Redwire, a space infrastructure company, is aiming for continued growth and profitability by securing larger contracts for its components and advancing its satellite design capabilities.
In its financial results for 2023, Redwire reported a revenue of $243.8 million, marking a significant 51.9% increase over the previous year. Even excluding the contribution from QinetiQ Space NV, a company acquired in late 2022, Redwire's revenue still grew by 26.9%. The company also achieved positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $15.3 million, a notable improvement over the adjusted EBITDA loss of $11 million in 2022. While Redwire reported a net loss of $27.3 million in 2023, it was a substantial improvement of $103.4 million compared to 2022.
Redwire executives expressed confidence in their strategy, emphasizing the success of their approach to the space market, which involves acquiring companies that produce spacecraft components and using that foundation for future development. Peter Cannito, CEO of Redwire, stated, “Our heritage-plus-innovation strategy is working… By focusing on the fundamental building blocks of space, we are leading the expanding demand of our customers.”
Cannito highlighted the increasing demand for space infrastructure, driven by the decreasing costs of space access. He mentioned that this demand is coming from various sectors, including national security, lunar exploration, and low Earth orbit satellite constellations.
To continue its growth, Redwire plans to secure larger contracts and expand into new markets. This includes pursuing “winning and delivering on increasingly larger orders,” such as a recent $142 million contract to provide Roll-Out Solar Array (ROSA) systems for an undisclosed satellite manufacturer. Additionally, Redwire is developing a new satellite design called SabreSat for very low Earth orbit (VLEO) missions, aiming to address the growing interest in VLEO satellites for reduced communications latency or improved imaging resolution.
Cannito emphasized that SabreSat is just one example of Redwire's efforts to move up the value chain by designing and developing next-generation spacecraft. The company is also exploring opportunities in new markets, such as microgravity research.
Redwire has forecasted $300 million in revenue for 2024 but did not provide forecasts for earnings or cash flow.