Nine-month revenue was $323.081 million, and the company reaffirmed its 2026 revenue forecast of $450 million to $500 million. Defense Tech’s positive segment adjusted EBITDA excludes corporate costs and differs from consolidated profitability. Details.
How much cash does Redwire have, and how long will it last?
Redwire reported $488.866 million of cash, cash equivalents and restricted cash at September 30, 2026, and total liquidity of $538.9 million including $50.0 million of available borrowings. Nine-month operating cash use was $95.192 million, of which $63.590 million in the third quarter. Broader liquidity includes resources beyond bank cash, while deployment and working-capital spending prevent treating a historical balance as current runway forecast. Details.
Is RDW stock at risk of dilution?
Yes: Redwire’s June 30, 2026 filing reports $350.4 million unused gross ATM capacity, after about $149.6 million sold under its June program. Across three programs, first-half sales totaled a calculated 40,253,405 shares and $564.7 million gross proceeds. Unused capacity is potential issuance, rather than cash received; later sales are reported in subsequent filings. The September 30 balance sheet in the November 4 results release shows 250,181,098 common shares issued and outstanding. Details.
When does Redwire report earnings?
Redwire reported Q3 2026 results after the November 4, 2026 market close and held its earnings call on November 5 at 9 a.m. ET. The release covers the period ended September 30, with revenue, margins, cash conversion and financing as separate measures. Details.
What does Redwire do?
Redwire supplies defense products and space infrastructure, including uncrewed systems and spacecraft technologies, following its Edge Autonomy acquisition. Orders, shared contract ceilings and memoranda represent different stages of commercial certainty; execution, customer acceptance and collections determine realized revenue and cash. Details.
Did Honda announce a quantified Redwire contract?
No: Honda’s October 1, 2026 announcement describes an orbital research robotics concept without a quantified Redwire contract value, a station customer or a confirmed integrated flight date. The concept is separate from a funded production order or revenue recognized by Redwire. Details.
Does Redwire’s NITE-STAR contract guarantee revenue?
No: Redwire’s September 24, 2026 announcement names it as one of fifteen suppliers on a contract vehicle valued above $980 million, with no revenue guarantee. Actual work depends on future funded task orders; the shared ceiling is separate from Redwire backlog, recognized sales or cash received. Details.
Primary sources
- November 5, 2026 — $20 million DARPA contract for additional Otter VLEO testing and experimentation
- November 4, 2026 — Third-quarter 2026 results: revenue, record gross margin and backlog, liquidity, reaffirmed 2026 forecast (Form 8-K, Exhibit 99.1)
- October 30, 2026 — Vanguard Capital Management reports a September ownership position
- October 29, 2026 — Third-quarter 2026 results on November 4, conference call on November 5
- October 21, 2026 — MOU with EnduroSat for European space infrastructure
- October 15, 2026 — About $13.8 million of Stalker UAS orders for the National Guard
- October 12, 2026 — Final pair of ROSA wings heads to the space station
- October 5, 2026 — Axiom orders solar wings for its second station module
Disclaimer. This content is published by Merlintrader for educational and informational purposes only. It is independent educational research. It does not constitute investment advice, an investment recommendation, an offer or a solicitation to buy or sell any security, and it is not a research report within the meaning of applicable United States securities regulation. Nothing here should be read as a recommendation to buy, sell or hold $RDW or any other security.
Figures are taken from public filings with the U.S. Securities and Exchange Commission, company press releases and market-data providers, and are stated with their reference dates. Data can change without notice, and figures published before a results release become outdated the moment that release is issued. Merlintrader makes no representation that the information is complete or current at the time of reading. Readers should verify every figure against the primary source before acting on it.
Defense, space and technology companies carry procurement, execution, regulatory and financing risks. Government orders can be delayed or cancelled, production can exceed budget, export restrictions can limit sales, and acquisitions may fail to produce the expected returns. Contract announcements do not guarantee profitable deliveries or cash collection. Additional borrowing or equity issuance can increase obligations or dilute existing shareholders. Investors can lose part or all of their capital. Every reader is responsible for their own decisions and should consult a licensed financial adviser where appropriate.
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