Redwire’s headquarters in Jacksonville, Florida. Photo: Redwire

Redwire Corporation reported a 30% year-over-year decline in revenue in the first quarter of 2025 as leadership reported delays in contract awards from the U.S. government. Redwire reported $61.4 million in revenue in Q1, compared to $87.8 million in the same time last year. 

CEO Peter Cannito told investors on Monday the company saw “notable delays” from the U.S. government “due to the transition of key decision makers in NASA, Space Development Agency, and other agencies.” 

“We believe these delays are temporary, based on analysis of the Presidential budget request that includes funding for key space and defense programs like Golden Dome. We remain optimistic about the future of U.S. national security, space and defense budgets,” Cannito added. 

Redwire also logged $3.1 million of EAC charges during the quarter, which Redwire attributed to additional labor and production costs associated with developing new technologies for customers in its structures and mechanisms and avionics, sensors and payloads infrastructure offerings.

The company narrowed its net loss during the quarter by $5.1 million. Net loss in Q1 was $2.9 million, as compared to a loss of $8.1 million for the first quarter of 2024.

Backlog at the end of the first quarter was relatively flat at $291 million. Redwire noted that 37% of its backlog is from international operations in Europe. 

Cannito also addressed tariffs on the Monday investor call, calling the company’s global manufacturing footprint in local markets around the world a “natural mitigant” against tariffs. He said Redwire is yet to see widespread price increases or shocks due to tariffs and the company is addressing one-off cases with suppliers.

“In some instances, we believe that the current trade environment may lead to both increasing investment in U.S. manufacturing and in European space and defense budgets that could benefit Redwire’s significant manufacturing presence in both regions,” Cannito said. 

Redwire reaffirmed its guidance for 2025, forecasting full year revenue of $535 million to $605 million. This forecast includes the acquisition of Edge Autonomy, which has not yet closed yet. In 2024, Redwire reported $304 million in revenue. 

Redwire CFO Jonathan Baliff said the company believes it is still on track to end the year in this range.

“In 2025 there has been significant commercial market uncertainty, especially in the U.S. defense and government services sector with the incoming new administration, and both Redwire and Edge Autonomy have seen some of our projected wins slip to the right. We acknowledge that there is volatility with the rest of 2025. However, our previous combined forecast was meant to be conservative.”